Q1) Write a critical essay on the merits and demerits of the government of

Indias current decision to allow foreign direct investment in multi-brand

retail in India?
The Indian Retail Industry having the fifth largest place in the world. It comprising organized
and unorganized sectors, Indian retail industry has one of the fastest growing industries in
India. Indian Retail Industry is growing from US$30 billion in 207 to US$640 billion by 2015.
The retail sector is one of the fastest growing sector in India, having the world's second
largest place in consumer market. Retailing has the major business activities in India and
leading sources of employment generation in India. Due to extreme change in the behaviour,
taste and preferences of the consumer, and the growing economy, earning capacity, less time
and fast track life makes the emerging challenges in the retail sector of India.
In India retail sector is one of the major pillars of economy who comprises 14 to 15 percent of
its GDP and employs 6% of nations workforce. Indian retail is valued at US$450 million (only
6.5% is from organised sector).
Currently India having only 8% of organized retail sector and remaining 92% is captured by
unorganized, which may grow much faster than traditional or unorganised retail sector . It is
expected to gain a large share in the growing retail market in India. Various estimates states
that the share of organized retail will increases as 20% by 2020.
The Indian retail industry is generally divided into organised and unorganised retailing:

Organised Retails
o Organised retailing refers to trading activities undertaken by licensed retailers,
those who have registered for sales tax, income tax etc. These include corporatebased hypermarkets and retail chain and also privately owned large retail
businesses. Various estimates put the share of organised retail to go up to 20%
by 2020.
Unorganised Retails
o Unorganized retail is Indias more traditional style of low-cost retailing, for
example, the local kirana shops, owner-manned general stores, convenience
stores, hand carts and
pavement vendors. This division of the retail
sector, which has a very heavy weighting towards, unorganized, is just one
of the issues contributing to the sensitive debate on FDI in India at the moment.

Upto 100 per cent Foreign Direct Investment is allowed in Wholesale Trading. In order to
develop the growth process in retail sector, Government of India has reviewed the existing
policy on FDI in retail trade where previously only 51 percent FDI was permitted in single
brand product retail trading. Government has now decided that FDI, up to 100 per cent, under
the government approval route, would be permitted in single-brand product retail trading,
subject to specified conditions.
The policy of allowing FDI up to 51 per cent in multibrand retailing (MBRT) said it would be
allowed in each state or UT if the government there had no objection. State List
Delhi and Rajasthan are already included as FDI-approved states. And, FDI is a central subject.
Thus, the FDI policy and FEMA will need to be amended to remove these from the list. So far,
12 states and UTs had agreed to implement the policy, the majority under Congress rule
Andhra Pradesh, Assam, Haryana, Uttarakhand, Maharashtra and Karnataka, Haryana and
Maharashtra. So far, only UK-based Tescos proposal to invest in the sector was cleared by the
central government.

Violation of constitution

Violation of Competition Act.

Article 19(1)(g)[3] of the Indian domestic retailers
Article14 (Right to equality),
Right to livelihood, defined under Article 21[5]

Directive principle of article

39(a) (that the citizens, men and women equally, have the right to an adequate means
to livelihood).
39(b) (that the ownership and control of the material resources of the community are
so distributed as best to subserve the common good),
39(c) (that the operation of the economic system does not result in the concentration of
wealth and means of production to the common detriment).
Example- USA: Walmart in US follows a strategy of acquisition. They acquire small
traders and charges lower prices initially, thereby reduces the competitors and creates
dominance or monopoly and increases the prices later on.

