role of govt in emloyement of ecnomically weaker

role of govt in emloyement of ecnomically weaker
population of india

1. ROLE OF THE GOVERNMENT TOWARDS THE PROMOTION OF SOCIAL ENTREPRENEURSHIP Dr. Anju Bala Head, Department of Economics Shri Sanatan Dharam Girls’ College, Bathinda [email protected]

2. ⦿ Role of Government In Entrepreneurial Development ⦿ Gov e rnment P oli c ies ⦿ E f f e ct s Of G o v e rnment P o l ici e s ⦿ Conclusion ⦿ R ef e r e nces

3. ⦿ Creates conducive business environment. ⦿ P r o mot e fina n cia l hel p via V ent u re capitals, Angel Investors and business houses. ⦿ Promoting establishment of incubators. ⦿ Dev e lop ‘E n trep r eneuri a l E c osystem.’

4. Economic Development G o vernment Policies Entrepreneurship

5. ⦿ Constraints: - Government Regulation and Policies. Entrepreneurial Education. Transfer and Commercialisation of R&D. ⦿ Enablers: Commercial Infrastructure Market Dynamics Ease of Access To Physical Infrastructure Cultural and Social Norms -National Experts Survey

6. ⦿ Be th e e na bler an d enable: - infrastructure easy taxation fund raising research. ⦿ Attract Investments. ⦿ Business-friendly laws and a functional, streamlined court system. ⦿ A v o i d r e gula t ion s like licensi n g r e qu i r e ments that discourage innovation.

7. ⦿ Attai n men t of E c onomic Dev e lopment ⦿ Creat e Larg e S c al e Employm e nt Opportunities ⦿ P r o mot e Bala n c e d R egiona l Dev e lopment ⦿ R educ e C o ncentratio n of E c onomic P o w er

8. G o vernment Policies In d us t r i al Policies Econ om i c Reforms F in a nci a l Sector Reforms T ax R e f or m s

9. ⦿ First Generation Reforms (1991-2000) ⦿ Second Generation Reforms (2000-2001 onwards) ⦿ Third Generation Reforms (2002 onwards) ⦿ Fourth Generation Reforms (Unofficial)

10. ⦿ Liberalis a t i o n : shows t h e dir e ction ; making the economy more market and service- oriented and expanding the role of private and foreign investment. ⦿ P rivatisat i o n : s h ows the path ; pr o c e ss u n der which the state assets were transferred to the private sector. ⦿ Globalisati o n : shows th e ultimat e ‘ goal ’ ; unrestricted cross border movements of goods and services, capital and the labour force.

11. Reform is not the aim of the economy, But reforming the economy is the aim.

12. ⦿ Ind u strial P oli c y R es o lut i on, 19 4 8 ⦿ Ind u strial P oli c y R es o lut i on, 19 5 6 ⦿ Ind u strial P oli c y Statement, 1969 ⦿ Industrial Policy Statement, 1973 ⦿ Ind u strial P oli c y Statement, 1977 ⦿ Ind u strial P oli c y R es o lut i on, 19 8 ...continued

13. ⦿ Ind u strial P oli c y R es o lut i on, 19 8 5 & 1 986 ⦿ N E W I N DUSTR I AL POLIC Y , 19 9 1 ⦿ MSM E Se c tor ⦿ FDI P o l ic y Measur e s ⦿ Ease of Doin g B u si n ess ⦿ Mak e I n India ...continued

14. ⦿ Star t - U p India

15. ⦿ De-reservation of the Industries (except 8) Presently two: Atomic energy and nuclear research. Railways. ⦿ De-licencing of the Industries (except 18) Presently five: Aero space and defence related electronics. Gun powder, industrial explosives and detonating chemicals. Tobacco, cigarette and related products. Dangerous chemicals. Alcoholic drinks.

16. ⦿ P r o moti o n t o Fo r eig n Investment ⦿ Abolition o f M R TP Limit ⦿ Lo c atio n of Ind u stries ⦿ Compulsion to convert loans into shares abolished.

17. ⦿ S c heme s f o r establishin g an d de v el o pi n g enterprises: PM Employment Generation Programme. Credit Guarantee Trust Fund for Micro & Small Enterprises Credit Linked Capital Subsidy Scheme (For Tech Upgradation) SFURTI- Scheme for Funding of Regeneration of Traditional Industries Micro and Small Enterprises-Cluster Development Programme

18. ⦿ R e c en t Initia t ive s : Udyog Aadhar Memorandum- to promote ease of doing business Employment Exchange for Industries Framework for Revival and Rehabilitation of MSMEs ASPIRE (Promoting Innovation and Rural Entrepreneurs)- setting up a network of technology to promote start-ups for innovation and entrepreneurship in rural and agriculture-based industry.

