DEVELOPMENT OF COMMERCE IN MODERN ERA OVERVIEW...

International Journal of Multidisciplinary Research (IJMR) ISSN: 2277-9302

Vol. IV, Issue 9 (IV), January 2016 1

DEVELOPMENT OF COMMERCE IN MODERN ERA OVERVIEW OF COMMERCE TRENDS IN INDIA

Dr. Subhash Jadhao Head Dep. Of Commerce, R.A College, Washim.

Abstract:- Modern commerce world has been so developed that many transitions can be done in fraction of seconds. E-commerce and increasing use of mobile has transformed the face of business. This article is about the modern technology impact in commerce and government initiative for growth in commerce. Commerce is the activity of buying and selling of goods and services, especially on a large scale. The system includes legal, economic, political, social, cultural and technological systems that are in operation in any country or internationally. Thus, commerce is a system or an environment that affects the business prospects of economies. It can also be defined as a component of business which includes all activities, functions and institutions involved in transferring goods from producers to consumers. In historic times, the introduction of currency as a standardized money, facilitated a wider exchange of goods and services, although initial usage involved unmarked lumps of precious metal. During the middle Ages, commerce developed in Europe by trading luxury goods at trade fairs. Wealth became converted into movable wealth or capital. Banking systems developed where money on account was transferred across national boundaries. With the help of modern technology this could happen therefore we have focused on below two legs:-

1) E-Commerce 2) Mobile -Commerce

E-commerce Information and communication technology (ICT) is radically transforming the way individuals,

organizations, and governments work. The internet in today’s information societies has become an essential channel that is used for dissemination of information, products, and services. People prefer to use the internet as a transaction tool in different areas, such as, learning, shopping, marketing, travel, trading, etc governments have realized the importance of the internet and have undertaken critical transformations to use it to deliver public services, so that citizens can always access them regardless of their location. Businesses implementing E-Commerce in developing countries face substantially greater challenges than businesses in developed countries due to the unreliability of the internet connection, the poor availability of accessing it due to the poor infrastructure Today commerce includes as a subset a complex system of companies which try to maximize their profits by offering products and services to the market at the lowest production cost. Online marketplaces enable the various Small industries to showcase their products across the country, giving them access to a wider audience and helping them grow their business. For sustainable business and economic growth , all the e-commerce players should collaborate and reduce business barriers for small business enterprises to enable e-commerce adoption.

https://en.wikipedia.org/wiki/International_trade

https://en.wikipedia.org/wiki/Consumers

https://en.wikipedia.org/wiki/Currency

https://en.wikipedia.org/wiki/Money

https://en.wikipedia.org/wiki/Precious_metal

https://en.wikipedia.org/wiki/Corporation

https://en.wikipedia.org/wiki/Product_%28business%29

https://en.wikipedia.org/wiki/Service_%28economics%29

https://en.wikipedia.org/wiki/Market_%28economics%29

https://en.wikipedia.org/wiki/Production_cost


2 Vol. IV, Issue 9 (IV), January 2016

From above comparison it is clear that SMEs have begun to recognize the potential of e-commerce and understand that its adoption could play a major role in enabling growth for their business , both in domestic and international markets . When Indian SMEs are compared to those from other emerging countries such as China, Brazil and Indonesia, It is found that on an average 100per cent of the high-web SMEs have a website , use the internet for online advertising and transact using e-commerce.

One of the primary reason for difference in contribution to export is that e-commerce transcends geographic boundaries and level the playing field by enabling visibility and trade across buyers and sellers who are located in distant geographies. Further, online transactions supported /enabled by reputed e-commerce organizations also allay any fears rooted in perceived trust deficits. With fears such as rating systems, feedback mechanisms, blacklisting, Payment options and tools, security and trust certificates, The online ecosystem builds enough trust in the market, almost immediately as compared to the years of effort required in the offline market.

Mobile commerce Business through mobile phones have become an inevitable part of the global world and are becoming a modern trend of managing commercial life. The utility of e-commerce has proved the faster technology that facilitates eservices and give numerous opportunities to access numerous persons and customers to benefit the organizations. The e-services through mobile phones can benefit in so many ways to the customers as well as to the organizations, assessing new customers who would never have used a computer or who are simply busy to get to one. The smarter facilities, such as dual slot phones that have complete facility available in e-commerce provide wide scope to customers. As eservices like internet



banking, online shopping, and online share dealings that were not accessible during travel, are now possible on mobile phones, this has given rise to mobile commerce or m-commerce.

It has been made possible by the new technologies that allow mobile phones and other handled devices to access the internet. M-commerce is a wireless access to personal information, to internet content, and it has intelligent telephone services also. It may be applied for the scope of e-bills, ticketing, e-salaries, security services, shopping, auctions, retailing, advertising, reservations, membership schemes, passports and other endless possibilities. Mobile -commerce has made possible to the management of any organization to tackle the dealings and to take care of all the employees. India Foreign Direct Investment Foreign direct investment induces the investment in any country but on the contrary it affects the business of locals in the nations for instance: Amazon and eBay operate in India as online marketplaces. These companies do not own any inventory; do not sell any of their own merchandise but offer products from third parties to Indian consumers. The Commerce Ministry's discussion paper last year listed objections it received from a national body of traders to open up B2C e-commerce to FDI: 1) Small time trading of opening corner stores still remains a large source of employment. FDI will have disastrous impact on this sector leading to monopolies in logistics, manufacturing and e-commerce. It will cause large scale unemployment 2) Because of scale of operations, e-commerce players will have more bargaining power than standalone traders 3) Allowing FDI in ecommerce will provide such players enormous geographical reach and this will be against the spirit of FDI in multi-brand retail which is restricted to cities with more than a million people Of all the objections, only the one which points out violation of condition for FDI in multi brand retail makes sense. The Government should lift the restriction on brick and mortar retail too - that is the only way Indian manufacturing can grow. Restricting foreign investment in retail trade - online or offline - has lost its appeal now.



Foreign Direct Investment in India increased by 5035 USD Million in October of 2015. Foreign Direct Investment in India averaged 1110.40 USD Million from 1995 until 2015, reaching an all time high of 5670 USD Million in February of 2008 and a record low of -60 USD Million in February of 2014. Foreign Direct Investment in India is reported by the Reserve Bank of India.

Some of the Government policies impacted Commerce in India Foreign market penetration During 2014-15 (April-January) (Provisional) India’s exports were US $ 265.0 billion as against US $ 258.7 billion during corresponding period of 2013-14 (April-January), an increase of 2.44%, despite the slowdown of the pace of development in various economies of the World. Exports are supported through schemes of Foreign Trade Policy as well as various promotional schemes of concerned Ministries/Departments. The schemes of Foreign Trade Policy are Focus Market Scheme, Market Linked Focus Product Scheme, Focus Product Scheme and Duty Drawback Scheme. Exporters can also avail duty free import of capital Goods under EPCG Scheme and raw materials under Advance Authorisation Scheme. The Government of India continuously monitors the export performance of different sectors and takes need based measures from time to time, keeping in view the financial and overall economic implications. Special economic zones Special Economic Zones (SEZs) denote geographical areas which enjoy special privileges as compared with non-SEZs areas in the country. The main motivating forces for setting up SEZs came from the Ministry of commerce with a view to boost exports of goods and services, provide employment and increase investment from domestic and foreign sources. The SEZ policy was introduced in April 2000to provide internationally competitive and hassle-free environment for exports. Government initiative Development of a robust manufacturing sector is the priority of the Government. It has the potential to not only take the economic growth to a higher trajectory, but also to provide employment. The Government is committed to remove all bottlenecks and develop India as a manufacturing hub. A number of measures have been taken by the Government in that direction. During the last three months, the economic activity has picked up as reflected in the quarterly growth figures of GDP which grew at 5.7 % in the first quarter (Q1) of April-June 2014over the corresponding period of the previous year



Ease of Doing Business policy The Department of Industrial Policy and Promotion (DIPP) has taken a series of measures to improve Ease of Doing Business Process of applying for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been made online and this service is now available to entrepreneurs on 24x7 basis, this has contributed to entrepreneur empowerment and ultimately to the commerce, also Meetings are being organised with State Governments for undertaking review of the factors affecting Ease of Doing Business and identifying action points for its improvement. Conclusion:- Today Commerce has been taken various forms, And the revolutionary part is e-commerce & Mobile commerce. With rapid growth of E-commerce and mobile commerce there are certain drawbacks are found with respect of local business unit and to overcome that government should frame policies so that commerce can be increased but traditional business should not be impacted.

Sources:-

http://www.tradingeconomics.com/india/foreign-direct-investment

http://www.firstpost.com/business/

https://en.wikipedia.org/wiki/Economy_of_India

http://www.ecommercetimes.com/

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http://www.tradingeconomics.com/india/foreign-direct-investment

http://www.firstpost.com/business/

https://en.wikipedia.org/wiki/Economy_of_India

http://www.ecommercetimes.com/



DEVELOPMENT OF BANKING SECTOR IN INDIA

Dr. Prakash Deshmukh School Of Commerce And Management, YCMOU, Nashik.

Introduction There seem so be no uniformity amongst the economist about the origin of the word ‘Bank’. It has been believed that the word ‘Bank’ has been derived from the German word ‘Bank’ which means joint stock of firm or from the Italian word ‘Banco’ which means a heap or mound. In India the ancient Hindu scriptures refers to the money - lending activities in Vedic period. They performed most of those functions which banks perform in modern times. During Ramayana and Mahabharata eras also banking had become a full-fledged business activity. In other words the development of commercial banking in ancient times was closely associated with the business of money changing. In simple words, bank refers to an institution that deals in money. This institution accepts deposit s from the people and gives loans to those who are in need. Besides dealing in money, bank these days perform various other functions, such as credit creation, agency job and general service. Bank, therefore is such an institution which accepts deposits from the people, gives loans, creates credit and undertakes agency work. Banks play an important role in the economic growth of a country. In the modern set up, banks are not to be considered dealers in money but as the leaders of development. The importance of bank for a country’s economy can be explained in following ways- Banks by playing attractive interest rate on deposits try to promote thrift and savings in an

economy. The investment of these savings in productive channel results in capital formation. The scattered small savings in the country can be put to optimum use by commercial banks. Banks utilize this amount by giving loans to industrial houses and the government. By providing

funds to the entrepreneurs, bank help in increasing productivity of capital. Banks help in remitting money from one place to another. The cheque, bank draft, letter of credit,

bills, hundies enable traders to transfer large sums of money from one place to another. By their ability to create credit, the banks have placed at the disposal of the nation a large amount

of money. The bank can increase the supply of money through credit creation. With the growth of banking activity, employment opportunity in the country has increased to a

Considerable extent. The banks help in capital formation in the country. A high rate of saving and investment promote

capital formation. Money deposited in the bank and other precious items are now absolutely safe. For keeping

valuables, banks are providing locker facilities. Now people are free from any type of risks. The banking system of a country plays an important role in the economic development of any

country. Banking system comprises of the banking institutions functioning in the country. Banking system comp rises from the central bank to all banking institutions which are functioning and providing financial facilities to any developmental sector like agriculture, industries, trade, housing etc. Hence the aim of this paper is to provide information about Development of Banking Sector in India. Development of Banking Sector in India – According to C.P. Chandrasekhar, among the institutions whose role in the development of the less developed regions is well recognized but inadequately emphasized are the development banks. Playing multiple roles, these institutions have helped promote, nurture, support and monitor a range of activities, though their most important function has been as drivers of industrial development. All underdeveloped countries launching on national development strategies, often in the aftermath of decolonization, were keen on accelerating the pace of growth of productivity and per capita GDP. This was the obvious requirement for alleviating poverty and reducing the developmental gap that separated them from the developed countries. To realize this goal, they considered industrialization to be an important prerequisite.



