BUSINESS

ENVIRONMENT

BY- NAVEEN GUPTA &

GOVINDDEEP SINGH
BATRA
 FUNCTIONS OF STATE
1. MINIMAL FUNCTION
2. INTERMEDIATE FUNCTION
3. ACTIVIST FUNCTIONS
 ECONOMIC ROLE OF GOVERNMENT

1. REGULATORY ROLE
2. PROMTIONAL ROLE
3. ENTREPRENEURIAL ROLE
4. PLANNING ROLE
 REGULATORY ROLE
Regulations may cover a wide spectrum
extending from entry into a business through
the conduct of the business to final results of
the business and also the exit.
 ENTREPRENEURIAL ROLE
Direct Participation Of Government In Business
Was Very Common Particularly In A Socialist And
Developing Countries. Reasons Included
Ideological And Dearth Of Pvt Entrepreneurship
And Capital.
 PLANNING ROLE
The National necessity for proper utilization of
scarce resources and prioritization of
development objectives and ideological reasons
have made this an important role of govts in the
developing and socialist countries.
 PROMOTIONAL ROLE
This Is Also More Important In Developing
Countries Than In The Developed Speedy
Development Of The Industry And Commerce
And The Economy Requires The Development Of
The Infrastructure, Including Facilitating
Organization .
ECONOMIC ROLE OF
GOVERNMENT
IN INDIA
 THE CONSTITUTION OF INDIA
 Constitution is a living document, an
instrument which makes the government
system work. Its flexibility lies in its
amendments.
 The Constitution applies to the State of
Jammu and Kashmir with certain exceptions
and modifications as provided in article 370
and the Constitution (Application to Jammu
and Kashmir) Order, 1954.
 PREAMBLE
 WE, THE PEOPLE OF INDIA, having solemnly resolved
to constitute India into a –SOVEREIGN SOCIALIST
SECULAR DEMOCRATIC REPUBLIC and to secure to all
its citizens:
 JUSTICE, social, economic and political;  LIBERTY of
thought, expression, belief, faith and worship;
 EQUALITY of status and of opportunity;  and to
promote among them all
 FRATERNITY assuring the dignity of the individual and
the unity and integrity of the Nation;
THE FUNDAMENTAL RIGHTS
 THE FUNDAMENTAL DUTIES
• Part IVA of the Indian Constitution deals with
Fundamental Duties. As of now, there are 11
Fundamental duties.
• Originally, the Constitution of India did not contain
these duties. Fundamental duties were added by 42nd
and 86th Constitutional Amendment acts.
• Citizens are morally obligated by the Constitution to
perform these duties. However, like the Directive
Principles these are non-justifiable, without any legal
sanction in case of their violation or non-compliance.
 THE DIRECTIVE PRINCIPLES
• Article 47:- Art. 47 provides that the State
shall regard the raising of the level of nutrition
and the standard of living of its people and the
improvement of public health as among its
primary duties. The improvement of public
health also includes the protection and
improvement of environment without which
public health cannot be assured.
 DIVISION OF POWER
 UNION LIST

 STATE LIST

 CONCUREENT LIST
EXPANSION IN STATE INTERNATION
 LEGISLATURE
• Legislature is the most powerful institution.
The powers vested in legislature are:
 Policy making
 Law making
 Approval of budgets
 Executive control
 To act as a mirror of public opinion
 EXECUTIVE
• Government is the executory body of the laws
which are framed by the legislature
• The role of the government is to shape, direct
and control the business activities
• Indian constitution provides for a federal
setup with powers being divided between
central and the state governments
 JUDICIARY
• The judiciary sees to it that the exercise of
authority by the executives is according to the
general rules laid down by the legislature
• It is the power of the judiciary to settle legal
disputes that affect business considerably.
• The democracy of a country can die if an alert,
independent and quick to act judiciary is not
there.
THANK YOU