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Unit 4: Capital Formation

Industrial Entrepreneurship Memorandum: ISO 9000: Family of standards represents an Notes
international consensus on good management practices with the aim of ensuring that the
organization can time and time again deliver the product or services that meet the client’s
quality requirements.
NIPA: National income and product accounts.
Planning: The process of making plans for something.

SEBI: Securities and Exchange Board of India.

4.8 Review Questions

1. Define capital formation.
2. Explain the role of capital formation in the development of Indian economy.

3. What is the trend of saving and capital formation?
4. What do you understand by growth rate and saving rate?
5. What is the importance of ICOR in the development of Indian economy?
6. Explain briefly the mobilization of domestic saving.

Answers: Self Assessment

1. capital formation 2. spent
3. productive capacity 4. promotes

5. refined, modified and expanded 6. complex
7. the amount of money Americans 8. inefficient
are saving or investing

9. ICOR

4.9 Further Readings

Books Planning Commission, (2006), An Approach to the 1st Five Year Plan.
Planning Commission (2007), Eleventh Five Year Plan (2007-12), Vol. I, II and III.
Guruswamy, Mohan & Abraham Ronald (2006), Redefining Poverty - A New Poverty
Line for a New India.
Bagchi, Amiya Kumar, Banerjee, Devadas and Chakraborty, Achin A (2006) Critique
of the Approach Paper to Eleventh Plan, Economic and Political Weekly.

Online links http://www.eng.chauthiduniya.com/planning-in-india-the-eleventh-five-year-
plan-2007-2012/
http://www.mainstreamweekly.net/article1600.html

http://www.todpoint.com/view-article.php?cid=1&pid=34
http://www.bjp.org/images/upload/publications/ruddar_datt_e.pdf

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