With reference to physical capital in Indian economy, consider the following pairs:

Correct Option

Pairs 2 and 4 are correctly matched.

• Pair 2 (Computer - Fixed capital): A computer is a durable asset used over an extended period in the production process. It is not consumed in a single production cycle and contributes to output over multiple cycles, thus qualifying as fixed capital.
• Pair 4 (Petrol - Working capital): Petrol is a raw material or input that is consumed entirely in a single production process or operation (e.g., as fuel for machinery or transport). It requires frequent replenishment and is therefore classified as working capital.

Incorrect Options

• Pair 1 (Farmer's plough - Working capital): A farmer's plough is a tool that is durable and used across multiple cropping seasons. It is not consumed in a single use and does not need to be replenished after each season. Therefore, it is an example of fixed capital, not working capital.
• Pair 3 (Yarn used by weaver - Fixed capital): Yarn is a raw material that is completely transformed or consumed in a single production cycle to produce cloth. It needs to be replenished frequently for continuous production. Hence, it represents working capital, not fixed capital.