ECONOMIC & SOCIAL

ENVIRONMENT (II)
 CONTROLS AND
REGULATIONS
The Government guides, corrects and
supplements the market mechanism through
State ownership of enterprises and even
industries.
 PRICE CONTROLS
Government measures to control prices

– Direct Controls

– Indirect Controls
• Direct Controls
– Administered Pricing

– Dual Pricing

– Subsidization
• Indirect Controls
– Monetary Policy

– Fiscal Policy

– Commercial Policy
 INDUSTRIAL LICENSING
POLICY
• Main objectives:
– Development &
regulation of
industrial
investments

– Protection &
encouragement of
small industries
– Prevention of concentration of ownership of
industries

– Balanced economic development of different

regions in the country
 MRTP ACT
• Prevention of concentration of economic
power
• Prohibition of monopolistic trade practices
• Prohibition of restrictive trade practices
FOREIGN EXCHANGE FLOW
REGULATION
• Foreign exchange
• Foreign exchanges
• Foreign exchange market
• FERA