ASSIGNMENT-1

(BY VANDANA CHAUDHARY,BBA-2nd SEM,SEC-C,ROLL NO-53)

Q.1)Write a short note on Globalisation,Privatization and Liberisation?

GLOBALISATION The term "globalisation" is frequently used but seldom defined. It refers to the rapid increase in the share of economic activity taking place across national boundaries. This goes beyond just the international trade in goods and includes the way those goods are produced, the delivery and sale of services, and the movement of capital. Globalisation is the result of a number of interrelated developments including:
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The growth and relative importance of foreign direct investment and multinational enterprises; The internationalisation of financial markets; The continuing development of communication and transport technology; Deregulation and liberalisation; Privatisation of public sector services.
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Globalization (or globalisation) describes an ongoing process by which regional economies, societies and cultures have become integrated through a globe-spanning network of exchange. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.. However, globalization is usually recognized as being driven by a combination of economic, technological, sociocultural, political and biological factors. The term can also refer to the transnational dissemination of ideas, languages, or popular culture. PRIVATISATION 1. The repurchasing of all of a company'soutstanding stock by employees or a private investor. As a result of such an initiative, the company stops being publicly traded. Sometimes, the company might have to take on significant debt to finance the change in ownershipstructure. Companies might want to go private in order to restructure their businesses (when they feel that the process might affect their stock prices poorly in the short run). They might also want to go private to avoid the expense and regulations associated with remaining listed on a stock exchange. also called going private. opposite of going public. 2. The process of moving from a government-controlled system to a privately run, for-profit system. LIBERISATION In general, liberalization (or liberalisation) refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. Liberalization of autocratic regimes may precede democratization (or not, as in the case of the Prague Spring). In the arena of social policy it may refer to a relaxation of laws restricting for example divorce,

abortion, homosexuality or drugs. Most often, the term is used to refer to economic liberalization, especially trade liberalization or capital market liberalization. Although economic liberalization is often associated with privatization, the two can be quite separate processes. For example, the European ~union~ has liberalized gas and electricity markets, instituting a system of competition; but some of the leading European energy companies (such as EDF and Vattenfall) remain partially or completely in government ownership. Liberalized and privatized public services may be dominated by just a few big companies particularly in sectors with high capital costs, or high such as water, gas and electricity. In some cases they may remain legal monopoly at least for some part of the market (e.g. small consumers). Liberalization is one of three focal points (the others being privatization and stabilization) of the Washington Consensus's trinity strategy for economies in transition. An example of Liberalization is the "Washington Consensus" which was a set of policies created and used by Argentina

Q.2)Explain the feat of economic reforms since 1991?

ECONOMIC REFORMS SINCE 1991
LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL Question 1: Why were reforms introduced in India? Answer: We know that since independence, India followed the mixed economy framework by combining the advantages of the market economic system wit those of the planned economic system. But over the years, this policy resulted in the establishment of a variety of rules and laws which were aimed at controlling and regulating the economy and instead ended up hampering the process of growth and development. The economy was facing problems of declining foreign exchange, growing imports without matching rise in exports and high inflation. India changed its economic policies in 1991 due to a financial crisis and pressure from international organizations like the World Bank and IMF. Question 2: How Many countries are members of the WTO? Answer: The WTO has 153 member countries. Question 3: What is the most important function of RBI? Answer: The most important function of RBI is to control and facilitate the financial sector of India. All the banks and other financial institutions in India are controlled through various norms and regulations of the RBI. Question 4: How was RBI controlling the commercial banks? Answer: All the banks in India are controlled through various norms and regulations of the RBI. The RBI decides the amount of money that the banks can keep with themselves, fixes interest rates, nature of lending to various sectors etc. Question 5: What do you understand by devaluation of rupee? Answer: Devaluation of rupee means decreasing rupee value in the foreign exchange market.. In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was devalued against foreign currencies. This was to boost the export and this led to an increase in the inflow of foreign exchange.

