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Q1) Write a note on LegislativeA1) The political environment of business refers to the political or government actions that impact business operations. The political factors usually go hand in hand with the legal ones and are generally viewed because the non-market forces that impact businesses. Political decisions ultimately affect the economic, social and cultural environments as an entire.The political environment is studied in terms of the central government, the citizens of a country, rules, and regulations or international relations. Examples of political factors associated with the central government of a country are levels of bureaucracy, corruption, and government stability. A culture of corruption in a country stifles business operations by creating an uneven playing field where corrupt individuals are more empowered to advance their business goals than their non-corrupt counterparts. A highly unstable government is unable to provide businessmen the safety they need to trade peacefully, hence a highly volatile trading environment. Examples of political factors tied to international relations are policies on trade tariffs, policies on importation and exportation of products and services and international trade agreements.Legislature, law-making branch of a government before the arrival of legislaturesFunctions of a Legislature:1. Legislative or Law-making Functions:The first and foremost function of a legislature is to legislate i.e. to form laws. In ancient times, laws used to be either derived from customs, traditions and religious scriptures, or were issued by the kings as their commands. However, in the contemporary era of democracy, legislature is that the chief source of law. it's the legislature which formulates the will of the state into laws and gives it a legal character. Legislature transforms the demands of the people into authoritative laws/statutes.2. Deliberative Functions:To deliberate upon matters of national importance, public issues, problems and needs is a vital function of a modern legislature. Through this function, the legislature reflects the public opinion over various issues. The debates held in the legislature have a great educative value for the people.3. Custodian of National Finances:A near universal rule is that “the legislature of the state is the custodian of national purse.” It holds the purse of the nation and controls the finances. No money is raised or spent by the executive without the approval of the legislature. Each year the executive has got to prepare and get passed from the legislature the budget for the coming financial year. Within the budget, the executive must place the account of the actual income and expenditure of the previous year and estimated income and expenditure for the New Year.Not only the legislature passes the budget but also it alone can approve the imposition, or repeal or collection of any tax whatsoever. Further, the legislature maintains a control over all financial transactions and expenditures incurred by the executive.4. Control over the Executive:A modern legislature has the power to exercise control over the executive. in a parliamentary system of state, like the one which is at work in India, for all its actions, decisions, and policies, the executive is collectively responsible before the legislature. It’s accountable before the legislature. The legislature has the power to remove the executive by passing a vote of no-confidence or by rejecting a policy or budget or law of the executive.The Prime Minister and all other ministers are essentially the members of the legislature. They’re bound by the principles and procedures of the Parliament.5. Constituent Functions:In almost every state, it's the legislature which has the power to amend the constitution. For this purpose legislature must pass special laws, called amendments, in accordance with the procedure laid down within the Constitution. In some states the need is that the legislature must pass the amendment with 2/3rd or 3/4th or a majority of votes.6. Electoral Functions:A legislature usually performs some electoral functions. The 2 houses of the Indian Parliament elect the Vice-President. All elected MPs and MLAs form the Electoral College which elects the President of India. In Switzerland, the Federal Legislature elects the members of the Federal Council (Executive) and therefore the Federal Tribunal (Judiciary).7. Judicial Functions:It is customary to provide some judicial power to the legislature. Usually, the legislature is assigned to act as a court of impeachment i.e. as an investigating court for trying high public officials on charges of treason, misdemeanour and high crimes and remove them from office. In India, the Union Parliament can impeach the President. it's also the facility to pass a resolution for the removal of Judges of the Supreme Court and of the High Court’s on the ground of misbehaviour or incapacity.8. Ventilation of Grievances:A legislature acts as the highest forum for ventilation of public grievances against the executive. Besides representing every interest and shade of opinion, the legislature acts as the national forum for expressing public opinion, public grievances and public aspirations. Parliamentary debates and discussions throw a flood light over various matter of public importance. Q2) Write a note on ExecutiveA2) It is that organ which implements the laws passed by the legislature and therefore the policies of the govt. The rise of welfare state has tremendously increased the functions of the state, and in reality of the executive. In common