Impact of government legislations on business, economics, Microeconomics

Impact of government legislations on business in india
Government in India plays a dominant role in the Indian business activity. It directs and regulates the private business and industry through various measures. These measures have been formulated as per the guidelines laid down in the Constitution of India (section 10.3). The regulatory policies and development plans pursued. in India fall into the following main categories.

- Assisting, encouraging, and directing private sector;
- Providing infrastructural facilities;
- Controlling private activity;
- Promoting public and joint sectors; and
- Formulating a planned framework for the development and stabilisation of the economy.
In a mixed economy like India the private and the public sectors operate in coordination with each other. The public sector is organised and managed along the socialist pattern. It provides the infrastructural facilities like transport, finance and banking for the development of the private business. The promotion, control and management of this sector is the exclusive responsibility of the government. A large part of the economy in India comprises the private sector that is allowed to function freely under the regulation of the government. Besides encouraging the private sector, Government of India controls the private sector through following policies.

- Industrial and licensing policies,
- Control and regulation of monopolies.
- Fiscal policy,
- Commercial policy,
- Price policy,
- Employment policy,
- Monetary policy,
- Export-import policy,
- Environment policy, and
- Foreign exchange policy.
All these measures interfere with the market mechanism so as to remove distortions in the system and to achieve the broader goals of rapid economic growth, expansion of employment opportunities, equity, and self-reliance. We will briefly discuss those policies that have a major influence on the managerial decisions.
Posted Date: 2/11/2012 12:00:00 AM | Location : United States







Related Discussions:- Impact of government legislations on business, economics, Assignment Help, Ask Question on Impact of government legislations on business, economics, Get Answer, Expert's Help, Impact of government legislations on business, economics Discussions

Write discussion on Impact of government legislations on business, economics
Your posts are moderated
Related Questions
Black Economy Public Policy Interface: The above mode of functioning and expansion of the black economy became an important basis for policy disruption in India. The undergrou

What are the factors that producers in the society may take into consideration when deciding on the what to produce,how to produce and for whom ?

In the following article , I want you to comment on the type of market structure and whether Kinked Demand apply and what will possibly be the market share for GM and VW? ""In case

is country beter off with ban on imports?


The Industry's Long-Run Supply Curve * Long-Run Elasticity of Supply   1) Constant-cost industry Long run supply is horizontal Small increase in price will induc

what are key elements in micro enviroment of red bull

Why has it been difficult to produce a single estimate of an environmentally adjusted or "greened" GDP? What are the two approaches that can be used to put a value on environmental

Summary of Demand and Supply Considerations of Education A study of supply and demand considerations in education helps in understanding four major issues and concerns of an e

explain the main criteria for classifying firms into industries.which criteria serve the better and why?