Module- 2

STRUCTURE OF THE INDIAN ECONOMY

From last few years Indian economy is growing very fast.
It consist three sectors
1. Primary sector( depends on natural resources)
2. Secondary Sector (manufacturing and transportation)
3. Territory Sector (service oriented )
Nature of the Indian economy:
Before 2000:
1. Underdeveloped economic condition
2. Low per capita income ( low income of people)
3. High population
4. Agricultural Dominance
5. Backwardness of the peoples
6. Lack of awareness about education
7. Poor utilisation of Resources 1
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ECONOMIC ENVIRONMENT:
It depends upon internal and external factors of the
country to create the wealth.
Components of the economic environment:
1. Economic condition of the country
2. Government policies
3. International economic conditions
4. Natural Conditions
Economic Factors effecting the Business:
5. Demand and supply
6. Money and banking
7. Income and employment
8. Economic growth
9. Price levels
10. Competition. 2
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New economic policy;
To develop the country economy government taken
certain policies
Major economic policies:
1. Fiscal Policy(2003): (Increasing the revenue and
control expenditure)
2. Monitory Policy.(1934)( regulating the money and
controlling the interest rates.)
3. Inviting Foreign Trade( exchange goods and
services)
4. Industrial Policy(1948)
5. Agriculture Policy(2000)

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Regulations of new economic policy:
1. Industrial licensing:
2. Foreign Technology Agreement
3. Foreign Investment
4. Maintain healthy relationship with other countries
Impact of new economic policy on business:
5. Performance improvement of economy
6. Growth and employment opportunities
7. Easy access of foreign Technology
8. Decreasing poverty
9. Decreasing inflation
10. Increasing FDI
11. Government economy increasing

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Economic Reforms :
After overcoming the all kinds of economic difficulties
the government of India introduced the economic
reforms in the year 1991.
1. First Generation reforms
2. Second Generation Reforms
3. Third Generation Reforms ( panchayat raj
institutions)
Objectives/Importance of economic reforms:
4. To enhance the resource accessibility
5. Bring the balance between economic sector
6. Improve the public and corporate sector
7. To minimise budget deficits and improve revenue
8. Remove the needless government rules
9. Supporting the private business. 5
Make in india
The make in India programme was launched by prime
minister Modi in September 2014 as part of a wider set of
nation building initiatives. Devised to transform India
into a global design and manufacturing hub.
Objectives of Make in India:
1. Boost Indian economic growth
2. To become global leader
3. Attract FDI
4. Generating more Employment
5. To build best in class manufacturing infrastructure
Central government Initiatives under make in india
6. New Process in business
7. New infrastructure
8. New Sectors
9. New Mindset 6
 AGRICULTURE SECTOR IN INDIA
Agriculture includes cultivation of the crop and
breeding, Drying. But modern agriculture depends
heavily on engineering , technology, irrigation and
fertilizers.

Role of agriculture in India:

1. Share in national income
2. Source of employment
3. Industrial development (cotton, chilli, wheat)
4. Revenue to the government
5. International trade

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Problems in Agriculture sector in india:
1. General issues/problems:
A. Over crowding in agriculture
B. Crop Losses
C. Weather issues
C. Lack of credit
Agenda/Suggestions to resolve problems for
agriculture in India
1. Effective Implementation of plans
2. Greater usage of Modern technology
3. Better Credit Facilities
4. Developing Irrigating Facilities
5. Research Institutes develop
6. Population control
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Agriculture policy
Indian economy has witnessed new economic policies
which have introduced substantial changes in many
sectors.
Summary of agriculture policy in india
1950-65 – Strengthening of cooperative credit
institutions
1965-80 – Develop the pathways for adoption of
technology
1980 –Increasing the subsidies to agriculture
2000- Market related policy for high profits
2010- combined policies from state and central
2015- Introduced different government programmes
2021- supporting more to formers
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INDUSTRY:
Nature of Industry:
1. Market size (No of business )
2. Number of competitors
3. Product diversification
4. Technology change
5. Economic scale change
Types of Industries:
6. Manufacturing industries
7. Service industries
INDUSTRIAL POLICY
To Improve the national growth govt announced the
industrial policy.

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INDUSTRIAL POLICY: To Improve the national growth
government announced the industrial policy.
Objectives:
1. To correct the imbalance
2. Effective usage of resource
3. To monitor private industries
4. To define industrial area
INDUSTRIAL POLICY RESOLUTIONS
5. I.P Resolution 1948:
6. Food scarcity reduce
7. Monopoly states
8. Allow foreign capital
9. c. Providing assistance

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INDUSTRIAL POLICY 1956
It says that big industries would lead the economy towards a
long term higher growth path
Features:
1. Classification of industries
2. Assistance of private sector
3. Balanced industrial growth
4. Developing managerial skills
5. Allow the foreign investment
INDUSTRIAL POLICY 1991:
Features/ Objectives
6. Industrial licensing
7. Economy developing
8. Taking Drastic amendments
9. Allow foreign investment and technology 12
SERVICE SECTOR IN INDIA ( Marketing Mix 4p’s)
1. Finance services: ( insurance, credit)Product, Price, Place,
Promotion
2. Banking: ( a/c, deposits, loans, lockers)
3. Investing: ( financial assets,
4. Insurance: types of insurances,
5. Healthcare services: (general hospitals, specialised hospitals)
6. Education services:
7. Travel : bus, train, flight,
8. Telecom services: ( networks)
9. Transport services:

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