Advantages of FDI in Multi Brand Retail in India

Boost Economic Life: Due to foreign companies entering into retail sector, new
infrastructure will be built thereby bolstering the jagging real estate sector. In turn,
banking sector will also grow as the funds needed to build infrastructure will be
provided by banks. A remarkable inflow of FDI in various industrial units in India has
boosted the economic life of country.
Job Opportunities: It has been estimated according to government, that
approximately ten million jobs will be created mostly in retail and real estate sectors.
Beneficial for Farmers: By FDI, farmers might get contract farming, where they will
be able to supply an organized retailer based upon demand and will get a better price;
easy credit availability will help to tackle the problem of farmer suicides.
Beneficial for consumers: Consumers will get variety of good quality products at low
prices compared to market rates and will be able to choose from various international
brands at one place.
Consumerism benefit
o Environment of shopping
o Wide choice of products
o New product visibility
o Payment facilities
o Promotional offers
o Brand Development
Increase level of competition: FDI increases level of competition in market. They
have to improve quality of products and service in order to stay in market. They enter
into Indian market through Joint venture and collaboration.
Infrastructure facilities: Allowing FDI might help India have better logistics and
storage technologies resulting in avoiding wastage. Due to FDI foreign companies will
invest around $ 100 million in India. Thereby, infrastructure facilities, refrigeration
technology, transportation sector will get a boost.
Cheaper Production facilities: FDI will assure operations in production cycle and
distribution. Due to economies of operation, production facilities will be available at a
cheaper rate and thus resulting in availability of variety products to the ultimate
consumers at a reasonable and cheaper price.

Availability of new technology: FDI allows transfer of skills and technology from
abroad. Improved technology in the area of processing, grading, handling and
packaging of goods and further developments in areas like electronic weighing, billing,
barcode scanning etc.
Maximum Opportunity: FDI norms will open up strategic investment opportunity for
global retailers, who have been waiting to invest in India. This may have a significant
impact on the current arrangement of foreign players. Employees are well-versed with
globally valued skills.
Advantages of FDI in Multi Brand Retail in India

Disadvantages of FDI in Multi Brand Retail in India

Impact on the Kirana shops: The unorganized market provides the second largest
employment opportunities to 3.95 million people. It is argued that opening FDI in retail
sector will have an impact on sales in the unorganized sector. As a result of this,
employment provided by the unorganized sector will be affected. Small retailers and
other Kirana Stores may close down.
Limited Employment opportunities: It is said that FDI might provide employment
opportunities, but it is argued that it cannot provide employment opportunities to semiilliterate people. This argument gains more importance because in India, large number
of semi-illiterate people is present.
Fear of lowering of prices: There is a fear that allowing FDI in retail would result in
lowering of prices, as FDI will bring in good technology, supply chain etc. If prices are
lowered, then it will lower the margin of unorganized players also. As a result of this,
the unorganized market will be affected. This in turn will have an impact on the
employment opportunities provided by the unorganized market.
FDI in retail will drain out the countrys share of revenue to foreign countries, which
may cause negative impact on Indias economy.
Fears that domestic organized retail sector might not be competitive enough to tackle
international players might not only result in loss of market share for them but in
closure of their units.
There is a possibility of small business owners and workers from other functional areas,
as lot of people are involved in unorganized retail business, may lose their jobs.
Supermarkets will establish their monopoly in the Indian market. Due to supermarkets
fine tuning and higher accessibility they will be able to buy goods at lower prices and
therefore will be able to sell at lower prices to consumers. This will result in closing of
many small retailers.
Increase in socio economic problems like poverty.
Disadvantages of Consumerism
o Impulse purchase.
o Increase in consumer inventory stock hold by a consumer.
o No price negation.
o Bundle sales.
o Forced Rationalisation. (3pc biscuit + 1 pc cake)
o They are doing brand promotion and also doing brand erosion by price
mechanism.
If, organised sector retail is introduced in Indian family system will broke. On an avg.
family size in India is 4.3 people and in Greater Kolkata zone there is 13.2 lakh retail
outlets and 2.3 people is engaged in unorganised retails.
Now, one mall is equivalent to 8000-10000 retailers turnover. Needlessly to say, how
FDI in Multi Brand Retailing in India will break the countrys economic system.

Q2) a) Draw up a check list of political risk indicators for any country in
general. Identify which items of the said check list are more relevant for
India currently.
b) Identify risk categories that you as a member of a global company will
consider for drawing up a risk overview for India. Further identify top three
risk categories where Indias position requires much improvement.

