BBA503 ECONOMIC PLANNING AND POLICIES

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Assignment

DRIVE	FALL 2014
PROGRAM	BBA
SEMESTER	V
SEMESTER CODE & NAME	BBA 503 ECONOMIC PLANNING AND POLICIES
BK ID	B1851
CREDIT	4
MARKS	60

1.List any 6 theories of economic development. Explain in brief any two of them.

Answer:

·         Supply and Demand (Invisible Hand)

·         Classical Economics

·         Keynesian Economics

·         Neoclassical Synthesis (Keynesian for near-term macro; Classical for micro and long-term macro)

·         Neo-Malthusian (Resource Scarcity)

·         Marxism

Supply and Demand (Invisible Hand): - The beauty of the market is that the competing motivations of consumers and producers interact to arrive at a price and quantity for a product that's determined by impersonal market forces. You've heard the

2. Discuss the role of agriculture and industry in growth and economic development of India.

Answer: The economic development in India followed socialist-inspired policies for most of its independent history, including state-ownership of many sectors; India's per capita income increased at only around 1% annualised rate in the three decades after its independence.[1] Since the mid-1980s, India has slowly opened up its markets through economic liberalisation. After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy.

In the late 2000s, India's growth reached 7.5%,

3. Explain the objectives of economic planning in India.

Answer: (i) High Rate of Growth

 All the Indian Five Year Plans have given primary importance to higher growth of real national income. During the British rule, Indian economy was stagnant and the people were living in a state of abject poverty. The Britishers exploited the economy both through foreign trade and colonial administration. While the European industries flourished, the Indian economy was caught in a vicious circle of poverty. The pervasive poverty and misery were the most important problem that has to be tackled through Five Year Plan.

4. Discuss the indicators in order to explain the role of public sector in Indian Economy.

Answer:Role of Public Sector enterprises in India

1. Maximizing the rate of economic growth:

Originally, the activity of the public sector enterprises was to be limited to a definite field of basic and key industries of strategic importance. There were certain fields where the private enterprise was shy to operate as they involved huge investment or risk. It was the public sector alone which could build the economic overheads such as power, transport, etc.

2. Development of capital-intensive sector:

5. Discuss any five components of price policy for growth.

Answer:

Real Risk-Free Rate - This assumes no risk or uncertainty, simply reflecting differences in timing: the preference to spend now/pay back later versus lend now/collect later.

Expected Inflation - The market expects aggregate prices to rise, and the currency's purchasing power is reduced by a rate known as the inflation rate. Inflation

6. Write short notes on:

a. Land reforms

Answer: Land reform (also agrarian reform, though that can have a broader meaning) involves the changing of laws, regulations or customs regarding land ownership.[1] Land reform may consist of a government-initiated or government-backed property redistribution, generally of agricultural land. Land reform can, therefore, refer to transfer of ownership from the more powerful to the less powerful, such as from a relatively small number of

b. RBI

Answer: The Reserve Bank of India is India's Central Banking Institution, which controls the Monetary Policy of the Indian Rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934.[4] The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders.[5] Following India's independence on 15 - August - 1947, the RBI was nationalised in the year of 1 January 1949.

The RBI plays an important part in the Development Strategy of the Government of India. It is a member bank of the Asian Clearing Union. The

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