Q.Define Gross Domestic Product (GDP). Write the basic expenditure identity used to express GDP.

(a) SEZs are duty-free export enclaves set up to promote exports, attract FDI, create jobs and build infrastructure, with tax concessions and single-window clearance under the SEZ Act 2005. (b) The qualitative aspects of population are the health, education, skills, life expectancy and standard of living that determine the quality and productivity of a country's human resource.

PART (a): Objectives and characteristics of Special Economic Zones (SEZs)

A Special Economic Zone (SEZ) is a specially demarcated, duty-free geographical region set up to promote economic activity, established in India under the SEZ Act, 2005.

Objectives of SEZs:

1. Promotion of exports — to increase exports of goods and services and earn foreign exchange.
2. Attracting foreign investment (FDI) — to draw in foreign and domestic investment.
3. Generation of employment — to create additional job opportunities.
4. Development of infrastructure — to build world-class infrastructure facilities.
5. Boosting economic growth — to promote industrialisation and overall economic development.
6. Transfer of technology and skills.

Characteristics of SEZs:

1. They are treated as foreign territory for the purposes of trade operations, duties and tariffs.
2. Goods going into an SEZ are treated as exports and are largely duty-free.
3. Tax concessions and incentives are given to units in SEZs.
4. Single-window clearance for setting up units (simplified procedures).
5. Provision of world-class infrastructure — roads, power, telecom, water.
6. Relaxed rules to encourage manufacturing, services and exports.

PART (b): Qualitative aspects of Population

While the quantitative aspect of population deals with numbers, the qualitative aspect deals with the quality, efficiency and capability of the people — i.e. the quality of human resources. Its main elements are:

1. Health — good physical and mental health raises working efficiency; better nutrition and medical care improve quality.
2. Education and literacy — a literate, educated population is more skilled and productive. …