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MACRO ECONOMICS OF BUSINESS

PUBLIC ,PRIVATE AND

JOINT SECTOR

GROUP-6

LAVANYA.S

NIZAMUDIN

NIHAL SHETTY

GURURAJ PATIL

SUNAYANA K RAO

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INDIAN ECONOMY-AN OVERVIEW

Economic status of the country. Economic growth is the

rate of change in real GDP between one period and an

earlier comparable period.

Constitutes : Agriculture, infrastructure, IT, exportssector, public/private/joint sector and services , national

income, budgets etc.

Indian economytwelfth biggest in world economy. (as

of 2007) second largest growing economy (acc to GrantThornton Global dynamic index.

Parameters- GDP,GNP,NNP

GDP-9.4% (2007)

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PRIVATE SECTOR???

Organizations privately owned.

Both profit and non-profit,

partnerships and charities

Eg:Reliance industries ltd

Infosys technologies ltd

Wipro ltd

Manipal university

MTR foods ltd

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Private sector and Indian economy..

Job creation and entrepreneurship

Financial institutions

Investments

Importance to-Infrastructure(power,highways,flyovers etc)

High consumption power

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Problems faced by private sector..

Lack of finances

License issues

Unauthorized framework

Major share is taken by top companies

Hinders the rate of GDP

FDI

Rigid regulations by Govt.

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Public sector???

Owned and operated by Govt. (51% share)

Federal, provincial, state or

Municipal Govt.

Educational institutes, health care,Railways, national defense , aviation, mining etc.

Eg:

Air India Limited

Bharat Electronics Limited

Coal India Limited

Hindustan Aeronautics Limited

Indian Institutes of Technology

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Public sector and Indian economy

Balancing Regional Development

Maximizing growth

Employment

Filling the space in Capital Goods Foreign Earnings and Export Promotion

Import Substitution

Constitutes about 21% of total GDP

Developing capital intensive sector

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Drawbacks of Public sector..

Inefficiency in results due to size of the org.

Lack of importance to employees(incentives

,motivation..)

Losses must be met by tax payers

Political interference

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Joint sector???

Form of partnership between private and public sector.

Helps in management, control and decision making

A joint sector enterprise is intended to be a form of

partnership between the private sector and the Government

in which the State participation of capital will not be less than26 per cent, the day-to-day management will normally be in

the hands of the private sector partner, and control and

supervision will be exercised by a board of directors on which

government is adequately represented.- by JRD Tata

Public fundingprivate working.

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Contd..

Eg:

1. Cochin RefiniriesLTD

2. Maruthi Udyog LTD

3. Goa carbon LTD 4. Dielectro Magnetics LTD - Kerala

5. Malwa Cotton Spinning Mills LTD - Punjab

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Joint sector and Indian economy..

Management, organizational and technological exp + financial

resources from public sector.

Controls monopoly

Perfect for mixed economy like India.,

Joint sector undertaking in India-

Govt-26%

Private-25%

Public-49%

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Drawbacks of Joint sector..

Govt. interference

Wrong location

Inexperienced directors

Back seat to private sector directors

Lack of consensus

Evils of public sector

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Conclusion-

There are advantages and disadvantages for each type of

business sector, i.e., Private, Public and Joint sector.

So all the sectors can be used for their plus points and help in

the overall growth of the economy.

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Try to give a conlcusion of 2 lines each I dint get theryt info for it

Slide 1-3 lavanya

4-5 nihal

6-8-sunayana

9-10-abhay

11-12 gururaj

13-14-nizam (conclusion)

Notes for all the points has been put under notes..Please go thru and also add more info if possible as thepresentation is for 50 mins.,.

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References :

Indian Economy: Current Problems and Future Prospects

T. N. Srinivasan

http://www.econ.yale.edu/~srinivas/Indian%20Economy%20C

urrent%20Problems%20and%20Future%20Prospects.pdf

http://business.mapsofindia.com/india-economy/gdp.html

https://docs.google.com/viewer?a=v&q=cache:7rnXuPVDy2oJ

:siteresources.worldbank.org/INDIAEXTN/Resources/295583-

http://www.econ.yale.edu/~srinivas/Indian%20Economy%20Current%20Problems%20and%20Future%20Prospects.pdfhttp://www.econ.yale.edu/~srinivas/Indian%20Economy%20Current%20Problems%20and%20Future%20Prospects.pdfhttp://business.mapsofindia.com/india-economy/gdp.htmlhttp://business.mapsofindia.com/india-economy/gdp.htmlhttp://business.mapsofindia.com/india-economy/gdp.htmlhttp://business.mapsofindia.com/india-economy/gdp.htmlhttp://www.econ.yale.edu/~srinivas/Indian%20Economy%20Current%20Problems%20and%20Future%20Prospects.pdfhttp://www.econ.yale.edu/~srinivas/Indian%20Economy%20Current%20Problems%20and%20Future%20Prospects.pdf

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Thank you