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This document provides an overview of the history of business in India from ancient times to post-independence. It discusses the types of markets and business environments that have existed. It outlines the roles of entrepreneurship and different business structures over time. Key topics covered include the involvement of European trading companies starting in the 15th century, the rise of native Indian entrepreneurs in the late 19th century, and the industrial and regulatory systems established after India gained independence.
This document provides an overview of the history of business in India from ancient times to post-independence. It discusses the types of markets and business environments that have existed. It outlines the roles of entrepreneurship and different business structures over time. Key topics covered include the involvement of European trading companies starting in the 15th century, the rise of native Indian entrepreneurs in the late 19th century, and the industrial and regulatory systems established after India gained independence.
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This document provides an overview of the history of business in India from ancient times to post-independence. It discusses the types of markets and business environments that have existed. It outlines the roles of entrepreneurship and different business structures over time. Key topics covered include the involvement of European trading companies starting in the 15th century, the rise of native Indian entrepreneurs in the late 19th century, and the industrial and regulatory systems established after India gained independence.
Авторское право:
Attribution Non-Commercial (BY-NC)
Доступные форматы
Скачайте в формате PPTX, PDF, TXT или читайте онлайн в Scribd
exchange of goods and services for money in the market Types of Governmental Systems • Command system – Dictatorship • Free market system – Make their own decision • Mixed economy – Combination of both Types of market • Perfect competition – Numerous buyers & sellers • Oligopoly – Few buyers & sellers • Monopoly – Single seller (generally government sector ) Business Environment • Macro environment – Common to no of industrial sectors . • Ex : Political,Legal environment • Micro environment – External but within macro • Ex : Suppliers,competitors • International environment – International factors Role of Entrepreneurship • Entrepreneur – Business promoted by the person • Generally Government plays the role of entrepreneur but now a days individual take up the job too ….. Need for Business History • BH – Bio data of a business • Traces of the past • Judging present & future trends Ancient History in brief • Barter system • India not a single country but made up of no of kingdoms • Generally family run business • Inter kingdom trade – Transaction between two different kingdoms • International trade – Exports & Imports • Exported goods – Cotton,silk & Wool etc • Imported goods – Horse,ceramic ware,Chinese silk etc • Banking – Bankers were called “Seth ” 15 th century onwards (era of European trading companies ) • 15 th century – Portugese made incursions into Goa ,Western India • Early 17 th century- Dutch East India Co entered • Mid 17 th century – British East India Company commenced trade with India • Duty exemption in Bengal – by the Mughal emperor • 18 th century – French established their presence by entering Pondicherry • Population of India in 1800 AD – 100 million • Arab,Egyptian,Chinese, Persian & Armenian merchants Details of British Operations • British East India Company – Joint stock company ,level of control increased from time to time by its legal measures ,so the co was firmly under Govt control . • Merchants began to oppose – abolished • By this time India was under British control except for certain areas . Industrial revolution in UK • Started from late 18 th century • Gave rise to factory system of large scale production • India – easy market for manufactured goods • Raw materials like cotton – exported from India – finished textiles were imported . Agency houses • Free merchants – agency houses for commercial activities • AH – acted as agent of firms in UK from whom they charged a fee for their service . • 1st AH – Forbes & Co • AH – Entrepreneurial abilities but abused for malpractices Trade Balance Early 20th century • India – one of the wealthiest economy began to decline from 19 th century • By 1920 ,USA was the world’s largest economy Rise of native Indian entrepreneurs from later part of 19 th century • Textiles – prominent industry in India • First formed by Dawar in 1854 • Prominent names are Morarji Goculdas, Khatau,Thackersey , Sassoon,Hukumchand , Juggilal ,Jamshed Tata. • Birlas – trading in silver,sugar,cotton etc • Due to lack of regulation – exploitation in textile mills ,to reduce the plight Factories Act 1881 was passed Other industries & Trade • Tagore purchased coal mines – 1840 • First railway line opened in 1854 • First 3 universities were established • Calcutta Electric supply corporation was registered in 1857 • Tata hydro elcetric power supply in 1910 • Ahmedabad Electric co in 1913 • Andhra valley power supply of Tata group in 1916 • Tata power in 1919 • Electricity being used in textile industry • Post & Telegraph stations have been set up • Bombay share market - 1875 Banks • Banks – set up by Indians between 19 th century to 1911 • PNB , Bank of India , Central bank of India , Bank of Baroda , Punjab & Sind Bank , Indian bank . Pre independence era in Indian Business
• Between world war – 1915 to 1947
• Momentum in growth of Indian business • Increase in domestic demand – due to war • Opportunity for Indian business to grow • Swadeshi spirit increased • Indian industrial commision & Fiscal commision on Tariff protection – to protect Indian industry • Industrial sector – substantial progress . • Share of native indians in Indian companies – 13% to 34 % • European counterpart – 72 to 40 % • Indian industry – no longer confined to textiles but spread to sugar , steel , cement , coal , shipping , paper , chemicals & airline . World war II Demand for Indian goods increased Price increased & the industry made large profits Performance of Indian selected Business Houses • Tata • Birla • Walchand • Kirloskars • Singhanias • Thapars • Modis • Lala sriram • Dalmia • Mafatlal • Bajaj • Godrej Managing agencies (Pre independence ) Growth of joint stock companies (Pre – independence) • India - joint stock companies – mid 19 th century • Europe – 17 th century • Family controlled • Growth • 1851 – 1892 – 1149 Co were registered ,only 505 survived • 1939 – 11114 with a capital of 290 crores • 1948 – 22675 with a capital of 570 crores • During 1920s & 30s big international companies entered namely Unilever,ICI,Dunlop, General Motors ,Ford motors etc. Chamber of commerce & industry • 1st chamber of commerce was set up in France in 1599. • In India , Coc was started in Bengal,Bombay & Calcutta by the British with a few Indians in 1830 • Chambers at Cochin,Karachi & upper India during the 19th century • 1905-1947 - Coc - founded by Indian business houses ,they laid their own standards & practices Federation of Indian COC & industry(FICCI) • 1st set up by the initiative of G.D.Birla & Thakur das in 1927. • Southern Indian COC was founded in 1909. • Indian merchant chambers – traders and small industrialist to protect their interest. • Associated Coc – large business interest mainly British • Specific associations to industry • Ex : Indian Tea association – 1885 • Mining association- 1892 • Paper association – 1895 • Fiscal commision & Tariff board set up in 1930 Labour relation(Pre – independence) • Exploitation phase • Labour – exploited ,difficult working condition ,heavy working hours • Cotton mills – 13 to 15 working hrs a day • Condition of female workers – deplorable • Child labour • Jute mills – Child labour • Factories Act was passed but with no specific effect. • Organised labour movement • There were periodic strikes • 1st strike in Bombay with 120000 workers mostly from textile industry – not a success • 3 yrs later – strike by plantation workers - not a success • By mid of 1921 - stike took place in Madras • Strike mainly for – profit sharing & higher wages . • Trade Union movement – protect worker interest. • In 1918 – AITUC (All India Trade Union Congress ) was formed Post independence era in Indian business • Socialistic economy : • Economic policy resolution – adopted at the karachi session of congress in 1931. • At the time of independence – India an agricultural country • Before 1947 – exploitation was present • After 1947 – demand to built the country • 1947-there were 1811 strikes • 1950- there were 814 strikes • Later Unionism became more militant Industrial policy resolutions- Basic infrastructure & regulatory system • Business activity after independence – guided by Industrial policy resolution of Govt of India 1948 & Industrial resolution of 1956 • Resolution of 1948 – greater participation by Govt in economic activity & role of private capital in a regulatory framework • Emphasize mainly on continuous increase in production & equitable