govt intervention for markets

Presented by:Kiran K(07927808)Pavan Reddy (07927870)

Actions on part of the government that affect the economic activity, resource allocation, and the voluntary decisions made through normal market exchanges .

•Behavioral – Interventions where government attempts to modify the behavior of firms through regulations.

•Price Regulation

•Structural – Interventions which affect the market structure of the industry.

•Foster Competition

• Selective Tax Legislation that benefit a particular group of people or firms in a economy.

• They alter pattern of economic activity to promote particular areas.

• To promote some policy objectives.

• Tax Subsidies are provided through

• Tax Credits• Altering Tax Rates• Altering Taxable entity• Altering Taxable basis

• 2007 Budget Case - Hospitality Sector

• Indian Economy is based on the concept of planning.

• Five Year Plans which are developed, executed and monitored by the Planning Commission.

• Government has intervened to improve the productivity level of industries

• Upgradation of technologies• Modernization of industries• Improving the literacy rate which enhances the labor pool

• 10th Five Year Plan Case – Golden Quadrilateral

INVESTMENT LAWSFDIFIINRIVCF

SEZgeneration of additional economic activity promotion of exports of goods and services promotion of investment from domestic and

foreign sources creation of employment opportunities development of infrastructure facilities

REGULATORY BODIESTRAIRBISEBIGovt. of India