The document discusses several topics related to the Indian economy including economic development, national income analysis, planning in India, monetary policy, industrial policy, and industrial sickness. It provides definitions and explanations of key economic terms such as gross domestic product, gross national product, monetary policy, and industrial sickness. Factors that influence economic development and the objectives of economic planning in India are also summarized.
Unit 4 c) changes in policy perspectives role of institutional framework afte...Mahendra Kumar Ghadoliya
Development of Indian economy has passed from many phases. We followed the policy of Import Substitution and restrictive trade policies. we liberalized the economy gradually and slowly. After 1991 Industrial policy India followed path of Liberalization.
Unit 4 c) changes in policy perspectives role of institutional framework afte...Mahendra Kumar Ghadoliya
Development of Indian economy has passed from many phases. We followed the policy of Import Substitution and restrictive trade policies. we liberalized the economy gradually and slowly. After 1991 Industrial policy India followed path of Liberalization.
In modern industrial economies, the budget is the key instrument for the execution of government economic policies. A government budget is often passed by the legislature, & approved by the chief executive-or president. For example, only certain types of revenue may be imposed & collected. Property tax is frequently the basis for municipal & county revenues, while sales tax &/or income tax are the basis for state revenues, & income tax & corporate tax are the basis for national revenues.
An appraisal of economic reforms in India in 1991 periodHarshagrawal1996
An appraisal view/ analysis of economic reforms during 1991 industrial reforms period in India. Change in Indian Economy after LPG reforms 1991 with data. Suitable for all purposes. Main topics with detial are- Goals of Economic Reforms. GDP growth and Poverty Reduction. GDP growth and Employment Growth Rate. Improvement in industrial relations. Increase in productivity and Real Wage earnings. Neglect of Agriculture. Reforms and Industrial Growth. Performance of Public Sector. Economic reforms and inflation. Growth in infrastructure. Foreign trade and balance of payment. Foreign Investment. Regional Disparities. Social Infrastructure and Human Development. Conclusion
South Korea's economy, rated moderately free through most of the history of the Index, has advanced to mostly free in the past eight years. A dynamic private sector with a well-educated labor force and high capacity for innovation has capitalized on openness to global trade and investment.
In modern industrial economies, the budget is the key instrument for the execution of government economic policies. A government budget is often passed by the legislature, & approved by the chief executive-or president. For example, only certain types of revenue may be imposed & collected. Property tax is frequently the basis for municipal & county revenues, while sales tax &/or income tax are the basis for state revenues, & income tax & corporate tax are the basis for national revenues.
An appraisal of economic reforms in India in 1991 periodHarshagrawal1996
An appraisal view/ analysis of economic reforms during 1991 industrial reforms period in India. Change in Indian Economy after LPG reforms 1991 with data. Suitable for all purposes. Main topics with detial are- Goals of Economic Reforms. GDP growth and Poverty Reduction. GDP growth and Employment Growth Rate. Improvement in industrial relations. Increase in productivity and Real Wage earnings. Neglect of Agriculture. Reforms and Industrial Growth. Performance of Public Sector. Economic reforms and inflation. Growth in infrastructure. Foreign trade and balance of payment. Foreign Investment. Regional Disparities. Social Infrastructure and Human Development. Conclusion
South Korea's economy, rated moderately free through most of the history of the Index, has advanced to mostly free in the past eight years. A dynamic private sector with a well-educated labor force and high capacity for innovation has capitalized on openness to global trade and investment.
Business economics, also known as managerial economics, is a branch of economics that applies economic theory and principles to business decision-making. It involves the use of economic analysis to solve various business problems, optimize resource allocation, and make effective managerial decisions. Business economics focuses on understanding how businesses operate in the market and how they can make the best use of limited resources to achieve their objectives.
Key aspects of business economics include:
Demand and Supply Analysis: Analyzing the demand for a company's products or services and understanding how it interacts with the supply available in the market. This analysis helps in determining the optimal pricing and production levels to maximize profits.
Cost Analysis: Understanding the various costs involved in production, such as fixed costs, variable costs, and opportunity costs. Businesses use cost analysis to identify cost-effective strategies and achieve cost efficiency.
