Distinction between Physical Capital and Human Capital.
| Physical Capital | Human Capital |
| (i) It increases physical goods. | (i) It increases knowledge and efficiency |
| (ii) It is a economic and technical process. | (ii) It is partly a social process. |
| (iii) Physical capital is tangible. | (iii) Human capital is intangible |
| (iv) It can be sold in the market. | (iv) It can’t be sold in the market. |
| (v) The physical capital is separable from its owner. | (v) Human capital is not separable from its owner. |
| (vi) Physical capital formation can be built even through imports | (vi) Human capital formation is to be done through conscious policy formulations. |