New industrial licensing policy

1. The limit of the production capacity.Expansion of the enterprise.The place

where the factory to be established.1. NEW INDUSTRIAL LICENSING POLICYTHE
INDIAN GOVERNMENT ESTABLISHED A LICENSINGSYSTEM IN ORDER TO MAINTAIN
CONTROL OVERINDUSTRIES ACCORDING TO THE INDUSTRIESDEVELOPMENT AND
REGULATION ACT 1951.A LICENSE IS A WRITTEN PERMISSION GRANTED TO
ANINTERPRISE BY THE GOVERNMENT ACCORDING TO WHICHTHE PRODUCTS
MENTIONED THEREIN CAN BEMANUFACTURED BY THE ENTERPRISE. THE LICENSE
ALSOINCLUDE MANY PARTICULARS SUCH AS:.Name of the product to be produced
2. 2. Development and control of industrial investment andproduction.Checking
the concentration of economic power.Promoting technological
advancement.Ensuring balanced regional development.Regulating the
location of the enterprise.Encouraging new entrepreneurs.Encouraging small
scale industries.OBJECTIVES OF LICENSING
3. 3. LOCATION OF INDUSTRIAL UNITS:-If any industrial unit wants to change its
location, then it will have to take theapproval of the concerned authority. An
Industrial license is requirFOR SUBSTANTIAL EXPANSION:-Under industrial
licensing policy, if any industrial unit which is covered underlicensing units to
substantially expand its production capacity then it will have toobtain prior
approval under this Act. Substantial expansion increase in productioncapacity
beyond 25% of existing of licensed capacity.FOR SETTING UP OF NEW
INDUSTRIAL UNITS:-If the industrial is to be set up in the category of licensed
industries, it has to obtainlicense under Industries development and regulation
act,1951.While setting up industrial unit, not covered under compulsory
licensing, itHas to file a memorandum of information with the department of
industries if thevalue of investment in plant and machinery of such unit is above
Rs.10 crore.REGISTRATION OF EXISTING INDUSTRIAL UNITSLICENSINGIndustrial licensing provisions were first designed in industrial
development andregulation act,1951.An existing industrial units which were
existing before enforcement of this act and arecovered under industrial licensing
will have to obtain registration under this act.COMPULSIONS FORFOR
PRODUCING ARTICLES RESERVED IN SMALL-SCALE INDUSTRIES:-An industrial
undertaking wants to manufacture goods I reserved for the small-scale sector it
isrequired to obtain industrial license. The list of items reserved for small-scale
industries is reviewedfrom time to time. In oct,2008, 21 items were reserved for
the small scale sector.ed for the projectsWhich are located in the large cities
with a population of more than 10 lakhs. Onlyafter obtaining approval location
can be changed.
4. 4. Licensing for the expansion of production capacity:-According to the new
industrial policy,1991,no license is required for the expansion of
productioncapacity of MRTP companies. In the present situation, there is no
restriction on the expansion ofproduction capacity except 5 licensed industries.
Definition of Large Industrial houses:- In the new industrial policy of 1991, the
limit onholding assets was completely abolished and there is no restrictions on
the size of large businesshouses. The new policy lays greater stress on
preventing unfair trade practices rather than on thesize of business houses. In
2002, the government abolished MRTP ACT.Industries reserved for public

