sector reforms after introduction of NEP and make in india concept

1. INDIAN BUSINESS
ENVIRONMENT
PRESENTED BY,
ROHIT KAMALAKAR HEGDE

2. NEW ECONOMIC POLICY 1991
Liberalization
Privatization
Globalization

3. The IMF defines globalization as “the growing economic
interdependence of countries worldwide through increasing
volume and variety of cross border transactions in goods and
services and of international capital flows, and also through the
more rapid and widespread diffusion of technology.”

4. Multi national companies
“The essential nature of the multi national enterprise
lies in the fact that its managerial head quarters are
located in one country (home country )while it carries
out operations in a number of countries ( host
countries) as well.”
Foreign collaboration
Joint venture
Strategic alliances
Franchising agreements
Mergers and acquisitions

5. Stages of globalization
 First stage ( distributors or traders )
Second stage ( direct export )
Third stage ( setting up of production & marketing
system )
Fourth stage (emulate model of foreign company)
Fifth stage (transitional stage )

6. Characteristics of globalization
 Economy of a country will open itself to the global economy.
 It enables a country to purchase commodities from any country in the
world
 Expanding the business across the world & formulate plans for that.
 Removing difference between Domestic market & foreign market.
 Securing factors of production.
 Relaxation of restriction on imports easily securing the foreign
exchange necessary for imports.
 Developing a perspective that the whole world market is a simple
market.
 Developing production, manufacturing , and distribution facility in any
part of the world .
 Substantially rising FOREIGN DIRECT INVETMENT in domestic
industries and projects.

7. globalization
pro con
1) Development of trade throughout
world
2) Increase in foreign investment
3) Free flow of technology
4) Expansion of production
5) Industrialization
6) Increase in employment & income
7) Decline of cost of production
8) Balanced development
9) Uniform global management
10) Increase in welfare & standard of
living
11) Evaluation of competitive
international business.
1. Decay of business in developing
country.(small enterprises )
2. Replacement of production system
3. Danger of unemployment
4. Dominance of large companies
5. Increase in dumping
6. Brain drain
7. Export of unwanted products
8. Skewed investment
9. Exclusive growth
10. Widening of gap between rich &
poor countries
11. Market failure

8. Indian business environment
 India’s economic integration with the rest of the world
was very limited because of the restrictive economic
policies followed until 1991. Indian firms confined
themselves, by and large, to the home market. Foreign
investment by Indian firms was very insignificant.
 With the new economic policy ushered in 1991, there
has, however, been a change. Globalisation has in fact
become a buzz-word with Indian firms now, and many
are expanding their overseas business by different
strategies

9. Obstacles in India
 Government policy and procedure
 High cost
 Poor infrastructure
 Obsolescence
 Resistance to change
 Poor quality management
 Supply problem
 Small size
 Trade barriers
 Limited R&D and marketing research
 Growing competition

10. Factors favoring globalisation
Human resources
Wide base
Growing entrepreneurship
Growing domestic market
Niche market
Expanding Markets
Transnationalisation of World Economy
NRIs
Economic Liberalisation
Competition

11. Sectoral development in India
Primary sector
Secondary sector
Tertiary sector

12. Revolution Name Product
Blue Revolution Fisheries
Brown Revolution Leather
Gray Revolution Housing Development
Green Revolution Agriculture
Pink Revolution Drugs & Pharmaceuticals
Silver Revolution Egg Production
White Revolution Dairy Development
Yellow Revolution Oil Seed
Black Revolution Petroleum
Golden Fiber Revolution Jute
Golden Revolution Horticulture
Grey Revolution Fertilizer
Red Revolution Meat & Tomato Production
Round Revolution Potato
Silver Fiber Revolution Cotton
Silver Revolution Egg/Poultry
Evergreen Revolution Over all Agriculture Development

13. Industrial sector
 Post-liberalisation, the Indian private sector, which was usually
run by oligopolies of old family firms and required political
connections to prosper was faced with foreign competition,
including the threat of cheaper Chinese imports. It has since
handled the change by squeezing costs, revamping management,
focusing on designing new products and relying on low labour
costs and technology.[16]

14. Service sector
 During the Internet bubble that led up to 2000, heavy investments
in undersea fibre-optic cables linked Asia with the rest of the
world. The fall that followed the economic boom resulted in the
auction of cheap fiber optic cables at one-tenth of their original
price. This development resulted in widely available low-cost
communications infrastructure. All of these investments and
events, not to mention a swell of available talent, resulted in India
becoming almost overnight the centre for outsourcing of Business
process. Within this sector and events, the ITES-BPO sector has
become a big employment generator especially amongst young
college graduates. The number of professionals employed by IT
and ITES sectors is estimated at around 1.3 million as on March
2006. Also, Indian IT-ITES is estimated to have helped create an
additional 3 million job opportunities through indirect and
induced employment.

15. (US $ million)
Source/Industry 2008-09 2009-10 2010-11 2011-12 P 2012-13 P
1 2 3 4 5 6
Total FDI 22,697 22,461 14,939 23,473 18,286
Country-wise Inflows
Mauritius 10,165 9,801 5,616 8,142 8,059
Singapore 3,360 2,218 1,540 3,306 1,605
U.S.A 1,236 2,212 1,071 994 478
Cyprus 1,211 1,623 571 1568 415
Japan 266 971 1,256 2,089 1,340
Netherlands 682 804 1,417 1,289 1,700

16. Manufacture 4,777 5,143 4,793 9,337 6528
Construction 2,237 3,516 1,599 2,634 1319
Financial Services 4,430 2,206 1,353 2,603 2760
Real Estate Activities 1,886 2,191 444 340 197
Electricity and other
Energy Generation,
Distribution &
Transmission
669 1,877 1,338 1,395 1653
Communication
Services
2,067 1,852 1,228 1,458 92
Business Services 643 1,554 569 1590 643
Miscellaneous Services 1,458 888 509 801 552
Computer Services 1,647 866 843 736 247
Restaurants & Hotels 343 671 218 870 3129
Retail & Wholesale
Trade
294 536 391 567 551
Mining 105 268 592 204 69
Transport 401 220 344 410 213
Trading 400 198 156 6 140

17. International organization and
India
India
WTO
IMF
WHO
UNESCO
IAEA
ILO
FAO
SAARC

18. Emerging India