usage people tend to identify the executive with the govt. In contemporary times, there has taken place a big increase in the power and role of the executive in every state.The term ‘Executive’ has been defined both in its broad and narrow forms. In its broad form, it's taken to mean all the functionaries, political power-holders (Political Executive) and permanent civil servants who undertake the execution of laws and policies and run the administration of state.In its narrow form, it's taken to mean only the executive heads (ministers i.e. the political Executive), who head the govt. departments, formulate the policies and supervise the implementation of the laws and policies of the govt.. in the narrow form, the civil service and its administrative functions aren't included in the realm of the executive.Traditionally, only the narrow meaning used to be accepted by the political scientists. However, in present time, the executive is defined in its broader form and it covers both the Political Executive as well as the civil service.Executive: Definition:(1) “In a broad and collective sense, the executive organ embraces the combination or totality of all the functionaries and agencies which are concerned with the execution of the will of the state as that will has been formulated and expressed in terms of law.” Garner(2) “In its broadest sense, the executive department consists of all government officials except those acting in legislative or judicial capacity. It includes all the agencies of government that are concerned with the execution of states will as expressed in terms of law.” GettellThese two definitions make it clear that executive includes the political executive (Ministers and Head of State) and therefore the non-political permanent executive (Civil Service or Bureaucracy). The political executive performs the function of creating policies and ensuring that all the laws are properly enforced by all the departments of the govt.The permanent executive i.e. bureaucracy/civil service runs the day-to- day administration and works in government departments. It works under the supervision and control of the political executive.Two Parts of Executive: Political Executive & Permanent Executive: Distinction:(i) The Political Executive (Ministers):It consists of the executive head of the state and other heads of the executive departments is ministers. Ministers are political leaders. They’re mostly elected representative of the people and responsible for all their decisions and policies before the public. Political Executive work for a fixed tenure of about 5 yearsIt acts as a temporary executive in the sense that it changes after every election. After completing tenure, ministers need to again contest elections. they will again become ministers only the party to which they belong returns to power as the majority party.The ministers are amateurs, non-experts and non-professionals. Their function is to formulate policies and get these policies and laws approved from the Legislature. Thereafter these policies and laws of the State are implemented by the civil servants, who work under the control of Political Executive. The political executive heads the govt. Each minister is head of a department or some of the govt. (ii) The Non-political Permanent Executive (Civil Servants):It consists of the civil servants (Bureaucracy) from the lowest to the highest levels. It carries out the day to day administration by working within the government departments. The civil servants are politically neutral. they do not owe allegiance to any party.Their job is to carry out the laws and policies of the govt. without any political consideration. They’re specially educated and trained persons. They’re experts and professionals. They provide expert advice and opinion also as collect, classify and present data to the political executive on the idea of which the latter takes all decisions.Once appointed, the civil servants remain in office till the attainment of the retirement age, usually up to the age of 55 or 60 years. They get regular and fixed salaries and are hierarchically organised into higher and lower relationships. Q3) Write a note on Functions of the ExecutiveA3) 1. Enforcement of Laws:The primary function of executive is to enforce laws and to maintain law and order in the state. Whenever a breach of law takes place, it's the responsibility of the executive to plug the breach and bring the offenders to book. Each department is responsible for the implementation of the laws and policies concerning its work. For maintaining law and order in the state, the executive organises and maintains the police.2. Appointment-making Functions:All major appointments are made by the chief executive. As for instance, the President of India appoints the judge and other Judges of the Supreme Court and High Courts. Ambassadors, Advocate General of India, Members of Union Public Service Commission, Governors of States etcLikewise, the President of the United States makes a very large number of key appointments. All the secretaries who head various government departments, Judges of the Supreme Court and other Federal Courts, the Federal officials within the States etc., are appointed by the US President. However, all such appointments require the approval of the United States Senate (Upper House us congress i.e. Parliament).The members of the civil service also are appointed by the Chief executive. This is, usually, done on the advice of a service recruitment commission. In India, the Union Public Service Commission annually holds competitive examinations for All India Services, Central Services and Allied