ASSIGNMENT ON STRATEGIC MANAGEMENT
Vanita Agarwal Sonali Chandabhanani Krutika Gawde Poonam Kanade Janvi Shah Shabnam Shaikh 01 05 10 15 33 51
Q1.The Vishwanath Pratap Singh government (1989.Private . EXPLAIN THE HISTORIC AND EMERGING ROLE OF GOVERNMENT IN INDIAN BUSINESS
Jawaharlal Nehru·s Socialistic policies Start of the Five Year Plans Existence of Three Players: .Family Managed Enterprises Reforms during the Following Governments: .Public .1990) .Chandra Shekhar Singh government (1990-1991)
.In the 80·s the government led by Rajiv Gandhi .
leaving only 18 industries subject to licensing Industrial regulation was rationalized. and rolling back quantitative controls. Starting in 1994 of the National Stock Exchange as a computer² based trading system.
The Three Pillars (LPG) In the industrial sector. Reducing tariffs from an average of 85 percent to 25 percent.Golden Stroke to the Business Environment under the Government of Narasimha Rao. (The rupee was made convertible on trade account. Abolishing in 1992 the controller Of Capital Issues which decided the prices and number of shares that firms could issue. Introduction the SEBI act of 1992 and the security laws (amendment) which gave SEBI the legal authority to register and regulate all security market intermediaries. industrial licensing was cut.)
inefficient and loss-inducing government corporations was initiated. automatically approving project within the limits for foreign participation.Encouraging foreign direct investment by increasing the maximum limit on share of foreign capital in joint ventures from 40 to 51 percent with 100 percent foreign equity permitted in priority sector Streamlining procedures for FDI approvals. Opening up in 1992 of India·s equity markets to investment by foreign institution investors and permitting Indian firms to raise capital on international markets by issuing Global depository Receipts (GDRs). and in at least 35 industries. Privatization of large.
. controls inflation and through their monetary policy directs scarce resources to profitable avenues. Congress Government Thus the role of the Government is limited to policy formulation for deregulation and for welcoming the foreign capital in our country. Government has realized that it is better that free market forces of demand and supply decide resource allocation for the industry and hence has minimized its intervention. tax exemption and various reliefs to 100% Expert oriented Units (EOU) so that they can participate in the global market and earn the much required foreign exchange. Government also gives subsidies. Government along with the Reserve Bank of India maintains the value of the rupee stable.Later Reforms: Atal Bihari Vajpayee·s administration The UF government.
income. and wealth.Q2. interest rates. productivity. inflation. such as employment. WHAT IS THE IMPACT OF ECONOMIC ENVIRONMENT ON BANKING & INSURANCE INDUSTRY?
What is economic environment Totality of economic factors.
. that influence the buying behaviour of consumers and firms.
VARIOUS ECONOMIC FACTORS & THEIR EFFECTS ON B & I
Gross Domestic Product & Economic Growth Unemployment Inflation Recession Interest rates Globalisation