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