INDIAN BUSINESS ENVIRONMENT

MODULE 1 (7 Hours) Business Environment: Environmental scanning meaning nature and scope, economic and noneconomic environment, interaction between internal and external environments, overview of political, socio- cultural, legal, technological and global environment. MODULE 2 (7 Hours) Macro economic policies in India: Industrial policies of the post 1991. Monetary policy: Objectives, credit control tools. Fiscal policy: Objectives, budget, direct and indirect taxes, revenue and expenditures of the union and the state. Recent Foreign Trade and Exim policies. Disinvestments in Indian public sector Units since 1991. MODULE 3 (7 Hours) Economics of Development: Determinants, major issues of development India as a developing economy, contribution of different sectors( primary, secondary and tertiary) to Indian economy, growth in tertiary sectors in recent years, business cycle- features, phases, MODULE 4 (7 Hours) National Income Accounting: National income estimates in India- trends in national income methods of measurement income method , product method and expenditure method, difficulties in measuring national income MODULE 5 (7 Hours) Structure of industries: Major industries Electronics, Automobile, Textiles, Development of Private Sector- MNC in India, WTO and India.- SWOT Analysis of Indian Economy. MODULE 6 (7 Hours) Money Monitory aggregates Money Market and Capital Market- Role of FDI in Economic development SEBI Functions and achievements Stock Exchange BSE-NSE. Depository system in India- (Options, Futures and Derivatives) MODULE 7 (7 Hours) RBI Role and functions- Banking Structure Reforms- Narasimhan Committee RecommendationsFinancial sector reforms - E- Banking in India Objectives, trends and practical uses- Recent Technological Developments in Indian banking (ATM, Debit and Credit Cards, EMT, EFT, Etc.) MODULE 8 (7 Hours) Infrastructure in Economic development of India- Meaning and Importance- Major issues in infrastructure with special reference to Railways, Road transport and Power Development of IT Sector for in India its contributions to Indian economy Importance of Human resources development- Major thrust areas in human resource development. RECOMMENDED BOOKS: 1. Economic Environment of Business by S K Misra, V. K. Puri Himalaya publishing house. 2. Business Environment Text and Cases by Justin paul , 2nd edition, McGraw Hill Companies

REFERENCE BOOKS: 1. Business Environment by Suresh Bedi Excel Books 2. Indian Economy by I.C. Dingra 3. Business Environment-Shaikh & Saleem, Pearson, PHI, 2006 4. Indian Economy by K P M Sundharam and Ruddar Datt. Reference http://www.vtu.ac.in/

7. Business Environment
The objective of the course is to provide the student with a background of various environment factors that have major repercussions on business and sharpen their mind to watch and update the changes that occur constantly in this sphere. 1. Industrial Policies: A brief review of industrial policies since independence, Industrial policy of 1991 and recent developments, Policy on foreign direct investment in Indian industry. 2. Fiscal Policy: Public revenues, public expenditure, public debt, development activities financed by public expenditure, An evaluation of recent fiscal policy of Government of India Highlights of Budget. 3. Monetary Policy: Demand for and supply of money, Objectives of monetary and credit policy, Recent trends- Role of Finance Commission. 4. Balance of Payments: Structure, Major components, Causes for dis-equilibrium in Balance of Payments, correction measures, Impact of New Economic Policy on Balance of Payments, Recent trends. 5. Indias Trade Policy Magnitude and direction of Indian International trade, bilateral and multilateral trade agreements, EXIM Policy, Role of EXIM Bank. 6. WTO: Nature and scope - Organisation and structure trading blocks role and functions of WTO in promoting world trade Principles followed- Agreements reached in the Uruguay round including TRIPS, TRIMS and GATS, Disputes settlement mechanismDumping and Anti-dumping measures Critical review of WTO functioning. 7. Money and Capital market: Features and components of Indian Financial system, objectives, features and structure of Money market and capital market, recent developments- Stock Exchanges, Investor Protection and Role of SEBI. 8. Legal Framework: Special features of The SICA (Special Provisions) 1985, BIFR, Consumer Protection Act, 1986,

References
Dutt and Sundaram , Indian Economy, S. Chand, New Delhi, 2007. K.Aswathappa, Essentials of Business Environment, 9/e Himalaya, 2007. Justin Paul: Business Environment, 1e 2006, Tata MH Misra and Puri: Indian Economy,, Himalaya, 2007. Francis Cherunilam: Business Environment: Text and Cases, 17/e, Himalaya, 2007. Recent Economic Survey Report of Government of India. Suresh Bedi: Business Environment, Excel, 2007. Palle Krishna Rao: WTO--Text & Cases, 1/e, PSG Excel Series, 2005.

Theoretical Framework of Business Environment:

Concept, significance and nature of corporate environment; Elements of environment; Changing dimensions of corporate environment; Techniques of environmental canning and monitoring. 2. Economic Environment of Business: Significance and

element of economic environment; Industrial policy, fiscal policy, monetary policy and business firm; EXIM policy; Union Budget as a tool of control; Public sector and in economic development; Development banks and relevance to Indian business; Economic reforms, liberalisation and structural adjustment programmes. 3. Political and Legal Environment of Business: Critical
elements of political environment; Government and business; changing dimensions of legal environment in India; FEMA and Consumer Protection Act. 4. Socio-Cultural Environment: Critical elements of socio-cultural environment; Social institutions and systems; Social values and attitudes; Social groups; Middle class, Dualism in Indian Society and problems of uneven income distribution; Emerging rural sector in India; Indian business system; Social responsibility of business; Consumerism in India. 5. International and Technological Environment; Multinational corporations; Foreign collaborations and Indian business :Non Resident Indians and corporate sector: International economic institutions-WTO,World Bank ,IMF and their importance to India : Foreign trade policies: Impact of Rupee