The document discusses India's economic policies prior to 1991, which involved a mixed economy with inward-looking and interventionist policies that led to inefficiencies. It then outlines the economic difficulties India faced in the late 1980s and early 1990s that necessitated reforms. The New Economic Policy of 1991 liberalized India's economy through delicensing most industries, allowing private sector investment, disinvestment of public sectors, and liberalizing foreign investment and trade. The policy had three main components: liberalization, privatization, and globalization. It aimed to make India's economy more competitive and open to global markets through structural adjustment supported by the IMF and World Bank.
What is Agricultural Income ?
Section 2 (1A) of the Income tax Act,1961
Agricultural income means :
Revenue generated through rent or lease of a land in India that is used for agricultural purposes ;
Any income derived from commercial sale of produce gained from an agricultural land
Any income from farm building.
Key points to validly classify an income as “agricultural income”
Income should be from an existent piece of land in India ;
Income should be from a piece of land that is used for agricultural operations ;
Income should stem from produce achieved after cultivation of the land. Cultivation of land is a must ;
Income can be from a land that is not under the assessee’s ownership. i.e. ownership of Land is not essential.
What is Agricultural Income ?
Section 2 (1A) of the Income tax Act,1961
Agricultural income means :
Revenue generated through rent or lease of a land in India that is used for agricultural purposes ;
Any income derived from commercial sale of produce gained from an agricultural land
Any income from farm building.
Key points to validly classify an income as “agricultural income”
Income should be from an existent piece of land in India ;
Income should be from a piece of land that is used for agricultural operations ;
Income should stem from produce achieved after cultivation of the land. Cultivation of land is a must ;
Income can be from a land that is not under the assessee’s ownership. i.e. ownership of Land is not essential.
this ppt is very much useful for the students pursuing First year in B.COM for the Company Law subject. Specially the students of Saurashtra University.
These slides are regarding Ratio decidendi, a topic from judicial process.What is ratio. Ratio decidendi. Definitions. Hierarchy of English court. Difference between ratio decidendi and obiter dicta. Shades of meaning to the expression ratio decidendi.
The Role of Ratio Decidendi in Judicial Precedent. Rules of ratio decidendi. When precedent has multiple reasons. Where there are multiple judges. Determination of ratio decidendi. Ratio decidendi in Indian Scenario. Stare decisis and Article 141 Overruling Conclusion.
The doctrine of judicial precedent developed in common-law legal system centered on the notion of ratio decidenti of a case. According to the preliminary statement of the English rules of precedent, every court is bound to follow any case decided by a court above it in the hierarchy and appellate courts(other than House of Lords) are bound by their previous decisions. The decision or judgement of a judge may fall into two parts: The ratio decidendi (reason for the decision) Obiter dictum(something said which is not part of the judgement or said by the way).
What is ratio? • Meaning of ratio is the measure of a quantity in terms of another and decidendi means decision. • Ratio is a ruling on a point of law and the decision on a point of law depends on facts of a case. Culling out / obtaining ratio from a judgment is difficult. • A thorough reading of an entire judgment is required to identify a ratio. • Essence of the decision is the ratio. Every observation found in a judgement is not the ratio.
RATIO DECIDENDI Ratio decidendi is a legal rule derived from, and consistent with, those parts of legal reasoning within a judgment on which the outcome of the case depends. The ratio decidendi is "the point in a case that determines the judgment" or "the principle that the case establishes“. Ratio decidendi is a Latin phrase meaning "the reason" or "the rationale for the decision".
7. DEFINITION • According to Salmond “the ratio decidendi may be described roughly as the rule of law applied by and acted on by the court, or the rule which the court regarded as governing the case." • Sir Rupert Cross defined the ratio decidendi as ”any rule of law expressly or impliedly treated by the judge as a necessary step in reaching his conclusion, having regard to the line of reasoning adopted by him”(Precedent in English Law).
Ratio decidendi • Ratio decidendi ordinarily means the reason for deciding the case . The reason here is not; The fact of the case. The law that the case applies. The order of the case.
HIERARCHY OF ENGLISH COURTS
MAGISTRATES COURTS TRIBUNALS COUNTY COURT HIGH COURT SUPREME COURT (House of Lords) COURT OF APPEAL CROWN COURT CIVIL CRIMINAL DIVISIONAL COURT
State is important topic in Private International Law. It is very important for all law students world widely. It covers all he content of State.This PPT gives a detail information of the state in present time.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
What is Structural Adjustment Programs of IMFSAJJAD HAIDER
Structural Adjustment Programmes (SAPs) are economic policies for developing countries that have been promoted by the World Bank and International Monetary Fund (IMF) since the early 1980s by the provision of loans conditional on the adoption of such policies.