Q3) Examine the industrial policy, from the standpoint of the then urgent
need for development of Indian industries. Briefly discuss the performance
of the policy till date?(y-2013)
Major Objectives of Indias New Industrial Policy 1991 are as follows!
With the gradual liberalisation of the 1956 Industrial policy in the mid-eighties the tempo of
industrial development started picking up. But the industry was still feeling the burden of
many controls and regulations.
For a faster growth of industry, it was necessary that even these impediments should be
removed. The new government by Shri Narasimha Rao, which took office in June 1991,
announced a package of liberalisation measures under its Industrial Policy on July 24, 1991.
Objectives:
The New Industrial Policy,1991 seeks to liberate the industry from the shackles of licensing
system Drastically reduce the role of public sector and encourage foreign participation in
Indias industrial development. The broad objectives of New Industrial Policy are as follows:
(i) Liberalising the industry from the regulatory devices such as licenses and controls.
(ii) Enhancing support to the small scale sector.
(iii) Increasing competitiveness of industries for the benefit of the common man.
(iv) Ensuring running of public enterprises on business lines and thus cutting their losses.
(v) Providing more incentives for industrialisation of the backward areas, and
(vi) Ensuring rapid industrial development in a competitive environment.
The New Industrial Policy has made very significant changes in four main areas viz., industrial
licensing role of public sector, foreign investment and technology and the MRTP act. The
major provisions of this policy are discussed below.
(1) Abolition of Industrial Licensing:
In the earlier industrial policy, industries were subjected to tight regulation through the
licensing system. Though some liberalisation measures were introduced during 1980s that
positively affected the growth of industry. Still industrial development remained constrained to
a considerable extent.
The new industrial policy abolishes the system of industrial licensing for most of the industries
under this policy no licenses are required for setting up new industrial units or for substantial
expansion in the capacity of the existing units, except for a short list of industries relating to
countrys security and strategic concerns, hazardous industries and industries causing
environmental degradation.
To begin with, 18 industries were placed in this list of industries that require licenses. Through
later amendment to the policy, this list was reduced. It now covers only five industries relating
to health security and strategic concerns that require compulsory licensing. Thus the industry
has been almost completely made free of the licensing provisions and the constraints
attached with it.
(2) De-reservation of Industries for Public Sector:
The public sector which was conceived as a vehicle for rapid industrial development, largely
failed to do the job assigned to it. Most public sector enterprises became symbols of
inefficiency and imposed heavy burden on the government through their perpetual losses.

Since a large field of industry was reserved exclusively for public sector where it remained a
virtual non performer (except for a few units like the ONGC). The industrial development was
thus the biggest casualty.
The new industrial policy seeks to limit the role of public sector and encourage private
sectors participation over a wider field of industry. With this view, the following changes were
made in the policy regarding public sector industries:
(i) Reduced reservation for public sector:
Out of the 17 industries reserved for the public sector under the 1956 industrial policy, the
new policy de-reserved 9 industries and thus limited the scope of public sector to only 8
industries.
Later, a few more industries were de-reserved and now the exclusive area of the public sector
remains confined to only 4 industrial sectors which are: (i) defence production, (ii) atomic
energy, (iii) railways and (iv) minerals used in generation of atomic energy.
However, if need be even some of these areas can be opened up for the private sector. The
public sector can also be allowed to set up units in areas that have now been thrown open for
private sector, if the national interest so demands.
(ii) Efforts to revive loss making enterprise:
Those public enterprises which are chronically sick and making persistent losses would be
returned to the Board of Industrial and Financial Reconstruction (BIFR) or similar other high
level institutions created for this purpose. The BIFR or other such institutions will formulate
schemes for rehabilitation and revival of such industrial units.
(iii) Disinvestment in selected public sector industrial units:
As a measure to raise large resources and introduce wider private participation in public
sector units, the government would sell a part of its share holding of these industries to
Mutual Funds, financial institutions, general public and workers.
For this purposes, the Government of India set up a Disinvestment Commission in August
1996 which works out the modalities of disinvestment. On the basis of recommendations of
the Disinvestment Commission the government sells the shares of public enterprise.
(iv) Greater autonomy to public enterprises:
The New Industrial Policy seeks to give greater autonomy to the public enterprises in their
day-to-day working. The trust would be on performance improvement of public enterprises
through a mix of greater autonomy and more accountability.
(3) Liberalised Policy Towards Foreign Capital and Technology:
The inflow of foreign capital and import of technology was tightly regulated under the earlier
Industrial policy. Each proposal of foreign investment was to be cleared by the Government in
advance. Wherever foreign investment was allowed, the share of foreign equity was kept very
low so that majority of ownership control remains with Indians.
But such a policy kept the inflow of foreign capital very small and industrial development
suffered for want of capital resources and technology. The July, 1991 Industrial policy made
several concessions to encourage flow of foreign capital and technology into India, which are
follows:
(i) Relaxation in Upper Limit of Foreign Investment:

