MS-03 Economic and Social Environment Note : Attempt any five questions. All questions carry equal marks.

1 Identify key element of the economic environment of business and examine their importance.

2 “Critically examine the rationale behind establishing Public Sector Enterprises (PSEs) in India. Do you think the performance of PSEs has been satisfactory?

3 Can the growth process be initiated entirely by market forces in a less developed economy like India? Why or why not? How does planning supplement market mechanism in this regard?

4 “Foreign Direct Investment (FDI) is increasingly important in economic development because of its close links in trade, financial flows and technology transfer.” Explain the above statement and examine the policy of the government in promoting foreign capital in India.

5 The New Industrial Policy (NIP) of July 1991 has brought about far reaching changes in the policy towards industries and strategy of development. Critically examine this statement in the light of the evidence.

6 State the major problems of India’s fiscal policy. Briefly discuss the major recommendations of the Tax Reforms Committee.

7. Write short notes on any two of the following:

(a) Consumer Protection Act, 1986

(b) Administered Prices

(c) Current Account Convertibility