1. Answer the following; 2. 3. 4. 5. What is the average percentage change in index of basic industries during 1981-82 to 2001-02.

b) Giving examples of consumer durables, find out the average percentage change in the index of consumer durables during 1981-82 to 2001-02.

What are the major factors in Indias inflation problem? 4. After carefully going through this unit, give a brief account of economic environment of business in India. Q. Analyse the importance of Small Scale Industry (SSI) in a developing economy. Examine the growth of SSI in the post-reform period in India. 20 2. In what ways does the politico-legal environment in a country affect business firms ? Briefly explain with examples. 20 3. "The Industrial Policy of 1980 favoured a more capital intensive pattern of development helping the large sector, compared to the 1956 Industrial Policy." Discuss in detail. 4. Examine the role of foreign trade in an economy and analyse the major trends in India's foreign trade. 20 5. "The public sector has been central to India's industrialisation." Do you agree ? Justify your answer. Highlight the priorities set for public enterprises in the Industrial Policy of 1991. SECTION B 6. Why is the study of Public Finance Theory crucial in understanding the fiscal system of an economy better ? Elaborate. 20 7. Write short notes on any three of the following -.20 (a) Environmental Management (b) Unorganised Sector (c) Administered Prices (d) Trade Policy Reforms (e) Privatisation 6. a) Explain the critical elements of the social environment of business? b) What are the defining characteristics of economic and non economic environment? 2. a) What is known as the environment of business? b) Compare the Free Market capitalist model vs the Communist model of business development? 5 5 5 5

How would you classify business environment ? What could be some criteria? Explain. 2. Examine the basic proposition about business ? 3. Discuss some important points about how modern economies are organised and function. 4. All modern economies have certain fundamental economic problems to deal with. Examine and illustrate the statement. 5. Explain the critical elements of economic environment with examples drawn from Indian experience. 6. Briefly review the development of the economic environment in India. What to you think were the landmark development ? 7. Discuss the salient feature soft new economic policy of 1991 and the initiatives taken by the Government for economic restructuring. 8. How does the economic environment impinge upon business management ? explain with suitable examples. 9. How are economic and non-economic environment interrelated ? Explain. 3. a) Briefly describe the growth and structure of private sector in India. 5

b) What are the distinction between public and private sector? 4. a) Briefly explain the social responsibilities of Business? b) Describe the implications of the Environmental protection Act 1986 for the Industry.

5 5 5

Explain the critical elements of politico legal environment of business, citing examples. What is the impact of politico-legal environment on business ? 2. (a) Analyse the structure and briefly discuss the growth of public sector in the present scenario. (b) What are the major differences between private And public sectors ? 3. (a) What are the main features of Rao - Manmohan Model of Development ? Do you agree with the statement that while the model succeeded on growth, it failed on equity ? (b) Give a brief assessment of Industrial Policy of 1980. 4. What are the major changes in Exim policies in the post-reforms period and what are the implications ? 5. Critically examine in detail the foreign investment policy envisaged in the Industrial Policy of 1991. SECTION B 6. Explain whether the following statements are true or false and give reasons. (a) It is more important for the government to reduce revenue deficit rather than Gross Fiscal Deficit (GFD). (b) Business should be re-engineered to imbibe 'a social responsibility with an economic mission'. (c) The political parties are unlikely to take any major economic decision on merit. (d) Investors' interest in India is high on account of the market size, but market size alone is not enough to sustain the same interest. (e) One of the adverse effects of globalisation of the Indian economy is the elimination of small sector In the economy. 7 . Write short notes on any four of the following : (a) Foreign Direct Investment (b) The Consumer Movement (c) Economic Environment of Business (d) Economic Development (e) Capital Account Convertibility (f) Economic Reforms and GDP

10. Sickness in SSI units are a major problem where sickness is defined as an unit which has incurred cash losses continuously for two financial years. In your view, elaborate upon the three most critical factors for SSI sickness from the factors given below; a) lack of access to new technology b) poor quality of products produced by them c) lack of access to timely and affordable credit from banks d) shortage of electric power and raw material to be used in production e) increase in input costs such as coal, steel, fuel, labour, transportation f) interference by multiplicity of Govt. authorities and the visits of inspectors from Excise, Labour, Factory, Boiler, Pollution Control, Municipality, Electricity Board to the SSI units.

1. Distinguishing economic development from economic growth, explain the major structural changes experienced by the Indian economy. 2. Keeping in mind the concept of capital intensity (capital-labour ratio), explain why structural change by employment criterion is not significant. 3. 5. From the standpoint of analysis of business environment, a large size of population is both an asset and a liability Explain. 5. Answer the following questions from the data given overleaf. 10 a) Has the Per Capita Income declined over the Period? b) Has the employment rate with respect to population improved? c) Has the Labour productivity increased? d) e) f) g) h) Has the productivity of capital improved? List a few observations about the structure of public sector. b) Comment on the size of: i) cooperative sector, and ii) joint sector. c) Explain the organizational form in the private sector. Which are the top two sectors that have contributed to national income?

i) Can we find out which sector is capital intensive and which is labour intensive? If yes, then name the sectors.

2010 Year Population (Billion) 1.2 3 5868 4 647 714 1005 898 815 5 640 597 6 536 868 819 103 5 116 9 13 4 14 6 720 79 244 8 82 267 4 87 2896 355 1437 952 82 40 314 333 1286 1129 839 696 720 579 41 39 650 629 571 73 2216 286 990 586 510 40 8 94 9 497 10 11 66 2011 12 258 13 845 14 495 15 465 16 41 7 684 10 8 940 126 767 692 575 489 425 370 5229 4541 3942 3402 Capital 1.2 1.1 1.1 2 1.1 GDP Cost at Factor Consumption of Fixed Allied ActivitiesAgriculture & Agriculture Industry Mining & Quarrying Manufacturing SupplyElectricity, Gas & Water Services Construction &CommunicationTrade, Hotels, Transport ServicesFinancing, Insurance, Real Estate & Business Community, Social & Personal Services Employment (in Millions)

2009

2008

1 200 6 2007

All Data in 000 Crores