Paper – 3 Economic and Business Environment Objective: To test understanding on concepts of Micro & Macro Economics with a focus on Indian economic system. To test understanding on various crucial elements of business environment Total Marks – 50 Marks Part A– Economics (25 Marks) Part B – Business Environment (25 Marks)
Part A - Economics (25 Marks) 1 Basics of Demand and Supply and Forms of Market Competition
Theory of Demand and Supply
Equilibrium Price
Elasticity of Demand and Supply and other related concepts
Increase and Decrease in Demand and Expansion and Contraction of Demand
Forms of Market Competition Monopoly, Duopoly, Oligopoly, Perfect Competition and Monopolistic Competition
2 National Income Accounting and Related Concepts
Meaning and methods to compute National Income
Key variables of National Income (GNP, GDP, NNP, NDP etc.)
3 Indian Union Budget
Key terminologies heads covered under the budget
Revenue and Capital Budget
Major components of Revenue and Capital Budget
Meaning of Fiscal Deficit
Components/ Variables covered under Fiscal Deficit
4 Indian Financial Markets
Overview of Indian Financial Ecosystem
Key facets of Indian financial system
Growth of Financial Institutions
Public and private sector banks
Industrial Finance Corporation of India, Small Industries Development Bank of India
Regional Rural Banks
Cooperative Banks
Non-Banking Finance Companies
Basics of Capital Market: Types of Shares and Debentures Financial assistance scenario for Small and Medium Enterprises and Start-Ups.
5 Indian Economy
Primary (Agriculture and allied activities)
Secondary (Manufacturing)
Tertiary (Services)
Current scenario of agriculture and allied activities in India
Agricultural and Industrial Policies of India
Current scenario of services sector in India
Balance of Payments
Components of Balance of Payments
Favorable and Unfavorable Balance of Trade
Foreign Investments in India Types and Flows
Part B – Business Environment (25 Marks) 6 Entrepreneurship Scenario
Government initiatives to foster entrepreneurship
Need for entrepreneurship in India
Bottlenecks in entrepreneurial growth
7Business Environment
Overview of Business Environment
Features and factors influencing business environment
Types of environment: Economic environment, Socio cultural environment, Political environment, Legal and Technological environment
Ease of Doing Business Index by World Bank for India and Department for Promotion of Industry and Internal Trade (DPIIT) for States
8 Key Government Institutions
Basic awareness about various institutions and regulatory bodies in India such as NITI Aayog, MCA, SEBI, RBI, IBBI, CCI, NCLT/NCLAT etc.