sector:- Some industries had been reserved for the public sector.These industries
could be established in the public sector and private sector was not
grantedlicenses for the establishments of these industries. Only 3 industries are
reserved for the publicsector such as atomic minerals, atomic energy and
railways.Protection to small-scale industries:- In order to protect the small-scale
industries and save them from the large scale industries, the production of
certain products were reserved for the small-scale industries. Only 21 items are
reserved for small-scale industries.Tobacco productsAerospace and defence
equipmentsHazardous explosivesIndustrial explosives alcoholic
products.Compulsory licensing:- according to the New Industrial Policy,1991,it is
necessary to obtaina license only in case of 15 industries which are engaged in
the field of defence-equipments,luxury goods and hazardous commodities. In
wake of liberalization this numberhas been reduced to5.The five industries for
which licensing is compulsory are:PRESENT POSITION OFLICENSING POLICY
5. 5. Poor follow up :-After granting license, authorities do not check whether the
business unit isfollowing the provisions of licensing or not. So the basic objectives
of licensingpolicy is defeated.Corruption while granting licenses:-Licenses are
given to such entrepreneurs who have either political links or who canbribe the
corrupt officials. License are not granted on merit basis. Efficiententrepreneurs
are ignored.Lengthy Procedures:-For obtaining industrial license the
entrepreneurs has to take approval from variousgovernment departments. So all
this involves lengthy procedures and manyformalities.Conflicting objectives:Licensing involves conflicting objectives. Like on one hand government wants
toincrease industrial production in the economy. On the other hand government
isrestricting the activities of industrial units like substantial expansion,production
ofnew articles etc.Discourages theUnder Industrial licensing Policy, industries
have to obtain license for setting upnew unit, change location etc. So excessive
control discourages the entrepreneurs.CRITICISM OF
LICENSINGPOLICYEntrepreneurs:6. 6. FORMS OF INDUSTRIAL DISPUTES Forms of Industrial disputes Picketing and
Lockouts Strike gherao boycottingStrikes:- Strikes is a collection stoppage of work
by group of workers forpressuring t heir employers to accept certain
demands.Lockouts:-lockouts may be defined as the closing of a place of an
employment orthe suspension of work or the refusal of an employer to continue
to employ anynumber of persons employed by him.Gherao:-Gherao means to
surround. In this method a group of members initiatecollective action aimed at
preventing members of the management from leavingthe office.Picketing and
boycott:- when picketing workers display banners prevent othersfrom the
entering the place of work and persuade others to join the strike.
7. 7. Recognitions :-this disputes arises when employers failed to recognise a
unionas bargaining agent.Political causes:- It is the main cause of industrial
disputes political leadershave used unions is powerful weapons to build tensions
inside the plant industry.Institutional causes:- It includes recognition of unions,
scope of collectivebargaining, unfair practices etc. It is also causes of industrial
disputes.Administration-related issues:-administration related issues is the
another causeof the industrial disputes. It includes ill treatment, undeserved
punishment andverbal abuse etc.Employment related issues:- employment is
the main cause of the industrialdisputes. It includes disputes over
wages,allowances,bonus benefits, workingconditions, change in the method of
production, method of job evaluation etc.CAUSES OF INDUSTRIAL DISPUTES

Causes of industrial disputes Employment Administration related issues related

issues Institutional Social causes Political causes Recognition causes
8. 8. INDUSTRIAL DISPUTESMeaning of I industrial disputes:- An Industrial dispute
is any dispute or difference betweenemployees and employees, or between
employees andemployers or between employers and employers which
isconnected with the employment or non-employment or theterms of
employment or with the conditions of work ofany person.The industrial disputes
has various forms such as strikes,lockouts,gheraos andpicketing and
boycotting.The main characteristics of Industrial disputes:-1.The dispute could be
between the employer and employee, employee-employeeand employeremployer.2.The dispute must pertain to some work related issue.3.There should
be a difference or dispute. For e.g.-labour demands somethingmanagement does
not grant the same.4.The dispute can be between one or two workmen and their
employee is not anindustrial dispute. It must be raised by a group or class of
workmen.

Union Budget
Sack Arun Jaitley and save the country: BJP MLA appeals PM
Modi
In what may possibly ruffle a few feathers within the BJP, the party's Agra legislature Jagan Prasad Garg
had made a controversial appeal to Prime Minister Narendra Modi, asking the latter to sack Union
Finance Minister Arun Jaitley for the betterment of the country.

Black money to attract double payout after 4-month window

The window, announced by Finance Minister Arun Jaitley in his Budget 2016-17, will begin on June 1 and
provides an opportunity to avoid prosecution with payment of 30 percent tax and 15 percent penalty.