This stemmed from the Perspective that modern economic growth was a process characterized by an increase in the share of employment in the non-agricultural sector, and within the latter by a change in the scale of productive units, the growth of factory production and a shift from personal enterprise to the impersonal organization of economic firms. Besides the apparent universality of this trajectory across countries, a range of arguments were advanced to justify the centrality afforded to modern factory industry. First was the conclusion derived from trends in consumption styles across the globe and embodied in rudimentary form in Engels' Law that the demand for non-food commodities in general and manufactures in particular grows and diversifies as incomes increase. Growth must therefore be accompanied by a process of diversification of economic activity in favour of manufactures. Second was the belief that, given the barriers to productivity increase characteristic of predominantly agrarian economies, the diversification in favour of industrial production is an inevitable prerequisite for a rapid increase in per capita income. Third was the view that beyond a point even agricultural growth is predicated on the availability of a range of manufactured inputs, particularly, chemical fertilizers. Fourth was the evidence that dependence on primary production places a nation at the losing end of the shifting terms of exchange in international trade, necessitating industrialization as a device aimed at garnering additional benefits from trade and overcoming external vulnerability. And, finally, the idea that given the 'learning by doing' characteristics of industrial capability, delaying entry into the spectrum of industrializes makes entry more difficult as time goes by. As well as according to Deena Zaidi, the Banking Industry has evolved tremendously over a period of time. Nowadays, modern banking sector is doing away with its traditional methods and shifting focus to a more advanced and digitally connected network. While many countries are still struggling to get basic banking facilities, there are others that are growing not only in number but facing fierce competition from non-banks. As we all know, banking, in recent years, is not all about depositing and taking loans but much more. With many new technologies,focus on a few developments that we could see the rise of a more innovative banking industry in coming period. Conclusion From the above analysis it is noticed that the banking system of a country plays an important role in the economic development of any country. Banking system comprises of the banking institutions functioning in the country. Banking system comp rises from the central bank to all banking institutions which are functioning and providing financial facilities to any developmental sector like agriculture, industries, trade, and housing and the Banking Industry has evolved tremendously over a period of time. Nowadays, modern banking sector is doing away with its traditional methods and shifting focus to a more advanced and digitally connected network. While many countries are still struggling to get basic banking facilities, there are others that are growing not only in number but facing fierce competition from non-banks. As we all know, banking, in recent years, is not all about depositing and taking loans but much more. With many new technologies, focus on a few developments that we could see the rise of a more innovative banking industry in coming period. Reference –

1) N.S. Toor (2006),Hand book of Banking Information, Skylark Publication, New Delhi 2) Trivedi, Chaudhary, Kumar (2010), Indian Banking System, Ramesh Book Depot, Jaipur. 3) C.P. Chandrasekhar (2008), Development Banks: Their role and importance for development. 4) Deena Zaidi (2015), Banking Developments in 2015.

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PROFESSIONAL DEVELOPMENT OF HUMAN RESOURCE FOR COMMERCE EDUCATION THROUGH HUMAN RESOURCE DEVELOPMENT CENTRE

Dr.P.W.Kale Associate Professor & Head Faculty of Commerce Vidyabharati Mahavidyalaya Amravati.

Mr.S.K.Rodde Assistant Professor Vidyabharati Mahavidyalaya Amravati.

Introduction

Human Resource Development Centre The National Policy on Education (NPE) 1986 in its programme of action makes a pointed reference to the crucial link between teacher motivation and the quality of education. The NPE recognized the need for improving the status of the teacher and proposed to provide opportunities for professional and career development so that teachers may fulfill their role and responsibility within the system of higher education. It was proposed to enhance their motivation skills and knowledge through systematic orientation in specific subjects, techniques and methodologies, and thereby inculcate in them the right kind of values that would in turn encourage them to take initiatives for innovative and creative work. It is also proposed to provide skilled based education for the concept of make in India for the development of nation therefore the responsibility of human resource already involved has increased. The NPE sought to focus on the following thrust areas, namely:

1. Specially designed Orientation Programmes in Pedagogy, Educational Psychology and Philosophy, and Social-economic and political concerns for all new entrants at the level of teachers.

2. Orientation and Refresher course for the serving teacher targeting to cover every teacher at least once in three to five year.

3. Specially designed Orientation Programmes/Refresher Course in information and communication technology for the new entrants as well as for the in-service teacher.

4. Encouraging teachers to participate in seminars, symposia and workshops etc, to translate its objectives into a reality.

Keeping this in view, the Human Resource Development Centers formerly called as Academic Staff Colleges were established in 1987 to equip the teachers with such knowledge and expertise as can make them good and effective teachers in classroom situation and to sensitize them to the problems of polity, economy and environment. In the first phase 45 Human Resource Development Centre (Academic Staff Colleges) were established during VIIth Five Year Plan 1985-90. In this number had already increased to 66 these Human Resource Development Centers are distributed in 26 states of the India. The total number of new teachers undergone the training since

inception of the ASC scheme is about 1, 04, 636 (Orientation course) and 2,57, 301 (Refresher

courses), where as the current teacher strength in higher education is about 5.00 lakh after

inclusion of private college teachers also for the staff development programmes. These numbers are

self-explanatory about the quantum of work for HRDCs to perform.

Commerce Education: Commerce education made its beginnings in India in 1886 with the establishment of the first

commercial school in Madras by the trustee of Pacyappas charities. This branch of education reached an important milestone when the colleges or university level teaching of this subject was started in Sydenham College of commerce and economics in Bombay in 1913. In due course, commerce education spread both at the school and university level. There was however no research in commerce



during this period. But the growth during the forties and fifties was remarkable. Commerce education has now attained a position of preference over Arts.

Till the beginning of fifties however commerce education in most of the universities was limited to B.Com and M.Com degrees only. Research was not the preference of the degree holders in this branch of education. This was partly due to the fact that the discipline was new and partly because research in every branch of education had a position of low priority. But the fifties and the subsequent period saw a very considerable increase in research effort. The Ph.D. degree became the aim of every university teacher and even some of the college teachers started making earnest effort in this direction. As a consequence, the number of Ph.D. degree holders in commerce increased considerably.

Importance of Commerce Education

Commerce is a branch of knowledge that deals with business, trade and other allied activities. The word ‘commerce’ has a wide connotation. It includes different activities. Commerce education is composite faculty as compared to Arts and Science. Both of them have well defined objects, education process and curriculum. In our present curriculum we study not only commerce but also Economics, law, Accountancy, Management and now a days Information technology also.

Commerce education aims at producing productive manpower and energy and skill, which control all other aspects of production. Our present education system not only produces productive manpower but also makes available managerial skill.

Objectives of Proposed Study

1. To understand the Organization and management of HRDC. 2. Assess the objectives of organizing refresher courses in commerce faculty. 3. Assess the performance of Refresher courses on the basis of fulfillment of objectives of refresher

courses for commerce teachers with respect to training programme, course contents, and duration of the programme and availability of competent resource person.

4. Assess the role of HRDC in developing the culture of Information and communication technology, continuous learning and self-improvement among commerce teachers.

5. Assess the role of HRDC in achieving the objectives of Higher education in general and Commerce education in particular.

Research Methodology

In these study primary data had collected from 350 teachers who had attended the orientation programme organized by UGC-Human Resource Development Centre’s in Maharashtra were taken. Besides these 120 teachers were taken who have attended the refresher course in Commerce discipline. In order to study the impact on professional growth of teachers, a five point scale (Very Much, Much, Less, Not at all, Undecided) was drafted and standardized by the investigator himself based on course component of orientation programme and refresher course. The questionnaire was developed after carefully studying the existing model of refresher courses for commerce teachers.

The secondary data had collected from direct information available in journals, various books, magazines, websites etc.

HRD Needs in Education Education itself aims at development of human resources. HRD in education means the human

resources involved in education. These include Professors, Principals, and support staff working in educational institutions, heads of university department, vice-chancellors, educational administrators and policy makers. Developing all these categories of people is extremely important as the effectiveness of education depend on how well they perform their roles. People at different levels and performing different roles require different competencies to be effective in their roles. These competencies are also changing from time to time as the environment is changing. The knowledge base is also improving and the needs are changing. Hence there is a need to develop continuously the capabilities of the people involved in education. The HRD needs in education should be interpreted in the context of the overall development needs of the country and should take into consideration the developmental plan in other sectors.



Role of Teacher in Education Even though often less acknowledged the importance of a good teacher is enormous in India. They

play a vital role in the overall development of the students. Not only they are responsible for imparting academic knowledge, but are also responsible for inculcating the right values and principles to their students.

Philosophy of the Human Resource Development Centre The main philosophy of Human Resource Development Centre is to keep in mind that the

teacher is central to the system. While it is universally accepted that the teacher is the pivot of the educational system, our system does not provide adequate opportunities for their professional development. It is, therefore, necessary to develop inbuilt mechanisms to provide opportunities for teachers within the framework of knowledge society. It is also accepted that a teacher must not be confined only to transmitting information; she/he must also orient students to meet the challenges of life, to not merely become a trained professional, but also a better citizen. It was believed in the past that a college/university teacher learnt the 'art' of teaching on the job by emulating outstanding models such as his/her own teachers or senior colleagues. The stock-in-trade of the college/university teacher has always motivated the students. Today, it is no longer possible to expect a newly appointed teacher to acquire the 'art' of teaching by emulating his/her peers.

Educational Technology and Orientation in Information Technology New methods of teaching and educational technology along with developments in Information

Technology have made the job of a teacher both exact and demanding. Now, it has been decided to give a bigger thrust to e-content development. In order to create Internet savvy as well as computer literate teachers, to create e-content assemblers and creators, the University Grants Commission (UGC) is launching specially designed orientation programmes/refresher courses in these subjects. Objectives of the Human Resource Development Centre The revised guidelines of UGC have quoted following objectives of Human Resource Development Centre:- 1. Plan, organize, implement, monitor, and evaluate Orientation Programme for newly appointed

college/University teachers and Refresher Courses for serving teachers. 2. Organize Orientation Programmes for Heads of Department, Principals, Deans and other decision

makers to familiarize them with the philosophy of Orientation in order to enable the senior educational administrators to understand their new roles supervisors and to facilitate the reforms in higher education through appropriate modification of the management system at various levels.

3. Attempt to create a sound academic and educational environment in the university through the ongoing exchange of ideas on different issues and subjects among the Resource Persons, Scholars and the Participants of the programmes.

