Role of Govt.

in a
Mixed Economy.
Presented By,
“SUMMER OF 69”
Arijit Das , Srijit Dutta , Parakram Majumder, Tithi Shaoo, Eshita
Sadhukhan .
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 Economy of India - Mixed economy

Mixed economy is a combination of capitalist market

economies and socialist command economies.

Capitalist market economies

A social and economic system in which prices are fixed by
the law of supply and demand rather than by a government
or other body.

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Socialist command economies
Economy in which government planning
dominates the direction of economic activity.

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India’s largest power generation company NTPC Limited
(Company) entered the capital markets on February 3,
2010 with its further public offer (FPO) of 412,273,220
equity shares of Rs. 10 at prices.

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Indian Economy Before 1991

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Indian Economy After 1991

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 AGRICULTURE SECTOR
• India ranks second worldwide in farm output. Agriculture and allied sectors
like forestry, logging and fishing accounted for 18.6% of the GDP in 2005,
employed 60% of the total workforce.

Main problems in the agricultural sector, as listed by the

World Bank
• India's large agricultural subsidies are hampering productivity-enhancing
investment.
• Overregulation of agriculture has increased costs, price risks and
uncertainty.
• Government interventions in labor, land, and credit markets.
• Inadequate infrastructure and services.

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 Inflation (WPI) [YoY]

KEY POINTS
1.The food articles index rose an annual
16.65 percent in March.

2.The fuel price index rose 12.71 in

March.

3.The manufacturing products index in

the WPI rose an annual 7.13 percent in
March.

4.January's WPI inflation revised to 9.44

percent from 8.56 percent earlier.

5 The annual inflation rate was 1.20

percent in March 2009.
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Income Tax Slab

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Effect of Budget on Mixed Economy

On banking sector:
Additional licenses to be issue private banker and non banking financial
Company.
Villages with population of over 2000 will come under banking from
March , 2012.

On Automobile :
Excise duty on small cars increase to 10 % from 8%. And for large cares
it increase to 22% from 20 %.
4% concession of duty on parts such as batteries and motors.

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On Infrastructure :

46% of total planned expenditure is allocated to infrastructure development.

Increased excise duty on cement industry.

On Power sector:
Increased allocation to Rs. 1,000 Cr. from Rs. 620 Cr. for new and
renewable energy .
Raising the allocation for power sector to Rs. 5,130 cr. from Rs. 2,130 cr.

On Telecom sector:
Rate of excise duty has been increased from 8% to 10% .
Increase Minimum Alternative Tax (MAT)- from 15% to 18%.

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On Education:
15% increased in allocation for Sarva Shiksha Adhiyaan.

On Healthcare:
14% increased in the planned allocation to the health and family
welfare ministry.

On Oil and Petroleum:

Petrol price raised by 2.67/ lit and Diesel price raised by 2.58/lit.

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Budget Estimate 2010-11

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Why Government is increasing excise duty?

Is Government really doing something to

control the inflation?

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 FY 2007- FY 2008- FY 2009- FY 2010-11 FY 2011- FY 2012-
Particular
08 09 10 (E) 12 (E) 13 (E)

Fiscal 2.8% of 6.2% of 6.8% of 5.5% of 4.8% of 4.1% of

Deficit GDP GDP GDP GDP GDP GDP

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 Dec, 2009 Jan, 2010
REPO Rate 4.75% 5%
Reserve REPO Rate 3.25% 3.50%

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