Shiv Sena not invited to NDA meeting, says MP Arvind Sawant

Shiv Sena MP Sanjay Raut blamed "miscommunication" on part of BJP for his party not attending the
meet where Arun Jaitley spoke about the Union Budget.

Jaitley's tax proposals aimed at growth, job creation: Adhia

New cesses and duty hikes may have made cars and garments costlier but Finance Minister Arun
Jaitley's focus in the Budget 2016-17 was job creation and making taxation simpler, not resource
mobilisation, a top official said Tuesday.

Govt should urgently roll back proposal on Provident Fund tax:

Trinamool Congress
Trinamool Congress, which had strongly opposed the proposed tax on PF corpus, on Tuesday noted the
government's promise to consider demands for a partial rollback and asked it to do it at the earliest.

PF taxation issue: No tax if 60% of corpus invested in annuity

Seeking to dispel fears of the salaried class, the government on Tuesday clarified that the private
employees can place 60 percent of investment under annuity for which they will be exempted from tax.

Market showing good momentum after Budget

The market today is showing good momentum with increase in trading and the metal also showing very
high rise in the last one hour.

Jeweller's Strike Over Excise duty Hike

The Strike of jewellers is extending its reach across the nation and is expecting to get support from all the
big jewellers from all over the country.

Job Creation prospects from Budget

The Budget has extended it highest support to the rural and agricultural sector along with the Make in
India campaign. All theses fields and sectors have high potential to increase the job prospects in the
market.

Budget unlikely to fire market or the mood: Citigroup

The budget is not likely to "fire" the market or the mood, Citigroup said in a research report, maintaining a
positive view on India with an year-end Sensex target of 27,200.

Government clarifies, PPF contributions will continue to be tax

free
Revenue Secretary Hasmukh Adhia on Tuesday said that Public Provident Fund (PPF) contributions will
continue to be tax exempt.

Budget 2016 has good news for people with under Rs 5 lakh
salary Know why
FM Jaitley's Budget announcement certainly has some good news for people earning less than or equal
to Rs 5 lakh.

American investors bullish on Indian budget: USIBC

American companies, either having a foothold or planning to set foot in India, are bullish on the latest
budget presented by the Modi government, business advocacy group USIBC has said.

Union budget hopeless, says Trinamool Congress

The Trinamool Congress on Monday dubbed the 2016-17 Union Budget as "hopeless" and "stereotype",
and questioned the Narendra Modi government's transparency over foreign direct investment.

Budget 'mere rhetoric' without any vision: Opposition

Opposition on Monday dubbed as "mere rhetoric" projection of the budget as pro-poor and said
government will not be able to "fool" farmers with "hollow promises".

For every rupee in govt kitty, 21 paise to come from borrowing

For every rupee in the government coffer, 21 paise will come from market borrowing in 2016-17, while 19
paise would be spent towards interest payment.

Govt has passed the Budget "exams": Swraj Paul

Praising the Indian Budget, NRI industrialist Lord Swraj Paul on Monday said that it had got its priorities
right by focussing on the rural sector and those less well-off.

FM extends capital gain tax to merger of different plans in MF

Currently, capital gains tax is levied on consolidation or merger of multiple plans within a mutual fund (MF)
scheme.

Over Rs 7,290 cr allocated for AMRUT, 'Smart Cities' in budget

The government on Monday allocated about Rs 7,296 crore for two central schemes -- Atal Mission for
Rejuvenation and Urban Transformation (AMRUT) and 'Smart Cities' Mission.

PM Narendra Modi has passed budget test with flying colours:

Rajnath
Terming the Union Budget 2016-17 as "excellent", Home Minister Rajnath Singh on Monday said it
outlines the priorities of the NDA government and the vision of Prime Minister Narendra Modi who passed
the budget test with "flying colours".