4. Formulate a programme of Orientation within the broad framework as laid by UGC. 5. Identify resource persons in the various fields of specialization for running the Orientation Courses

and Subject Refresher Courses and familiarize such resource persons with the philosophy and guideline for the course. The list of resource persons should be approved by the Chairman of the Advisory Committee.

6. Set up documentation center-cum-Library for reference and source materials necessary for the courses.

7. Produce specially designed material required for effective implementation of the courses. 8. Organize, Monitor and evaluate courses for teachers. 9. To create a culture of learning and self-improvement among teachers so that it becomes an

integral part of the educational system at the tertiary level. 10. To enable teachers to:



a. Understand the significance of education in general, and higher education in particular, in the global and Indian contexts;

b. Understand the linkages between education and economic and socio-economic and cultural development, with particular reference to the Indian polity where democracy, secularism and social equity are the basic tenets of society.

c. Acquire and improve basic skills of teaching at the college/university level to achieve goals of higher education;

d. Keep abreast of the latest developments in their specific subjects; e. Understand the organization and management of a college/university and to perceive the role

of teachers in the total system; f. Utilize opportunities for development of personality, initiative and creativity; and g. Promote computer literacy as well as Internet knowledge.

Conclusion:-

Human Resource Development Centers have been contributing significantly for improvement of quality of teaching in higher education in India. Their usefulness has been confirmed by various research studies and reports. Besides imparting skills, knowledge, provides opportunity to meet eminent resource persons, provides platform for exchange of ideas with their peer group from various parts of the country which is a unique experience in itself. To make HRDCs more relevant following are some of the recommendations suggested are- 1. Suitable linkages should be created between HRDCs and International agencies involved in staff

development for exchange programmes to understand and updated about latest trends. 2. The orientation courses may be made compulsory for the prospective teacher after selection to

the job but before joining it. 3. Sufficient funds should be provided for infrastructural development. HRDC should be equipped

with state of art e-class rooms, conference halls, Library. 4. Hostels should be provided with sufficient number of staff to facilitate comfortable stay of

the participants. 5. Human Resource Development centre should have adequate permanent staff. 6. Affiliating universities should link participation of staff in HRDC programmes to affiliation of the

college more seriously. 7. Monitoring of HRDCs should be done more systematically and scientifically. 8. Due weightage be given to ICT training. 9. The syllabi for refresher courses should contain new trends in commerce discipline.

References

1. Rani Dhawan (2000): Impact of Academic Staff College’s Programmes on Teachers and Students. University News, New Delhi Vol-38(16) April 17, 2000.

2. M.R.Shollapur (2007)- Industry Driven Business Education: A Study on Exploring Industry’s Reflections University News New Delhi Vol.45 No.42 Oct 15-21,2007

3. T.Vijaykumar (2009)- HRD for the development of higher education: University News, New Delhi Vol-47 No.32 Aug 10-16,2009

4. M.Pravez (2009)- Professional Development of teachers in higher education University News, New Delhi Vol-47 No.32 Aug 10-16, 2009 5. G.Srinivas(2009)- New challenges in Higher Education University News, New Delhi Vol-47 No.10 March 9-15, 2009 6. D.Muthamizh Vendan Murugavel (2009)- Multiple Roles of Teachers in Higher Education.

University News, New Delhi Vol-47 No.33 Aug 17-23,2009 7. Satrughna Behera,(2009),Academic Staff College: Ideas and Issues, University News,47(04). 8. www.ugc.ac.in 9. www.wikipedia.org/wiki/education in India.

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http://www.ugc.ac.in/



REVIEW OF INDUSTRIAL GROWTH UNDER PLANNING STRUCTURAL TRANSFORMATION

Pooja S Chandak (Mohata)

Abstract The purpose of this paper is to clarify the nature of structural transformation in developing countries in the right direction with the help of planning undertaken by the recognized government. Increasingly development, practitioners and policymakers recognize that economic development requires continuous diversifying and upgrading firm existing sectors/industries to new high productivity once. The catching up process in manufacturing results from technology transfer and is a key diverse of rapid productivity growth. Technology and knowledge intensive sector/industries produce tradable goods and can be rapidly integrated into global production network, facilitating technology transfer and absorption. Introduction The industrial structure has been widely diversified covering broadly the entire range of consumer intermediate and capital goods. The progress India has made in the field of industrialization is clearly reflected in the commodities composition of Indian foreign trade in which the share of imports of manufactured goods has steadily declined, on the other hand industrial products, particularly engineering goods has become a growing component of Indian exports. Finally, the rapid stride in industrialization has been accompanied by a corresponding growth in technologically and managerial skills for efficient operation of the most sophisticated industries and also for planning, designing of such industries. The purpose of economic growth can be usefully be regarded as centering on a relatively brief time interval of two or three decades when the economy and the society of which it is a part transform themselves in such a way that economic growth is subsequently, more or less automatic. Objectives

1) Growing Importance of Basic and Capital goods One striking feature of period of planning was that the structure of Indian industries had changed in favor of basic and capital goods sector.

1959-60 1991-92

Productivity 50% 79%

Employment 25% 52%

2) Encouragement to village and small scale enterprises.

The state would support cottage and village and small scale enterprises by restricting volume of production with the large scale sectors, by differential taxation or by direct subsidies. The state could concentrate on measures designed to improve the competitive strength of the small scale producers by constantly improving and modernizing the technique of production.

3) Growth of infrastructure The rapid pace of industrial growth and the development of productive capacity has been marked by remarkable, though still inadequate, expansion of infrastructural facilities in the country with expansion and modernization of coal which India’s primary fuel source, by more than threefold and notable success in the exploration of oil and gas both on and offshore. The Sixth Plan summed up to the success in infrastructure admirably. A network of irrigation, storage works and canal, hydro and thermal power generations, regional power grids , largely electrifies and dieselized railway system, national and state highways on which rapidly growing road transport fleet can operate and



telecommunication system covering most urban centers and linking India with the world. The development of modern industry as well as of agriculture has stimulated the growth of banking, insurance and commerce and required matching expansion and modernization of ports, shipping and internal and external air services.

4) Removing regional disparities The resolution stresses the necessity of reducing the regional disparities in levels of development in order that industrialization may benefit the country as a whole. The resolution fully supported the idea that only by securing the balanced and coordinated development of the industrial and agriculture economy in each region and the entire country attain the higher standards of living.

5) Attitude towards foreign capital The government recognized the needs for securing the participation of foreign capital and enterprises particularly as regards industrial techniques and knowledge so as to foster the pace the industrialization of the Indian economy. The resolution, made it amply clear, “That as a rule, the major interest in ownership and effective control, should always be in Indian hands. I all cases, however, the training of suitable Indian personnel for the purpose of eventually replacing foreign experts will be insisted upon.”

Structure of Effective Demand and pattern of industrial Development The pattern of industrial development that has emerged in the last five decades reflects the structure

of effective demand which is dertermined by the distribution of income. An unduly large share of resources is absorbed in production which relates directly or indirectly to maintaining or improving the living standards of the higher income groups. All this led to a distortion in the emerging industrial structure which was deleterious to social welfare. A pattern of industrial development based on high rates of growth of demand for luxury and semiluxury products may well come to be regarded as the only way of maintaining a high rate of growth of output in this sector.

Industrial progress since independence A major achievement in the industrial sector has been the diversification of India’s capability. The

following table indicates a growth of the industrial output in selected commodities. The figure shows clearly the tremendous increase in production of some important goods in the country.

India has attained self sufficiency in almost all consumer goods. Finally, the infrastructure including R&D capability, consultancy and design engineering services, project management services and innovative capacity to improve and adopt technologies have indeed shown an impressive record of progress

Commodity Unit 1950-55 1970-75 1990-95 2000-05 2011-15

Cloth meters Million

4215 7602 1831 14173 60453

Fertilizers ‘000 tons 9* 830 9122 14770 16383

Cement Million tons 2.7 14.3 46.6 94.6 223.5

Finished steel Million tons 1.0 4.6 9.6+ 30.3 73.4

Electricity Billion KWh 5 56 264 500 876.9

Aluminum ‘000tons 4 169 443 552 963.2

Paper Board ‘000tons 116 755 2433 3090 4389@

Commercial vehicles

Thousand numbers

9 41 146 152 910.2

(* very low, @new specification)



Growth of commodity production since independence (Source- Compiled from Economic survey, 2014-15, RBI. Handbook of Statistics on the Indian Economy, 2009-10.)

Suggestion Though the government has been proclaiming the policy of developing new growth centers so as to diversify the industrial structures its policies have only resulted in concentration of industrial development in metropolitan areas, in selected states and among the top capitalist. Obviously, as a deliberate policy the promotion of small scale sectors in consumer goods required for mass consumption can be reconcile the objectives of higher growth and higher employment.

1) Failure to eliminate poverty The basic objective of planning is the provision of a national minimum level of living. The “garibi hatao” (remove poverty) slogan a meaningful content only if measures were taken to remove poverty. In other words, all through, India had followed a blood transfusion approach which provides temporary relief. It would have been much better if India had followed a blood generation approach by emphasizing sustainable employment creation. 2) Unable to provide employment to all able bodies persons :- Another basic failure of planning in India was the emphasis on growth rather than an employment and the adoption of Capital intensive production. Despite the implementation of eight five years plans, unemployment has been on the increase. 3) Failure to implement land reform :-

One of the basic policy decisions to transfer ownership of land to the peasantry, for which efforts were made for four decades, was not properly implemented.

4) Failure to check the growth of black money :- There is no doubt that speculative gains, illegitimate incomes of various forms through illicit gains of contractors , windfall profit from protected market semi monopolistic conditions created by imports restrictions & capital issues and corruption generated by licences and quota system in various fields of economic activity have all resulted in income classes . Thus, the fruits of economic progress instead of being shared by the masses flow into the pockets of the traders, businessmen and industrialization.

5) Need to change development steategy: The Government of India adopted a policy of rapid economic development through extensive and intensive exploitation of natural resources the destruption of environment has imposed the heaviest burden on women from poor, landless, small and marginal farm families, forcing them to spend 5 to 10 hours a day foraging fur fule, fodder and water in addition to house hold work, agricultural work and caring for animals.

Conclusion The process of industrialization has not generate sufficient growth potential either in terms of contribution of output or in terms of employment , & what is really serious is that the rate of growth of industrialization has been decling with every decade. The industrial Policy may be able to attract foreign investment and give a boost to domestic investments, but whether it will lead to more employment along with higher output growth is doubtful. The political problem of mankind is to combine three things viz. 1) Economic efficient 2) Social justice 3) Individual liberty Both the market and the state have to be harnessed in the fulfilment of these objectives The philosophical foundation of the planning policies and strategy were sound but there was crisis of implementation due to the existence of a gap between the theory and practice of socialist planning. The planning process has been able to create social and economic infrastructure, provide an industrial base by fostering the development of heavy and basic industries and enlarge education opportunities, if failed to



provide employment to every able – bodied person, eliminate poverty, the benefits from development have. References

Government of India-Economic survey , 2006-07

Pranab Bardhan-The political economy of development in India (1984)

Annual survey of industries, (1997-98)& (2004-05)

Rosen, G-Industries change in India.

