1. Land (Natural Resources)
In economics, ‘Land’ is not just the ground we stand on. It encompasses all natural resources gifted by nature.
- Scope: Includes geographical land, soil, forests, water, air, sunlight, minerals, oil, and natural gas.
- Usage: Businesses either purchase land or pay rent to use it.
- Example: A factory needs ground to be built on, water for cooling machines, and electricity (often generated from coal or gas).
2. Labour (Human Resources)
Labour refers to the physical and mental effort used in production. Everyone contributes differently based on their role.
- Examples: Carpenters, farmers, teachers, doctors.
- Requirement: Varying levels of physical strength, knowledge, and skill.
People as a Resource vs. Human Capital
While Labour refers to the effort, Human Capital refers to the quality of that effort.
- Human Capital: The specialized skills, knowledge, abilities, and expertise required to perform labour efficiently.
- Skill: The ability to do an activity or job well with practice and training.
Tip
Key Distinction
- Labour: Physical/Mental work done (e.g., hours spent building a wall).
- Human Capital: The skill set that makes the work better/faster (e.g., knowledge of engineering principles to build a stronger wall).
India’s Ancient Skill Heritage
India has a rich legacy of skill-based knowledge.
- Work as Worship: Tools were worshipped (Vishwakarma puja / Ayudha puja). Products were a blend of kala (art) and vidya (knowledge).
- Shilpa Shastras: Ancient texts containing detailed design guidelines for sculptures, buildings, and paintings.
- Stitched Shipbuilding: A 2000-year-old technique where wooden planks were stitched with cords instead of nails. This made ships flexible and durable for navigating the Indian Ocean.
Warning
Decline of Indigenous Techniques Many traditional techniques, like stitched shipbuilding, declined after the arrival of Europeans in the 16th century but are still used for small fishing boats today.