Question

importance of policies and law in a growing economy

Answer 1

Note: Question is asking importance of policies and laws in growing economy.(Hope this is complete question as nothing more is showing on dashboard).

Answer: GOVERNMENT policies and laws plays very important role in economic growth and development of the nation.

RULE OF LAW and its effective implementation by government organs are one of the most determining factors for firms and businesses to consider for establishing firm in thw country.

According WORLD BANK's EASE OF DOING BUSINESS INDEX which considers 10 sub parameters to assess the report, government policies and laws are determining factors for getting construction permits, easier insolvency resolution,protecting investors, simplfied tax laws and many more.They all depends upon the government policies.

Not only input part rather government policies also plqyes important role in effective output delivery as infrastructure, logistics support, transportation etc comes under it.

Government policies and laws and their effective implementation creates favourable manufacturing atmosphere for MICRO, SMALL AND MEDIUM enterprise and various SELF HELP GROUPS AND COOPERATIVES that basically provide push to rural economy on agriciltural and various traditional sectors.

Like giving support in form of establishment for food processing industry for further processing of raw material like making juice from fruits, milk based products etc add more value and incentives to rural economy.

For more investment by private sectors in rural areas government should create such favourable environment w.r.t. infrastructure, tax incentives to MSMEs, SHGs, help in R&D , proper electricity infrastructure etc.

Hence to say this statement correct as government policies pays important role.

Hope it helps.