Question 6: Distinguish between the following (i) Strategic and Minority sale (ii) Bilateral and multi-lateral trade (iii) Tariff and Non-tariff barriers. Answer: (i) Strategic and Minority sale:A Strategic sale is generally the privatization process, where by the major stake i.e. at least 51% or more share in a government organization is sold off to the highest bidder, thereby handing over the management of the organization to the private or autonomous body. In Minority sale the Government sell a minority stake, while retaining at least 51% of the shares along with full management control so as not to disturb the Public Sector character of the companies. (ii) Bilateral and multi-lateral trade: Bilateral trade means the trade relation between the two countries, while multilateral trade is the multi countries trade relation. (iii) Tariff and Non-tariff barriers: A tariff is a duty imposed on goods when they are moved across a political boundary. It is economic policy of restraining trade between nations. Tariff are usually imposed on imported goods. Non-tariff barriers are trade barriers that restrict imports but are not in the usual form of a tariff. It may be quality conditions imposed by the importing country on the exporting countries, Sanitary and phyto-sanitary conditions, packaging conditions, Product standards etc. Question 7: Why are tariff imposed? Answer: A tariff is a duty imposed on goods when they are moved across a political boundary. It is one of the major sources of revenue for the Government. But They are usually associated with protectionism, the economic policy of restraining trade between nations. For political reasons, tariffs are usually imposed on imported goods, although they may also be imposed on exported goods. Question 8: What is the meaning of quantitative restrictions? Answer: Quantitative restrictions are specific limits imposed by countries on the quantity or value of goods that can be imported or exported. Quantitative restrictions can be in the form of a quota, a monopoly or any other quantitative means. In other words, quantitative restrictions refer to non-tariff measures, which are taken to regulate or prohibit international trade. In order to protect domestic industries, India was following a regime of quantitative restrictions on imports. This was encouraged through tight control over imports and by keeping the tariffs very high. Question 9: Those public sector undertakings which are making profits should be privatized. Do you agree with this view? Why? Answer: The profit making public sector undertakings are the great source of revenue for the Government but these are needed to run or manage properly otherwise these turns into a huge burden for the Government. I am not against the privatization but we need to retain some profit making public sector undertakings to check the monopoly in the market. Only thing that the government should give certain autonomy and accountability to the managements of those profit making undertakings in their workings so that they remain as the profit making units in this competitive market. Question 10: Do you think outsourcing is good for India? Why are developed countries opposing it? Answer: Outsourcing is good for India, since it has generated the new employment opportunities in the Indian economy, contributed in GDP and has increased the foreign reserve in the country. Developed nations are opposing it, since their people are losing their jobs due to

high wage rate in their countries as compared to India, while the skill levels are more or less same. Question 11: India has certain advantages which makes it a favourite outsourcing destination. What are these advantages? Answer: The low wage rates and availability of skilled manpower in India have made it a favourite destination for global outsourcing. Most multinational corporations, and even small companies, are outsourcing their services to India where they can be availed at a cheaper cost with reasonable degree of skill and accuracy. Question 12: Do you think the navaratna policy of the government helps in improving the performance of public sector undertakings in India? How? Answer: In 1996, in order to improve efficiency, infuse professionalism and enable them to compete more effectively in the liberalized global environment, the government chose nine (later two more PSUs are given the same status) PSUs and declared them as navaratnas. They were given greater managerial and operational autonomy, in taking various decisions to run the company efficiently and thus increase their profits. Greater operational, financial and managerial autonomy had also been granted to 97 other profit-making enterprises referred to as mini ratnas. Question 13: What are the major factors responsible for the high growth of the service sector? Answer: The major factors responsible for the high growth of the service sector in India the low wage rates and availability of skilled manpower. The revolution in Information Technology (IT) field in India has also played a major role in the high growth of the service sector. Question 14: Agriculture sector appears to be adversely affected by the reform process. Why? Answer: Reforms have not been able to benefit agriculture, where the growth rate has been decelerating. Public investment in agriculture sector especially in infrastructure, which includes irrigation, power, roads market linkages and research and extension, has been reduced in the reform period. Further, the removal of fertilizer subsidy has led to increase in the cost of production. Moreover, since the commencement of WTO, this sector has been experiencing a number of policy changes such as reduction in import duties on agricultural products, removal of minimum support price and lifting of quantitative restrictions on agricultural products; these have adversely affected Indian farmers as they now have to face increased international competition. Question 15: Why has the industrial sector performed poorly in the reform period? Answer: Like the Agriculture sector, the industrial growth has also recorded a slowdown in the reform period. This is because of decreasing demand of industrial products due to various reasons such as cheaper imports, inadequate investment in infrastructure etc. Cheaper imports have replaced the demand for domestic goods. Domestic manufacturers are facing competition from imports. The infrastructure facilities, including power supply have remained inadequate due to lack of investment. Question 16: Discuss economic reforms in India in the light of social justice and welfare. Answer: If the economic reforms have given us an opportunity in terms of greater access to global markets and high technology, it has also compromised the welfare of people belonging to poor section. The crisis that erupted in the early 1990s was basically an outcome of the deep rooted inequalities in Indian society and the economic reform policies initiated as a response to the crisis by the government, with externally advised policy package, further aggravated the inequalities.. Further,