Datt & Sundharam-Indian Economy

https://en.wikipedia.org

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THE SUSTAINABLE GROWTH AND DEVELOPMENT OF INDIAN AGRICULTURE

Anurag J. Kale Research Scholar, Vijay Colony,near saurabh colony, kathora naka, Amravati.

ABSTRACT The objective of this research is to study the growth and sustainability in agriculture sector. Sustainability entails attaining equilibrium between the demand and supply of agriculture produce. The green revolution may bring the efficiency in agriculture produce and thus, the productivity increases. The ultimate performance of agriculture depends on the performance of various resources, the strategies and methods adopted. To face dryness due to the decrease in the rainfall, the agriculturist has to use the innovative strategies. The findings of the study reveal the innovative strategies & achieving the growth. KEYWORD:

Sustainable growth, Resources, Development, trends, economy. INTRODUCTION:

There is a vital role of Agriculture sector in the process of economic development of less developed countries like India. Besides providing food to nation, agriculture releases labour, provides saving, contributes to market of industrial goods and earns foreign exchange. Agricultural development is an integral part of overall economic development. In India, agriculture was the main source of national income and occupation at the time of Independence. Agriculture and allied activities contributed nearly 50 percent to India’s national income. Around 72 percent of total working population is engaged in agriculture. These confirm that Indian economy was a backward and agricultural based economy at the time of Independence. After61 year of Independence, the share of agriculture in total national income declined from 50 percent in 1950 to 18 percent in 2007-08. But even today more than 60 percent of workforce is engaged in agriculture. In spite of this, it is also an important feature of agriculture that is to be noted that growth of other sectors and overall economy depends on the performance of agriculture to a considerable extent. Because of these reasons agriculture continues to be the dominant sector in Indian Economy. Since independence India has made much progress in agriculture. Indian agriculture, which grew at the rate of about 1 percent per annum during the fifty years before Independence, has grown at the rate of about 2.6 percent per annum in the post-Independence era.

Expansion of area was the main source of growth in the period of fifties and sixties after that the contribution of increased land area under agricultural production has declined over time and increase in productivity became the main source of growth in agricultural production. Another important facet of progress in agriculture is its success in eradicating of its dependence on imported food grains. Indian agriculture has progressed not only in output and yield terms but the structural changes have also contributed. All these developments in Indian agriculture are contributed by a series of steps initiated by Indian Government. Land reforms, inauguration of Agricultural Price Commission with objective to ensure remunerative prices to producers, new agricultural strategy1, investment in research and extension services, provision of credit facilities, and improving rural infrastructure are some of these steps. Notwithstanding these progresses, the situation of agriculture turned adverse during post-WTO period and this covered all the sub sectors of agriculture. The growth rates in output of all crops decelerated from 2.93 percent to 1.57 percent. The livestock declined from 4.21 percent to 3.40 percent. The fisheries declined from 7.48 percent to 3.25 percent. Only, forestry witnessed a sharp increase from 0.09 percent to 1.82 percent.



NEED FOR THE STUDY: 1. Agriculture plays an important role in the economic growth and development and has therefore remained the largest platform. Agricultural performance in the 90s has erratically fluctuated widely with a declining trend over the period. The close relationship between the performances of agriculture and that of the economy obviously imply that agriculture must grow at a high rate for it to spur economic growth. However, for agriculture to grow at the expected rate, it is imperative that quality investments are done in key areas that have potential for growth. 2. In the last three decades the government has realized that non-targeted investments in agriculture could be disappointing. Any future investments in agriculture must therefore be focused to avoid such disappointments and achieve the intended objectives. For example, even with the general poor performance of agriculture, few sub sectors such as horticulture and dairy have performed well. Thus investments in agriculture should be targeted to areas that are likely to attain high productivity. OBJECTIVES: 1. To study the status of the agricultural sector and trends. 2. To identify the key factors those encourage the growth of agriculture sector. 3. To identify areas of intervention that could achieve sustainable agricultural growth. CONCEPTUAL DEVELOPMENT OF AGRICULTURE GROWTH: Since 2000, there has been strong progress in the agricultural sector (which includes crops, livestock, forestry, aquaculture and fisheries) overall agricultural growth has averaged 4 percent a year. This is partly due to policy reforms including ongoing impacts of allocating land use rights to individuals, and the result of market-based incentives such as higher prices for crops. The agriculture performance linkages with rural poverty and household nutrition, supply response and investments in agriculture, performance and potential of rain fed agriculture, efficiency in Indian edible oilseed sector, progress and potential of horticulture, linkages between urban consumption and rural nonfarm employment and agriculture income, subsidies and investment in livestock sector, post harvest management of fish, and cooperative credit.

ECONOMICS OF AGRICULTURAL DEVELOPMENT: Three broad stages in the evolution of agricultural production 1. Primitive stage-subsistence peasant farm 2. Mixed family agriculture-consumption + sale 3. Modern farm-specialized and commercial farming REVIEW OF LITERATURE:

1. Candice Stevens discussed the Green Revolution which includes the new crop varieties, increased yields. He also commented on rapidly increasing populations and shrinking natural resources. To maintain this performance we must improve sustainable resource use, and respond to climate change. He has also focused on the Water management because there is a challenge of increasing food production using less water due to pressures from climate change as well as from urbanization and industrialization, the conservation of water resources is not focused in his report. Development of land could also be one of the ways to overcome matching of demand and supply of food grains.

2. James K. Nyoro (JUNE 2002) focused on various issues like Structure of Agricultural Production including Coffee, Tea, Horticulture, Pyrethrum, Maize and wheat and Dairy. He also discussed the institutes in agriculture like marketing, credit banks, and cooperative societies. But the strategy to meet demand and supply of agri production is not explained in his paper.

3. Amarnath Tripathi & A.R. Prasadhad explained the nature of agriculture and decelerating growth trend in agriculture. They found that the cause of failure of all development policy for agriculture is that there is no availability of any separate development strategy for Indian agriculture. This is due to the fact that we had not available necessary data to study the characteristics of Indian agriculture. But presently we have come a long way from Independence and now we have long-terms data pertaining to Indian agriculture. The innovative strategies are not focused in his paper to overcome dryness in summer



CONCLUSION: The growth and development in the agriculture is achieved by Green Revolution. It is the need of the tense to maintain the resources and to respond the climate change. The conservation of water resources is required to be focused. To face the difficulties in summer and the decrement in the rain fall, it is important to save a single drop of water, for this one of the strategies that to pour the water collected by the roof in the land, other strategies may be dividing land in to several other parts to match the demand and supply for food grains and the vegetables. BIBLOGRAPHY:

1. Candice Stevens, Agriculture and Green Growth.

2. James K. Nyoro (JUNE 2002) „AGRICULTURE AND RURAL GROWTH IN KENYA‟. 3. Amarnath Tripathi & A.R. Prasad(November 2009) „Agricultural Development in India since

Independence: A Study on Progress, Performance, and Determinants‟ Journal of Emerging Knowledge on Emerging Markets, Volume 1 Issue 1.

4. Food and Agriculture Organization (FAO) (2010), “Payments for Environmental Services within the Context of the Green Economy,” Background Report No. 3.

5. Agricultural marketing in India –S. S Acharya and N L Agarwal -Oxford & IBH Publishing Co Pvt Ltd Calcutta.

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CORPORATE SECTOR BANKS & CRM APPROACH

Dr. Sanjay Keshaorao Katait Assistant Professor, Department of Commerce, Shri Shivaji Arts and Commerce College , Morshi Road, Amravati.

ABSTRACT:

Customer relationship management is one of the strategies to manage customer as it focuses on understanding customers as individuals instead of as part of a group. CRM manages the relationships between a firm and its customers. CRM and knowledge management are directed towards improving and continuously delivering good services to customers. Managing customer relationships is important and valuable to the business. The effective relationship between customers and banks depends on the understanding of the different needs of customers at different stages. The ability of banks to respond towards the customers’ needs make the customers feel like a valuable individual rather than just part of a large number of customers. This research paper focuses some of the critical issues on Relationship Management in corporate sector banks and the need for Customer Relationship Management to increase customer value by using some analytical methods in CRM applications. Key Words: Attitude, Behaviour, Customer Satisfaction, Management, Relationship.

CORPORATE SECTOR BANKS &CRM APPROACH INTRODUCTION:

Customers are the focal point in the development of successful marketing strategy. Marketing strategies both influence and are influenced by consumers’ affect and cognition, behaviour and environment. In the banking field a unique ‘Relationship’ exists between the customers and the bank. But because of various reasons and apprehensions like financial burdens, risk of failure, marketing inertia etc., many banks are still following the traditional ways of marketing and only few banks are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. The lack of understanding on Customer Relationship Management (CRM) is always a concern among the service providers especially banks. Banks have their own way of managing their relationships with the customers. However, the perception of customers on CRM practices among banks should also be taken into consideration.



CRM IN CORPORATE SECTOR BANKING:

CRM is a sound business strategy to identify the bank’s most profitable customers and prospects, and devotes time and attention to expanding account relationship with those customers through individualized marketing, reprising, discretionary decision making, and customized service through the various sales channels that the bank uses. Any financial institution seeking to adopt a customer relationship model should consider six key business requirements they are: 1. Create a customer-focused organisation and infrastructure. 2. Gaining accurate picture of customer categories. 3. Assess the lifetime value of customers. 4. Maximize the profitability of each customer relationship. 5. Understand how to attract and keep the best customers. 6. Maximize rate of return on marketing campaigns. OBJECTIVES OF CRM IN CORPORATE BANKING: Increase in Customer Service:

Establishing customer loyalty as one of your top CRM goals is absolutely Fundamental to CRM successful implementation .For this task it is essential that the whole organization realize that they play a part in this goal. This objective cannot be achieved with the help of a few employees only. Customers need to feel that they have received excellent service. This ensures their continued patronage. This is by far one of the most essential goals of customer relationship management. Customer retention and brand loyalty is absolutely essential to ensure success. Increasing Efficiency:

One of the most important goals of CRM is the increase in organization efficiency and effectiveness. This is almost always adopted by every organization. It is necessitated by the fact that increase in efficiency is required to boost success. CRM achieves this through cost reduction and customer retention. Lowering Operating Costs:

CRM goals also include the reduction of costs of operation. This goal should be clearly established and conveyed to all those involved in the CRM implementation process. CRM manages to reduce operating costs through a workforce management system. This helps to maximize skills and thus reduce cost. These reduced costs enable an organization to achieve greater efficiency. If cost reduction is management’s objective then the CRM implementation should be carried out in such a way that this is achieved. Aiding the Marketing Department:

Another goal of CRM is generally aiding the marketing department in all its efforts. This includes marketing campaigns, sales promotions etc. If this is fixated as one of the goals of CRM, then it should be communicated to those involved. This goal is fundamental as it boosts sales indirectly thereby increasing the profitability. In banks today, customers have more power in deciding their bank of choice. Consequently, keeping existing customers, as well as attracting new ones, is a critical concern for banks. Customer satisfaction is an important variable in evaluation and control in a bank marketing management. Poor customer satisfaction will lead to a decline in customer loyalty, and given the extended offerings from the competitors, customers can easily switch banks. REVIEW OF RELATED LITERATURE:

Chitanya (2009) these bring about two important processes of proactive customer business development and building partnering relationships with the most important customers.

