ECONOMIC ROLE OFGOVERNMENT

ININDIAN BUSINESS

ECONOMIC ROLE OFGOVERNMENT

ININDIAN BUSINESS

George V James

INTRODUCTION

Economic role is basically concerned with theeconomic development of the nation by framingrules and regulations.

Government always plays a very important rolein the development of the economy.

In capitalist countries, government participationwas increased after the Great EconomicDepression in the 1930’s.

The most important roles of any Governmentare Stability & Growth.

Economic role is basically concerned with theeconomic development of the nation by framingrules and regulations.

Government always plays a very important rolein the development of the economy.

In capitalist countries, government participationwas increased after the Great EconomicDepression in the 1930’s.

The most important roles of any Governmentare Stability & Growth.

FACTORS DETERMINING THE NATURE OF ROLE OFGOVERNMENT

Nature & stage of development of theeconomy.

Behaviour of private sector. Political Philosophy. Social Attitudes. Administrative Systems, etc

Nature & stage of development of theeconomy.

Behaviour of private sector. Political Philosophy. Social Attitudes. Administrative Systems, etc

ROLE OF GOVERNMENT

GOVERNMENTREGULATIONREGULATION

PROMOTION ENTREPRENUERSHIPPROMOTION ENTREPRENUERSHIP

BUSINESS/ECONOMY

GOVERNMENT’S ROLE AS REGULATOR OFBUSINESS

Ensure the private investment and production inthe industry meets the socio-economic objectivesof the government.Ensure the efficient use of resources and preventexploitation.Restraints on private activities.Control of monopoly & big business.Development of public enterprises as analternative to private enterprises to ensurecompetitive dualism.Maintenance of a proper socio-economicinfrastructure.

Ensure the private investment and production inthe industry meets the socio-economic objectivesof the government.Ensure the efficient use of resources and preventexploitation.Restraints on private activities.Control of monopoly & big business.Development of public enterprises as analternative to private enterprises to ensurecompetitive dualism.Maintenance of a proper socio-economicinfrastructure.

GOVERNMENT’S ROLE AS PROMOTER OFBUSINESS

Providing finance to the industry.(throughdevelopmental banks etc.)Granting incentives.Creating infrastructural facilities for industrialgrowth & investment.Promoting development in No Industry DistrictsEstablishing District Industrial Centres forassisting the development of small industries.

Providing finance to the industry.(throughdevelopmental banks etc.)Granting incentives.Creating infrastructural facilities for industrialgrowth & investment.Promoting development in No Industry DistrictsEstablishing District Industrial Centres forassisting the development of small industries.

GOVERNMENT’S ROLE AS AN ENTREPRENUER INBUSINESS

Mainly concerned with growth & developmentof public industries.

Has earned the name of a “SOCIALENTREPRENUER”

BSNL can be a best example for the abovestated term.

Mainly concerned with growth & developmentof public industries.

Has earned the name of a “SOCIALENTREPRENUER”

BSNL can be a best example for the abovestated term.

GOVERNMENT’S ROLE AS A PLANNER INBUSINESS

Indicating priorities through the Five Year Plansfor the sectoral allocation of resources.

Ensuring the equal distribution of scareresources to all the sectors in order to avoidclashes.

Indicating priorities through the Five Year Plansfor the sectoral allocation of resources.

Ensuring the equal distribution of scareresources to all the sectors in order to avoidclashes.

GOVERNMENT’S ROLEREDEFINED

POVERTY UNEMPLOYMENT INRASTRUCTURAL FACILITIES

POVERTY UNEMPLOYMENT INRASTRUCTURAL FACILITIES

POVERTY IN INDIA

CONT. India is said to have a 3rd of the world’s poor. 37% of Indian Population is below the poverty

line.(BPL) Kalahandi, Bolangir & Koraputh( Known as KBK

Districts in Odisha) are the most poverty affectedareas.

Kerala stands last in the poverty line.(We can beproud of that)

Some reasons of poverty are:-1. High Population Growth2. Caste System3. India’s economic policies4. Liberalization and its effects

India is said to have a 3rd of the world’s poor. 37% of Indian Population is below the poverty

line.(BPL) Kalahandi, Bolangir & Koraputh( Known as KBK

Districts in Odisha) are the most poverty affectedareas.

Kerala stands last in the poverty line.(We can beproud of that)

Some reasons of poverty are:-1. High Population Growth2. Caste System3. India’s economic policies4. Liberalization and its effects

CONT.REDUCING POVERTY

Employment opportunities Agricultural Development Primary Education & Good Infrastructural

Facilities Poverty alleviation programs like National Rural

Employment Program, Rural LandlessEmployment Guarantee Program, JawaharRojgar Yojna etc

REDUCING POVERTY Employment opportunities Agricultural Development Primary Education & Good Infrastructural

Facilities Poverty alleviation programs like National Rural

Employment Program, Rural LandlessEmployment Guarantee Program, JawaharRojgar Yojna etc

UNEMPLOYMENT

CONT. There are more than 6 crore well educated

youth in India who are unemployed. Reasons for Unemployment:-

1.Rapid Population Growth2. Defective Education System3. Limited Land4. Seasonal Agricultural5. Outdated Agricultural Methods6. Inadequate Employment Planning

There are more than 6 crore well educatedyouth in India who are unemployed.

Reasons for Unemployment:-1.Rapid Population Growth2. Defective Education System3. Limited Land4. Seasonal Agricultural5. Outdated Agricultural Methods6. Inadequate Employment Planning

CONT.Strategies undertaken by Government to reduce

Unemployment in India

Heavy Investment in Basic Industries. Development of Cottage & Small-scale Industries. Change in Educational System. Checking of Population Explosion. Modernization of Agriculture. Introduction of Rural Works Programmes. Developing Infrastructure. Subsidies to Private Sector. Stress on Self-employment.

Strategies undertaken by Government to reduceUnemployment in India

Heavy Investment in Basic Industries. Development of Cottage & Small-scale Industries. Change in Educational System. Checking of Population Explosion. Modernization of Agriculture. Introduction of Rural Works Programmes. Developing Infrastructure. Subsidies to Private Sector. Stress on Self-employment.

INFRASTRUCTURALDEVELOPMENT

CONT.

Infrastructure can be divided into 2 types:- Economic Infrastructure Social Infrastructure

examples:-Bharat Nirman,BOT Scheme.

Infrastructure can be divided into 2 types:- Economic Infrastructure Social Infrastructure

examples:-Bharat Nirman,BOT Scheme.

CONCLUSION The main role which should be played by the

government is to do things which is notpresently done by any another bodies.

Develop the country with efficient privateparticipation.

Not just making reforms, but implementing it. Finally protect investors and take up efficient

taxation policy.

The main role which should be played by thegovernment is to do things which is notpresently done by any another bodies.

Develop the country with efficient privateparticipation.

Not just making reforms, but implementing it. Finally protect investors and take up efficient

taxation policy.

REFERENCES

Business Environment & PolicyWikipedia.com Preservearticles.com Planningcommission.nic.in

Business Environment & PolicyWikipedia.com Preservearticles.com Planningcommission.nic.in