Services.It recruits on merit, candidates for appointment to those cadres. The appointments are done by the Chief executive in accordance with the recommendations of the UPSC. Similar practice prevails in most the states. as such appointment-making is a function of the executive.3. Treaty-making Functions:It is the responsibility of the executive to decide on which treaties are to be signed with which other countries. the executive negotiates the treaties in accordance with the procedure defined by international law and also in accordance with the provisions the constitution of the state.Each treaty is signed by a member of the executive. Most of the treaties also require ratification by the legislature of the State. it's again the responsibility of the executive to secure legislative approval for the treaties signed by it.4. Defence, War and Peace Functions:One of the key functions of the state is to defend and preserve the unity and integrity of the country and protect it within the event of an external aggression or war. it's the responsibility of the executive to undertake this work. To organise military for the defence of the state, to organize for and fight the war, if it becomes necessary, and to negotiate and sign peace settlement after every war, are the functions performed by the executive.The executive is that the final judge of the nature of the threat to the safety of the country. it's the prime responsibility to take all such steps as are needed within the interest of the safety and integrity of the state. The chief executive of the state is additionally the supreme commander of the armed forces of the state.5. Foreign Policy-making and the Conduct of Foreign Relations:In this age of ever-increasing global interdependence, it's become one among the most important functions of a government to formulate the policy of the state and to conduct foreign relations. This function is also performed by the executive.The executive formulates the goals of national interest and fixes the priorities. It first formulates the foreign policy of the nation and then implements it for securing the defined goals of national interest. the executive appoints the ambassadors of the state to other states.6. Policy-making:Modern welfare state needs to carry out a large number of functions for securing the socio-economic-cultural development of its people. it's to formulate policies, prepare short-term and long-term plans and implement these. All actions of the state are guided by definite policies and plans.It is the executive which undertakes the task of policy-making and developmental planning. These are the 2 most vital functions of the executive, because by these the state carries out its objective of promoting the welfare of its people.7. Functions regarding Law-making:Law-making is primarily the function of the legislature. However, the executive also plays a role in law-making. during this sphere too the role of the executive has been increasing by leaps and bounds. in a parliamentary system, the ministers also are members of the legislature and that they play a leading role in law-making.Most of the bills for legislation are introduced and piloted by them within the legislature. Most of the time of the legislature is spent in passing the governmental bills. The bills passed by the legislature become laws only after these are signed by the head of the State.8. Law-making under the system of Delegated Legislation:The system of delegated legislation has considerably increased the law-making role of the executive. Under this technique, the legislature delegates a number of its law-making powers to the executive. the executive then makes rules on the basis of these powers. the number of delegated legislation made by the executive far out-weighs the laws passed by the legislature.9. Financial Functions:It is the legislature which is the custodian of all finances. it's the power to impose, or reduce or eliminate a tax. However, in actual practice, the executive exercises variety of financial functions. it's the responsibility to prepare the budget. It proposes the levy of new taxes or changes in tax structure and administration. It collects and spends the money as sanctioned by the legislature.The executive decides the ways and means through which the money is to be collected and spent. It formulates all economic policies and plans. It takes suitable measures for regulating the production and distribution of goods, money supply, prices and exports and imports. It contracts foreign loans, negotiates foreign aid and maintains the financial credibility of the state. Q4) Write a note on JudiciaryA4) Judicial System or the court system is also the Judiciary System. The court has the power to make decisions and also enforce the law, solve disputes. Judiciary system consists of Judges and other magistrates; they form the bench or the core of the judiciary system.On 26 January 1950, the Indian Constitution was written and it's world’s largest constitution written. The constitution is that the source of law in India and also the supreme law of India. judiciary of India consists of Supreme Court, supreme court, District Court or Subordinate Court.Supreme Court of IndiaUnder the constitution of India, the Supreme Court is that the final court of appeal. Hence has the chief justice of India, including 30 judges and other judges for advisory jurisdiction. Unsolved or still in dispute cases are levelled up to Supreme Court to reattain justice. If the Supreme Court declares a law it's binding on all other courts of all States and Union territory. Every court building has 15 courtrooms. High Court