Government Policies for Business Growth

Nature and Process of Public Policy

You must have recently come across the campaign of Make in India. Now, this campaign is a classic example of the public policy our government wishes to follow. They want to encourage domestic productions via laws, regulations, incentives, campaigns, etc. So let us learn further the nature of public policy and the public policy process.

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Nature of Public Policy

We have seen that public policies are the collective actions of the government. Public policies will include laws, rules, regulations, judgments, case studies, government programs, etc. Now public policies and their nature are basically of three types – restrictive, regulatory and facilitating policies. Let’s take a look.

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1] Restrictive Policies

These policies curtail benefits for certain type of transactions or situations. One example is when the government imposes customs duties. This is done with the view of restricting imports into the country. The government wishes to bolster domestic production and trading and promote exports. So they will impose customs duties on imports to discourage heavy importing. This is a restrictive policy.

2] Regulatory Policies and Practices

These policies and practices aim to regulate the different sectors of the economy. These regulations keep the sector in check and ensure that there are no deviations from the government policies and plans. Take for example the banking sector of the country. It is strictly regulated by the RBI in accordance with the policies of the government. Similarly, the RBI also governs the money market, SEBI governs the stock market, etc.

3] Facilitating Policies

The government often has many banks, institutions, etc that facilitate and grow businesses in an economy. These bodies help implement policies to facilitate businesses, hence facilitating policies. Take for example the NABARD that facilitates rural credit policies. Another example is the EXIM Bank that implements policies to increase the import-export industry in our country.

Public Policy Process

Public Policy Process

The public policy process is a dynamic and interactive process. It is also a continuous process, not a one-time event.  In most cases, public policy lays down general directives and rules. The actual details of the policy along with its implementation techniques are in the sub-policies. So the actual policy is more generic and dynamic.

Learn the government policies, decisions, and goals here. 

In India passing a bill to make it into a law is a long and complex process. Firstly the law has to go through two houses, the Lok Sabha and the Rajya Sabha. First, the Standing Committee will review the bill. Then the concerned minister will introduce it in the house. If it passes the vote, then it is sent to the other house. Once both houses pass the bill it is again sent for review to the Ministry for Law. Finally, when the President asserts, the bill becomes a Law.

In the public policy process, there are mainly five steps as follows,

  1. Identification of Problem
  2. Formation of Policy
  3. Policy Adaption
  4. Implementation of Policy
  5. Evaluation of Policy

Solved Question on Public Policy Process

Q: The President has no say in the amendment or passing of the bill. True or False?

Ans: The following statement is False. If the President is not fully convinced then he can demand any additional information or explanation about the bill. He may also ask the House to reconsider their approval and suggest amendments.

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One response to “Economic Change Process of India”

  1. Kamya Treasure says:

    Good work and simplified for easy understanding😃

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