The maximum limit of foreign equity participation was placed at 40 per cent in the total equity
capital of industrial units which were open to foreign investments under the 1991 policy; this
limit was raised to 51 per cent. 34 specified more industries were added to this list of 51 per
cent foreign equity participation.
In some industries the ratio of foreign equity was raised to 74 percent. Foreign Direct
Investments (FDI) was further liberalised and now 100 per cent foreign equity is permitted the
case of mining, including coal and lignite, pollution control related equipment, projects for
electricity generation, transmission and distribution, ports, harbours etc.
Recent decision taken to further liberalise FDI include permission for 100 per cent FDI in oil
refining, all manufacturing activities in Special Economic Zones (SEZs), some activities in
telecom see tor etc. (ii) Automatic Permission for Foreign Technology Agreement:
The New Industrial Policy states that automatic permission will be granted to foreign
technology agreements in the high priority industries. Previously technology agreement by an
Indian company with foreign This delayed the import of technology and hampered
modernisation of industries. Now the Indian
companies could enter into technology agreements with foreign companies and import foreign
technology for which permission would be automatically granted provided the agreements
involved a lump sum payment of upto Rs. 1 crore and royalty upto 5 percent on domestic
sales and 8 per cent on exports.
(4) Changes in the MRTP Act:
According to the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, all big
companies and large business houses (which had assets of Rs. 100 crores or more, according
to the 1985 amendment to the Act) were required to obtain clearance from the MRTP
Commission for setting up any new industrial unit, because such companies (called MRTP
companies) were allowed to invest only in some selected industries.
Thus, besides obtaining a licence they were also required to get MRTP clearance. This was a
big impediment for industrial development as the big business firms which had the resources
for development could not grow and diversify their activities.
The Industrial Policy, 1991 has put these industries on par with others by abolishing those
provisions of the MRTP Act which mediate mandatory for the large industrial houses to seek
prior clearance from MRTP Commission for their new projects.
Under the amended Act, the MRTP Commission will concern itself only with the control of
Monopolies and Restrictive Trade Practices that are unfair and restrict competition to the
detriment of consumers interests. No prior approval of or clearance from the MRTP
Commission is now required for setting up industrial units by the large business houses.
(5) Greater Support to Small-Scale Industries:
The New Industrial Policy seeks to provide greater government support to the small-scale
industries so that they may grow rapidly under environment of economic efficiency and
technological upgradation. A package of measures announced in this context provides for
setting up of an agency to ensure that credit needs of these industries are fully met.
It also allows for equity participation by the large industries in the small scale sector not
exceeding 24 per cent of their total shareholding. This has been done with a view to provide
small scale sector an access to the capital market and to encourage their upgradation and
modernisation the government would also encourage the production of parts and components
required by the public sector industries in the small-scale sector.

(6) Other Provisions:

