Documente Academic
Documente Profesional
Documente Cultură
INDUSTRIAL ECONOMICS
1.1 INTRODUCTION
The word Economics is derived from the ancient Greek word Oikonomia which means
household management. It implies that economics is that domain of knowledge which is
concerned with the management of wants by households. However, as a result of the writings
of many economists, the focus has now shifted from the management of wants to the
management of resources.
Indian economy has undergone a phenomenon change particularly after the launching
of the New Industrial Policy, 1991. It is in the process of transformation of licensed regime
to liberalisation and closed economy to globalisation. Industrial licensing has been abolished
for all industries except for a short list of 6 industries related to security and social concerns,
social reasons, and overriding environmental reasons. Most of the industries reserved for the
public sector have been opened for the private sector to bring competition in the Indian
economy.
Industrial Economics is intended to provide basic knowledge of the framework of the
general and industrial economics to the extent useful for the students of engineering and
technology.
Industrial Economics (IEc), Incorporated is a consulting firm with more than two decades
of experience providing a range of professional services to government agencies, non-
governmental organisations, and private firms.
We take provide in and emphasize the quality of our work and the quality of our client
relationships. In all of our engagements we deliver exceptional value without compromising
creativity or intellectual rigor.
Copyright © 2008. New Age International. All rights reserved.
Singh, Manoj Kumar. Industrial Economics and Principles of Management, New Age International, 2008. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=3017378.
Created from hec-ebooks on 2018-08-29 22:31:16.
2 INDUSTRIAL ECONOMICS AND PRINCIPLES OF MANAGEMENT
2. Evaluation and innovation: Organisations in both the public and private sectors
commonly face a need, if not a mandate, to evaluate their performance and to develop new
plans and programmes to ensure future success. Our clients frequently call upon us not only
to identify opportunities for improvement in their organisations but also to design, test,
implement, and manage innovative solutions to recognised needs and challenges.
3. Damage assessment: IEc offers the economic, financial, legal, and scientific expertise
necessary to determine the appropriate scale of monetary or other damages resulting from
actions that cause a public or private entity to suffer a material loss. In addition to our
general expertise in measuring economic damages, we offer specialized expertise in the
assessment of damages recoverable by the public for human to natural resources caused by
oil spills and hazardous waste sites.
4. Strategic finance and accounting: With a firm grounding in modern financial
theory and techniques, IEc serves clients by interpreting financial statements, evaluating
financial performance and establishing values for businesses, often in the context of
environmental non-compliance litigation. IEc staff are also qualified to testify on issues
relating to financial analysis, including the economic benefit of non-compliance with
environmental requirements and the ability of defendants to pay assessed civil or criminal
penalties.
5. Risk and uncertainty: Embedded in the development and evaluation of
environmental policies is a need to assess their effects on ecosystems and human health. IEc
believes that the best basis for good policy decisions is strong scientific evidence, developed
using objective technical analysis with transparent assumptions and methods and explicit
analysis of uncertainties. Drawing on recognized principles of human health and ecological
risk assessment, IEc develops clear analytic frameworks and creates models and data sets to
assess the potential effects of policy decisions.
Singh, Manoj Kumar. Industrial Economics and Principles of Management, New Age International, 2008. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=3017378.
Created from hec-ebooks on 2018-08-29 22:31:16.
INDUSTRIAL ECONOMICS 3
Singh, Manoj Kumar. Industrial Economics and Principles of Management, New Age International, 2008. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=3017378.
Created from hec-ebooks on 2018-08-29 22:31:16.
4 INDUSTRIAL ECONOMICS AND PRINCIPLES OF MANAGEMENT
The word Engineering has come from the word Engine and may be defined as the
Application of Scientific Knowledge is called engineering. Engineering is the profession in
Copyright © 2008. New Age International. All rights reserved.
which knowledge of the mathematical and natural sciences gained by study, experience, and
practice is applied with judgement to develop ways to utilize economically, the materials and
forces of nature for the benefit.
According to E.M. Irwicks, An Engineer who is unprepared to excel at engineering
economy analysis is not properly equipped for his or her job. Economics helps the Engineers:
(i) In the provision of basic tools,
(ii) In decision-making,
(iii) In factor substitution,
(iv) In choice making,
(v) In understanding the problem of agriculture,
(vi) In understanding the problem of labour and personnel management
Singh, Manoj Kumar. Industrial Economics and Principles of Management, New Age International, 2008. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=3017378.
Created from hec-ebooks on 2018-08-29 22:31:16.
INDUSTRIAL ECONOMICS 5
The word technology is derived from a Greek word technologia, techne craft and logia
saying. It is a broad term dealing with use and knowledge of humanitys tools and crafts.
According to Bernard Gendron, technology is defined as any systematised practical
knowledge based on experimentation and/or scientific theory which enhances the capacity of
a society to produce goods and services.
Technological self-reliance also implies capability in our institutions to support
technological development through their infrastructure and skilled man power. Self-reliance
means, we should be able to for see and forecast our needs so that development work can be
undertaken at suitable centres. It means we should not be helpless watchers of new technology
emerging from other countries. Self-reliance implies capacity of industry to produce the goods
we need.
The use and development of technology must relate to the peoples aspirations. Our own
immediate needs in India are the attainment of technological self-reliance, a swift and tangible
Copyright © 2008. New Age International. All rights reserved.
improvement in the conditions of the weakest sections of the population and the speedy
development of backward regions.
The basic objectives of the technology policy are the development of indigenous technology
and efficient absorption and adaptation of imported technology appropriate to national priorities
and resources. Thus, the technology policy stresses attainment of self-reliance in technological
development and utilisation of national resources through indigenous technology in order to
speed up the process of economic development.
Technology consists of a series of techniques. The development of techniques is essentially
a historical process in which one technique with one set of characteristics replace other in
the light of the historical and economic development. Technology is a major source of
Singh, Manoj Kumar. Industrial Economics and Principles of Management, New Age International, 2008. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=3017378.
Created from hec-ebooks on 2018-08-29 22:31:16.
6 INDUSTRIAL ECONOMICS AND PRINCIPLES OF MANAGEMENT
EXERCISE
Singh, Manoj Kumar. Industrial Economics and Principles of Management, New Age International, 2008. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/hec-ebooks/detail.action?docID=3017378.
Created from hec-ebooks on 2018-08-29 22:31:16.