Economic role of government in Indian Business

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Economic role of government in Indian Business

  1. 1. ECONOMIC ROLE OF GOVERNMENT IN INDIAN BUSINESS ECONOMIC ROLE OF GOVERNMENT IN INDIAN BUSINESS George V James
  2. 2. INTRODUCTION  Economic role is basically concerned with the economic development of the nation by framing rules and regulations.  Government always plays a very important role in the development of the economy.  In capitalist countries, government participation was increased after the Great Economic Depression in the 1930’s.  The most important roles of any Government are Stability & Growth.  Economic role is basically concerned with the economic development of the nation by framing rules and regulations.  Government always plays a very important role in the development of the economy.  In capitalist countries, government participation was increased after the Great Economic Depression in the 1930’s.  The most important roles of any Government are Stability & Growth.
  3. 3. FACTORS DETERMINING THE NATURE OF ROLE OF GOVERNMENT  Nature & stage of development of the economy.  Behaviour of private sector.  Political Philosophy.  Social Attitudes.  Administrative Systems, etc  Nature & stage of development of the economy.  Behaviour of private sector.  Political Philosophy.  Social Attitudes.  Administrative Systems, etc
  4. 4. ROLE OF GOVERNMENT GOVERNMENT REGULATIONREGULATION PROMOTION ENTREPRENUERSHIPPROMOTION ENTREPRENUERSHIP BUSINESS/ECONOMY
  5. 5. GOVERNMENT’S ROLE AS REGULATOR OF BUSINESS Ensure the private investment and production in the industry meets the socio-economic objectives of the government. Ensure the efficient use of resources and prevent exploitation. Restraints on private activities. Control of monopoly & big business. Development of public enterprises as an alternative to private enterprises to ensure competitive dualism. Maintenance of a proper socio-economic infrastructure. Ensure the private investment and production in the industry meets the socio-economic objectives of the government. Ensure the efficient use of resources and prevent exploitation. Restraints on private activities. Control of monopoly & big business. Development of public enterprises as an alternative to private enterprises to ensure competitive dualism. Maintenance of a proper socio-economic infrastructure.
  6. 6. GOVERNMENT’S ROLE AS PROMOTER OF BUSINESS Providing finance to the industry.(through developmental banks etc.) Granting incentives. Creating infrastructural facilities for industrial growth & investment. Promoting development in No Industry Districts Establishing District Industrial Centres for assisting the development of small industries. Providing finance to the industry.(through developmental banks etc.) Granting incentives. Creating infrastructural facilities for industrial growth & investment. Promoting development in No Industry Districts Establishing District Industrial Centres for assisting the development of small industries.
  7. 7. GOVERNMENT’S ROLE AS AN ENTREPRENUER IN BUSINESS  Mainly concerned with growth & development of public industries.  Has earned the name of a “SOCIAL ENTREPRENUER”  BSNL can be a best example for the above stated term.  Mainly concerned with growth & development of public industries.  Has earned the name of a “SOCIAL ENTREPRENUER”  BSNL can be a best example for the above stated term.
  8. 8. GOVERNMENT’S ROLE AS A PLANNER IN BUSINESS  Indicating priorities through the Five Year Plans for the sectoral allocation of resources.  Ensuring the equal distribution of scare resources to all the sectors in order to avoid clashes.  Indicating priorities through the Five Year Plans for the sectoral allocation of resources.  Ensuring the equal distribution of scare resources to all the sectors in order to avoid clashes.
  9. 9. GOVERNMENT’S ROLE REDEFINED  POVERTY  UNEMPLOYMENT  INRASTRUCTURAL FACILITIES  POVERTY  UNEMPLOYMENT  INRASTRUCTURAL FACILITIES
  10. 10. POVERTY IN INDIA
  11. 11. CONT.  India is said to have a 3rd of the world’s poor.  37% of Indian Population is below the poverty line.(BPL)  Kalahandi, Bolangir & Koraputh( Known as KBK Districts in Odisha) are the most poverty affected areas.  Kerala stands last in the poverty line.(We can be proud of that)  Some reasons of poverty are:- 1. High Population Growth 2. Caste System 3. India’s economic policies 4. Liberalization and its effects  India is said to have a 3rd of the world’s poor.  37% of Indian Population is below the poverty line.(BPL)  Kalahandi, Bolangir & Koraputh( Known as KBK Districts in Odisha) are the most poverty affected areas.  Kerala stands last in the poverty line.(We can be proud of that)  Some reasons of poverty are:- 1. High Population Growth 2. Caste System 3. India’s economic policies 4. Liberalization and its effects
  12. 12. CONT. REDUCING POVERTY  Employment opportunities  Agricultural Development  Primary Education & Good Infrastructural Facilities  Poverty alleviation programs like National Rural Employment Program, Rural Landless Employment Guarantee Program, Jawahar Rojgar Yojna etc REDUCING POVERTY  Employment opportunities  Agricultural Development  Primary Education & Good Infrastructural Facilities  Poverty alleviation programs like National Rural Employment Program, Rural Landless Employment Guarantee Program, Jawahar Rojgar Yojna etc
  13. 13. UNEMPLOYMENT
  14. 14. CONT.  There are more than 6 crore well educated youth in India who are unemployed.  Reasons for Unemployment:- 1.Rapid Population Growth 2. Defective Education System 3. Limited Land 4. Seasonal Agricultural 5. Outdated Agricultural Methods 6. Inadequate Employment Planning  There are more than 6 crore well educated youth in India who are unemployed.  Reasons for Unemployment:- 1.Rapid Population Growth 2. Defective Education System 3. Limited Land 4. Seasonal Agricultural 5. Outdated Agricultural Methods 6. Inadequate Employment Planning
  15. 15. CONT. Strategies undertaken by Government to reduce Unemployment in India  Heavy Investment in Basic Industries.  Development of Cottage & Small-scale Industries.  Change in Educational System.  Checking of Population Explosion.  Modernization of Agriculture.  Introduction of Rural Works Programmes.  Developing Infrastructure.  Subsidies to Private Sector.  Stress on Self-employment. Strategies undertaken by Government to reduce Unemployment in India  Heavy Investment in Basic Industries.  Development of Cottage & Small-scale Industries.  Change in Educational System.  Checking of Population Explosion.  Modernization of Agriculture.  Introduction of Rural Works Programmes.  Developing Infrastructure.  Subsidies to Private Sector.  Stress on Self-employment.
  16. 16. INFRASTRUCTURAL DEVELOPMENT
  17. 17. CONT. Infrastructure can be divided into 2 types:-  Economic Infrastructure  Social Infrastructure examples:- Bharat Nirman, BOT Scheme. Infrastructure can be divided into 2 types:-  Economic Infrastructure  Social Infrastructure examples:- Bharat Nirman, BOT Scheme.
  18. 18. CONCLUSION  The main role which should be played by the government is to do things which is not presently done by any another bodies.  Develop the country with efficient private participation.  Not just making reforms, but implementing it.  Finally protect investors and take up efficient taxation policy.  The main role which should be played by the government is to do things which is not presently done by any another bodies.  Develop the country with efficient private participation.  Not just making reforms, but implementing it.  Finally protect investors and take up efficient taxation policy.
  19. 19. REFERENCES  Business Environment & Policy  Wikipedia.com  Preservearticles.com  Planningcommission.nic.in  Business Environment & Policy  Wikipedia.com  Preservearticles.com  Planningcommission.nic.in

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