Page 57 - DECO303_INDIAN_ECONOMY_ENGLISH

Indian Economy

Notes McDowell’s No. 1 and Gilbey’s Green Label. The Ministry also put some other brands -
Smirnoff Vodka, Hayward’s 5000, Royal Challenge Whiskey and Kingfisher beer - on a
‘watch list.’ The surrogates used by these advertisements ranged from audiocassettes, CDs
and perfumes to golf accessories and mineral water. By August 2002, the I&B Ministry had
banned 12 advertisements. In addition, the I&B Ministry hired a private monitoring agency
to keep a watch on all advertisements for violations of the Act.
All this led to heated debates over the issue of surrogate advertising by liquor companies.
Though the liquor companies protested strongly, but they have to comply with the
regulations. If something is not good for the society then why it is allowed to be
manufactured and distributed. And if it is manufactured and distributed for the
consumption of the masses and there is stiff competition for the market share then what is
wrong in promoting the Brand?
Meanwhile, the government also seemed to be in dilemma. On the one hand, it had to
encourage the sales of liquor and tobacco because they were the highest taxed sectors of
the Indian economy. On the other hand, there was also the need to take the high moral
ground and reduce the consumption of such products.
Source: Business Environment, Dr Vivek Mittal, Excel Books
Self Assessment

Fill in the blanks:
1. …………………… is perhaps one of the keys to realising India’s dream of high economic
growth.
2. The more money that is ……………………, the larger the economic growth and
heightening of the standard of living.

3. Capital formation is addition to …………………… of the economy.
4. Greater investment in the business sector of an economy, in turn, …………………… greater
spending among individuals and the government because they have a more direct stake
in the success of that business sector.

4.3 Mobilisation of Domestic Saving for Economic Growth and
Development

In this section, you will learn about the mobilisation of domestic savings for economic growth
and development. The Monterrey Consensus of the International Conference on Financing for
Development (United Nations, 2002) has given the mobilisation of domestic financial resources
for development at the main point of the search of financial growth, poverty extermination and
maintainable development. It points to the requirement for “the compulsory internal
circumstances for mobilizing domestic savings and sustaining sufficient levels of prolific
investment” and pressures the prominence of nurturing the “energetic and well-functioning
commercial sector”. At the same time, it identifies that the “suitable part of government in
market-oriented economies will fluctuate from country to country” and calls for an active
system for activating public resources and for investments in elementary economic and social
infrastructure, as well as vigorous labour-market policies.
This section examines these concerns. The first section studies the past relations among savings,
investment and economic growth in the developing countries over the previous three decades.
The following unit talks “investment climate” and emphases on some important economic,

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