Lal Bahadur Shastri Institute of Management, Delhi

Two Year Full Time Post Graduate Programme in Management (General/Finance)

Trimester – II

Course code: 112003 /212003 Course: Government, Business and Society (GBS)
Academic Session: 2016-2017 Instructors: Prof. Anil K. Kanungo/
Prof. Megha Chandhiok

COURSE OBJECTIVES:

As the world of business is becoming more dynamic and competitive, there is a growing need for
managers to be critically aware of the events that are taking place in and around. Managers can’t
afford not to take note of various changes in the external economic conditions in which
commerce and business takes place. In order to take appropriate business decisions in a dynamic
country like India, the managers are required to have a clear understanding of certain basic
concepts as well as their impact on business. These concepts largely form a strong foundation in
macroeconomics.

Learnings

The course aims to:

 Familiarize the students with the working machinery of the Government and its impact
on business and society.
 Lay emphasis on the understanding of the key macro-economic variables and their
usefulness in the decision making process occurring in this evolving business
environment
 Expose the students to some of the recent developments in the economic environment
impinging upon the business, government and society in the Indian context.
 Make students aware that more than a monetary discipline; macroeconomics is a
powerful tool for understanding society and the drive to maximize the well-being.

COURSE CONTENTS:

Module No. Session Topics and readings

No./s
I. Business 1-2 Business and its Envir onment: Forces shaping competitive
environment and business environment, Inter nal and External Environment,
andEconomic Economic and Non- economic environment of business,
systems Macro-economic Variables influencing Business.
Economic Systems: Market Economies vs. Planned Economies

Readings
Dornbusch R &Stanly Fisher. “ Macroeconomics.” , Mc Grawhill, Inc.
Latest edition

II. Macroeconomic 3-6 National Income Analysis: Circular flow of Income, Concepts of
Framework national income a nd measurement.
Consumption Function, Investment Function, C oncept of Multiplier
and Accelerator, Aggr egate Dema nd & Aggr egate S upply National
Income Equilibrium, Inflationary & Deflationary gaps, Real Business

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 cycles, Application of above in business and society.

Readings
Pailwar K Veena (2012), Ch.3 and 4, Economic environment of
Business, 3rd edition, PHI Learning Pvt. Ltd.

Dornbusch & Fisher, ch.2,3,11, 16, 6th ed. “ Macroeconomics.” ,Mc

Grawhill, Inc.

Exercises
Numericals on measurement of National Income
III. III.Analysing the 7-10 Management of the Economy: Dema nd Side Economics & Supply
Economic Side Economics, Keynesian vs Monetarism
Environment Economic P olicies of the Government Influencing Macro-Economic
Variables (Latest): Fiscal Policy, Monetary Policy, Foreign Trade
Policy.
Flexible Inflation Targeting.
Uses of macroeconomic and fiscal policies in business decision and
their impact on differ ent segments of the society.

Readings
Dornbusch Fisher & Startz, ch. 5,6,7, 6th ed. “ Macroeconomics.” ,Mc
Grawhill, Inc.(Latest edition)

Pailwar K Veena(2012), Ch.5 and 8, Economic environment of

Business, 3rd edition, PHI Learning Pvt. Ltd.

IV. Globalization 11-12 Globalization: Globalization of Indian business- degree of openness

and FDI in critical sectors like insurance, etc FDI- concepts, deter mina nts,
Advantages and Disadvantages of FDI, FDI v/s FPIs in India
Readings
Jagdish Bhagwati, In Defence of Globalisation, Oxford University
Press, Oxford (2004)
Joseph Stiglitz, Making Globalisation Work, Penguin Books London,
2006.
V. Planning in 13 Importance and Role of Niti Aa yog in for mulation a nd planning the
India road-ahea d for Indian Economy.