Lu and Shang (2009) explored the CRM perceptions in freight forwarder services from managerial perspectives. They had come out with six dimensions of CRM namely customer acquisition, customer response, customer knowledge, customer information system, customer value evaluation, and customer information process.

Bansal andSharma (2010)Further, a clear vision of CRM along with appropriate strategies if applies in banking sectors found out that beneficial in maintaining the customer service quality, customer satisfaction and customer retention which ultimately leads to the growth of the organization and profitability



Rajkamal (2010) have evaluated services of the banks in term of customer’s satisfaction parameters and, therefore, have made good contribution in the field of research in the area. However, a human customer is a complex organism, always changing with changing times, the preferences and priorities also do not remain static which change his/her perception about the satisfaction or dissatisfaction regarding the services he/she gets from the banks. Thus, in today’s market, customers are the key to maintain a competitive advantage. Banks should be aware of who their customers are, which customer group produces higher profits and what factors keep them happy and influence their loyalty. Customers affect a bank’s success; therefore the winners will be those institutions that succeed in managing their relationship with customers in an effective manner and in quick time.

Girdhar (2011) observed that by satisfying the internal customers and building good relationship with them, the relationship with the external customers can also be retained and satisfied by the banks.

Kumar & Rajesh (2013) reveals that any bank that wishes to either grow in size of its banking operation or improve its profitability must consider the challenges affecting its customer relationship.

Mylonakis (2015) described CRM as an innovative process to create a long term relationship and gaining trust. Further, a clear vision of CRM along with appropriate strategies if applies in banking sectors found out that beneficial in maintaining the customer service quality, customer satisfaction and customer retention which ultimately leads to the growth of the organization and profitability. RESEARCH METHODOLOGY: RESEARCH PROBLEM:

Modern Marketing philosophy advocates the concept of CRM that creates customer delight. This applies to all sectors of Sales and Marketing includes the banking. In the banking field a unique ‘Relationship’ exists between the customers and the bank. But because of various reasons and apprehensions like financial burdens, risk of failure, marketing inertia etc., many banks are still following the traditional ways of marketing and only few banks are making attempts to adapt CRM. It is with this background, the researcher has made a modest attempt towards the idea that CRM can be adapted uniformly in the banking industry for betterment of Banking Services. OBJECTIVES OF THE STUDY: 1. To study the CRM strategy in corporate banking industry. 2. To study the status of CRM in corporate Banks. 3. To study the gap between expectation of customers and performance. 4. To analyze the perception of the customers towards CRM strategies.

5. To suggest various measures to strengthen the CRM in Banks HYPOTHESES: H01 : As there is no application of CRM in corporate banking sector. H11 : There is application of CRM in corporate banking sector . H02 : There is no significant difference among the level of customers satisfaction and CRM practices in the corporate banks. H22: There is a significant difference among the level of customers satisfaction and CRM practices in the corporate banks. IMPORTANCE OF THE STUDY:

Amravati Districts has got an enviable history of banking. Amravati had to its credit a very conducive climate for banking development right from historical times. This research deals with CRM in corporate Banks in Amravati District. Constant decrease in number of bank existence forced researcher to look into matter whether application of CRM will improve their existing status or not. There is greater need for enhanced competitiveness for survival and growth. CRM or other customer-centric approaches are relevant here. UNIVERSE AND SAMPLE:

The present study deals with the various aspects of application of CRM in corporate banking Industry. Since the universe of banking industries in Amravati district and their existing customers are quite



large and unmanageable hence the researcher is forced to confine to take sample size to 300 customer respondents residing in Amravati. The respondents were segregated on the basis of different variables such as age, gender, marital status, qualification, investment, type of account, and benefits offered by banks etc. For research purpose convenient simple random sampling method (CSRSM) is used. STATISTICAL TOOLS APPLIED:

Statistical tools used for the study area are percentage method, Chi-square test, Henry Garrett Ranking Technique, Standard Deviation, Averages and Range. DATA SOURCE: PRIMARY DATA:

To make the study more practical in nature, primary data was collected through structured questionnaire from 300 bank customer respondents to know and judge their level of satisfaction and services offered by bank. SECONDARY DATA:

Secondary data was collected from related research works, published books, and journals, annual reports of banking industries, government records, news papers, business magazines, and websites. SCOPE OF THE STUDY:

The present research will cover how; banks are looking towards customer by considering CRM strategy. The study will be able to reveal the basic needs, level banking services and satisfaction of the customers regarding the banking services, It also help banks to know whether the existing products or services they are offering are really satisfying the customers ‘needs.

The scope of the study revolves around two prime focuses i.e. one from bank customer perspective and other from organizational perspective. 01. Customer Perspective: Quick and efficient services. 02. Organizational Perspective: Increase in goodwill, retention of old and new Customers, Profit. LIMITATIONS OF THE STUDY: 1. The study is restricted only to corporate banks of Amravati city. 2. The study relies more heavily on primary as well as on secondary data. 3. The result arises from the research may or may not be applicable to other parts of the districts or state or country. RESULTS AND FINDINGS: Table 1 A: level of satisfaction & marketing approach of banks:

Sr.No Age Level of satisfaction Total % Average

L M H

01 18-30 14(16.87) 52(62.65) 17(20.48) 83 27.67 36.76

02 30-40 17(15.89) 83(77.57) 07(06.54) 107 35.67

03 40-50 22(28.95) 41(53.95) 13(17.10) 76 25.33

04 50 and above

21(61.76) 07(20.59) 06(17.65) 34 11.33

Total 74 183 43 300 100

(Source: Primary Data) The above table indicate Age and level of satisfaction received in terms of marketing approaches of

banks regarding CRM and observed that 35.67 % respondents belongs to the age group lies between 30-40years and were moderately satisfied by marketing approach adopted by banks. Table 2: Gender and customer retention:

Sr.No Gender Level of satisfaction Total % Average

L M H

01 Male 77(28.84) 171(64.04) 19(07.12) 267 89.00 241.26

02 Female 15(45.45) 13(39.39) 05(15.15) 33 11.00

Total 92 184 24 300 100



(Source: Primary Data) The above table indicate Gender and level of satisfaction received in terms of customer retention

of banks regarding CRM approach towards customer retention. It is observed that 89 % respondents belong to the male category and 11 % respondents belong to the female category. Table No. 3: Customers’ Satisfaction with Ability to Resolve Complaints:

Sr.No Variables Level of satisfaction Total %

L M H

01 Outcome of complaint 109(80.15) 23(16.91) 04(02.94) 136 45.33

02 Handling of complaints 133(81.10) 28(17.07) 03(01.83) 164 54.67

Total 300 100

(Source: Primary Data)

The above table shows customers satisfaction with ability to resolve complaints of account holder of banks. During survey when asked regarding outcome of complaints and complaint solved as high as 80.15% bank account holder showed keen dissatisfaction and received very low level of satisfaction. These customers shows keen dissatisfaction that bank were totally failure in solving complaints in spite of several reminder. As high as 81.10% bank account holder keenly advocates that bank or banking staff is not properly handle the complaints launched by the account holder.

Table No. 4: Responsiveness of the Bank Staff:


L M H

01 Courtesy of Bank staff 27(69.23) 09(23.08) 03(07.69) 39 13.00

02 Helpfulness of bank staff 19(70.37) 06(22.22) 02(07.41) 27 09.00

03 Knowledge of Bank staff 23(69.70) 07(21.21) 03(09.09) 33 11.00

04 Proper information delivery to customer

12(63.16) 04(21.05) 03(15.79) 19 06.33

05 Quality of information received 08(61.54) 03(23.08) 02(15.38) 13 04.33

06 Attitude of the bank staff 41(69.49) 12(20.34) 06(10.17) 59 19.68

07 Personal attention 28(65.12) 11(25.58) 04(09.30) 43 14.33

08 Quick service 49(80.33) 08(13.11) 04(06.56) 61 20.33

09 Home delivery 04(66.66) 01(0.17) 01(0.17) 06 02.00

Total 211 61 28 300 100


The above table indicates customer’s satisfaction regarding responsiveness of the bank staff, it was highly noticed that bank staff even don’t have courtesy towards account holder of the bank and they lost sympathetic view also. 69.23% respondents expressed that they were not at all happy in terms courtesy of the bank staff. The banking staffs are not in a position to help customers in several matters. Their attitude towards bank customer is very rude one. Some of the account holders strongly expressed that it is only because of account holder the bank is in existence.

Sometimes customer faces the various types of difficulties in banking operation. The banking staffs are not in a correct position to provide correct, accurate, and proper information because of lack of knowledge. As far as the personal attention is concerned bank employees were not in a position to provide personal attention towards customer. Quick delivery and home delivery of the product is the need of hour. But it is noticed that bank employees were failure in this regard because of their several constraints.



Table No. 5: Customers’ Satisfaction & Banking Services:


L M H

01 ATM cards & services 78(75.73) 19(18.45) 06(05.83) 103 34.33

02 Demand drafts 16(72.73) 04(18.18) 02(09.09) 22 07.33

03 Credit limits 38(74.51) 08(15.69) 05(09.80) 51 17.00

04 Cheque book 11(68.75) 03(18.75) 02(12.50) 16 05.34

05 Net banking 57(78.08) 11(15.07) 05(06.85) 73 24.34

06 Loan schemes 26(74.29) 06(17.17) 03(08.57) 35 11.66

Total 226 51 23 300 100


The above table depicts customer satisfaction with banking services offered by banks. As far as the ATM services of the banks, customers were not at all satisfied by the services. Out of the total 103 respondents as high as 75.73 % respondents expressed that bank only provide ATM card services but totally failure in terms of maintaining ATM services. Often it is observed that ATM services were either closed or out of order because of one or the other reason. Hence customer was not satisfied at all and received low level of satisfaction from ATM services.

As far as demand draft services were concerned it was highly advocated that the time required for preparing demand draft is too long. Some of the banks were issues demand draft on the next day. So the required time period must be minimized for the betterment of the customer.

Credit limit is the cause of worry as far as the customer is concern. As far as the credit limit is concerned bank itself is very rigid in rules and regulations. Too much documentation is required for the procedure.

