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IGNOU BECE 107 Solved Assignment 2022-23
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Important Note – IGNOU BECE 107 Solved Assignment 2022-2023 Download Free You may be aware that you need to submit your assignments before you can appear for the Term End Exams. Please remember to keep a copy of your completed assignment, just in case the one you submitted is lost in transit.
Submission Date :
- 31st March 2033 (if enrolled in the July 2033 Session)
- 30th Sept, 2033 (if enrolled in the January 2033 session).
Answer all the questions
A. Long Answer Questions 2 x 20 = 40 marks (word limit: 500 words for each question)
1) What is the nature and extent of disparity among states in industrial development?
What are the major reasons for such disparities?
Causes of Regional Disparity
The problem of regional imbalance can be traced to the British period. The British government brought about only those developments that were essential for them to have control over India. For example, certain metropolitan cities like Calcutta, Mumbai and Chennai were developed as these were port cities. The main states developed were West Bengal and Maharashtra as most of the industries were concentrated in these states. In the other states, only exploitation of the natural resources and that of the poors were carried out sans any investment for their development. As a result of this, some states inherited much more in terms of investment in transport and communication facilities, irrigation, urbanization etc., covering almost all parameters of development. Other states had to struggle to first uplift their people and then concentrate on development.
While some states have a better position in terms of geographical location, mineral and other natural resources, the others are lagging behind in these aspects. For example, the states located in difficult terrains surrounded by hills, rivers and dense forests like the states of Himachal Pradesh, Uttarakhand, several north-eastern states are much behind than the other regions having better mineral and other resources and access to markets.
This has an impact on the government’s decision of locating industries and projects which contribute by increasing employment and other advantages for the residents there.
While some states due to their access to market and infrastructural facilities have been able to progress and develop, the others have remained economically backward.
Failure of Planning Mechanism
Since the Second Five Year Plan India has been aiming to achieve balanced economic growth. But it has always failed to achieve this objective due to failure of devolution of funds efficiently. From First Plan to the Seventh Plan, Punjab and Haryana have received the highest per capita plan outlay, all along. The other three states like Gujarat, Maharashtra and Madhya Pradesh have also received larger allocation of plan outlays in almost all the five year plans. On the other hand, the backward states like Bihar, Assam, Orissa, Uttar Pradesh and Rajasthan have been receiving the smallest allocation of per capita plan outlay in almost all the plans. Thus the disparity between developed and less developed states remained a problem.
Political Instability is also one of the factors that has contributed to a great extent in the growing disparity between states. It is a known fact that development of a state is a reflection of good governance. So, the opposite also holds true. Some states due to historical, economic or social causes face greater instability in the form of unstable government, law and order problem, insurgency etc.
Role of Finance Commission
Under Article 280 of the Constitution of India, the Finance Commission of India is given the responsibility to review the share of funds collected by the Centre to be given to every state. It also has the duty to conclude at a principle or formula that determines the proportion of allocation of funds to the states.
There are certain flaws in the mechanisms adopted for allocation like based on population and per capita income. So, the states with larger population but lower per capita income got preference over others. These are mostly the states already in the phase of development. Less backward states having comparatively lower population still do not receive the requisite attention. The gap between revenue receipts and revenue expenditures is another criterion. This method has also failed as it automatically results in allocation of resources to already developing states.
Thus, the Finance Commission now needs to revise its formulae and methodology to achieve an overall development in the country, shifting its focus more to backward states.
Increased focus on Geographically backward areas
The fact cannot be ignored that even in geographically isolated states there are certain natural resources which are available in abundance. Taking for example, the hilly regions of North India. They are rich in production of fruits. So, the horticulture industry can be promoted there to ensure greater employment and greater income from the industry. At present, they are largely marked by use of traditional technology. Some use of new but environment friendly technology to boost production as well as adoption of means to boost trade can be some of the measures to be considered. Moreover, due to the scenic beauty and scope for adventure sports, these regions attract a lot of tourists. So, the tourism industry can be promoted in these regions. Enhancing credit availability like setting up Rural Development Banks and increasing incentives like tax concession, transport subsidy schemes can also be useful.
The backward states also need to take some initiative by working on the quality of governance. This can be done through effective planning, management and monitoring of activities. Corruption is one of the main reasons behind bad governance. So transparency in the system needs to be increased so that progress can be made at par with developed states.
For a developing country like India, growing through regional disparities is not an option. If some progress is made in one aspect, it is nullified by the backwardness in other aspects. Further, India also has a very poor status in Inclusive Development Index. The first and foremost way to improve its status is by removing regional disparities which are very glaring. If positive efforts are taken in this regard, the regional disparities can be done away with.
2) Give a brief account of the major challenges before the micro, small and medium enterprises (MSME) today.