it has increased the income and quality of consumption of only high-income groups and the growth has been concentrated only in some select areas in the services sector such as telecommunication, information technology, hospitality etc

Q.3)Discuss the feat of indian population according to the result of census 2011?
2011 CENSUS OF INDIA The 15th Indian National census was conducted in two phases, house listing and population enumeration. House listing phase began on April 1, 2010 and involved collection of information about all buildings. Information for National Population Register was also collected in the first phase, which will be used to issue a 12-digit unique identification number to all registered Indians by Unique Identification Authority of India. The second population enumeration phase was conducted between 9 to 28 February 2011. Census has been conducted in India since 1872 and 2011 marks the first time biometric information was collected. According to the provisional reports released on March 31, 2011, the Indian population increased to 1.21 billion with a decadel growth of 17.64%. Adult literacy rate increased to 74.04% with a decadal growth of 9.21%. Spread across 35 states and union territories, the Census covered 640 districts, 5767 tehsils, 7742 towns and more than 6 lac villages. 2.7 million officials visited households in 7,935 towns and 6,40,867 villages, classifying the population according to gender, religion, education and occupation. The cost of the exercise was approximately 2,200 crore (US$484 million) this comes to less than $ 0.5 per person, well below the estimated world average of $4.6 per person. Conducted every 10 years,this census faced big challenges considering India's vast area and diversity of cultures and opposition from the manpower involved. Information on castes was included in the census following demands from several ruling coalition leaders including Lalu Prasad Yadav, Sharad Yadav and Mulayam Singh Yadav supported by opposition parties Bharatiya Janata Party, Akali Dal, Shiv Sena and Anna Dravida Munnetra Kazhagam. Information on caste was last collected during the British Raj in 1931. During the early census, people often exaggerated their caste status to garner social status and it is expected that people downgrade it now in the expectation of gaining government benefits. There is only one instance of a caste-count in post-independence India. It was conducted in Kerala in 1968 by the Communist government under E. M. S. Namboodiripad to assess the social and economic backwardness of various lower castes. The census was termed Socio-Economic Survey of 1968 and the results were published in the Gazetteer of Kerala, 1971. CENSUS:-

Shri C.Chandramouli is the Registrar General and commissioner of 2011 indian census.Census data was collected in 16 languages and training manual was prepared in 18 languages.The census

was conducted in two phases. The first houselisting phase began on April 1, 2010 and involved collection of data about all the buildings and census houses. Information for National population register was also collected in the first phase. The second population enumeration phase was conducted from 28 February 2011 all over the country.

