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Importance of Land

• Provides raw materials

• Supports farming and industries

• Essential for production
Labour (Human Resources)

Labour refers to the physical and mental effort used to produce goods and services. Workers like
farmers, teachers, doctors, and carpenters contribute through their skills and knowledge.

Skill

A skill is the ability to perform a job well through practice and training.

Human Capital
Human capital means the knowledge, skills, abilities, and expertise that improve the quality and
efficiency of labour.

Facilitators of Human Capital

1. Education and Training

Education increases knowledge, while training develops practical skills required for jobs.

2. Healthcare
Good health improves learning ability, productivity, and work efficiency.

3. Social and Cultural Influences

Values like discipline, punctuality, and continuous improvement help improve human capital.

Demographic Dividend

India has a large young population. When educated, skilled, and healthy, this population can increase
economic growth and improve living standards.

Capital

Capital refers to money and human-made resources used to produce goods and services. It includes
assets such as machinery, tools, equipment, vehicles, computers, factories, shops, and office
buildings.
Businesses need capital for their daily operations and growth. For example, a business may need
money to buy furniture, machines, or raw materials.

Sources of Capital

Businesses obtain capital from different sources such as:

• Personal savings
• Family and friends

• Bank loans