ECONOMIC FACTORS

Political & legal factors

Social & cultural factors

Technological Factors

Environmental factors

Economic System

Capitalist

socialism

Mixed Economy

Economic Policies

Economic Conditions

Laws & Regulations

Depends on Economic System

Indian Context

Local, state, center (Private sector) X

Labour Legislation

Tax laws & policies

Env. of Society

everyone is involved

cultural

concept beliefs faith

Non-static

How to do things

'Innovation' 'Revolution'

Contribute to Economic Development

Environmental policies

Green agenda

Climate change

Recycling

(A) CAPITALIST Eg: USA

Factors of Prod'n are in Private Hands

- No Govt. intervention/Interference - Freedom to Enterprise - Competition

- Profit motive - High competition

(B) SOCIALIST Eg: China

Factors of Prod'n are in Govt. Hands

- Welfare is the motive

- Low efficiency - No freedom to Enterprise & Commerce

(C) MIXED ECONOMY Eg: India

In the hands of Govt. & Private Eg: Tata, Birla, PSUs

-> What to Produce? -> How to Produce? -> Whom to Produce?