BUSINESS AND GOVERNMENT – AN OVERVIEW

Business : An Economic Activity
Economic Activity : Provider Taker value for both value expressed / measured through price in monetary term.
Economic Activity is driven by Society



Society is driven by :
• Technology
• Innovation
• Change
Examples :
CONNECTIVITY –
Ship – Improvements through Technology
Rail -
Automobile –
AIR –
Satellite –
Computer –
Telecom – Mobile – Broad banding
NANO

Innovation : Application in commercial use
Container –

Change : Taste / Attitude
Polson – Amul

Stale Cream to Fresh Cream
Salt and Colour – Yellowish
Society determines Governance pattern
( Constitution )

Outcome of Technology
World has come closer – Global Village
Economic activity has changed from local / Regional / National to Global
Economic activity governed by
Efficiency
Competition


Convergence of Business And Government
But In India, Government has an added responsibility
Welfare Society


Laissez Faire versus Government control

Marketing Economy versus Command Economy
Capitalism versus Socialism

INDIA PERSPECTIVE
•1947 Independence
•1951 Planning
•1956 Industrial Policy Statement
•1969-1974 Move towards Socialism /
Internal Emergency
•1977 Change in Power Structure
•1984-1990 Economic downturn
•1991 Process of reform / Liberalisation / Globalisation / Privatisation
•1999- First Coaliation Government – NDA
•2004- Coaliation Government UPA
Common minimum programme

Within overall Policy of Liberalization ideological stand takes a major role
Retail
SEZ
FDI Holding
Public Sector

Conclusion :
To operate in a corporate setup. General understanding of operation of Economic and Political forces in required.