Readings
Website of Niti Aayog, readings from newspapers and journals.
VI. Economic 14-16 Economic Refor ms: Assessments, achievements and Pitfalls.
Reforms :The way Second Generation R efor ms: Improving productivity and growth in
forward agriculture, industry and service sector. Corporate Governa nce, CSR,
Capital account convertibility.
Readings
1. Rangrajan C., Perspectives on Indian Economy – A Collection
of Essays,
UBSPD, 2010
2. Arvind Panagariya , India: The emerging giant, Oxford
University Press (2008)

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VII. WTO and 17-18 WTO and India: Implications for India n Economy, Business and
India Society.
Readings
1. Jagdish Bha gwati, In Defence of Globalisation, Oxford
University Press, Oxford (2004)
2. Joseph Stiglitz, Making Globalisation Work, Penguin Books
London, 2006

Case study on WTO

19-20 Group Presentations

INDIVIDUAL ASSIGNMENTS:

 Discussions in the class on the current issues related to the subject for 15-20 minutes
during each Session.
 Each student has to participate actively in this exercise. For this the Students are advised
to read regularly the following Newspapers and Magazines like :

Economic Times, Business World, Financial Express, Business Today, Business

Line, Economic and Political Weekly, Business India,, Business Standard, Annual
Reports (Chairman’s Speech of selected Companies) etc.

 Each student has to keep himself/herself updated on the issues related to the Indian
Economy like: Monetary Policy, disinvestments, FDI, Foreign Trade policy, Fiscal
Policy, Infrastructure, e-commerce, Insurance, Telecom, WTO etc.

Tentative Topics for Group Discussions:

1. Economic Refor ms in India
2. Financia l Sector Reforms in India
3. Foreign Trade Policy in India – Implication for Trade, Special Economic Zones
4. New Economic Policy - Background & Challenges
5. Economic Planning in India – Retrospect & Prospects
6. TRIPs- Implications for India
7. Infrastructure Development – India n Scenario
8. Disinvestment in India – A critical Evaluation
9. WTO – Provisions and Implications for India
10. FDI in India: cost and benefit analysis, FDI in Multibrand Retail
11. GST and DTC Managerial implications

PEDAGOGY:
Interactive-discussions, assignments, article r eviews, quizzes, and ter m paper, Book review, apart
from lectures, would for m the cor e of the peda gogy

EVALUATION: Marks
End Ter m Evaluation 50
Internal Evaluation 50
(Division of marks to be decided by the r espective course instructor)

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REFERENCES:
1. Uma Kapila Indian Economy: Performance and Policy: Performance and Policy, 2013-
14, Academic Foundation, Paperback
2. G Satyanarayana, G Raju and and H S Madhusudana, Indian Economy Towards Inclusive
Growth
3. Economic Survey, GOI Publication ,2014-2015
4. World Economic Indicators, 2014, World Bank Publication
5. World Development Report, 2014, World Bank Publication
6. Economic Intelligence Unit, India Report( latest issue of economist)
7. WTO, Annual Report
8. World Economic Situation and Prospects, UN Publication, 2012
9. Human Development Report, UNDP 2014, Palgrave Macmillian
10. Economic Intelligence Services, Monthly Publication of CMIE.
11. Dutt,Ruddar,Second Generation Reforms in India,Deep and Deep Publishers, New
Delhi,2010
12. Adhikary M, Economic Environment of Business, Sultan Chand & S ons, New Delhi,
2003
13. Dornbusch, R & Stanley Fisher, Mc Graw Hill, latest edition
14. Cherunila m Francis, Business Environment and Policy, Hima layan Publishing House,
Delhi, 2010
15. Rangrajan C.,Perseptives on Indian Economy – A Collection of Essays,
UBSPD, 2010
16. “Understanding the Problems of Indian Economy”, Uma Kapila. , Sixth edition. New
Delhi, Academic Foundation, 2010,
17. “Structural Reforms In Industry, Banking And Finance A Case Study Of India”, C.
Rangarajan
18. “The Indian Economy : Problems and Prospects”, edited by Bimal Jalan. Reprint. New
Delhi, Penguin, 2010
19. Dornbusch & Fisher, “ Macroeconomics.” ,Mc Grawhill, Inc.
20. Pailwar K Veena(2012), , Economic environment of Business, 3rd edition, PHI Learning
Pvt. Ltd.

Websites
www.rbi.org.in
WWW.dipp.ac.in
World Investment Report