Houselisting
Houselisting' Schedule contained 35 questions. Ownership status of the house Number of dwelling rooms Building number Number of married Census house number couple the household Predominant material of floor, wall and Main source of drinking roof of the census house water Ascertain use of actual house Availability of drinking Condition of the census house water source Household number Main source of lighting Total number of persons in the household Latrine within the Name of the head of the household premises Sex of the head Type of latrine facility Caste status (SC or ST or others) Waste water outlet connection Bathing facility within the premises Availability of kitchen Fuel used for cooking Radio/Transistor Television Computer/Lapto p Telephone/Mobi le phone Bicycle Scooter/Motor cycle/Moped Car/Jeep/Van Availing Banking services

Population enumeration
Population enumeration schedule contained 29 questions. Other languages known Literacy status Name of the person Status of attendance Seeking or available for work Relationship to head (Education) Travel to place of work Sex Highest educational level Birth place Date of birth and age attained Place of last residence Current marital status Working any time during Reason for migration Age at marriage last year Duration of stay in the place of Religion Category of economic migration Scheduled activity Children surviving Caste/Scheduled Tribe Occupation Nature of Children ever born Disability industry Number of children born alive Mother tongue Trade or service during last one year Class of worker Non economic activity

National Population Register

National Population Register Household schedule contained 9 questions. Name of the person and resident status Name of the person as should appear in the population register Relationship to head Sex Date of birth Marital status Educational qualification Occupation/Activity Names of father, mother and spouse Once the information will be collected and digitalised, fingerprints and photos will be collected. Unique Identification Authority of India will issue a 12-digit identification number to all individuals and the first ID is expected to be issued in 2011.

Census report
/wiki/File:India_population_increase.GIFDecadal growth of Indian population (1901-2011).

Provisional data from the census was released on March 31, 2011. Complete results are expected to be released in 2012. Population Total Males Females Literacy Total Males Females Density of population Sex ratio Child Sex ratio (0-6 age group) per km2 per 1000 males per 1000 males 1,210,193,422 623,724,248 586,469,174 74.04% 82.14% 65.46% 382 940 females 914 females

Population
The population of India at 0:00 hours of 1 March 2011 was 1,210,193,422. India added 181 million to its population since 2001, slightly lower than the population of Brazil. India with 2.4% of the world's surface area accounts for 17.5 % of its population. Uttar Pradesh is the most populous state with roughly 200 million people. About 5 out of 10 Indians live in the five states

of Uttar Pradesh, Maharashtra, Bihar, West Bengal, Andhra Pradesh. Religion returns in Indian census provide a wonderful kaleidoscope of the country s rich social composition, as many religions have originated in the country and few religions of foreign origin have also flourished here. India has the distinction of being the land from where important religions namely Hinduism, Buddhism, Sikhism and Jainism have originated at the same time the country is home to several indigenous faiths tribal religions which have survived the influence of major religions for centuries and are holding the ground firmly Regional con-existence of diverse religious groups in the country makes it really unique and the epithet unity in diversity is brought out clearly in the Indian Census. Ever since its inception, the Census of India has been collecting and publishing information about the religious affiliations as expressed by the people of India. In fact, population census has the rate distinction of being the only instrument that collets the information son this diverse and important characteristic of the Indian population.....

Literacy
Any one above age 7 who can read and write in any language with an ability to understand was considered a literate. In censuses before 1991, children below the age 5 were treated as illiterates. The literacy rate taking the entire population into account is termed as "crude literacy rate", and taking the population from age 7 and above into account is termed as "effective literacy rate". Effective literacy rate increased to a total of 74.04% with 82.14% of the males and 65.46% of the females being literate. Census year 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011 Total (%) 5.35 5.92 7.16 9.5 16.1 16.67 24.02 29.45 36.23 42.84 64.83 74.04 Male (%) 9.83 10.56 12.21 15.59 24.9 24.95 34.44 39.45 46.89 52.74 75.26 82.14 Female (%) 0.60 1.05 1.81 2.93 7.3 9.45 12.95 18.69 24.82 32.17 53.67 65.46

The table lists the "crude literacy rate" in India from 1901 to 2011.

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