Skip to main content

Land utilisation

  LAND UTILIZATION  Land is a scarce resource, whose supply is fixed for all practical purposes. At the same time, the demand for land for various competing purposes is continuously increasing with the increase in human population and economic growth.Land use pattern at any given time is determined by several factors including size of human and livestock population, the demand pattern, the technology in use, the cultural traditions, the location and capability of land, institutional factors like ownership pattern and rights scale regulation. Major Types of Land Utilization in India : As in all other countries, land in India is put to various uses. The utilization of land depends upon physical factors like topography, soil and climate as well as upon human factors such as the density of population, duration of occupation of the area,land tenure and technical levels of the people.There are spatial and temporal difference in land utilization due to the continued interplay of phys...
Post a Comment

Formalisation of informal sectors

Policies to formalise the informal sectors of economy

Introduction : In the Post Independence period, government gave various fiscal benefits for small enterprises to protect employment because
•These enterprises were mostly labour intensive.
•These enterprises were established in rural and semi urban areas. 

Government also reserves various items which could be produced only by MSME firms. 

Because of socio economic reasons, government has to provide protection to small firms which resulted in formation of informal economies. 

Meaning of informal sector : These are those sectors of economy which are less productive as compared to formal sectors. These sectors lacks capital, technology and best management practices.  

The agricultural sector is mostly informal sector in India and labour is struck in this sector of economy due to lack of large scale manufacturing units. 

So, there is great need of structural transformation of converting these smaller units by providing capital, skills, technology, better management practices so that, they can become efficient and large enterprises. 

Efforts made by the government to formalise economy
•Currency demonetisation
•Introduction of goods and services tax(GST)
•Digitalisation of financial transactions
•Enrollment of informal sector workers on internet portals

Benefits of formal sectors
It is believed that simplifying registration process,easy rules for business conduct, lowering the standard of protection will bring imformal enterprises into fold of formal enterprises. 
As compared to informal workers, formal workers will have more access to social security benefits. 

Need of formal sector
There should be shift from informal sector to formal sector because
•Informality is a sign of under development.
•It does not improve per capita income of the economy. 
•Informal sector decreases with the economic growth, slowly. 
•It results in poverty, unemployment.

Conclusion 
These attempts will yield only limited results. The continued dominance of informality defines under development. 
The economy will get formalised when informal enterprises become more productive. A mere registration of labour into internet portals will not ensure social security benefits, considering poor record of implementation of labour laws.

Comments

Post a Comment

Popular posts from this blog

Factors of production

Factors of production  The factors of production viz. land, labour, capital and management when combined in proper proportion and then used wisely can help to achieve higher level of efficiency in farming business. Use of any resource beyond its capacity can result in its rapid depletion and deterioration which may cause severe damage to sustainability of farming. Similarly, under utilization of resources or misutilization of resources may result in high cost of production and thus lower the efficiency of agriculture.  Contribution of Land in agricultural development Land in agriculture may  be used in a restricted sense though is complex and affects agriculture in several ways. It is essential for the habilitation of human beings and other living creatures. It is required for agricultural operation ,development of industries, growth of forest, building, road and rail transportation system on its surface. The contribution of land in agricultural development can be judged ...
Post a Comment
Read more

FUNCTIONS OF MONEY

FUNCTIONS OF MONEY Various functions of Money can be classified into three broad groups: a) Primary functions b) Secondary functions c) Contingent functions d) other functions Primary functions   a) Medium of exchange : Money must be commonly accepted by the people in exchange of goods and services to be successful medium of exchange.Money benefits the society in number of ways as a medium of exchange. -It offers sales and purchases through money. -It promotes transactional efficiency. -It allows freedom of choice . b) Measure of value : Money serves as common measure of value in terms of which value of all goods and services is measured and expressed. It has made transactions easy and simplifies the problem of measuring and comparing prices of goods and services. c) Unit of account : As a unit of account, it helps in developing an efficient accounting system . It provides basis for keeping account ,estimating national income,cost of a project etc. Secondary functions a) Standar...
Post a Comment
Read more

Role of capitalism

ROLE OF CAPITALISM IN DEVELOPING ECONOMY Capitalism is that part of the economics where there is no role of government agencies. The sole supe power of capitalism is in the hands of private owners. This means that if private is working on the behalf of government, instead of social welfare, their main objective is to have profits. Features Lack of intervention of government. Role of private firms. Role of price mechanisms. Advantages Encourages innovation Efficient firm incentives Consumers can choose services of their choice. Prevents government from interrupting. Creates climate of innovation and economic expansion. Helps in increasing GDP. Disadvantages Firms can gain monopoly power. Externalities damages the environment. Prone to boom and bust in the economic cycles. Inequality creates social division. Capitalist market crashes causes economic downturn , uneven business cycles. There is difficulty in mobilising unprofitable sector into profitable sectors. By taking advantage of poo...
Post a Comment
Read more