Cheque book, Net banking and loan schemes were the important cause of worry as far as the bank account holder is concerned. Most of the time cheque book was not issued whenever demanded. It is given by the head office via post causing customer a number of problems. Net banking is also causing headache now a days. Most of the time it was noticed that complete transaction was held up due to failure of connectivity. Some bank provide net banking facilities and some were not. Loan schemes were another cause of worry in which customer expressed deep concern that government of India announces number of loan schemes for the customers but were lies only on paper and were not properly communicated to the customer. Table No. 6: Customers’ Satisfaction regarding Speed of Counter services:


L M H

01 General information 67(71.28) 19(20.21) 08(08.51) 94 31.33

02 Receipts 26(63.41) 09(21.95) 06(14.63) 41 13.67

03 Payments 28(75.68) 05(13.51) 04(10.81) 37 12.33

04 Issue of draft 29(74.36) 07(17.95) 03(07.69) 39 13.00

05 Cheque payment 37(66.07) 12(21.43) 07(12.50) 56 18.67

06 Cheque deposits 21(63.64) 08(24.24) 04(12.12) 33 11.00

Total 208 60 32 300 100


The above table shows customers satisfaction regarding speed of counter service given by the bank staff. In terms of general information received by account holder it was noticed that out of the total 94 account holder 71.28 % customer were received low level of satisfaction from the services offered. As far as the receipts and payments is concerned it was observed that in both the cases the time required for transaction is too much. This is the prime duty of the bank to minimize the time and procedural delay. Out



of the 41 and 37 account holder both the customer shows low level of satisfaction in this regard. In terms of Issue of draft, cheque payment it is heavily noticed that the procedural delay of time required is too much. Out of the total 39 and 56 bank account holder respondents is concerned show great concern about low satisfaction and their percentage is 74.36% and 66.07 % respectively. Table No. 7: Customers’ Satisfaction regarding Accounts and Deposit of the Banks:


L M H

01 Saving account 84(71.79) 23(19.66) 10(08.55) 117 39.00

02 Current account 27(75.00) 06(16.67) 03(08.33) 36 12.00

03 Fixed deposit 116(78.91) 22(14.97) 09(06.12) 147 49.00

Total 227 51 22 300 100


The above table depicts customer satisfaction regarding accounts and deposits of the banks. As far as the saving account is concern it was highly noticed that out of the 117 bank account holder 71.79 % customer expressed low satisfaction because of different procedural documentation required by the banks. During the course of survey it was also noticed that ceiling of deposits amount in the banks causes number of problems to the customers. Current account and fixed deposit account holder also facing n number of problems.

Table No. 8: Retention of old and new customer:

Sr.No Variables Level of satisfaction Yes No Total %

L M H

01 Old customer 77(80.21) 10(10.42) 09(09.37) 96 54 150 50.00

02 New customer 82(77.36) 16(15.09) 08(07.55) 106 44 150 50.00

Total 159 26 17 202 98 300 100


Customer Relationship Management is certainly helpful in retaining old and new customers of the banks. Out of the total 202 account holder respondents 96 old customer were in favour of CRM but shows and receives low level of satisfaction. As far as the new customer is concern they also show deep concern in terms of services offered by the banks and were received low level of satisfaction. They also expressed that proper care of the new customer should be taken by the banks.

Table No. 9: CRM is helpful in enhancing customer loyalty:

Sr.No Variables Yes No Total %

01 Old customer 133(88.67) 17(11.33) 150 50.00

02 New customer

139(92.67) 11(07.33) 150 50.00

Total 272 28 300 100

Customer relationship management is the key to success in modern banking system. CRM will certainly helpful in enhancing customer loyalty in all respect. If CRM is applicable in a positive way it certainly help in enhancing customer loyalty. As high as 88.67 % total old customer respondents expressed that CRM is the need of hour and bank should take keen note of it. Whereas new customers were also in favour of application of CRM in banking industry and expressed that CRM is helpful in enhancing customer loyalty.

As low as 11.13% respondents and 07.33% respondents expressed that only CRM is not only factor which improves customer loyalty but there are some other hidden factors also.



Table No. 10: CRM is helpful in enhancing bank performance and productivity:

Sr.No Variables Yes No Total %

01 Old customer 83(83.00) 17(17.00) 100 33.33

02 New customer 81(81.00) 19(19.00) 100 33.33

03 Staff 79(79.00) 21(21.00) 100 33.34

04 Total 243 57 300 100


CRM is applied in true sense will definitely improves bank performance and productivity. 83.00% old customer, 81.00% new customer and 79% staff of the bank expressed that CRM is helpful in enhancing bank performance and productivity. During the course of survey very low percentage of respondents i.e. 17%, 19%, and 21% respondents expressed their negative opinion in terms of performance and productivity.

CHI-SQUARE TEST: The Chi-square test is one of the simplest and most widely used non-parametric tests in statistical

work. The symbol (x2) is the Greek letter Chi. This test (S.L. Gupta, 2003) is used as a test of goodness of fit. Chi-square can be used in normal distribution as a test of independence. Test is done whether two or more attributes are associated (G.C. Beri, 2008). This test gives the magnitude of discrepancy between theory and observation. It is defined as: (Oi –Ei)2 X2= --------- E Where, Oi is observed frequency, Ei is expected frequency.

Sr. No

Factors D.F T. V. X2 Significant Accepted/ Rejected

01 Age 6 12.592 48.82 05 R

02 Gender 2 5.991 07.07 05 R

03 Ability to Resolve Complaints 2 5.991 02.09 05 A

04 Responsiveness of the Bank Staff 16 26.296 06.01 05 A

05 Banking Services 10 18.307 01.86 05 A

06 Speed of Counter services 10 18.307 04.65 05 A

07 Accounts and Deposit 04 9.488 1.526 05 A

08 Retaining old and new customer 02 5.991 0.88 05 A

09 Enhancing customer loyalty 01 3.841 1.42 05 A

10 Enhancing bank performance and productivity

02 5.991 0.5196 05 A

11 Friendly environment 01 3.841 0.749 05 A

12 Promoting customer awareness 01 3.841 0.2142 05 A

13 Bank itself is interested in CRM activities

01 3.841 1.2841 05 A

From the chi-square table calculated for different factors which causes direct impact on banking CRM it was observed that only age and gender factor were rejected and causes no impact on CRM where as all the remaining factor shows significant relationship at 5% significant level and causes direct impact on CRM. HENRY GARRETT’S RANKING TECHNIQUE:

To find out the most significant factor which influences the respondent, Garrett’s ranking technique was used. As per this method, respondents have been asked to assign the rank for all factors and the outcome of such ranking has been converted into score value. Percent position = 100 (Rij – 0.5) / Nj, Where Rij = Rank given for the ith variable by jth respondents



Nj = Number of variable ranked by jth respondents Factors influencing the Success and Failure of CRM in Banking Industries:

Sr.No Factors Total Total Garret score

Average Garret score

Rank

01 Ability to Resolve Complaints 300 16687 55.62 III

02 Prompt banking Services 300 16726 55.75 II

03 Responsiveness of the Bank Staff ,their attitude and behaviour

300 17187 57.29 I

04 Promoting customer awareness 300 16392 54.64 IV

05 Personal attention 300 16337 54.46 V

The above table shows ranks given by the customer according to priority related to CRM, in

banks, customer opted first rank to responsiveness of the bank staff, their Attitude and behaviour and so on.

Suggestions:

Employee Relationship Management first before Customer Relationship Management.

Develop channel integration for effective Customer Relationship Management.

Proper training should be given to the bank personnel regarding the behavioral patterns as per the needs of account holder.

Priority must be given to problem solving than banking affairs.

More importance should be given to handling online transaction and using m commerce and mobile banking services.

Data gathered from the customers should be given proper value and it should be properly utilized. Decision making authority should be extended to field force and some resources should be given for faster implementation.

The Banking sector is developing and getting higher day by day in urban and semi urban areas; there is large number of customers using the services in the urban and semi urban areas. So a wide scope in rural areas is expected in the days to come.

Customer complaints should be handled quickly and their satisfaction are accorded with top priority.

Employees should be given training to improve their attitude towards customers, behaving politely to them and hence ensuring customer loyalty.

It is advisable that banks keep a separate complaint-cum suggestion box / book to enable customers to offer suggestions and complaints.

The working hours of the banks must be as flexible as possible. The operating hours of banks be extended depending upon the customer needs.

Efficient, knowledgeable, competent, versatile and skilled front-line staff is required for banks.

The banks must try to find out the specific needs of different customers, so that suitable package of services can be offered to them.

REFERENCES 1. Achumba, I. C. (2006). The Dynamics of Consumer Behaviour, Lagos: Mac – Williams. 2. Bansal, Ipshita and Sharma, Rinku. (2008). Indian Banking Services: Achievement s And challenges. The Icfai University Journal of services marketing, Hyderabad. VI (2), 32- 43. 3. Brown, S. A. (2000). Customer Relationship Management: A Strategic Imperative in the World of E- Business. Canada: John Wiley & Sons. 4. Blattberg R C, Getz G, Thomas J. S. (2001). Customer Equity: Building and Managing Relationships as Valuable Assets. Boston: Harvard Business School Press. 5. Berry L.L (1983). Relationship marketing of services: Growing Interest, Emerging Perspectives. Journal of Academy of Marketing Science, 23 (4), 236-245.



6. Buttle, F. (2002). The S. C. O. P. E. of Customer Relationship Management. Available: http://www.crmforum.comllibrary/aca/aca-07.htmt 7. Chaitanya, K. V. (2005). Metamorphosis of Marketing Financial Services in India.Journal of Services Research, 5 (April-September), 6-15. 8. Chary T. Satya Narayana & Ramesh, R. (2012). Customer Relationship Management In Banking Sector- A Comparative Study, KKIMRC IJRHRM, 1 (2), 20-29. 9. Dutta, K. & Dutta, A. (2009). Customer Expectations and Perceptions across the Indian Banking Industry and the Resultant Financial Implications. Journal of Services Research, 9, 31-49. 10. Durkin, M. (2004). In Search of the Internet-Banking Customer. The International Journal of Bank Marketing, 22 (7), 484-503. 11. Gan, C., Cohen, D., Clemes, M. and Chong, E. (2006). A Survey of Customer Retention in the New Zealand Banking Industry: Banks and Bank Systems. Journal of Business Research, 1 (4), 83-99. 12. Gilly, M. C., Stevenson, W. B. and Yale, L. J. (2005). Dynamics of Complaint Management in the Service Organisation. Journal of Consumer Affairs, 25 (2), 295- 299. 13. Gummesson, E. (1987). The New Marketing: Developing Long-Term Interactive Relationships. Long Range Planning, 20 (4), 10–20. 14. Heskett JL, Jones TO, Loveman G, Sasser WE, Schlesinger L.A. (1994). Putting the Service- Profit Chain to Work. Harvard Bus. Rev., 72(2), 164-170. 15. Hussain, I., Hussain, M., Hussain, S., & Sajid, M. A. (2009). Customer relationship management: Strategies and practices in selected banks of Pakistan. International Review of Business Research Papers, 5(6), 117-132.

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AN ACCELERATING GROWTH OF E COMMERCE IN INDIA Bhagwan Saduji Gosavi Assistant Professor, Bar. R.D.I.K. K.D. College, Badnera – Amravati.

Abstract India’s internet penetration with total e-households at 46 million against China’s 207 million is one of the reasons behind India’s poor B2C sales growth. According to Forrester Research, an independent technology and market research firm, only 16% of India’s total population was online in 2013 and of the online users only 14% or 28 million were online buyers. India, therefore, was still in a nascent or immature stage of evolution of online retail spending. In 2015, e Commerce players see mobile commerce as the most preferred route with mobile wallet as the preferred way of payment. With 4G services expected to be launched in 2015, internet penetration is likely to take a significant leap, which is likely to give another boost to mobile commerce. Along with telephony, internet penetration is soaring in rural and urban India. Moreover, the number of rural internet users is growing by 58% annually.

