BUSINESS IN INDIA

INDIAN ECONOMY DURING INDEPENDENCE

 Outdated Technology
 Unscientific Management of Industries
 Inadequate Educational and Health
Care Institutions
 Poverty
 Massive Unemployment
 Low GDP
 Low Per Capita Income
 Poor Standard of Living
DEVELOPMENT OF BUSINESS IN INDIAN ECONOMY
 Mixed Economy
 Industrialisation
 The Planning Commission of India and the Five Year Plans
 Public Sector Enterprises (PSE’s)
 Licensing System
 Nationalisation of Banks
 Nationalisation of Insurance Companies
 New Economic Policy
 Liberalisation
 Privatisation
 Globalisation
 Industrial Growth
 Technological Progress
PUBLIC SECTOR IN INDIA
STAGES IN THE DEVELOPMENT OF PSUs
 Industrial Policy Resolution in 1948
 First Five – Year Plan (1951)
 Socialistic Pattern of Society (1954)
 Industrial Policy Resolution in 1956
 Second Five Year Plan (1956 – 61)
 Third Five Year Plan ( 1961-66)
 Fourth Five Year Plan ( 1969-74)
 Industrial Policy Statement in 1980
 Government Policy (1984-89
 Seventh Five Year Plan (1985-90)
 Industrial Policy Statement 1991
 Policy of the Government in 1996
 Eighth Five Year Plan (1992-97)
 Ninth Five Year Plan
 Tenth Five Year Plan
ROLE OF PUBLIC SECTOR IN INDIA
 Resolving Deficiencies

 Balanced Regional Development

 Employment opportunities

 Contribution to the Government

 Development of Society

 Research and Development

 Social Welfare
ROLE OF PRIVATE SECTOR IN INDIA
 Improved Standard of Living
 Easy Availability of goods and services
 Competitive prices for essential goods
 Better value for Human Capital
 Employment Generation
 Offers fair prices to farmers for their products
 Development of more markets
 Innovation
 Improved Social Life
 Poverty Alleviation
 Better education
ROLE OF CO-OPERATIVE SECTOR IN INDIA

 Rural Development

 Micro Finance

 Reasonable Prices

 Promotion of village Industries

 Generation of Employment
LIBERALISATION, PRIVATISATION & GLOBALIZATION
LIBERALISATION
 Industrial Licensing was limited to 18 Industries

 Introduction of SEBI

 Foreign Direct Investment

 Foreign Institutional Investment

 Issue of Global Depository Receipts

 Privatisation of loss making Govt. Corporations

 Reduction of Import Duties and Procedures

 Increase in Exports

 Strengthening of PSUs

 Disinvestment Measures
 PRIVATISATION
 Reduced Government Intervention
 Wide variety of Products and Services
 Low Price and Discounts
 Superior Quality
 Increases Bargaining Power
 Generates Employment Opportunities
 Increased Revenue of the Government

 Unfair use of Natural Resources

 Commercialisation in all fields
 Lack of Transparency
 Creation of Monopoly
 Artificial Scarcity
 FORMS OF PRIVATISATION
OWNERSHIP ORGANISATIONAL OPERATIONAL
MEASURES MEASURES MEASURES
Total Holding Company Structure
Decentralisation
Leasing
Joint Ventures
Restructuring
Liquidation
Financial
Restructuring

Basic
Restructuring
DISINVESTMENT

STRATEGIC GROUP

CORE GROUP

NON-CORE GROUP
 GLOBALISATION
ADVANTAGES MEASURES
 Wide range of products and services
 Economic Development  Devaluation
 Overcoming Cultural Barriers
 Flow of Technology  FDI
 Services from other Nations
 Withdrawal of Import
DISADVANTAGES
 Over dependence of Poor Nations Restrictions

 Unfavourable position of BOT

 Reduction of Customs
 Destruction of Domestic Trade
 Threats to Agriculture Tariff
 Damage to Culture and Tradition
 Ecological Issues  NRI Scheme