Note :There are two Sections A and B. Attempt any three questions from Section A. Section B is compulsory.

1 What do you mean by business environment. Explain the various market and non-market environments influencing business in India.

2 What circumstances lead to preferring foreign capital to foreign aid and debt? Critically evaluate the policy measures adopted by the Government of India to encourage inflow in foreign capital.

3 Explain the major objectives of the public sector. Give different criteria to evaluate the performance of public enterprises. Comment on how to resolve the possible conflict between autonomy and public accountability of public enterprises.

4 Discuss the balance of payments crisis in India. Explain critically the emerging trade policy issues.

5 Explain the role of external debt in the economic development of India. Critically evaluate the growing debt-servicing burden in India.

6 Briefly describe the framework of India financial systems. Explain the need for financial sector reforms and point out the steps taken by the government in this regard.

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

(a) Economic growth and economic development

(b) Balance of trade and balance of payments

(c) Monopolistic trade practices and restrictive trade practices.