Increases in the number of Smartphone’s and 3G subscriptions are further driving this growth. Indeed, the number of Smartphone users is expected to grow at a CAGR 91% from 2012 through 2016, jumping from 29 million to 382 million. Similarly, the number of 3G subscribers could expand at a CAGR of 84%—from 23 million to 266 million—during the same period. Rising internet penetration, the gross number of online users in India now exceeds the number of people who have completed primary education. This shift emphasizes the increasing relevance of India’s digital economy. The number of internet users soared from approximately 20 million in 2004 to nearly 250 million in 2014. By contrast, the number of people who have studied beyond the eighth standard is about 200 million, indicating that even uneducated people are accessing the internet. While increases in the use of traditional options for gaining knowledge, such as education, may be linear, the proliferation of knowledge through the use of new digital technologies appears exponential. The e Commerce industry in India may currently be behind its counterparts in a number of developed countries and even some emerging markets. However, with India’s GDP growth pegged at 6.4% by the International Monetary Fund and the World Bank, it is expected to grow rapidly. Moreover, the Indian e Commerce industry has access to funds from within the country and international investors. Overall, the e Commerce sector is maturing and a number of serious players are entering the market Keywords: - E-commerce, E-tail, growth Introduction:- E Commerce in India According to the PwC report Future of India - The Winning Leap, emergence of new technologies, especially mobile, in India has sparked a social change that’s difficult to quantify. While mobile, internet, and social media penetration and growth can be quantified; describing the changes in social values and lifestyles that have accompanied those trends is far more challenging. New technologies such as virtual walls and virtual mirrors will further help improve the retail customer experience, thereby encouraging greater consumption.

In 2013, Asia-Pacific emerged as the strongest business-to consumer (B2C) e Commerce region in the world with sales of around 567.3 billion USD, a growth of 45% over 2012, ranking ahead of Europe (482.3 billion USD) and North America (452.4 billion USD). The top three were followed by Latin America, and the Middle East and North Africa (MENA) region, according to Ecommerce Europe1. Globally, B2C e Commerce sales increased by 24% over 2012. This reflects the huge untapped potential of e Commerce by retail companies, both in their country of origin and across borders. E Commerce or electronic commerce, deals with the buying and selling of goods and services, or the transmitting of funds or data, over an electronic platform, mainly the internet. These business transactions are categorized into either business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), consumer-to-business (C2B)



or the recently evolved business-to-business-to-consumer (B2B2C). e Commerce processes are conducted using applications, such as email, fax, online catalogues and shopping carts, electronic data interchange (EDI), file transfer protocol and web services and e-newsletters to subscribers. E Travel is the most popular form of e Commerce, followed by e Tail which essentially means selling of retail goods on the internet conducted by the B2C category. According to Ecommerce Europe, country-wise, the US, UK and China together account for 57% of the world’s total B2C E Commerce sales in 2013, with China having total sales of 328.4 billion USD. As against this, India had sales of only 10.7 billion USD, 3.3% of that of China in 2013 with fifth position in Asia- Pacific. This is despite the fact that India enjoys high demographic dividends just like China. India’s internet penetration with total e-households at 46 million against China’s 207 million is one of the reasons behind India’s poor B2C sales growth.

According to Forrester Research, an independent technology and market research firm, only 16% of India’s total population was online in 2013 and of the online users only 14% or 28 million were online buyers. India, therefore, was still in a nascent or immature stage of evolution of online retail spending. China was in ascending stage at 50%, whereas Japan (69%), Australia (57%) and South Korea (70%) were in mature stage. Objective of study:-

To study the e-commerce growth in Indian market

To study the technology used for the growth in e commerce in India

India’s growth potential Since the e Commerce industry is fast rising, changes can be seen over a year. The sector in India has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014. The sector is expected to be in the range of 22 billion USD in 2015.

Currently, e Travel comprises 70% of the total e Commerce market. E Tailing, which comprises of online retail and online marketplaces, has become the fastest-growing segment in the larger market having grown at a CAGR of around 56% over 2009-2014. The size of the e Tail market is pegged at 6 billion USD in 2015. Books, apparel and accessories and electronics are the largest selling products through e Tailing, constituting around 80% of product distribution. The increasing use of Smartphone’s, tablets and internet broadband and 3G has led to developing a strong consumer base likely to increase further. This, combined with a larger number of homegrown e Tail companies with their innovative business models has led to a robust eTail market in India rearing to expand at high speed. Investments in the e Commerce sector With the new government being elected, business confidence has significantly improved. In 2014, investors aggressively funded the e Commerce sector due to strong growth prospects. Apart from the traditional online formats of retail and lifestyle, newer online business segments such as classifieds, real estate, grocery and healthcare were also tapped. Mobile to be the most influential aspect of e Commerce With mobile apps being developed by most e Commerce websites, Smartphone’s are increasingly replacing PCs for online shopping. In 2013, only 10% of the mobile users used Smartphone’s, and only 5% of the ecommerce transactions were made through a mobile device. This figure has more than doubled, and more than 13% of all e Commerce transactions today happen via mobile. According to some industry players, over 50% of the orders are being placed through mobile apps, which is not only leading to substantial customer acquisition but also building customer loyalty for various brands. However, most mobile transactions so far are for entertainment, such as booking movie tickets and music downloads. This trend will change soon with more and more merchandise being ordered online. More business coming from smaller towns E Commerce is increasingly attracting customers from Tier 2 and 3 cities, where people have limited access to brands but have high aspirations. According to e Commerce companies, these cities have seen a 30% to 50% rise in transactions.



Enhanced shopping experience Besides general online shopping, customers are also shopping online for weddings and festivals, thanks to wider range of products being offered and aggressive advertisements. The free and quick shipment and wider choice of products, along with the ease of shopping online as compared to in-store shopping, is also helping e Commerce gather momentum. Further, e Commerce companies are doing rapid business due to sales. New concepts such sales on weekends, holidays and festivals are attracting a lot of new customers and building customer loyalty among existing customers. Television and social media, particularly Facebook, are playing a proactive role in promoting e Tailing through aggressive advertisements. This has helped several e Commerce companies build substantial brand image.

In 2015, e Commerce players see mobile commerce as the most preferred route with mobile wallet as the preferred way of payment. With 4G services expected to be launched in 2015, internet penetration is likely to take a significant leap, which is likely to give another boost to mobile commerce. Changes in lifestyle and shopping choices will see buyers preferring online and mobile channel over physical channel to save time and seek wider range and possibly comparative pricing. For mobile wallets, improvements on the payments front with multiple payment instruments and increase in payment gateways aided by enhanced security with multiple authentication layers will help the consumers with a seamless mobile experience. Niche categories are also expected to gather momentum including cars and real estate. Premium and international brands are likely to join e Tail, purchases from Tier 2 and 3 cities will continue to rise and differentiated products such as exclusive brands by designers will grow. Riding high on the growth prospects e Commerce companies will look at more ways to raise funds such as IPOs. Some consolidation will also happen with the leaders focusing on high growth and smaller players finding their own niche. Conclusion E Commerce In India according to new technologies While mobile, internet, and social media penetration and growth can be quantified, that helps to improve the retail customer experience, thereby encouraging greater consumption. Virtual walls help customers scan barcodes for items on an electronic wall using their mobile phones and place orders with retailers. In India, HomeShop18 has launched India’s first virtual-shopping wall. Millions of people who had little means to join the national discourse can now gain new insights into the world around them. Farmers know crop prices. Consumers understand global standards of product and service quality. Rural Indians recognize the differences between the opportunities available to them. The number of mobile subscribers in India jumped from 261 million in 2007-2008 to 910 million in 2013-2014. Along with telephony, internet penetration is soaring in rural and urban India. Moreover, the number of rural internet users is growing by 58% annually. Smartphone users is expected to grow at a CAGR 91% from 2012 through 2016, jumping from 29 million to 382 million. Similarly, the number of 3G subscribers could expand at a CAGR of 84%—from 23 million to 266 million. Online users in India now exceeds the number of people who have completed primary education. The number of internet users soared from approximately 20 million in 2004 to nearly 250 million in 2014. The number of people who have studied beyond the eighth standard is about 200 million, indicating that even uneducated people are accessing the internet. While increases in the use of traditional options for gaining knowledge, India’s GDP growth pegged at 6.4% by the International Monetary Fund and the World Bank, it is expected to grow rapidly.. Overall, the e Commerce sector is maturing and a number of serious players are entering the market. References:-

Research methodology by C. R. Kothari

www.pwc.in

http://www.namexijmr.com/demo1/wp-content/uploads/2015/04/A-Study-on-Customer-Perception-Towards-E-Ticketing-in-Coimbatore-Mrs-Leema-Rosaline.pdf

https://en.wikipedia.org/wiki/E-commerce

http://www.pwc.in/



https://en.wikipedia.org/wiki/E-commerce%20%20https:/www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdfce_in_India



https://en.wikipedia.org/wiki/Electronic_ticket

http://articles.economictimes.indiatimes.com/2015-09-03/news/66178659_1_user-base-iamai-internet-and-mobile-association]

https://www.pwc.in/assets/pdfs/publications/2014/evolution-of-e-commerce-in-india.pdfce_in_India

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https://en.wikipedia.org/wiki/Electronic_ticket

http://articles.economictimes.indiatimes.com/2015-09-03/news/66178659_1_user-base-iamai-internet-and-mobile-association

http://articles.economictimes.indiatimes.com/2015-09-03/news/66178659_1_user-base-iamai-internet-and-mobile-association



ANALYTICAL STUDY OF E-COMMERCE & IT’S PERSPECTIVES Prof. Girish N. Daga Department of Commerce & Management Brijlal Biyani Science College, Amravati.

Introduction :- E- Commerce is a technology-mediated exchange between parties (Individual or organization) as well as the electronically based intra or inter organizational activities that facilitate such exchanges. It is that business option in which the transaction take place via telecommunication networks. It changes the way you shop, learn, interact and transact business; this wave of emerging technology affects every facet of your lifestyle, home as well as your workplace. E- commerce is directly or indirectly application in all areas of our life be it banking , entertainment, on line order processing cycle or SCM (Supply Chain Management). Due to its wide variety of application e-commerce has gained a lot of popularity over the decade. It has drawn the attention of researches regarding the new technologies and resolving the security issues regarding the electronic transactions. E-commerce is definitely the future. It could become a significant global economic element in the future . The infrastructure of EC is networked computing. It connects several computer and other electronic devices by telecommunication networks. This allows the user to access information stored in several places and to communicate and collaborates with others from their desktop computers. A vast majority of people use computer connected to a global networked environment known as internet, or its counterpart within organization called an internet. This new breed of computing is helping large number of organization, private & public in manufacturing, agriculture and services.

E- commerce, or electronic commerce is defined as “the conducted of business communication and transaction over networks and through computers”

E Commerce can be defined from various perspective as:

Communication perspective : From a communication perspective, e-commerce is the delivery of goods, services, information or payments over computer networks, telephone lines or any other electronic means.

Business perspective: From the business perspective, e-commerce is the application of technology toward the automation of business transactions.

