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The Study of the Challenges of Capital Formation in Indian Economy

ANWESH: International Journal of Management & Information Technology

Volume 4 Issue 2

Published: 2019
Author(s) Name: Somprabh Dubey and Vishal Bishnoi | Author(s) Affiliation: Assistant Prof., School of Business Studies & Entrepreneurship, Shobhit Univ, Gangoh, Uttar Pradesh
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Abstract

Capital formation involves a sacrifice of immediate consumption for obtaining more consumable goods in future while capital is that part of the current product which is used for further production instead of being immediately consumed. This paper seeks to know about trend as well as process of savings and capital formation in Indian Economy. Actually, capital formation refers to increasing the stock of real capital which obviously helps in raising the level of production of goods and services. This study reveals that the essence of the process of capital formation is the diversion of a part of society’s currently available resources to the possible an expansion of consumable output in future. This paper studies the various components and aspects of capital forming process and its constituents with regard to Indian Economies such as savings of household sectors, gross domestic capital formation by industries, gross domestic capital formation and formation of human capital etcetera.

Keywords: Capital formation, Human capital, Immediate consumption, Real capital.

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