Q.What is deforestation?

GDP measures market transactions, so activities outside formal markets like barter, household services, and illegal dealings are excluded, leading to an underestimation of the true economic output.

Domestic service matches (b) Non-monetary exchange.

Domestic services rendered within one's own household — for example, the unpaid work done by a homemaker — do not pass through the market and involve no money payment. They are therefore a form of non-monetary (non-market) exchange and are one reason GDP understates true economic welfare, since such valuable services a …

China's 'One Child Norm' (introduced in 1979) was a strict population control policy that successfully slowed population growth and helped raise per-capita income, but it also produced serious long-term demographic side-effects.

Important implications:

1. Sharp decline in population growth rate: By restricting most couples to a single child, China achieved a much faster reduction in its fertility and population growth rate compared to India, which did not adopt a similarly strict policy.

2. Higher growth of per-capita income: Since GDP grew while population growth slowed down sharply, China's per-capita income rose faster — a smaller population meant national income had to be divided among fewer people.

3. Demographic imbalance (ageing population): With fewer children being born, the proportion of elderly people in the population has been rising rapidly, creating a growing dependency burden and labour-shortage concerns for the future.

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Deforestation is large-scale forest clearing for non-forest use — a textbook example of why GDP growth alone does not capture environmental cost.

Deforestation refers to the cutting down and clearing of forests on a large scale, usually to free up land for agriculture, mining, industry, roads, dams, or urban settlement. While the economic activity that follows (farming output, construction, industrial production) does add to measured GDP, deforestation itself causes real economic and environmental costs that GDP does not record: loss of biodiversity and wildlife habitat, soil erosion and reduced soil fertility, disruption of the water cycle and rainfall patterns, and a reduced capacity of forests to absorb carbon dioxide, contributing to climate change. This is exactly why GDP is considered a limited measure of economic welfare — an economy can show rising GDP even while depleting natu …

Renewable (non-conventional) energy technology — solar, wind, biogas — is the eco-friendly technology essential for sustainable development.

Sustainable development requires meeting the needs of the present generation without compromising the ability of future generations to meet their own needs. Fossil fuels (coal, oil, natural gas) are exhaustible and polluting, so continued reliance on them undermines sustainability. Renewable or non-conventional energy technologies — solar power, wind energy, biogas/biomass energy, and small hydro — are eco-friendly because they generate power with minimal pollution and do not deplete finite resources; they can be replenished naturally and used indefinitely. Promoting such technology (alongside measures like CNG …

Import substitution protected India's infant domestic industries from foreign competition so they could grow and the country could achieve industrial self-reliance.

In the pre-1991 period, the Government of India followed an inward-looking trade strategy built around import substitution: domestically produced goods were actively encouraged to replace goods that would otherwise be imported, backed by high tariff walls and import licensing. The policy rested on the 'infant industry' argument — newly set-up domestic industries could not yet compete with established, more efficient foreign producers, so they needed temporary protection from foreign competition to grow, achieve economies of scale and become internationally competitive over time. It was also tied to the broader goal of attaining self-reliance (Swadeshi/self-sufficiency) …

Economic growth means a sustained rise in a country's real output (real GDP) over time.

Economic growth is a quantitative concept — it refers to a steady, measurable increase in the volume of goods and services an economy produces, usually tracked through the growth rate of real GDP (GDP adjusted for price changes) or real per-capita income, over a year or a longer period. It says nothing, by itself, about how that extra output is used, who benefits from it, or whether living standards, quality of life or the environment actually improved — those broader, qualitative concerns fall under the related but distinct idea of economic development. A country can reg …

Externalities are unpriced spillover effects of production or consumption on third parties who are not party to the transaction.

When a firm produces or a consumer consumes a good, it can affect people who are not directly involved in that market transaction — and since no price is charged or paid for this effect, it never shows up in market transactions or in GDP.

• Negative externality: imposes an unpriced cost on others — e.g. a factory discharging effluents into a river harms downstream fishermen and villagers' health, but the factory pays nothing for this damage, and GDP (which only counts the value of goods sold) does not subtract it.
• Positive externality: confers an unpriced benefit on others — e.g. a well-educated population raises the general productivity and civic life of society beyond the private gain to the educated individual, but this spillover benefit is not separately counted in GDP either. …

HDI is a composite index with three dimensions — health, education, and standard of living — each measured by specific indicators.

The Human Development Index (HDI), published by UNDP, was designed to go beyond a narrow income measure of development. It combines indicators across three dimensions:

1. A long and healthy life — measured by life expectancy at birth.
2. Knowledge/education — measured by mean years of schooling (for adults 25 years and older) and expected years of schooling (for children of school-entry age).
3. A decent standard of living — measured by Gross National Income (GNI) per capita, adjusted for purchasing power parity (PPP). …

Organic farming grows crops using natural, chemical-free inputs and practices to keep the soil and ecosystem healthy over the long run.

• Organic farming substitutes synthetic chemical fertilisers and pesticides with natural alternatives — farmyard manure, compost, vermicompost, bio-fertilisers, green manuring, and natural methods of pest and weed control (crop rotation, intercropping, biological pest control).
• It also generally avoids genetically modified seeds, aiming to work with natural soil and ecosystem processes rather than overriding them with chemical inputs.
• It is promoted in India's development discourse as part of sustainable development — it helps maintain long-run soil fertility and reduces the environmental damage (soil degradation, water pollution, loss of biodiversity) associated with decades of heavy chemical fertiliser and pesticide use since the Green Revolution. …