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Role of Govt. in a

Mixed Economy.

Presented By,

“SUMMER OF 69” 

Ari j i t Das , Sri j i t Dutt a , Parakram Majumder, Tithi Shaoo, Eshit a 

Sadhuk han . 

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Economy of India - Mixed economy 

Mixed economy is a combination of  capitalist market

economies and socialist command economies.

Capitalist market economies A social and economic system in which prices are fixed by

the law of supply and demand rather than by a government

or other body.

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Socialist command economies

Economy in which government planning

dominates the direction of economic activity.

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India’s largest power generation company NTPC Limited

(Company) entered the capital markets on February 3,

2010 with its further public offer (FPO) of 412,273,220

equity shares of Rs. 10 at prices.

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Indian Economy Before 1991

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Indian Economy After 1991

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 AGRICULTURE SECTOR

• India ranks second worldwide in farm output. Agriculture and allied sectors

like forestry, logging and fishing accounted for 18.6% of the GDP in 2005,

employed 60% of the total workforce.

Main pro blems in the agr icul tural secto r, as l isted by the 

Wor ld Bank  • India's large agricultural subsidies are hampering productivity-enhancing

investment.

• Overregulation of agriculture has increased costs, price risks and

uncertainty.

•Government interventions in labor, land, and credit markets.

• Inadequate infrastructure and services.

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Inflation (WPI) [YoY]

KEY POINTS

1. The food articles index rose an annual

16.65 percent in March.

2. The fuel price index rose 12.71 in

March.

3. The manufacturing products index in

the WPI rose an annual 7.13 percent

in March.

4. January's WPI inflation revised to 9.44

percent from 8.56 percent earlier.

5 The annual inflation rate was 1.20

percent in March 2009.

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Income Tax Slab

Income Tax Slab for 

F.Y. 2009-10

For Male below 65 Years

Up to Rs. 1,60,000 Nil

Rs. 1,60,001 to Rs.

3,00,00010%

Rs. 3,00,001 to Rs.5,00,000

20%

Rs. 5,00,001 and

 Above30%

Income Tax Slab for 

F.Y. 2010-11

For Male below 65 Years

Up to Rs. 1,60,000 Nil

Rs. 1,60,001 to Rs.

5,00,00010%

Rs. 5,00,001 to Rs.8,00,000 20%

Rs. 8,00,001 and Above 30%

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Effect of Budget on Mixed Economy

On banking sector:  Additional licenses to be issue private banker and non banking

financial Company.

Villages with population of over 2000 will come under banking from

March , 2012.

On Automobile : Excise duty on small cars increase to 10 % from 8%. And for large

cares it increase to 22% from 20 %.

4% concession of duty on parts such as batteries and motors.

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On Infrastructure :

46% of total planned expenditure is allocated to infrastructuredevelopment.

Increased excise duty on cement industry.

On Power sector:

Increased allocation to Rs. 1,000 Cr. from Rs. 620 Cr. for new andrenewable energy .

Raising the allocation for power sector to Rs. 5,130 cr. from Rs. 2,130 cr.

On Telecom sector: Rate of excise duty has been increased from 8% to 10% .

Increase Minimum Alternative Tax (MAT)- from 15% to 18%.

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On Education: 15% increased in allocation for Sarva Shiksha Adhiyaan.

On Healthcare: 14% increased in the planned allocation to the health and family

welfare ministry.

On Oil and Petroleum: Petrol price raised by 2.67/ lit and Diesel price raised by 2.58/lit.

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Budget Estimate 2010-11

Particulars FY 2009-10  Estimate FY 2010-11 % Change 

Gross Tax Receipts 

6,41,079 Cr. 

7,46,651 Cr. 16.5

Total Expenditure 10,20,838 Cr. 11,08,749 Cr.  8.6

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Why Government is increasing excise duty?

Is Government really doing something tocontrol the inflation?

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Particular   FY 2007-

08  FY 2008-

09  FY 2009-

10  FY 2010-11

(E)  FY 2011-

12 (E)  FY 2012-

13 (E) Fiscal

Deficit

2.8% of 

GDP  6.2% of 

GDP  6.8% of 

GDP  5.5% of 

GDP  4.8% of 

GDP  4.1% of 

GDP

0

1

2

3

4

5

6

7

FY 2007-08 FY 2008-09 FY 2009-10 FY 2010-11(E)

FY 2011-12(E)

FY 2012-13(E)

Fiscal Deficit (% of GDP)

FY 2007-08

FY 2008-09

FY 2009-10

FY 2010-11(E)FY 2011-12 (E)

FY 2012-13 (E)

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Dec, 2009  Jan, 2010 REPO Rate  4.75%  5% 

Reserve REPO Rate  3.25%  3.50% 

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%

5.00%

Dec, 2009 Jan, 2010

REPO Rate

Reserve REPO Rate

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