BSFF Buffer Stock Financing Facility (1969–2000)
CCFF Compensatory and Contingency Financing Facility
(1988–2000)
CCL Contingent Credit Line (1999 –2003)
CFF Compensatory Financing Facility (1963–88, 2000–09)
this ppt is very much useful for the students pursuing First year in B.COM for the Company Law subject. Specially the students of Saurashtra University.
These slides are regarding Ratio decidendi, a topic from judicial process.What is ratio. Ratio decidendi. Definitions. Hierarchy of English court. Difference between ratio decidendi and obiter dicta. Shades of meaning to the expression ratio decidendi.
The Role of Ratio Decidendi in Judicial Precedent. Rules of ratio decidendi. When precedent has multiple reasons. Where there are multiple judges. Determination of ratio decidendi. Ratio decidendi in Indian Scenario. Stare decisis and Article 141 Overruling Conclusion.
The doctrine of judicial precedent developed in common-law legal system centered on the notion of ratio decidenti of a case. According to the preliminary statement of the English rules of precedent, every court is bound to follow any case decided by a court above it in the hierarchy and appellate courts(other than House of Lords) are bound by their previous decisions. The decision or judgement of a judge may fall into two parts: The ratio decidendi (reason for the decision) Obiter dictum(something said which is not part of the judgement or said by the way).
What is ratio? • Meaning of ratio is the measure of a quantity in terms of another and decidendi means decision. • Ratio is a ruling on a point of law and the decision on a point of law depends on facts of a case. Culling out / obtaining ratio from a judgment is difficult. • A thorough reading of an entire judgment is required to identify a ratio. • Essence of the decision is the ratio. Every observation found in a judgement is not the ratio.
RATIO DECIDENDI Ratio decidendi is a legal rule derived from, and consistent with, those parts of legal reasoning within a judgment on which the outcome of the case depends. The ratio decidendi is "the point in a case that determines the judgment" or "the principle that the case establishes“. Ratio decidendi is a Latin phrase meaning "the reason" or "the rationale for the decision".
7. DEFINITION • According to Salmond “the ratio decidendi may be described roughly as the rule of law applied by and acted on by the court, or the rule which the court regarded as governing the case." • Sir Rupert Cross defined the ratio decidendi as ”any rule of law expressly or impliedly treated by the judge as a necessary step in reaching his conclusion, having regard to the line of reasoning adopted by him”(Precedent in English Law).
Ratio decidendi • Ratio decidendi ordinarily means the reason for deciding the case . The reason here is not; The fact of the case. The law that the case applies. The order of the case.
HIERARCHY OF ENGLISH COURTS
MAGISTRATES COURTS TRIBUNALS COUNTY COURT HIGH COURT SUPREME COURT (House of Lords) COURT OF APPEAL CROWN COURT CIVIL CRIMINAL DIVISIONAL COURT
State is important topic in Private International Law. It is very important for all law students world widely. It covers all he content of State.This PPT gives a detail information of the state in present time.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
What is Structural Adjustment Programs of IMFSAJJAD HAIDER
Structural Adjustment Programmes (SAPs) are economic policies for developing countries that have been promoted by the World Bank and International Monetary Fund (IMF) since the early 1980s by the provision of loans conditional on the adoption of such policies.
BSFF Buffer Stock Financing Facility (1969–2000)
CCFF Compensatory and Contingency Financing Facility
(1988–2000)
CCL Contingent Credit Line (1999 –2003)
CFF Compensatory Financing Facility (1963–88, 2000–09)
Macro-economic stabilisation and structural adjustment in India (1991)Antara Chakrabarty
These slides mainly give an insight into the major macroeconomic stabilization and structural adjustments that were made in India during severe financial crisis of 1991. It discusses the situation sector-wise and provides with a detailed glossary of important terms towards the end of the slide-show.
The FATA Reforms news update below is a 16-page document containing a selection of opinion and news articles regarding recommendations for further reforms in Pakistan's Federally Administered Tribal Areas (FATA). The summary document contains articles from April to May 2014.
The reforms priorities in the document include the establishing of a new FATA Reforms Commission by recently appointed Khyber Pakhtunkhwa Governor Sardar Mehtab Ahmed Khan, the historic April 7, 2014 judgment of the Peshawar High Court regarding FATA jurisdiction and Article 247 of the constitution, and calls for greater transparency in the tribal areas and others.
FTAs can result in some export gains, and possibly increased FDI flows, but the size and durability of these benefits – highly uncertain. FTAs will most likely lead to an increase in imports with impact for the trade balance and the external debt position.
