What does Economic Survey 2015-16 mean by ‘exit problem’ mentioned as part of Chakravyuha Challenge being faced by the Indian economy?
a) Indian economy has no alternative to liberalization
b) Indian economy allows for ease of entry of firms but exit of inefficient firm is limited
c) Indian economy cannot exit from prerogative of Socialistic ideals
d) Indian economy cannot exit the problem of structural inefficiencies
The correct answer for yesterday’s question is 2
The explanation is as follows:
For the purpose of economic calculations such as GDP, GNP, GVA etc. the concept of economic territory is used in place of political or geographical territory. The Economic territory of India includes the following: Political / geographical boundaries of India including territorial waters and air space within which persons, goods, services and capital move freely Territorial enclaves such as embassies, consulates, military bases, scientific bases etc. which are located abroad but excluding similar conclaves of other countries within the political boundaries of India. Ships, aircrafts etc. operated by the Indian residents between two or more countries Fishing vessels, oil and natural gas rigs etc. operated by the resident Indians in the international waters or other areas over which the country enjoys the exclusive rights or jurisdiction such as territorial waters and exclusive economic zone, continental shelf etc.