Besides above discussed measures, the Industrial Policy 1991 announced some more steps to
promote rapid industrial development. It said that the government would set up a special
board (which was established as Foreign Investments Promotion BoardFIPB) to negotiate
with a number of international companies for direct investment in industries in India.
It also announced the setting up of a fund (called National Renewal Fund) to provide social
security to retrenched workers and provide relief and rehabilitate those workers who have
been rendered unemployed due to technological changes.
The New Policy also removed the mandatory convertibility clause under which the Public
Sector Financial Institution were asked to convert the loans given by them to private
industries in equity (shares) and thus become partners in their management.
This removed a big threat to the private sector industries as they were always under threat
that their management and control could pass on into the hands of the Government owned
financial institutions. Evaluation of the New Industrial Policy:
The New Industrial Policy 1991 aims to unshackle Indians industrial economy from the
cobwebs of unnecessary bureaucratic control. According to this policy the rate of the
government should change from that of only exercising control over industries to that of
helping it to grow rapidly by cutting down delays.
Removal of entry barriers and bringing about transparency in procedures. This policy
therefore also at virtually ending the Licence-Permit Raj which has hampered private
initiative and industrial development. The new policy therefore throws almost the entire field
of industry wide upon for the private sector.
The public sectors role has been confined largely to industries of defence, strategic and
environmental concerns. Thus new policy is more market friendly and aims at making the best
use of available entrepreneurial talent in a congenial industrial environment. The industry is
thus expected to grow faster under the new industrial policy 1991.
Industrial Policy Measures Since 1991
Since 1991, industrial policy measures and procedural simplifications have been reviewed on
an ongoing basis. Presently, there are only six industries which require compulsory licensing.
Similarly, there are only three industries reserved for the public sector. Some of important
policy measures initiated since 1991 are set out below:
Since 1991, promotion of foreign direct investment has been an integral part of Indias
economic policy. The Government has ensured a liberal and transparent foreign investment
regime where most activities are opened to foreign investment on automatic route without
any limit on the extent of foreign ownership. FDI up to 100 per cent has also been allowed
under automatic route for most manufacturing activities in Special Economic Zones (SEZs).
More recently, in 2004, the FDI limits were raised in the private banking sector (up to 74 per
cent), oil exploration (up to 100 per cent), petroleum product marketing (up to 100 per cent),
petroleum product pipelines (up to 100 per cent), natural gas and LNG pipelines (up to 100
per cent) and printing of scientific and technical magazines, periodicals and journals (up to
100 per cent). In February 2005, the FDI ceiling in telecom sector in certain services was
increased from49 per cent to 74per cent.
Reservation of items of manufacture exclusively in the small scale sector has been an
important tenet of industrial policy. Realizing the increased import competition with the
removal of quantitative restrictions since April 2001, the Government has adopted a policy of
dereservation and has pruned the list of items reserved for SSI sector gradually from 821

items as at endMarch1999 to 506 items as on April 6, 2005. Further, the Union Budget 200506 has proposed to dereserve 108 items which were identified by Ministry of Small Scale
Industries. The investment limit in plant and machinery of small scale units has been raised
by the Government from time to time. To enable some of the small scale units to achieve
required economies of scale, a differential investment limit has been adopted for them since
October 2001. Presently, there are 41 reserved items which are allowed investment limit up to
Rs.50 million instead of present limit of Rs.10 million applicable for other small scale units.
Equity participation up to 24 per cent of the total shareholding in small scale units by other
industrial undertakings has been allowed. The objective therein has been to enable the small
sector to access the capital market and encourage modernization, technological up gradation,
ancillarisation, sub-contracting, etc.
Under the framework provided by the Competition Act 2002, the Competition Commission of
India was set up in 2003 so as to prevent practices having adverse impact on competition in
markets.
In an effort to mitigate regional imbalances, the Government announced a new North-East
Industrial Policy in December 1997 for promoting industrialization in the North-Eastern region.
This policy is applicable for the States of Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland and Tripura. The Policy has provided various concessions to industrial units
in the North Eastern Region, e.g., development of industrial infrastructure, subsidies under
various schemes, excise and income-tax exemption for a period of 10 years, etc. North
Eastern Development Finance Corporation Ltd. ,has been designated as the nodal disbursing
agency under the Scheme.
Evidently, in the process of evolution of industrial policy in India, the Governments
intervention has been extensive. Unlike many East Asian countries which used the State
intervention to build strong private sector industries, India opted for the State control over key
industries in the initial phase of development. In order to promote these industries the
Government not only levied high tariffs and imposed import restrictions, but also subsidized
the nationalized firms, directed investment funds to them, and controlled both land use and
many prices.
In India, there has been a consensus for long on the role of government in providing
infrastructure and maintaining stable macroeconomic policies. However, the path to be
pursued toward industrial development has evolved over time. The form of government
intervention in the development strategy needs to be chosen from the two alternatives:
Outward-looking development policies encourage not only free trade but also the free
movement of capital, workers and enterprises. By contrast, inward-looking development
policies stress the need for ones own style of development. India initially adopted the latter
strategy.
1991, industrial licensing played a crucial role in channelling investments, controlling entry
and expansion of capacity in the Indian industrial sector.

Q4) Discuss the key objective and salient feature of the Consumer
protection Act.1986
In order to provide for better protection of the interests of the consumer the consumer
Protection Bill 1986 was introduced in the Lok Sabha on 5TH December,1986.
The consumer protection Act 1986 is a social welfare legislation which was enacted as a result
of widespread consumer protection movement.
Amendments:
It has been comprehensively amended by COPRA (Amendment) 1986, 1992, 1993 & 2002.
Two kinds of consumer under the ACT
Consumer of goods

Buys or agrees to buy goods.