distribution . • 1st five year plan – 1951-56 – priority to agricultural sector . • Industrial sector emphasize on basic industries likeiron,steel,metal,heavyengineering,cement,chemicals,fertili zers,power. • 5 yr plans is still continued. • Industrial Finance Corporation of India was set up after 1948 policy resolution • Main objective – providing concessional finance in backward areas. • National Small industries Corporation of India (NSCI) ,IDBI,Industrial re finance Corporation of India (IRCI) • Imperial Bank of India (1955)- nationalised to become SBI • Life insurance business nationalised to become - Life insurance Corporation of India (LIC)- providing basi financial infrastructure • Industrial policy resolution – 1956 • Gave more specific directions relating to the responsibility of the state towards industrial development • Obj : accelerate rate of economic growth,speed up industrialization,develop heavy industries & machine making industry,expand public sector & build up co operative sector,reduce disparities in income & wealth,prevent monopoly. • The policy also dealt with providing financial & technical assistance, balanced development of different regions,maintenance of industrial peace,accelerating growth of village in small scale. • Policy stmt divided industry into 3 categories – Schedule A – 17 industries – responsibility of state – Ex:Atomicenergy,Railways,Aircraft,Airtransport ,defence, telecommunication etc. • Schedule B – progressively state owned with state initiative to set up new units but private enterprises would be allowed to supplement • Ex : Sea transport,machine tools,fertilisers etc • Schedule C – Left to private sector but subject to licencing regulation Regulatory System • To implement a planned economy regulatory system needed • National need – projected by planning commission with roles of public & private sector defined • Industries act was passed in 1951-System of industrial licencing was introduced • Pricing & distribution of specific industries like oil- controlled by Essential Commodities Act . • Import & Tariff policies – to conserve foreign exchange • Foreign Exchange Regulations Act (FERA) – ctrl entry & operations of foreign co in India • Pricing of shares & public issues – controlled by Controller of Capital issues • 1969 – MRTP Commission – check growth of monopoly Emergence & growth of Public sector • After 1956 policy resolution – no of enterprises were set up in public sector both by central & state Govt. • Schedule A – IOC,BHEL,NLC,ONGC etc • Schedule B – Indian Tourism development, Indian drugs & pharmaceuticals etc . • Canalising of International trade • Nationalisation – Banking , general insurance, coal & oil enterprises were nationalised in 1970s • Growth Phase : Majority – public ,but drastically slowed down since reforms of 1991. • Pros & Cons- Pros : Advantage of Govt resource & support • Cons – Too many restrictions Growth of Private sector • Private sector – grew within the licence permit system • Post 1956 policy statement – concession to private sector • Liberalisation in 1973 policy statement • Private sector began to get Govt support • Investment from industrial houses & foreign Co were permitted • Industrial policy statement of 1980-attention for promoting competition , technological upgradation & modernisation • 1985-86 – increasing productivity,reducing cost & improving quality. Indian private Business Houses • Tata • Birla • JKGroup • Kirloskars • Thapars • Mafatlal Co operatives • Policy resolution of 1956 – role of cooperatives • NCDC (National cooperative Development corporation) • National cooperative sugarmills federation • National cooperative marketing federation Large cooperatives • IFFCO • KRIBHCO • Amul Joint sector • Get the benefit of private participation & Govt involvement . • Agricultural Business : • One of the prominent sector -8% of India’s imports • Govt role – providing infrastructure & financial resources for agriculture • Green revolution – 1970 – increase in India’s wheat production • Trade in agriculture Position of consumers • Preference of consumers did not matter • Labour militancy & rise of unions – Pre independence labour was exploited • AITUC & INTUC was formed soon after independence followed by BMS & CITU • Bargaining power is strong where trade unions are present • Appropriate technology choices : • Time of independence- technology underdeveloped • Man power plenty but low technical skill • Over a period of time technical & business skill grew resulting in a gradually more complex technology
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