Python packages are collections of files and directories that contain code, documentation, and other necessary files. They provide a way to share and reuse code in the Python community, making it easier to organize and maintain complex projects. A package is simply a directory with an `__init__.py` file that tells Python to treat it as a package. The `__init__.py` file can be used to initialize the package or set up its components. Python packages are managed using pip, which allows users to install and manage packages from the Python Package Index (PyPI) and other package indexes. Relative imports allow you to import modules relative to the current module, while absolute imports use the full path of the module or package being imported. Understanding how to manage dependencies effectively is crucial for writing robust and maintainable code in Python.