of IndiaUnder the constitution of India, every state should reference to one high court. Mumbai high court is the oldest high court in India. Every high court has 94 judges out of which 71 are permanent and 23 are additional judges. High court deals with economic issues and legal documentation. These courts even have a further set of legal professionals. District Court of IndiaUnder the constitution of India, district courts or Subordinate Courts are subordinate to the high court. District courts are established consistent with the population distribution of the district and state. It’s after the Civil and criminal matters of the district. A law declared by the district court is applicable to all subordinate courts. Since District court is at a higher hierarchical level. Q5) Write a note on Role of government in BusinessA5) Government is a very powerful institution which can create a good business environment.1. Government: Regulator of Business:The entire regulatory legislation and policies stand covered under this segment. On the one hand, there is a really large indirect area of government control over the functioning of private sector business through budgetary and monetary policies.But against this there's also a fast expanding area of direct administrative or physical controls through which the govt. seeks to make sure that private investment and production in industry and therefore the use of scarce resources conform to government’s basic socio-economic objectives.They have become necessary tools in a system which seeks to avoid total nationalisation of resources.Government’s regulatory functions with respect to trade, business and industry aim at laying down the boundaries for the private enterprise. The regulatory functions of the govt. include (i) restraints on private activities, (ii) control of monopoly and big business, (iii) development of public enterprises as an alternate to private enterprises to make sure competitive dualism, (iv) Maintenance of a proper socio-¬economic infrastructure.2. Government: Promoter of Business:The promotional role of the govt. in regard to industries is seen as providing finance to industry, in granting various incentives and in creating infrastructure facilities for industrial growth and investment.For example, our government has identified certain backward areas as ‘No Industry Districts’. To promote development of such areas, Government provides subsidies and tax holiday to draw in investment in backward areas.In this way the govt. will help the process of balanced development and thereby remove regional disparities. The govt. is assisting the development of small scale industries.The District Industrial Centres are assisting the development of small industries. the govt. is actively helping the industrial development of the country by providing finance to them through the development banks.3. Government as an Entrepreneur:The impressive growth of the public sector in India from a small beginning bears testimony to the role of the govt. as an entrepreneur.Private investors are solely guided by private profit motive and hence they're not interested in developing products of common public use and social services which yield relatively lower returns. But as a “social entrepreneur” the govt. doesn't hesitate to take them up.4. Government as the Planner:In its role as a planner, the govt. indicates various priorities in the Five Year Plans and also the sectorial allocation of resources. Mixed economies are democratically planned economies.5. Permission to form and OperateMost businesses got to register with a government to operate. Corporations need a charter, and other sorts of businesses, like limited liability companies or partnerships, need other sorts of registration. The function of this registration is usually to define the financial liability the owners of the company have.It limits their risk to the amount they have invested in that particular organization. Registration also allows the government to monitor companies to execute its other functions within the business world.6. Creating and Enforcing ContractsBusinesses contract with other businesses. These contracts may be complex, like mergers, or they'll be as simple as a warranty on supplies purchased. the govt. enforces these contracts. Companies bring one another to court even as individuals do.An oral agreement can constitute a contract, but usually only a agreement is provable. If one party fails or refuses to satisfy its obligation under a contract, a corporation will turn to the legal system for enforcement.7. Consumer Protection and SafetyThe government’s role in business includes protecting the buyer or customer. When a vendor fails to honour the guarantee, the purchaser has recourse in the law. Likewise, when a product causes harm to an individual, the courts may hold the seller or manufacturer responsible. Labelling is another requirement the govt. imposes on marketers.Many foods, for instance, must display nutritional content on the packaging. The U.S. has been making advances in consumer rights for many years. However, the consumer movement still needs considerable development to guard the public.8. Employee Rights and ProtectionsMany state and federal agencies work to protect the rights of employees. The Occupational Health and Safety Administration, for instance, is workplace under the Department of Labour. Its mission is to make sure a safe and healthful work environment. The equal opportunity Commission protects employees from discrimination.9. Environmental Regulations and ProtectionWhen a marketing transaction impacts a third party – others besides