What do you mean by capital formation?

Capital formation means creation of more capital goods like heavy machineries, factories, infrastructure, production of more electricity etc. You can read about the Human Capital Index – Key Areas of Measurement, Objectives and Significance in the given link.

Further readings:

1. Topic-Wise GS 3 Questions for UPSC Mains
2. Human Development Report – HDR 2020, 5 Indices, Gender Development Index