NIFT PG 2013 Question Paper with solutions

  A leading Indian industrialist in a recent article on ways to strengthen India's economy has drawn attention to the problems of inflation and industrial sickness among other things. One of the main reasons for industrial sickness in our country has been the fact that business and industrial managers, have not been able to look beyond the immediate future. They have been too preoccupied with their attempts to report favourable results for the current year higher profits and larger dividends to the share holders. The planning horizon has hardly ever exceeded five years. Investments have been inadequate for new plants and towards diversification and expansions. Modernisation and asset creation has seriously lagged behind. In business, growth is needed for survival; one has to grow if one does not want to be wiped out. This is particularly true today with liberalisation of imports and increasing competition. Moreover, growth and higher productivity create employment and higher employment creates larger markets both for industrial and consumer products. It was Henry Ford who brought home the need for the creation of a larger and a more stable middle class, that is, a larger number of people who can afford more and more of goods and services. Even after six decades of independence our industrialists have not been able to shed the petty shopkeeper’s mentality and our highly educated management has tagged along merrily and without concern.