Ease of Doing Business – Regulatory Issues
Most Indian start-ups encounter this issue in their early phases because of an overabundance of rules and regulations. Even though India has improved its ranking in the World Bank’s Ease of Doing Business Index, the system still has major flaws that inhibit businesses from growing and prospering.
Most of the time, difficulties with getting an MSME loan, contract enforcement, or dealing with building permits deter entrepreneurs from starting a business. While the time to establish a new enterprise has dropped from 127 days to 30 days, business owners in Mumbai must wait and go through 12 steps of procedures before they can open their doors, whereas worldwide, the average is only five.
2. Lack of Funds
Despite the government’s efforts to make business loans more freely accessible and encourage entrepreneurship, most companies still have difficulty getting financing or applying for an MSME loan. Regulatory flaws that cause delays in obtaining permits and insurance can harm the chances of small and medium enterprises. A lack of resources hampers most firms when it comes to producing their products, buying raw materials on time, or even gaining access to innovative technologies and expertise.
3. Lack of Financial Know-how
Even as entrepreneurs devise new tactics and growth prospects, there are still those who lack the financial know-how to properly manage their businesses. Some entrepreneurs may not make key business decisions relating to MSME loans if they lack prudent financial expertise. Your firm could be in jeopardy because of a lack of financial expertise unless you seek outside help.
It is also crucial to have a working grasp of money since an MSME loan can help you get through any financial difficulties that may arise. Before applying for an MSME loan, make sure you’re familiar with the terms, conditions, and interest rates associated with each type of loan.
4. Technological Advancements
Technological advancements have been plentiful, and most industries have experienced some sort of transformation to stay competitive. Although, because of a lack of experience and awareness, many firms are missing out on the latest technology advancements in their industry. As a result, MSMEs must be kept informed of technology advancements that directly impact the success of their companies. It is critical that scientific research institutions remain engaged with local MSME groups and pay attention to their technological concerns and issues.
Indian MSMEs lag far behind their international counterparts in terms of technical expertise due to their reliance on low-wage informal workers who do not possess the necessary education or training to contribute significantly to production. As a result, small businesses are compelled to take on positions requiring modest levels of experience and training, further limiting their long-term chances for growth.
Entrepreneurs in both urban and rural areas can benefit from businesses’ efforts to improve their skills and connect them to the market. When the economy is in trouble, putting more emphasis on employee education and training can be extremely helpful.
6. Trust Concerns
Banks are reluctant to provide MSME loans because the amounts are still tiny and because they believe MSMEs lack the repayment capabilities. They end up enforcing harsher controls on these start-ups in this situation. Certain businesses have difficulty getting loans because of a lack of recognition of a company’s credit score. Adding to their woes is the fact that typical credit choices require business owners to meet stringent eligibility requirements, which further dulls their spirits.
7. Collateral for Loans
A rigorous collateral requirement can make it problematic for some businesses to access an MSME loan. Small businesses may not have the collateral or assets necessary to receive a loan from a bank. Thus business owners can take out unsecured lines of credit from creditors and not worry about meeting the MSME lending criteria.
8. Absence of Standardised Policies
In India, just a few policies are in place to support small and medium-sized businesses. As a result, MSME growth and entrepreneurship development programs lack coherence. Even though strides have been made in Delhi over the years, more remains to be accomplished at the national scale if Indian businesses are to be more relevant in the world economy for global companies and stakeholders.
9. Impact of the Challenges MSMEs Face
Due to MSMEs’ low efficiency, mismanagement, and poor workplace conditions, growth has been difficult to achieve. Thus, the sector’s liquidity and profitability have slowed to levels that are incompatible with economic growth. There will be a considerable increase in the number of jobs created in India if the MSME sector is robust.
B. Medium Answer Questions 4 x 12= 48 marks (word limit: 250 words for each question)
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C. Short Answer Questions 2 x 6= 12 marks (word limit: 100 words for each question)
7) Write short notes on any two of the following:
(a) Core-Periphery Model
(b) Administered prices in India
(c) Public Utilities in India
8) Define the following terms and explain why they are important.
a) Corporate Social Responsibility
b) Foreign Direct Investment
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IGNOU BECE 107 Solved Assignment 2022-2023 Download Free Before attempting the assignment, please read the following instructions carefully.
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- Write your enrolment number, name, full address and date on the top right corner of the first page of your response sheet(s).
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- Write the relevant question number with each answer.
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IGNOU BECE 107 Solved Assignment 2022-23 You will find it useful to keep the following points in mind:
- Planning: Read the questions carefully. IGNOU BECE 107 Assignment 2022-23 Download Free Download PDF Go through the units on which they are based. Make some points regarding each question and then rearrange these in a logical order. And please write the answers in your own words. Do not reproduce passages from the units.
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