How to produce' is a problem of choice related to the technique of production. Broadly, one is to choose between labour intensive technique' and 'capital intensive technique'. Labour intensive technique uses more of labour per unit of capital whereas capital intensive technique uses more of capital per unit of labour. In India, labour is abundant in relation to capital. While focusing on an ideal ratio between labour and capital, so as to obtain the maximum output per unit of input, labour would remain unutilised or unemployed. Thus, less developed countries like India often face the problem of unemployment while tackling the problem of 'how to produce'.