A review of the political and economic power of the International Monetary Fund and how the policies of structural adjustment it applied to Africa since 1990s are now being applied to Southern Europe.
This presentation explains the conditions which led to the introduction of 1991 economic reforms of India, the key features of the reforms and the impact it created on Indian economy.
Industrial Policy, Fiscal Policy and Licensing PolicyPRASOON VERMA
The presentation on Industrial Policy of India, Fiscal Policy of India and Licensing Policy of India and can be used to learn and present as economics assignment
Just sharing my efforts makes me feel happy and self-satisfied. Feel free to use my works as your project work at school.
Contact me at @ashmitg132@gmail.com
The industrial policy means the procedures, principles,policies rules and regulations which control the industrial undertaking of the country and pattern of industrialization. It explains the approach of Government in context to the development of industrial sector.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
1. Why New Economic Policy 1991 Was
Needed?
The independence-era Indian economy (from 1947 to 1991) was based on
a mixed economy combining features of capitalism and socialism
Resulting in an inward-looking, interventionist policies and import-substituting
economy
The Indian currency, the rupee, was inconvertible and high tariffs and
import licensing prevented foreign goods reaching the market.
India also operated a system of central planning for the economy, in which
firms required licenses to invest and develop.
This model contributed to widespread inefficiencies and corruption, and
the failings of this system were due largely to its poor implementation.
2. Some Other Problems Faced Were
Economic instability/fiscal deficit.
Gulf war/crisis
Shortage of foreign exchange reserves.
Burden of debt/liquidity crisis.
Inefficient industrial growth.
Fall in growth rate.
Inflationary pressure.
Poor performance of financial sector
The process of economic reforms was need of the
hour and thus was started by the government of India
in 1991 for taking the country out of economic
difficulty and speeding up the development of the
country.
3. The main characteristics of new Economic
Policy
Delicensing-
Only six industries were kept under licensing scheme.
Entry to Private Sector-
The role of public sector was limited only to four industries; rest all the
industries were opened for private sector also.
Disinvestment-
Disinvestment was carried out in many public sector enterprises.
Liberalisation of Foreign Policy-
The limit of foreign equity was raised to 100% in many activities, i.e. NRI
and foreign investors were permitted to invest in Indian companies.
Liberalisation in Technical Area-
Automatic permission was given to Indian companies for signing
technology agreements with foreign companies.
4. Contd.
Setting up of Foreign Investment Promotion Board (FIPB)-
This board was set up to promote and bring foreign investment in
India.
Promoting the Small Scale Industries-
Various benefits were offered to small scale industries
Entry of new private and foreign banks.
SEBI was made the statutory body
5. Components of New Economic Policy
There are 3 major components of economic policy
1. Liberalization
2.Privatization
3.Globalization
6. Liberalization
Liberalisation refers to end of licence, quota and many more
restrictions and controls which were put on industries before 1991.
Indian companies got liberalisation in the following way:
1. Except the six industries , all other kinds of industrial license were
abolished.
2. No restriction on expansion or contraction of business activities.
3. Freedom in fixing prices.
4. Liberalisation in import and export.
5. Easy and simplifying the procedure to attract foreign capital in
India.
6. Freedom in movement of goods and services
7. Liberalization
7. Freedom in fixing the prices of goods and services.
8. Emphasis to be on controlling and regulating
monopolistic, restrictive and unfair trade practices
9. Need for achieving economies of scale for ensuring
higher productivity and competitive advantage in
the international market, the interference of the
government through the MRTP Act was restricted
8. Privatization
Privatisation refers to giving greater role to private sector and reducing the
role of public sector.
To execute policy of privatisation government took the following steps:
1. Disinvestment of public sector
i.e. transfer of public sector enterprise to private sector
2. Setting up of Board of Industrial and Financial Reconstruction
(BIFR).
This board was set up to revive sick units in public sector enterprises
suffering loss.
3. Dilution of Stake of the Government.
If in the process of disinvestments private sector acquires more than 51%
shares then it results in transfer of ownership and management to the
private sector.
9. Globalization
It refers to integration of various economies of world.
Till 1991 Indian government was following strict policy in regard to import and
foreign investment in regard to licensing of imports, tariff, restrictions, etc.
But after new policy government adopted policy of globalisation by taking following
measures:
1. Import Liberalisation. - Government removed many restrictions from import of
capital goods.
2. Foreign Exchange Regulation Act (FERA) was replaced by Foreign Exchange
Management Act (FEMA).