TYPES OF DERIVATIVES
The most commonly used derivatives contracts are forwards, futures and options
which we shall discuss in detail later. Here we take a brief look at various derivatives
contracts that have come to be used. Forwards: A forward contract is a customized
contract between two entities, where settlement takes place on a specific date in
the future at today's preagreed price. Futures: A futures contract is an agreement
between two parties to buy or sell an asset at a certain time in the future at a
certain price. Futures contracts are 5 special types of forward contracts in the sense
that the former are standardized exchange-traded contracts. Options: Options are of
two types - calls and puts. Calls give the buyer the right but not the obligation to
buy a given quantity of the underlying asset, at a given price on or before a given
future date. Puts give the buyer the right, but not the obligation to sell a given
quantity of the underlying asset at a given price on or before a given date.
Warrants: Options generally have lives of up to one year, the majority of options
traded on options exchanges having a maximum maturity of nine months. Longerdated options are called warrants and are generally traded over-the-counter. LEAPS:
The acronym LEAPS means Long-Term Equity Anticipation Securities. These are
options having a maturity of up to three years. Baskets: Basket options are options

on portfolios of underlying assets. The underlying asset is usually a moving average

of a basket of assets. Equity index options are a form of basket options. Swaps:
Swaps are private agreements between two parties to exchange cash flows in the
future according to a prearranged formula. They can be regarded as portfolios of
forward contracts. The two commonly used swaps are : Interest rate swaps: These
entail swapping only the interest related cash flows between the parties in the same
currency.

Fiscal policy
In economics and political science, fiscal policy is the use of government revenue collection
(mainly taxes) and expenditure(spending) to influence the economy.[1] According to Keynesian
economics, when the government changes the levels of taxation and governments spending, it
influences aggregate demand and the level of economic activity. Fiscal policy can be used to
stabilize the economy over the course of the business cycle.[2]
The two main instruments of fiscal policy are changes in the level and composition of taxation and
government spending in various sectors. These changes can affect the
following macroeconomic variables, amongst others, in an economy:

Aggregate demand and the level of economic activity;

Savings and Investment in the economy

The distribution of income

Fiscal policy can be distinguished from monetary policy, in that fiscal policy deals with taxation and
government spending and is often administered by an executive under laws of a legislature, whereas
monetary policy deals with the money supply, lending rates and interest rates and is often
administered by a central bank.

6Bibliography

7External links

Stances[edit]
The three main stances of fiscal policy are:

Neutral fiscal policy is usually undertaken when an economy is in equilibrium. Government

spending is fully funded by tax revenue and overall the budget outcome has a neutral effect on
the level of economic activity.

Expansionary fiscal policy involves government spending exceeding tax revenue, and is
usually undertaken during recessions. It is also known as reflationary fiscal policy.

Contractionary fiscal policy occurs when government spending is lower than tax revenue,
and is usually undertaken to pay down government debt.

However, these definitions can be misleading because, even with no changes in spending or tax
laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some
types of government spending, altering the deficit situation; these are not considered to be policy
changes. Therefore, for purposes of the above definitions, "government spending" and "tax revenue"
are normally replaced by "cyclically adjusted government spending" and "cyclically adjusted tax
revenue". Thus, for example, a government budget that is balanced over the course of the business
cycle is considered to represent a neutral fiscal policy stance.

Methods of funding[edit]
Governments spend money on a wide variety of things, from the military and police to services like
education and healthcare, as well as transfer payments such as welfare benefits. This expenditure
can be funded in a number of different ways:

Taxation

Seigniorage, the benefit from printing money

Borrowing money from the population or from abroad

Consumption of fiscal reserves

Sale of fixed assets (e.g., land)

Borrowing[edit]
A fiscal deficit is often funded by issuing bonds, like treasury bills or consols and gilt-edged
securities. These pay interest, either for a fixed period or indefinitely. If the interest and capital
requirements are too large, a nation may default on its debts, usually to foreign creditors. Public debt
or borrowing refers to the government borrowing from the public.
v