19. ⦿ Liberalize d an d Simplified FDI P oli c y f o r Ease Of Doing Business in India. 26% increase in FDI, and 31% increase in FDI Equity Inflows by December 2015.

20. ⦿ Majo r Steps: Online and Single Window Systems Facilitation Cells and Incubators Unified Portals for registrations Introduction of Individual State Ranking Requirement of only three documents for import and export. ⦿ Budget 201 6- 2 017: Proposed amendment in Companies Act to improve enabling environment for start-ups. ‘Ek Bharat Shreshtha Bharat’: connect people through exchanges in varied areas, including trade.

21. ⦿ La u nche d i n Sept e mbe r , 20 1 4 ⦿ To boost Entrepreneurship, in manufacturing and also in infrastructure and service sectors. ⦿ Vision: Attract Capital and Technological Investment ⦿ Objectiv e : J o b Creati o n an d S kill Enhancement in 25 key sectors of economy.

22. ⦿ K e y P oli c ies: Ease of doing business Getting away with archaic laws 100 Smart Cities Disinvestment from PSUs. Skills and Jobs for youth, etc. ⦿ Majo r C h alleng e s : Creating healthy business environment Removal of unfavourable factors Lack of world class R&D More focus on MSMEs

23. ⦿ Four pillars of Make In India: New Processes New Infrastructure New Sectors New Mindsets ⦿ Major Steps: Invest India: National Investment Promotion and Facilitation Agency Investment Facilitation Cell Start-up India: To boost entrepreneurship Atal Innovation Mission (AIM): Innovation Promotion Platform Self-Employment and Talent Utilization (SETU): Techno- Financial, incubation and facilitation programme.

24. ⦿ For su p po r ti ng fina n cia l need s of small and medium enterprise sector and promoting start-ups and entrepreneurship: India Aspiration Fund under SIDBI: for VC Funding to MSME SIDBI Make In India Loan For Small Enterprises (SMILE): Quasi-equity and term based short-term loans, on liberal terms. Micro Units Development Refinance Agency (MUDRA) Bank: Development and Refinance to Micro-Units.

25. ⦿ Aims: T ur n India ’ s youth s f r om ‘J o b see k e r s to job creators.’ ⦿ Majo r Feat u r e s: Start-up India Hub Mobile App and Portal Promotion of awareness regarding Intellectual Property Rights Providing funding support Income Tax exemption for 3 years Build innovation centres at national institutes

26. ⦿ Duri ng 201 5 - 2016 ⦿ In s olvency and Bankruptc y Code, 2015 (Bill): seeks to amend laws relating to reorganisation and insolvency resolutions of corporate firms, partnership firms and individuals in a time bound manner.

27. Objectives: Maximize the asset value of insolvent and bankrupt firms. Promote entrepreneurship and availability of credit. Establishing an Insolvency and Bankruptcy Fund.

28. ⦿ Implemented in July, 2017. One Nation- One Tax Uniform GST registration. Subsume all indirect taxes at Centre and State level. ⦿ ⦿ ⦿ ⦿ Incr e as e pr o ductiv i t y through doing business. Reducing economic distortions. eas e of ⦿

29. ⦿ State and Central taxes subsumed into GST are: • • • • • VAT Purchase Tax Octroi & Entry Tax State Cesses/Surcharges Central excise duty Central sales tax.

30. ⦿ P ositive Impact: FDI Inflows Ease of Doing Business Ranking improved from 142 to 130, as per World Bank and World Economic Forum Motivating people to become entrepreneurs India’s competitiveness improved as per Global Competitiveness Index, by 16 positions to 55 th position. ⦿ Still a l o n g wa y to go.

31. The government is new, but not the country. Not the entrepreneurs. Policies last longer than government and we need more clock-builders than time-tellers.

32. ⦿ Globa l E ntrepreneurshi p Monito r R ep o rts ⦿ India n E c onomy: Rames h Singh ⦿ India n E c onomy: Dat t an d Su n dh aram ⦿ Science Journal of Business Management 2014 ⦿ V ari o u s Ec o nomi c Surv e y s o f India ⦿ Nati o na l Expert Surv e y R ep o rts, GEM