the marketer and purchaser – the effect is named an “externality.” The third party is usually the environment. Thus, it's the government's role to control industry and thereby protect the public from environmental externalities.Whether the govt. is effective in this role is a matter of much discussion. The Gulf oil spill of 2010 has been cited as evidence of lax oversight.10. Revenue and TaxationGovernments at all levels tax businesses, and therefore the resulting revenue is a crucial a part of government budgets. Some revenue is taxed at the corporate level, then taxed as personal income when distributed as dividends. this is often in no way inappropriate, since it balances the tax burden between the company and individual and allows the govt. to tax more equitably.11. Investor Rights and ProtectionGovernment mandates that companies make financial information public, thereby protecting the rights of investors and facilitating further investment. this is often generally done through filings with the Securities and Exchange Commission. Whether federal regulation has been adequate is a matter of much debate. Q6) Write a note on Economic EnvironmentA6) The economic environment consists of external factors in a business market and the broader economy that can influence a business. you can divide the economic environment into the microeconomic environment, which affects business decision making - like individual actions of firms and consumers - and the macroeconomic environment, which affects a whole economy and all of its participants. Many economic factors act as external constraints on your business, which suggests that you have little, if any, control over them. Let's take a look at both of those broad factors in more detail.Macroeconomic influences are broad economic factors that either directly or indirectly affect the whole economy and all of its participants, including your business. These factors include such things as:• Interest rates• Taxes• Inflation• Currency exchange rates• Consumer discretionary income• Savings rates• Consumer confidence levels• Unemployment rate• Recession• DepressionMicroeconomic factors influence how your business will make decisions. Unlike macroeconomic factors, these factors are far less broad in scope and don't necessarily affect the whole economy as an entire. Microeconomic factors influencing a business include:• Market size• Demand• Supply• Competitors• Suppliers• Distribution chain, like retail stores Q7) Write a note on CapitalismA7) Capitalism is an economic system where private entities own the factors of production. The four factors are entrepreneurship, capital goods, natural resources, and labor.1 The owners of capital goods, natural resources, and entrepreneurship exercise control through companies. Individuals own their labour. The sole exception is slavery, where somebody else owns a person's labour. Although illegal throughout the whole world, slavery continues to be widely practiced.Characteristics Capitalistic ownership means owners control the factors of production and derive their income from their ownership. that provides them the ability to operate their companies efficiently. It also provides them with the incentive to maximise profit.In corporations, the shareholders are the owners. Their level of control depends on how many shares they own. The shareholders elect a board of directors and hire chief executives to manage the corporate.The owners of supply compete against each other for the highest profit. They sell their goods at the highest possible price while keeping their costs as low as possible. Competition keeps prices moderate and production efficient.Another component of capitalism is that the free operation of the capital markets. The laws of supply and demand set fair prices for stocks, bonds, derivatives, currency, and commodities. Capital markets allow companies to boost funds to expand.Laissez-faire theory argues that government should take a hands-off approach to capitalism. It should intervene only to maintain A level playing field. The government's role is to guard the free market. It should prevent the unfair advantages obtained by monopolies or oligarchies. It needs to prevent manipulation of information, ensuring it's distributed equitably.Part of protecting the market is keeping order with national defence. the govt. also should maintain infrastructure, and it taxes capital gains and income to buy these goals. Global governmental bodies adjudicate international trade.AdvantagesCapitalism results in the best products for the best prices because consumers can pay more for what they need the most. Businesses provide what customers want at the highest prices they’ll pay, and costs are kept low by competition among businesses. they make their products as efficiently as possible to maximise profit.DisadvantagesCapitalism doesn't provide for those who lack competitive skills, including the elderly, children, the developmentally disabled, and caretakers. to stay society functioning, capitalism requires government policies that value the family unit.Despite the idea of A level playing field, capitalism doesn't promote equality of opportunity. Those without good nutrition, support, and education may never make it to the playing field. Society will never benefit from their valuable skills. Q8) Write a note on SocialismA8) Socialism is an economic system where everyone in society equally owns the factors of production. That ownership is acquired through a democratically elected government or through a cooperative or a public corporation within which everyone owns shares. The four factors of production are