Pricing Strategies: Determining the most suitable pricing strategies that consider factors like production costs, customer demand, competitor pricing, and market conditions. Pricing decisions impact a company's revenue and market position.
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UNIT – V
Business cycles – National income, monetary and fiscal policy – Public finance. TRIM‟s- Intellectual Property rights – TRIP‟s – Industrial Sickness – causes –remedies
In any economy monetary and fiscal policies are used as powerful instruments to maintain a steady growth in the economy. The fiscal policy made by the government ,monetary policy controlled by RBI have are immensely reflected in the industrial policy of the economy.Thus India's updated industrial policy is oriented towards global competition.
Current fiscal and monetary industrial policy in india revisedFBS Business School
Monetary and fiscal policies are two important instruments that can be put to use by government in order to achieve stability in the economy.While monetary policy is implemented by RBI, the fiscal policy is implemented by the government.
2. Economic Development
• It is a complex process which is influenced by
both economic & non-economic factors.
• Some of the economic factors are:
1. Economic system
2. Capital stock
3. Rate of capital accumulation
4. Capital output ratio in various sectors
5. Agricultural surplus
6. Foreign trade etc…
3. • Some of the non economic factors are:
1. Quantity & quality of Human resource
2. Social organisation
3. General education
4. Technical know-how
5. Political freedom
6. Corruption free environment
7. People’s will to develop the country
8. Natural resources
4. National Income Analysis
• NI is the money value of all final outcome of
all economic activities of the people in the
country.
• Gross domestic product (GDP) refers to the
market value of all final goods and services
produced within a country in a given period.
• GNP means the total of all business
production and service sector industry in a
country plus its gain on overseas investment.
5. GNP = market value of final goods & services +
incomes earned by the nationals in the foreign
countries – income earned locally but accruing
to foreigners.
GDP = market value of final goods & services
produced by residents in the country +
incomes earned locally by foreigners - income
received by nationals in the foreign countries.
6. Planning in India
• The economy of India is based in part on planning
through its five-year plans, which are developed,
executed and monitored by the Planning
Commission.
• Long term objectives of Planning are:
1. Increasing NI
2. Reduce inequalities
3. Eliminate poverty
4. Create full employment
5. Sectoral growth
7. Monetary Policy
• Government and Central Bank make use of
various fiscal and monetary measures to
achieve stability and growth by influencing
and regulating the behavior of the
consumers, investors and savers.
• These policies can help the overall economic
situation and business prospects.
• They encourage investment and production in
certain priority sectors and discourage them in
the non priority sectors.
• They can affect the aggregate demand and
supply and the levels of
employment, wages, interest, rent, prices and
profit.
8. What is Monetary Policy?
• Monetary policy refers to the policy regarding
money supply and bank credit in the country
and it is formulated and announced by the
Central Bank of the country ie. the RBI.
• In simple words, it refers to the policy of the
govt pertaining to the monetary matters in
the economic system.
• The scope of this policy spans the entire area
of economic transactions in the economy.
9. Instruments of Monetary Policy
• General (Quantitative) – Bank rate policy, open
market operations, Cash reserve ratio, statutory
liquidity ratio which affect the economy in general.
• Selective (Qualitative) – Minimum margins for
lending against specific securities, ceilings on volume
for credit, discriminatory rates of interest, moral
suasion which affects selective sectors and segments
of the economy.
General Credit Controls are inter-related and have to be
operated in co-ordination. All these instruments
affect the bank reserves.
10. Industrial policy
• It refers to govt policy towards the
establishment of industries, their working
conditions & management.
• First industrial policy was spelled out in the
year 1948.
• Policy of 1991 brought revolution in Indian
industries through introducing Licensing
Raj, abolishing MRTP, Foreign technology
liberlisation, Foreign Investment.
11. Industrial sickness
• Acc to RBI, a sick industrial unit is one which
has reported cash loss for the previous year of
its operation and in the judgement of the
financing bank is likely to incur each loss for
the current year and also in the following year.
• Causes for sickness in the industries can be
classified into:
1. Internal
2. External