Physical capital means the tangible and long term assets required for the production process. It includes the following:
(a) Tools, machine, buildings: Tools and machines range from very simple tools such as a farmer's plough to sophisticated machines such as generators, turbines, computers etc. Tools, machine, building can be used in production over many years, and are called fixed capital.
(b) Raw materials and money in hand: Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter.

The Palampur village has 450 families belonging to several different castes. The 80 upper caste families own a majority of land in the village. Their houses, are made of bricks and cement plastering. The scheduled caste (dalits) comprise one third of the population and live in the corner of the village. They have small house some of which are of mud and straw.
The level of development is good in Palampur village due to the following:
1. Most of the houses have electric connection
2. Electricity is used for tubewells and small businesses.
3. The village has two primary schools and one high school.
4. There is primary health centre run by the government and one private dispensary where the sick are treated.

1. Palampur is well-connected with neighbouring villages and towns. Raiganj, a big village is 3 kms from Palampur. There is an all weather road that the village to Raiganj and further on to the nearest small town of Shaphur.
2. The modes of transport visible on roads of Palampur are bullock carts, tongas, bogeys, loaded with jaggery, motor vehicles like motorcycles, jeeps, tractors and trucks.

1. The key social and moral value reflected in rural India is unity in diversity. India's vast rural areas are inhabited by people from different culture, religion, caste and regions and yet all of them collectively contribute to the growth and prosperity of the country.
2. Also, economic structure of rural India makes it imperative on all people to collaborate with each other. There are self help groups which work towards generating employment for the rural people. Government has taken steps to improve the living conditions in rural India to reduce migration to urban areas and bring a sense of unity amongst the village folks.

I talked to some old farmers in my region and got to know the following on the changes in irrigation and changes in production methods in the last 30 years.
1. Changes in irrigation method. Earlier irrigation was dependent on rains, canals etc. There was no water supply to use for farm land. Nowadays, irrigation is done using tube wells, pump sets. Water is supplied to the farm land using pump sets to ensure that regular irrigation of farm land takes place.
2. Changes in the production method. Production method has changed a lot under modern farming methods over the last 30 years.
(i) Use of high yielding variety (HYV) of seeds.
(ii) Use of pesticides
(iii) Use of chemical fertilizers.
(iv) Use of modern irrigation facilities through tube wells and canals
(v) Use of tractors in the farm land for plowing, seeding etc.
(vi) Use of harvest combine.

Farming is the main activity of the village Palampur. There are other activities such as small scale manufacturing, dairy, transport etc. Which is carried out on a limited scale .These production activities need various types of resources like natural resources, man-made resources, money etc.

Kishora is involved in three production activities i.e., primary activities (selling buffalo's milk), second activities (bring clay for potter) and tertiary activities (transporter)

His working capital would be buffalo's milk, and clay.

Kishora's fixed is his buffalo

Kareem's capital is invested in computers which is technologically advanced as compared to Mishrilal sugarcane crusing machine. Also Kareem hired educated and skilled person for teaching in his computer institute. On the other hand, Mishrilal need semi-skilled labour to run his machine.

In this case, landless farmers are used as labour for the jaggery manufacturing unit.

The following are the different ways of increasing production on the same piece of land:
(i) Modern farming method It helps in increasing the yield of the land. For example, use of High yield variety (HYV) of seed, pesticides, chemical fertilizers help in increasing the land productivity.
(ii) Multiple Cropping.  Under multiple cropping system , more than one crop is grown on a piece of land. It increases the production on same piece of land. For example, wheat, bajra and potato can be grown on the same piece of land.

The following are the different ways of increasing production on the same piece of land:
(i) Modern farming method It helps in increasing the yield of the land. For example, use of High yield variety (HYV) of seed, pesticides, chemical fertilizers help in increasing the land productivity.
(ii) Multiple Cropping.  Under multiple cropping system, more than one crop is grown on a piece of land. It increases the production on same piece of land. For example, wheat, bajra and potato can be grown on the same piece of land.

Yes, it is important to increase area under irrigation. This is due to following reasons:
(i) Agricultural land can be used during off rainy season.
(ii) Crop losses can be avoided due to less rain or rain during monsoon season.
(iii) Framers can be provided with security against lack of rains.
(iv) Irrigation facility retains land fertility for longer use.

The spread of electricity helped farmers in Palampur to run tubewells, pump sets for irrigation of fields. This way farmers can grow crops during non-rainy season. Electricity also helped in running machines like sugarcane crusing machine to help jaggery plant.