Any user of such goods.

Consumer of services:
Hires or avails any services.
Any beneficiary of such service.
Objective:

To assist countries in achieving or maintaining adequate protection for their population

as consumers;
To facilitate production and distribution patterns responsive to the needs and desires of
consumers;
To encourage high levels of ethical conduct for those engaged in the production and
distribution of goods and services to consumers;
To assist countries in curbing abusive business practices by all enterprises at the
national and international levels which adversely affect consumers;
To facilitate the development of independent consumer groups;
To further international cooperation in the field of consumer protection;
To encourage the development of market conditions which provide consumers with
greater choice at lower prices.

Salient Features
Important Salient Features of the Consumer Protection Act, 1986 are given below:
1. Three-tier Grievances Redressal Machinery:
The Act provides speedy redressal to consumer complainants. The Bill provides for setting up
of a Consumer Redressal Forum in every district, a commission at the state level and the
National Commission at the Centre. The Forum in the District will have original jurisdiction to
redress complaints up to claim of Rs. 1 lakh (after amendment up to 10 lakhs).
The State Commission will be original jurisdiction to settle claims up to the amount Rs. 10
lakhs (after amendment 20 lakhs). The National Commission can entertain any claim for
damages above Rs. 10 lakhs (after amendment above 20 lakhs). The State Commission will
be vested with appropriate Appellate and Revisional powers.
2. Presence of experienced member for the protection of consumers:

To promote voluntary consumer movement and to ensure involvement of consumers. The Bill
provides for the establishment of Consumer Protection Councils at centre and in the states.
These Councils will have both non-official and official members. The objects of the Councils
will be to promote and protect the rights of the consumers.

3. Coverage of Items:
This Act is applicable on all the products and services, until or unless any product or service is
especially debarred out of the scope of this Act by the Central Government.
4. Coverage of Sectors:
This Act is applicable to all the areas whether private, public or cooperative.
5. Power of the act:
The provisions of the Bill shall be in addition to and not in derogation of any other law for the
time being in force.
6. Compensatory Nature of Provisions:
Many Acts have been passed for the help of consumers. Consumers enjoy the benefits of
these Acts but if a consumer wishes the Consumer Protection Act can provide extra help. As a
result the nature of provisions of this Act is compensating for the loss or providing extra help.
Consumer is totally free to enjoy the benefits provided in the Act. Necessary penal and
punitive provisions have been corporate to ensure that the proposed legislation is effective in
protecting consumers.
7. Types of customers:
The complaint can be filed by a consumer or an organization being a society registered under
the Societies Registration Act, or a company registered under the Companies Act,
representing consumers or by the central or state government.
8. Effective Safeguards:
The complaint can be filed on account of any unfair trade practices resulting in loss or
damage, defect in the goods, deficiency in the services, prices charged in excess of the prices
fixed by or under any law or displayed on the goods/packets.
9. Area of operation:
In terms of geographical application, it applies to the whole of India except the State of
Jammu and Kashmir.
10. Group of Consumers Rights:
This Act provides many rights to consumers. These rights are related to safety, information,
choice, representation, redressal, education etc.
Q: Fundamental Rights?
Fundamental Rights and Business:
The Indian Constitution incorporates a list of Fundamental Rights and guarantees their
inviolability by executive and legislative authorities. Part III (Articles 12-35) deals with the
Fundamental Rights granted to individuals. These rights were finalised by the committee of
the Constituent Assembly headed by Sardar Vallabhbhai Patel. The fundamental rights are
superior to ordinary laws; they can be altered only through constitutional amendments.