labour, capital goods, natural resources, and, within the modern era, entrepreneurship.Socialism is an economic system in which the factors of production are valued in relationship to their usefulness to people. Socialists take into account both individual needs and greater social needs. They allocate resources using central planning, as in a command economy.Examples of greater social needs include transportation; defence, education, health care, and preservation of natural resources. Some also define the common good as caring for those that can't directly contribute to production. Examples include the elderly, children, and their caretakers. A mantra of socialism is, "From each according to his ability, to each consistent with his contributionPros of SocialismUnder socialism, workers are no longer exploited because they own the means of production. Profits are spread equitably among all workers according to their individual contributions. But the cooperative system also provides for those that can't work. It meets their basic needs for the good of the whole society.Cons of SocialismThe biggest disadvantage of socialism is that it relies on the cooperative nature of humans to figure. It ignores those within society who is competitive and focus on personal gain. Those people tend to seek ways to overthrow and disrupt society for his or her own benefit. Capitalism harnesses this "Greed is good" drive. Socialism pretends it doesn't exist.As a result, socialism doesn't reward people for being entrepreneurial. It struggles to be as innovative as a capitalistic society. Q9) Write a note on Mixed EconomyA9) A mixed economy is a system that combines characteristics of market, command and traditional economies. It benefits from the advantages of all three while suffering from few of the disadvantages.A mixed economy has three of the subsequent characteristics of a market economy. First, it protects private property. Second, it allows the free market and therefore the laws of supply and demand to determine prices. Third, it's driven by the motivation of the self-interest of individuals.It allows the Government to safeguard its people and its market. the govt. has a large role in the military, international trade, and national transportation.The government’s role in other areas depends on the priorities of the citizens. In some, the govt. creates a central plan that guides the economy. Other mixed economies allow the govt. to have key industries. These include aerospace, energy production, and even banking. the govt. can also manage health care, welfare, and retirement programs.Most mixed economies retain characteristics of a standard economy, but those traditions don't guide how the economy functions. The traditions are so ingrained that the people aren’t even aware of them. For instance, they still fund royal families. Others invest in hunting and fishing.Advantages of a mixed economyA mixed economy has the advantages of a market economy. First, it distributes goods and services to where they're most needed. It allows prices to live supply and demand.Second, it rewards the most efficient producers with the highest profit. that means customers get the best value for his or her dollar. Third, it encourages innovation to meet customer needs more creatively, cheaply or efficiently.Disadvantages of a mixed economyAn economy also can take on all the disadvantages of the other sorts of economies. It just depends on which characteristics the mixed economy emphasizes.For example, if the market has too much freedom, it can leave the less competitive members of society without any government support.Central planning of government industries also creates problems. The defence industry could become a government-subsidized monopoly or oligarchy system. that would increase the country's debt, slowing down economic growth within the long run. Q10) Write a note on Emerging Sectors in IndiaA10) Emerging Sectors – India While the world may recognize India for its IT and biotechnology capabilities, there are other sectors of interest to small to medium entrepreneurs which have made impressive strides in the last few years. India has many fast emerging sectors that present ample opportunity for entrepreneurs. Here’s a glance at some of them: Infrastructure - India's infrastructure growth has been exponential over the past decade. Today, we are the fourth largest and doubtless the second-fastest growing economy, with infrastructure being one among the cornerstones. The infrastructure industry in India is very fragmented and hence difficult to gunge its exact size and therefore the jobs it generates annually in absolute terms.However, be it roads and highways, railways, aviation, shipping, energy, power or oil & gas, the Indian government and therefore the various state governments seem to creating rapid progress. This has led to significant employment generation, though a majority of it's still within the unorganised sector. Over subsequent 10 years, the infrastructure sector in India will get to continue its growth momentum and is probably going to maintain a growth rate anywhere between 7-10%, a really healthy sign.Information technology - The IT sector has been India's sunshine sector for quite a while now. The industry has contributed considerably to changing India's image from a slow developing economy to a worldwide player in providing world class technology solutions.Food Processing - The Indian food processing industry is a high priority sector and is poised for excellent growth within the coming years because it holds the vital link between agriculture and industry. India is the world’s largest