emerging environmental changes

7/31/2019 Emerging Environmental Changes

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Economic Environment

Of Business


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Globalisation

Globalisation is the new buzzword that has

come to dominate the world since the nineties

of the last century with the end of the cold

war and the break-up of the former SovietUnion and the global trend towards the rolling

ball.


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The process of globalisation

includes opening up of world trade,

internationalisation of financial markets, population migrations

more generally increased mobility of persons,

goods, capital, data and ideas

Globalisation


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India opened up the economy in the earlynineties following a major crisis that led by aforeign exchange crunch that dragged theeconomy close to defaulting on loans.

The response was a number of Domestic andexternal sector policy measures partly promptedby the immediate needs and partly by thedemand of the multilateral organisations.

The new policy regime radically pushed forwardin favour of a more open and market orientedeconomy.

Impact on India


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Major measures initiated as a part of theliberalisation and globalisation strategy in theearly nineties included:

scrapping of the industrial licensing regime

reduction in the number of areas reserved for thepublic sector

amendment of the monopolies and the restrictive

trade practices act start of the privatisation programme

reduction in tariff rates and change over tomarket determined exchange rates.

Major measures


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One heartening feature of the evolution of theworld economy during the last two to threedecades has been the outstanding economic

success of China and India two of the worldsmost populous and hitherto extremely poorcountries.

Starting out with the worlds largest absolute

numbers of people living in poverty, in narroweconomic terms the two countries have achievedimpressive growth

Impact Of Globalisation


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The liberalisation of the domestic economy

and the increasing integration of India with

the global economy have helped step up GDPgrowth rates.

Indias average annual growth rate almost

doubled in the eighties to 5.9%. IndianEconomy experienced a GDP growth of 9.0

percent during 2005-06 to 9.4 percent during

2006-07.

Over the past decade FDI flows into India have

increased Technology advancement


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By 2025 the India's economy is projected to be

about 60 per cent the size of the US economy.

The transformation into a tri-polar economy will

be complete by 2035, with the Indian economy

only a little smaller than the US economy but

larger than that of Western Europe.

High GDP growth


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By 2035, India is likely to be a larger growth

driver than the six largest countries in the EU,

though its impact will be a little over half that

of the US.

India, which is now the fourth largest

economy in terms of purchasing power parity,

will overtake Japan and become third majoreconomic power within 10 years

High GDP growth


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This issue is particularly important for the Indian

economy, where services have grown faster than

manufacturing in the last ten years.

Services have grown at an annual rate of 8 percent while manufacturing has grown by 6 per

cent.

The faster growth of services is largely due to thefast growth of the use of IT in domestic and

foreign industry and services.

Impact


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But fast growth overall has been jobless, thatis, in both the formal manufacturing as alreadynoted above, and also in the formal services

sector. Many Indian economists have argued that this

pattern of growth is lopsided andunsustainable.

They suggest that India will need to have fastgrowth of low-skill manufactured exports toremedy the situation and avoid social unrest.

Impact


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Sustaining the growth momentum and achieving anannual average growth of 7-8 % in the next five years.

Simplifying procedures and relaxing entry barriers forbusiness activities.

Checking the growth of population; India is the secondhighest populated country in the world after China.However in terms of density India exceeds China asIndia's land area is almost half of China's total land. Due

to a high population growth, GNI per capita remains verypoor.

Boosting agricultural growth through diversification anddevelopment of agro processing.

Challenges


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Expanding industry fast, by at least 10% per year to

integrate not only the surplus labour in agriculture but

also the unprecedented number of women and

teenagers joining the labour force every year.

Developing world-class infrastructure for sustaining

growth in all the sectors of the economy.

Allowing foreign investment in more areas Empowering the population through universal

education and health care. India needs to improve its

HDI rank, as at 127 it is way below many other

developing countries' performance.


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Environmental degradation


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Environmental degradation an issue of

increasing concern for all of us.

The deterioration of the environment

through depletion of resources, such as air,

water and soil.

The destruction of ecosystems and the

extinction of wildlife.

We only have one Earth to work with, and if

the environment is irreparably compromised,

it could mean the end of human existence.


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EFFECTS of Environmental Degradation


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Skin Cancer Cases Projection


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WATER POLLUTION


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Scarcity Of Fresh Water


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Water Pollution

British Petroleum Oil spill, The GULF OF MEXICO

Largest marine oil spill in history of petroleum industry causing

immense water pollution, happened on 20th April, 2010.

Deep water Horizon drilling rig explosion killing 11 platform workers and

injured 17 others.

Releasing 4.9 million barrels of crude oil.

Causing extensive damage to marine and wildlife habitats.

Effecting Gulfs Fishing and Tourism industries.

Heav clean u cost and dama e effectin the economic factor.


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AIR POLLUTION


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AIR POLLUTION


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SOIL DEGRADATION


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Condition of Soil Globally


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Deforestation


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ECONOMIC EFFECT OF ENVIRONMENTAL

DEGRADATION

FRESHWATER POLLUTION BY PHOSPHOROUS AND NITROGEN .

SPENDING $4.3 BILLION ANNUALY ON WATER PURIFICATION

BY AMERICANS . INCREASING WATER BILLS

MORE MONEY SPEND ON TREATMENT FOR WATER

PURIFYING.

PRODUCTIVITY IS EFFECTED. SHORTAGE OF EVIRONMENTAL RESOURCES SUCH AS DECLINE

FISHRIES LEADING TO IRREVERSIBLE COMPACTION.

Water Pollution


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VEHICLES AND INDUSTRIAL ACTIVITIES ARE THE

MAIN CAUSES OF AIR POLLUTION EFFECTING

PRODUCTIVITY DURING CRITICAL PERIOD OF

ENVIRONMENTAL DEGRADATION.

POLLUTION CAUSING ACID RAIN AND REDUCTION

OF OXYGEN IN ATMOSPHERE EFFECTING FOREST

AND WATER BODIES.

$2.3 BILLION IS BEEN EXPENDED EVERY YEAR BYGOVERNMENT ON AIR POLLUTION.

Air Pollution


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AGRICULTURAL PRODCTIVITY EFFECTED

DEPLETION OF SOIL INCREASING MALNUTRITION

FOR FARMERS. TILING OF LAND

LOSS OF PRODUCTIVITY LOSS OF TOP SOIL EFFECTING

AGRICULTURAL GOODS DUE TO CONSTANT TILINGOF THE LAND.

LOSS OF NUTRIENTS FROM RICH TOP SOIL

Soil Pollution


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LOSS OF BIODIVERSITY

DIRECT ECONOMIC VALUE OF PRODUCTSFROM SPECIES.

THE INDIRECT ECONOMIC VALUE OF

BENEFIT PRODUCED BY SPECIES.

NUTRIENT RECYCLING IN ECOSYSTEM.


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ENVIRONMENTAL DEGRDATION


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SAVE EARTH

emerging environmental changes

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