CURRENT PRACTICES IN THE INDIAN ECONOMY

Objective: To understand current practices and issues in

the Indian economic environment which impinge on the
firm and affect decision making.

Learning outcomes: At the end of the trimester, the student

should

1. Understand the context of development in the Indian

economy today.

2. Understand various aspects of the Indian economy-

agriculture , industry, foreign sectors and their interlinkages.

3. Understand current policies- monetary, fiscal, agricultural,

trade and industrial policies and their implications for
business.

Evaluation Criteria:

1.Class-participation: 10 marks

2.Assignments: 20 marks

3.Group Project : 30 marks

4. End- Term exam: 40 marks.

Module I : Introduction- Business environment and its relevance .

Components of business environment. Indian business
environment.
Module II: INDUSTRY

• Overview of the Indian industrial sector- Trends in growth

and productivity

• Competitiveness and changes in policy regimes- Industrial

policies prior to 1991, New Industrial Policy 1991,
Competition Act 2000.

• Foreign Direct Investment- Recent developments.

• Issues relating to the composition of Indian industry- Small

vs. large industry.

• Public vs. private sector with emphasis on the performance

of the public sector, privatization, industrial sickness.

Module III: AGRICULTURE

• Agricultural performance since Independence.

• The policy Environment- Agricultural price policy and

subsidies.

• Resource use efficiency- Fertiliser, water and other inputs.

• Current issues in Indian agriculture-Sustainable agricultural

growth, international trade in agriculture, crop insurance

• Agricultural exports- quantitative restrictions and non tariff

barriers, WTO and subsidies in development, Management of
shortages and surpluses.
Module IV: FINANCIAL SECTOR

• Money and Capital Markets in India.

• Reforms in the Indian capital market- The Narasimham

Committee report.

• India’s monetary policy.

• Indian banking sector-reforms since 1991.

Module V: ISSUES IN INDIAN PUBLIC FINANCE

• The Indian tax system.

• Current tax structure affecting business.

• Public debts, deficits and subsidies in the Indian economy.

Module VI: FOREIGN TRADE

• India’s foreign trade- composition and direction, trends in

India’s BOP.

• Currency convertibility

• Exchange rate regime

• India & WTO.

Text and References: Dutt, R and Sundaram: Indian Economy

(latest edn)

Mishra and Puri: Indian Economy (latest edn)

Economic Times , Business Standard – Daily newspapers for

relevant articles
Pedagogy:

The course will be completed via class lectures and power point
presentations. Discussion of current Indian practices and issues
relevant to managers of business firms would be carried out while
analysing real-life business situations.

Assessment would take the form of assignments and

projects in addition to an end-term examination.