Originally, the fundamental Rights were seven but in 1978, through the 44th amendment of
the constitution, the right to property was removed from the list of fundamental rights.
The six types of fundamental rights of the constitution are as follows:
(1) Right to Equality (Articles 14 to 18):
Articles 14 to 18 deal with right to equality. The Constitution clearly provides that the state
shall not deny to any person equality before law or the equal protection of law within the
territory of India. It cannot discriminate against any citizen on grounds of religion, race, caste,
sex, and place of birth or any of them.It means that every citizen has access to shops, public
restaurants, hotels, places of public entertainment etc., and is free to use wells, tanks, roads
and places of public resort maintained at state funds. In the employment aspects, the
appointment to offices under the state also equal opportunity shall be provided to all the
citizens, and no person shall be denied employment on grounds of religion, race,caste, sex,
descent, and place of birth, residence or any of them. Again, to make the right to equality a
reality; untouchability has been abolished and its practice in any form has been made an
offence punishable in accordance with law. According to this articles the business should
provide equality before law, social equality and economic equality.
(2) Right to Freedom (Articles 19 to 22):
Articles 19 to 22 enumerates certain positive rights conferred by the Constitution in order to
promote the ideal of liberty promised in the preamble. Six fundamental rights in the nature of
freedom are guaranteed to the citizens in the article (originally there were seven, but now
right to property is deleted).
The six Freedoms are as follows:
(i) Freedom of speech and expression.
(ii) Freedom of peaceful assembly without arms.
(iii) Freedom of association.
(iv) Freedom of movement throughout the territory of India.
(v) Freedom to reside or settle any part of the territory.
(vi) Freedom to practise any profession, or to carry on any occupation, trade or business.
The right to freedom is also applied equally in business. The businessmen can express their
problems freely to the government and can get a solution to it. Similarly, every citizen has the
right to choose any business or profession and can form unions, and conduct meetings.
(3) Right against Exploitation (Articles 23 to 24):
Articles 23 to 24 deal with the right against exploitation and seek to prevent exploitation of
weaker sections of society by unscrupulous persons as well as the state. Article 23 prohibits
traffic in human beings, involuntary work without payment and other forms of forced labour.
Article 24 prohibits the employment of children below 14 years of age in factories and
hazardous occupations, employing
Women employees in night shifts in factories etc.
Economic Importance:
The economic importance of right against exploitation is
(i) The government takes necessary steps to remove bonded labour.

(ii) The Factories Act help to prevent exploitation of women and children employees.
(iii) The owner of the factories are guided to make provision for safety and welfare of the
workers and they compulsorily appoint a labour welfare officer, it in the factory 500 01 more
workers are employed.
(4) Right to Freedom of Religion (Articles 25 to 28):
Articles 25 to 28 deal with the right to freedom of religion. Subject to public order, morality,
health etc.the citizens enjoy freedom of conscience and are free to profess, practise and
propagate any religion. However, the state can regulate or restrict the economic, financial,
political or other secular activities associated with religious practices. No citizen can be
compelled to pay any taxes the proceeds of which are to be spent for the promotion or
maintenance of any particular religion or religious domination.
Economic Importance:
The Economic importance of the right to freedom of religion is
(i) The government cannot spend tax money for the development of any religion.
(ii) Nobody can be compelled to pay tax for the welfare of any specific religion.
(iii) No one shall be forced to transfer of property or any agreement of a business nature in
the name of
a particular religion.
(5) Cultural and Educational Rights (Articles 29 to 30):
Article 29 stipulates that the State shall not impose upon it any culture other than the
community s own culture. A minority community has the right to preserve its culture and
religious interests. Article 30 confers upon a minority community the right to establish and
administer educational institutions of its choice. A notable feature of the educational and
cultural right is that unlike other fundamental rights, it is not subject to any restriction, except
that the State can make special provisions for the advancement of any socially and
educationally backward classes of citizens.
Economic Importance:
(i) The state does not discriminate to give economic assistance to the minority institutions.
(ii) The aided institution cannot refuse admission to any of the citizens on the ground that he
belongs to a particular caste, religion, language or region.
(6) Right to Constitutional Remedies (Article 32):
This right has been described by Dr. Ambedkar as the heart and soul of the Constitution. In
tact the mere declaration of fundamental rights is useless unless effective remedies are
available for their enforcement. This has been ensured under Article 32 which grants the right
to move the Supreme Court by appropriate proceedings for the enforcement of the rights
conferred by the Constitution.Clause (2) of Article 32 confers power on the supreme court to
issue appropriate directions or orders to writs, including writs in the name of habeas corpus,
mandamas, prohibition, quo-warrant and certiorari for the enforcement of any of the rights
conferred by Part III of the constitution.Thus, the fundamental rights enumerated in the
constitution guarantee a number of economic and social lights to the citizens. At the same
time the state has the power to impose reasonable restrictions on such rights in the interest
of the people.