3. Rationalisation of Tariff structure
4. Abolition of Export duty.
10. Contd.
5. Reduction of Import duty.
As a result of globalisation physical boundaries and
political boundaries remained no barriers for
business enterprise. Whole world became a global
village.
11. Impact of Changes in Economic Policy on
the Business
Increasing Competition:
Because of all round competition companies which could adopt latest technology and which
were having large number of resources could only survive .
For example, Weston Company which was a leader in Т. V. market with more than 38% share in
T.V. market lost its control over the market because of all round competition from MNCs.
More Demanding Customers:
Prior to new economic policy there were very few industries or production units.
Because of product shortage the market was producer-oriented
But after new economic policy many more businessmen joined the production line and various
foreign companies also established their production units in India.
As a result there was surplus of products in every sector. Which further resulted in buyer
market.
The market became customer- oriented and many new schemes were made by companies to
attract the customer.
Rapidly Changing Technological Environment:
As world class competition started , to stand this global competition the companies needed to
adopt the world class technology.
To adopt and implement the world class technology the investment in R & D department was
increased.
Many pharmaceutical companies increased their investment in R and D department from 2% to
12% and companies started spending a large amount for training the employees.
12. Necessity for Change:
Prior to 1991 business enterprises could follow stable policies for a long
period of time but after 1991 the business enterprises had to modify their
policies and operations from time to time.
Need for Developing Human Resources:
Indian enterprises were managed by inadequately trained personnel’s.
New market conditions required people with higher competence skill and
training. Hence Indian companies felt the need to develop their human
skills.
Market Orientation:
Earlier firms were following selling concept, i.e., produce first and then go
to market
but now companies started following marketing concept, i.e., planning
production on the basis of market research, need and want of customer.
13. Loss of Budgetary Support to Public Sector:
Prior to 1991 all the losses of Public sector were used to be made
good by government by sanctioning special funds from budgets.
But today the public sectors have to survive and grow by utilising
their resources efficiently otherwise these enterprises have to face
disinvestment.
Export a Matter of Survival:
The Indian businessman was facing global competition and the new
trade policy made the external trade very liberal.
As a result to earn more foreign exchange many Indian companies
joined the export business and got lot of success in that
For example, the Reliance Company, Videocon, MRF etc. got a great
hold in the export market.
14. Effect of new economic policy (positive)
Increase in GDP growth rate.
Increase in foreign direct investment.
Increase in foreign exchange.
Increase in per capita income
Increase in foreign trade.
Increase mobility of factor of production
Outsourcing
15. Effect of new economic policy (negative)
Growing unemployment
Neglect of agriculture
Growing personal disparities
Infrastructural inadequacies
Wide spread poverty
Demonstration effect (luxury goods)
Indian small scale industries badly affected
16. Structural Adjustment Programmes
Structural Adjustment Programmes (SAPs) are economic
policies for developing countries that have been promoted by
the World Bank and International Monetary Fund (IMF) since
the early 1980s by the provision of loans conditional on the
adoption of such policies.
They are designed to encourage the structural adjustment of
an economy by, for example, removing “excess” government
controls and promoting market competition as part of the neo-liberal
agenda followed by the Bank.
17. India, in 1991
In 1991, India faced an unprecedented balance of payments
crisis. For almost a decade the government had borrowed heavily
to support an economic strategy that relied on expansionary
public spending to finance growth. From 1980 to 1991 India's
domestic public debt increased steadily, from 36 percent to 56
percent of the GDP, while its external debt more than tripled to
$70 billion.
18. SAP in INDIA
It took a new government, which came to power in June 1991,
to launch India's first comprehensive economic policy reform
program, which the World Bank supported with a $500
million structural adjustment operation (SAL), approved in
December 1991 and closed in December 1993.
To help India address its immediate balance of payments
crisis and
To support a broad set of policy reforms aimed at
liberalizing the Indian economy and opening it up to more
competition both from within and abroad.
19. Implementation
The government devalued the rupee by 23 percent, raised
interest rates, and revised the 1991/92 union budget, making
sharp cuts in subsidies and transfers to public enterprises
It abolished the complex system of industrial and import
licensing, liberalized trade policy, and introduced measures to
strengthen capital markets and institutions.
By 1995, India had moved from a regime in which private
investment was not allowed in major economic sectors to one
whose openness to foreign investment compares favourably
with that of most Asian countries.
20. Results
After declining in the first year of the reforms, GDP growth
resumed to 5 percent in 1993/94 and 6.3 percent in 1994/95
Exports increased almost 12 percent. Most important, there was a
surge of foreign investment, which increased almost sevenfold
over projections.