producer of food after China. With increasing impetus by the govt. on research, it's estimated that India’s food production is likely to double within the next decade. These release huge opportunities in food processing areas like canning, packaging, frozen foods and thermos processing.Healthcare - India’s healthcare sector has been growing rapidly driven by variety of factors like increasing the average life expectancy and average income level and rising awareness for health insurance. The Indian healthcare industry, which comprises hospitals, medicines, infrastructure, and medical devices, outsourcing telemedicine, health insurance and medical equipment is anticipated to achieve US $100 billion soon.Tourism- India’s tourism industry is experienced a powerful period of growth, driven by the burgeoning Indian middle class, growth in high spending foreign tourists, and coordinated government campaigns to market ‘Incredible India.’ The tourism industry in India is substantial and vibrant, and therefore the country is fast becoming a significant global destination. India’s rich history and its culture and geographical diversity make its international tourism appeal large and diverse. India may be a country with diversified culture and traditions. The natural great thing about India, festivals, dresses, heritage, sites of India are very popular among tourists. this stuff fascinates travellers to return here. India has numerous science blesses places like Kerala, Shimla. These places are prime attraction of travellers from across the globe.Retail - The Indian Retail Industry is that the largest among all the industries, accounting for over 10 per cent of the country’s GDP and around 8 per cent of the employment. The Retail Industry in India has come forth together of the most dynamic and fast paced industries with several players entering the market. But all of them haven't yet tasted success due to the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming subsequent boom industryMore emerging sectors• Education sector• Energy sector• Animation sector• Automobile sector• Textile sector• Organic farming• Biotechnology Q11) Explain the Challenges faced by Indian Economy.A11) The following points highlight the major problems of the Indian economy. a number of the issues are: • Low level of national income and per capita income:Economic growth of any country is viewed from its level of national income and per capita income.It is said that higher the level of national income, higher is the rate of economic growth.India’s net national product (NNP) at factor cost in 2007-08 at 1999-2000 prices stood at Rs 27,60,325 crore. Population during the time stood at 1124 million.• Vast inequalities in income and wealth:Not only per capita income is low, but Indian economy is additionally marked by great inequalities within the distribution of income and wealth. In India, as years roll on, inequalities are on the rise. The logical corollary of this inequality is mass poverty. Nearly 60 p.c. of the entire population share one-third of India’s national income while only rich 5 p.c. of the entire population enjoy the same amount of national income.• . Predominance of agriculture:Less developed countries live mainly upon agriculture and extractive industries, like mining, fisheries and forests. Predominance of agriculture is explained from the point of view of sectorial composition of national income and occupational pattern.• Tremendous population pressure:In LDCs, the rate of growth of population is extremely high. so far as the size of population is concerned, India ranks second next only to China (1312 million in 2006). India’s population is now 1110 million in 2006- 07. During the last decade of 1991, the growth rate of population in India was 1.61 p.c. per annum, as compared to 0.7 p.c. rate of growth of population of developed countries.High birth rate (23.5 per 1000) as well as low death rate (7.5. per 1000 in 2005-06) is the genuine cause for population explosion in India. in the 20th century, India’s population went up by 5 p.c. as against 3 p.c. increase within the world’s population as an entire.• Massive unemployment:In LDCs, not only natural resources are under-utilised but also a huge wastage occurs in the case of manpower resources. Slow economic process rate on the one hand, and rapid growth of population on the opposite hand, has accentuated the problem of unemployment in India.• Scarcity of capital and low rate of capital formation:As people in LDCs are poor, their capacity to save is low. This leads to a low rate of capital formation. That’s why development economists suggest that to break the vicious circle of poverty it's necessary to push up the rate of investment. Since India is a capital-poor country, capital per head is low. This scarcity of capital causes overall backwardness of the Indian economy.• Underdeveloped infrastructure:Being an LDC, India’s infrastructural facilities or economic and social overheads of capital are inadequate. It consists of (a) transport and communications, (b) energy, (c) finance, housing and insurance, (d) science and technology, and (e) health, education, etc. • Low level of technology:Due to illiteracy, use of advanced or sophisticated technology is quite an exception in India. due to the limited growth of technological institution, we are forced to use primitive methods of technology whose productivity is low.More challenges• Inflation• Poverty• Unemployment• Social inequalities• Sustainable growth• Land reforms• India china trade• Trade deficits
UNIT 2 |
Political and Legal environment
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