Page 42 - DMGT401Business Environment

Unit 1: Indian Business Environment

2. The plan targeted an annual growth rate of 5.6% in GDP and at the same time keeping Notes
inflation under control.

9th Plan (1997-2002)

It was observed in the eighth plan that, even though the economy performed well, the gains did
not percolate to the weaker sections of the society. The ninth plans therefore laid greater impetus
on increasing agricultural and rural incomes and alleviate the conditions of the marginal farmer
and landless laborers.

10th Plan (2002-2007)

1. The aim of the tenth plan was to make the Indian economy the fastest growing economy
in the world, with a growth target of 10%. It wanted to bring in investor friendly market
reforms and create a friendly environment for growth. It sought active participation by
the private sector and increased FDI's in the financial sector.

2. Emphasis was laid on corporate transparency and improving the infrastructure.
3. It sought to reduce poverty ratio by 5 percentage points by 2007 and increase in literacy
rates to 75 per cent by the end of the plan.

4. Increase in forest and tree cover to 25 per cent by 2007 and all villages to have sustained
access to potable drinking water.

Case Study Doordarshan's Problems

fter years of falling revenues, in 1999-2000 Doordarshan (DD) had a revenue
growth at 50%. In 1999-2000, DD earned revenues of 6.1mn compared to
A 3.99 mn in 1998-99. DD showed signs of revival with the launch of DD World (a
channel for NRIs) and had relative success with some of its regional channels.
However, by the end of 2000-01, DD's honeymoon with success seemed to be over. In 2000-
01, DD's revenues were projected to grow at 6-15% while private channels such as Zee TV,
Star, Sony had projected 40-50% revenue growth. Analyst's felt that DD's sagging revenues
were only tip of the iceberg.
DD was plagued by multiple problems, which found their roots in the mismanagement of
affairs. By the late 1990's the private producers, advertisers and audience had deserted DD.
Not even one car company advertised on DD and even two-wheeler manufacturers kept a
low profile. Ads of Pepsi and Coca-Cola were found only during sports telecasts.
Only FMCG companies stuck to DD because of its terrestrial network to reach the rural
and semi-urban audience. In spite of having over 21,000 employees, DD outsourced 50% of
its programmes from the private producers. In late 1990's DD faced number of allegations
of large-scale scams and irregularities. Under utilized infrastructure, improper investments
and poor financial management plagued the performance of DD. In 1992, when the
Government opened airwaves to private players, DD faced the heat of competition from
private satellite channels.

In the Cable & Satellite (C&S) homes it was found that there were hardly any viewers for
the DD programmes. The depleting Television Viewer Ratings (TVRs) of the DD
Contd...

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