Economic Environment of India

0 Reviews

Authored By : Ramachandran K.S.

Publisher: Northern Book Centre

Book Price: 550.00

Offer Price: 495.00

In Stock

Low cost in India and Worldwide.

Economic Environment of India

Summary of the Book


When Peter Drucker dictated to the US auto industry in the seventies and the latter followed suit with impressive gains for its constituents that costs must be price-driven he not merely repudiated the well established principle of marginal cost determining the price but also sent the strong message across that the economics that mattered to managers was what ruled over the market and not what academic theory laid down. The Ford Company priced its luxury limousine, Mustang, at $1995 on the basis of Drucker’s diktat and made a huge profit. Indeed, it emerges that several US manufacturers acted on that very basis and made themselves largely competitive. The record of the eighties tells us that American industry paid a heavy price for its retreat after a decade or so to the regime of cost-based pricing.


Drucker seemed to entertain a personal dislike for Keynes and had several harsh things to say about The General Theory. But, he generally accepted Keynes’ demand side economics. Both Drucker and Tom Peters sought to dovetail economic theory to the compulsions of the market place. The key message that aspiring and practising managers alike get from these titans is that a good part of conventional economic theory is irrelevant to the demands that managerial functions make on their expertise and professionalism. Price-based costing, for instance, is the first step towards managerial excellence. Companies, which perform well, could have achieved a high level of competitiveness on that basis. The toppers in the corporate arena globally and in the limited Indian context could hardly be prospering with the backward looking cost-based pricing strategy. True management lies in managing costs so as to offer products and services at prices that the market can bear. Globally, the best working strategy is often differential costing and pricing for diverse markets, but excellence is identified only with competitive costing that is price-determined. In the early sixties, the joke one heard about the pioneering research institutions in the country was that the bigwigs there were still stuck with the classical economics of Alfred Marshall, but obviously this was quite unfair and the economic academia generally was well versed in Keynesianism. The Indian economist, Dr. V.K.R.V. Rao’s celebrated rejection in 1949 of Keynesian theory as inappropriate to developing economies, in fact, underlines this aspect.

Finally, is there any scope for transplantation of the indifference curves theory, which dictates that the consumer is indifferent in regard to the choice of market baskets? Yes, we can do this in regard to all petro goods subsidised or otherwise although we should remember that differential State duties on these goods as much as the rates of excise overall contest the assumption of indifference. Generally, where subsidies are uniformly available to all consumers, this theory can be said to retain its validity. A uniform system of VAT which is the ultimate goal  should uphold the theory. I would close this paper with this. I suppose, economics should be re-written on the basis of what happens in the market place, by how the market behaves as much as how policymakers and administrators as well as regulators play their game.

Book Content

Part I — The Regulatory Era

     1.  The Regulatory Era                                                                                                          

     2.  On The Reform Path                                                                                                        

     3.  The Future of Reform                                                                                                      

     4.  The Worrying Areas                                                                                                        

     5.  Regulation of Reform                                                                                                      

     6.  Issues of Governance                                                                                                       

     7.  The Corporate Perspective: The Colour of Money                                                               

     8.  A Corporate Agenda for Poverty Alleviation                                                                      

     9.  The Real Test of Global Competition                                                                                 

    10.  Winding Up


Part II — By Way of an Introduction

    11.  By Way of an Introduction                                                                                               

    12.  Being Led by the Environment                                                                                          

    13.  Poverty Alleviation: The Theory                                                                                       

    14.  A Growing Basket


Part III — The Core Areas

    15.  The Core Areas7

    16.  The Monetary Scenario                                                                                                    

    17.  The Securities Market                                                                                                      

    18.  Specific Issues


Part IV — The  Statistical  Base

Part V — Case Studies

    19.  A Mountain and a Hillock: Little Common Ground                                                             

    20.  Company Law Matters                                                                                                     

    21.  What of the Doha Round?                                                                                                

    22.  The Dutch Disease0

    23.  Beyond the Wisdom of Phillip and Phelps                                                                          

    24.  Does Economics Matter to Managers?                                                                                

    25.  Union Budget 2006-07: Do Pluses Outscore Minuses?                                                         

    26.  Indian Railways: A Market Player?                                                                                    

    27.  Economic Survey, 2005-06—Core Aspects                                                                        

    28.  Indian Railways as a Market Player: a Plan for Corporatisation                                            

    29.  Theory of Poverty alleviation: Depend on the Market to Serve the Poor                               

    30.  Unspent Surplus: Piercing the Veil                                                                                    

    31.  Inequality: Irrelevant  Rhetoric                                                                                         

    32.  Economic Freedom Reports of Rajiv Gandhi Foundation, 2005                                            

    33.  Suggested Indices of Economic Efficiency,  With a Human Face—An Alternative to the

          Economic Freedom Indices0

    34.  Wanted: A Level Playing Field for Issues                                                                           

    35.  Who Dictates on Reform: The Politician or the Expert?                                                       

    36.  No Room for Dialectics or Compromise                                                                             

    37.  Equilibrium versus Disequilibrium


Part VI — Capturing the Key Areas

    38.  Public Finance                                                                                                                

    39.  External Sector                                                                                                               

    40.  Industry                                                                                                                          

    41.  Agriculture

    42.   Infrastructure                                                                                                                 

Author / Editors / Contributors

Authored By :


Top reviews list the most relevant product review only. Show All instead?

There is no Review on this Book !!!

Recently Viewed

Economic Environme..