ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The GDP of a country tends to increase when the total value of goods and services that domestic producers sell to foreign countries exceeds the total value of foreign goods and services that domestic consumers buy. When this situation occurs, a country is said to have a trade surplus.

Detailed explanation-2: -There are two ways to increase GDP: (1) by increasing the production components that researchers use in the manufacturing process and (2) by raising the efficiency of the inputs. This could be by improving productivity by producing innovative goods or by introducing new manufacturing methods.

Detailed explanation-3: -Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.

Detailed explanation-4: -There is positive correlation between FDI and GDP and mentioned that FDI played a significance role in the growth of the economy. Foreign direct investment played a vital role in the long-term development of a country. Government of India should liberalize their FDI policy in order to generate more FDI.