| Human Capital | Human Development |
| 1. It means investing in human beings as we do in physical capital in order to get future returns in the form of higher productivity and earnings. | 1. It refer to the overall development of human beings which incudes political and economic,social, spiritual sapects of their living. |
| 2. It considers education and health as the meansto increase labour productivity. | 2. It is based on the idea that education & health are integral to human well being. |
| 3. It treats human beings as a means to an end, the end being the increase in productivity. | 3. It treats human beings as ends themselves. |
| 4. It is a narrow concept | 4. It is a broader cocept. |