BUSINESS ENVIRONMENT IN

INDIA DURING PRE-

REFORM PERIOD (1947-1980)

GROUP MEMBERS

1. Kimaya parjane

2. Sushma Rathod

3. Shweta Phadtare

4. Uma Sharma

5. Megha Venugopal

6. Tejal Shah

7. Aishwarya Pawar

8. Jill Thakkar

9. Shefali Dutt

10. Ritika Singh

ECONOMIC DEVELOPMENT

Introduction

Objectives

Changes in:- 1)Demographic feature

2)Occupational structure3)National income and per capita income

DEVELOPMENT OF INFRASTRUCTURE.

• MEANING• DEVELOPMENT

EFFORTS• PAST AND PRESENT• RESEARCH

Indigenous bankers

Indian financial system

Money market

Unorganized market

Organized market

Capital market

Reserve bank of India

Commercial bank

Co-operative bank

Schedule Unscheduled

Year Percentage average annual GDP growth

1900-1950 1.0

1950-1980 3.5

1980-2002 6.0

2002-2006 8.0

Financial Infrastructure GDP

Introduction of modern technologyBackward area would progress a lotRise in National income would give

rise to GDP

FDI

IMPORT SUBSTITUTION.

• MEANING• TRADE RESTRICTIONS• ADOPTED IMPORT

SUBSTITUTION• TARIFF AND NON-TARIFF

BARRIERS• POLICIES

LICENSING POLICY Industrial Development Regulation Act {IDRA} was passed in

1951 to implement the Industrial Policy Resolution Act,1948. This act was implemented to all private sectors industries which

were subject to the strict state control through a system of licenses. LICENSE is a written permission from government of India to

manufacture specific articles in the schedule. All new unit will require a license.

OBJECTIVES

•Control industrial pollution.

•Employment generation.

•Ensure adequate supply of goods.

OF

•Regulate foreign capital and technology

•Encouraging small scale industries.

•Ensuring balanced regional development

LICENSING

•Achieve desired pattern of dispersal of industries

•Ensure proper use of technology and scale economies

NATIONALISATION OF BANKS &OTHER SECTORS

• After Independence the Government of India adopted planned economic development for the India

• .Accordingly, five year plans came into existence since 1951.

• Nationalization

LIST OF NATIONALIZED BANK IN. 1969:-

central Bank Of India. Bank of Maharashtra Dena Bank. Punjab National Bank.Bank of Baroda

Scheduled banks

Foreign bank(40)

Public sector

banks(27)

SBI association

banks(8)

Other nationalized banks(19)

Private sector

bank(30)

Old(22)

New(8)

Regional rural

banks(196)

Urban cooperative

s(52)

State cooperative

s(16)

Commercial banks

cooperatives

Development of capital goods industries and research institutions

The Industrial Sector in India did not register consistent high growth. Therefore the second and third year plans were given more importance. Because it laid greater emphasis on development of capital goods

industries.

Causes for slow growth in the development of

capital goods industries

InflationQuantitative restrictions

Inflexible labour law

Lack of easy access to

credit

Research in science & applied technology helped to sustain technological development in India.The government of India set up 48 national laboratories to undertake applied research in chemistry, physics, electronics, botany, etc. And this research institutes developed a no. of new processes commercially exploited by industries.

COMMERCIAL POLICY

.The independence era Indian commercial policy from 1947 –

1980 was based on mixed economy combining features

of capitalism and socialism resulting in an inward looking interventionist policy and import substituting economy

that failed to take advantage of the post war expansion of

trade.

This contributed to wide spread inefficiencies and

corruption and the failing of this system were due largely to

its poor implementation.

ROLE OF PUBLIC SECTORAs on march 31

Number of units

Total investments(in cr.)

1951 5 29

1961 47 950

1980 179 18150

1990 244 99330

2001 242 274198

2007 247 421089

2008 214 763815

2009 213 793096

2010 217 (operating 217)

908842

Total 249

Liberalization

PRE-LIBERALIZATION

Post-liberalization

Five year plan

BACKWARD AREA DEVELOPMENT DURING PRE

REFORM PERIOD

1860-1900GROWTH IN PER CAPITA INCOME

1970PROBLEM OF OIL SHOCKS

1980SOLUTION OF OIL SHOCKS

BACKWARD AREA DEVELOP

MENT