ECONOMICS

PRESENTATION
 BY:-



MAYANK KUMAR JAIN



KESHWANAND PANDEY



NEHA CHAVAN



HIMAKSHI MENDI

 SARASWATI COLLEGE

GLOBAL SUPER MARKETS

INDIAN TWO - WHEELERS

MARKETS
SARASWATI COLLEGE REACTS
TO UGC DECISION
Ø Reduction in subsidy by UGC leads to
fee hike
 of colleges.


Ø Negative reaction on UGC decision

by Saraswati college.



DISCUSSIONS B/W MANAGING
COMMITTEE & PRINCIPALS

Ø For same quality of education 100%

fee hike.
 (75% on an average + 25% on
maintenance)

MEETING B/W STUDENTS
UNION
& MANAGING COMMITTEE

Ø Students protest
Ø
Ø Principals statement
3 GROUPS DEPENDING UPON
REACTIONS

Ø Group 1 – Less Reactive.

Ø
Ø Group 2 – More Reactive.
Ø
Ø Group 3 – 1% hike in Fee, a fall in
1.2% of
enrollments.
 Group 1(Commerce, Economics and Management) Inelastic

 y
0 < |Ep| < 1


Fe
 DD curve
es


 x

Students of Group A
Group 2 (English, Mathematics, and Mathematical Statistics)
Elastic

 Y
1 < |Ep| < oo


Fe 
es
 DD curve


 x
 Students of Group B

Ø Law of DEMAND(Implication):
Increase in the fees of any course,
leads to the decrease in number of
students.
Ø Movement along the curve

Y
FEES
P2

P1

X2 X1
X
No . of students
COUNTER-ARGUMENT WITH
STUDENTS
Ø To maintain the quality of education.
Ø
Ø To prevent reduction in facilities &
faculties.
Ø
Ø Introduction of new popular courses.
 Eg :- Insurance, Financial
journalism etc.


Ø Reputation of college.
 SECOND CASE


THE GLOBAL SUPER MARKET

 ECONOMIC POLICY

• Economic Policy followed by India till

1980.


• Emergence of New Economic Policy

(NEP) 1991-1992.


• Aim of NEP.
 POLICIES
IMPORT SUBSTITUTION

A national economic strategy to build up a domestic

economy by emphasizing the replacement of imports by
domestically produced goods .

EXPORT PROMOTION
Incentive programme designed to attract more firms
into exorting by offering help in product and
market identification and development , pre - shipment
and post - shipment financing , training , payment
guarantee schemes , trade fair , trade visits , foreign
representation , etc .
 EFFECTS ON CONSUMER DEMAND

§ Wide Range of products.



§ Easy availability.


§ Competitive price.


•
•
RATIONAL CONSUMER PREFERENCE

§ Between Local markets and Global

super markets there is not much
difference for rational consumers
and hence they will prefer value for
Ø
 BUYERS MARKET

§ Local and MNC’s are the active

players.


§ Wide Variety of choice.

e.g. Soaps, Detergents, etc.

§ is very high.


§ Buyer is the
ELASTICITY OF GLOBAL SUPER
MARKETS
Y Y
P2
PR
IC PR
E IC P2
P1 E
P1

X2 X1 X2 X1
X X
QTY DEMANDED QTY DEMANDED

Before 1991 i.e before NEP After 1991 i.e after NEP
 DEMAND OF LOCAL MARKETS AND
GLOBAL SUPERMARKET

§ Options/Substitutes.
§ Income.
§ Technology.
§ Taste and preferences.
§ Marketing and Promotional
Strategies.

INDIAN TWO WHEELER MARKET
Study of demand
function
 SITUATIONS
Ø 1995-98 Industrial slowdown in India
Ø
Ø The two-wheeler industry defied uniform
performance.
Ø
Ø Segmentation of wheelers:
 Geographical: Urban and Rural demand
 Income:
 Urban –The demand is from lower-middle
and lower income group.
 Rural – The demand is from the rich , upper
middle and lower middle income
groups.

 High in Young people in metropolis.
 In semi –urban and rural areas it is
across all categories.
• Gender: It is prevalent among both
males and females in
western,central,south- central
part of India.
 In other parts of India
scooter riders are generally
males.

 DEMAND
•
ANALYSIS
The demand in urban areas was high
,but steady.
• Being in easy reach for common man
the demand for two-wheeler
increased.
• People from middle - income level
growing at impressive rate.
• Result of govt. support policy
• Growth in per capita real income made
rural area a huge market for two
wheelers.
 FACTORS AFFECTS ON DEMAND

Price
d2
P1 P 2
d1
s1

Demand x
Ø Price
Ø Technology
Ø Income
Ø Favorable Government Policies
Ø Geographic conditions.

Ø
 ROLE OF MANUFACTURES

Ø The norms in India are one of the

strictest in the world.
Ø Manufactures have to be very careful
while manufacturing engines.
Ø They have to meet international
standards.
Ø Domestic manufactures stand to gain
if they go in for joint ventures or
foreign collaboration.
Ø Role of JV.
•
THANK YOU