Service perspective : From a services perspective, e-commerce is a tool that addresses the desire of firms, consumer and management to cut services costs while improving the quality of goods and increasing speed of services delivery.

Commercial (trading ) perspective: From a commercial perspective, e-commerce provide the capability of buying and selling products, services and information on the Internet and via other online services.

Learning perspective: From the learning perspective, e-commerce is an enable of online training and education in schools, universities, and other organizations.

Collaborative perspective : From a collaborative perspective, e-commerce is the framework of inter-and intra organizational collaboration.

Community perspective: From a communication perspective, e-commerce provides a gathering place for community members to learn transact and collaborate.



Use of E-commerce in Digital India Further, the additional of discounts, coupons, offers, referral systems, 30 days return guarantee, 1-7 days delivery time etc. to the online shopping and the E-market have added new flavors to the industry. The key drivers of in Indian e-commerce have been:

Increasing broadband internet and 3G penetration.

Growing living standards

Availability of much wider product range

Busy lifestyles and lack of offline shopping

Increased usage of online categorized sites

Evaluation of the online marketplace model with websites like Filpkart, Snapdeal etc. The Way forward:

Social Media as a lead Generation tool Social media has now become the hub for the merchants which enable them to analyze the customer choice based on their purchase activities. Social network like Twitter, Google+, Facebook, and other have become a medium for easy login and purchase. Moreover, the clients can stay updated via the posts published on media. Further, the advertising & promotions on these social sites has increased the chances of success of generating transaction to many folds.

Mobile commerce The latest trend in e-commerce it to focus on mobile based shopping. Snapdeal now getting half of its traffic from mobile, up from 5% around a year back and flipkart gets a 40% traffic from mobile up from 15%. As price of smart phone reduce, these figures will only increase. For this reasons, the larger e-commerce firm has started focusing on mobile commerce it is speculated that the next wave of digital commerce consumer will come true the mobile.

Price Comparison engine In the to acquire customer E-commerce sites offer deep discount and these discount vary from site to site depending upon its capacity to negotiate with the supplier. To get the best discount , buys need to search a plethora of sites. Here, Price comparison sites come in like mysmartprice .com pricedekho.com etc. The website compare prices over the entire web and provide users with the best available price E-commerce sale through three websites are increasing and will further increase as consumers get more and more discount save.

Online Grocery Stores Online grocery stores are gaining popularity in India due to absolute convenience, ease of shopping and a fast growing market. Punexpress.com, Milestore.com, Atadaal.com have already entered the market and are gaining popularity, They provide discounted product and free home delivery, All of these stores are targeting the Indian housewife, who are yet move to e-commerce way of shopping .

Innovation In Logistics. The addition of the new concept in the e-commerce industry had been recently when Amazon patented its new delivery model called the prime Air which is expected to be launched in the upcoming years. This model will the highly technically embedded drones or helicopters for the instant delivery of the items; These will be programmed in such a way that using a GPS system they will identify the exact address for delivery and drop the item right in front of the doors of the customers. These aerial vehicles will priorities the Public the public safety and designed as per the commercial aviation standard.

Conclusion India is not the threshold of emerging key player are global electronic commerce and its advantages are going to be realized soon. There is no denying the fact that by facilities the integration of Indian economy and society with rest of the world, electronic commerce will encourage a broader and a global outlook. The e-



commerce will help to bridge the inter-regional disparities. Since India has considerable competence in the area of software, it should develop the congenial environment and enact appropriate rules and regulations to integrate with global market. As e-commerce offers new opportunities, Indian entrepreneurs should try to reap maximum advantages. By knowing global markets they can reach and create a niche in those markets. Thus, it is high time that India should act fact and decisively in order to use the growing electronic trade to our advantage. Reference :-

E-commerce and its Applications : U.S. Panday, Rahul Srivastave, Saurabh Shukla www.iamwire.com

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http://www.iamwire.com/



COMMERCE EDUCATION IN GLOBAL PERSPECTIVE Kishor M. Akotkar Assot. Professor Takshashila Mahavidyalaya, Amravati.

Abstract The growing phenomenon of globalization, liberalization and privatization has been immensely influencing the Commerce Education. Alvin Toffler in his famous book “Future Shock” says that, “To help avert future shock, we must create a super industrial educational system and to do this, we must search for our objectives, methods in the future rather than past. Education must shift into future tense.” The Higher Education sector in India is very vast. The role of Higher Education in national development is well established. The objectives of Higher Education can be achieved only through qualitative change in the system. The output of Commerce Education should be multidimensional and with full global competitiveness. But we have to realize that the Commerce graduate have lack of practical knowledge. The practical oriented Commerce Education is a need of the age. Introduction The first Commerce school was established in Chennai in 1886 by Trustees of Pachiyappa”sCharities. Commerce classes started in the Presidency College, Kolkata in 1903.The Sydenham College of Commerce and Economics was established in 1913 as the first institution for higher education in Commerce. In post-Independenceperiod, Commerce education has emerged as one of the most potential pursuits in the wake of industrialization, economic development and techno-managerial revolution. Commerce has grown from a subject to a full-fledged faculty in most of the universities and had acquired a pride of place amongst different academic disciplines.The growing phenomenon of globalization, liberalization and privatization has been influencing the Commerce education. The technological revolution has further provided new dimensions’ E-banking, E-marketing, E-commerce, E-finance, E-investment paper less trading and governance has been gaining importance of all over the world. At the same time, the outsourcing business, call Centre, small business operation, IT based services etc. are expanding very fast. These developments demands paradigm shift in teaching and learning process. The new skills and training are required to cope up with these changes. The technological advances must be integrated into the basic fabric of Commerce education. Definition Webster defines Education as the process of educating or teaching. Educate is further defined as to develop the knowledge, skill, or character of students. The principle purpose of education is to educate all students and give everyone equal opportunity as a means to succeed in life. The important factors of education includes providing the necessary knowledge and skill.According to Eric Hoffer, “The central task of education is to implant a will and facility for learning; it should produce not learned but learning people. The truly human society is a learning society, where grandparents, parents and children are students together”. Objectives:- 1. To expose themselves to and to interact with the real life situation and in the process to assist the society. 2. To have practical orientation of class room instruction. Thus, this scheme is expected to helping learning while working and earning while learning. 3. The education system is developing very fast both qualitively and quantitatively. 4. Imparting knowledge in the field of Commerce and Industry.



5. Developing skills in commercial operations and inculcating proper vocational interest, attitudes and values. Commerce:- Commerce is the exchange of items of value between Persons or Companies. Any exchange of money for a product, service or information is considered a deal of Commerce. The Internet and an efficient postal system have made International Commerce convenient for Business as well as individuals. Education:- Education is developing inherent abilities and power of students. It is the process by which society deliberately transmits its accumulated knowledge, skill and values from one generation to another. Education in the largest sense is any act or experience that has a formative effect on the mind, character or physical ability of an individual. E-Commerce:- E-Commerce involves conducting business using modern communication instrument like Internet,Fax,Telephone,E-data interchange,E-payment, Money transfer system. E-Commerce provides multiple benefits to the consumers in the form of availability of goods at lower cost, wider choice and save times. People or Consumer can buy goods with a click of mouse button without moving out of their house or offices. Similarly, online services such as Internet Banking, Tickets includes Airlines, Railway, Bus Bill Payment, Hotel Booking etc. have been tremendous benefit for the customers.E-Commerce education has been phenomenal in making a deep impact on highereducation. Growth in the Internet over the last few decades has led to great impact on communication and research in the institutes. Many MBA”s, Working Professionals, Administrators, Housewives and similar people whofell short of time to go to a campus program have been able to benefit immensely from onlinesources.E-Commerce education has opened new avenues for Cyber law studies. It need not be stated that the importance of Cyber laws has increased by leaps and bounds in the recent years. With hundreds of Cybercrime cases every day, awareness and knowledge about Internet has become more important-Commerce education not only equips students about latest career development advancements, it also opens door for access to information and knowledge. Online Education:- It has become an important mode of education. Since the regular courses in India are getting very expensive and highly competitive, distance and online education is fast developing as an amazing option for the students E-learning opportunities are immense in India. Even the distance education programs are serving wonderfully. Distance learning can be availed through various types such as interactive CD-ROM programs, Mobile learning programs, Telecourses or Broadcast course via Television or Radio, Postal correspondence programs and many more. Challenges and Opportunities in Commerce Education:- Commerce is considered as one of the most popular career options in India. Commerce education is the backbone of the business and serial development of the nation. This education stresses on developing the people and making effective use of available resources. Commerce education develops the relationship of people with one another. Commerce education covers wide area of business and society. Commerce education provides to the business and society that how to use it for the betterment of self and oneself. Commerce education gives to the people for democratic living, good citizenship and proper utilization of resources. It provides skill oriented education to students and society. Challenges:- 1. Challenges and Strategies for controlling inflation and promoting growth. 2. Emerging issue in global Economy, Commerce and Management. 3. Internationalization of Financial Market in the World. 4 .Role of Foreign Direct Investment and Foreign Institutional Investment. 5. Reform in Indian and International Economic Sectors. 6. Challenges and Strategies of IMF and WORLD BANK for International competition etc.



Opportunities:- 1.At the undergraduate level, Bachelor of Commerce, a three year full time course. And Master of Commerce at the postgraduate level. After completing course in the field of Commerce, a student can join any private institute or government organization as a specialist in any of the Commerce stream and they can also pursue professional courses such as Company Secretary, Chartered Accountant, and ICWA. 2.A graduate in Commerce can also opt careers in financial services as a Financial Consultants, Stock Brokers, Merchant Bankers, Budget Consultant, Financial Portfolio Manager, Project Formulation Manager, Tax Consultants. 3.Careers in Managementare also available in the field of Personnel Management, ProductionManagement, FinancialManagement, Marketing Management, and Material Management, other areas of Management such as Hotel Management, Hospital Management, Tourism Management, Event Management, Office Management, Export and Import Management.in banks etc. Conclusion:- With a growing emphasis on information, globaleconomy, Higher Education was viewed as increasingly essential for the world’spopulation. Information Technology and Mobile Technology is now forcing education sector to change according to the need of the time. The most emerging dimension of the Business and Commerce education in the 21stcentury is the need for Business School to use technology and make it integral part of course contents. Education now becomes an industry, there is explosion of technologies and knowledge in all sphere. The quality of Commerce Education has become a major marketing issue in the changing environment. As per specialization, a practical training should be provided to the students. By making relevant and practical oriented Commerce Education, we may impact global competitiveness to our students. As a part of the society the social awareness among Commerce students is the emerging need of present time.

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“NEED OF SKILL IN THE DEVELOPMENT OF ECONOMY CONDITION.” Ku. Roshani G. Nagdeote

Student, Prerna Institute of Commerce, run by (Prerna Vidhaymandir Trust, Amt.)

Ku. Shrushti N. Kesharwani


Ku. Radhika A. Sonukale


Abstract Indian education systems have many deficiencies. In the India, many universities are not offering practical education; due to this educated people are unable to contribute in the development of economic growth. People have high quality educations but they don’t have skill. This paper explores importance and need of skill oriented education in the development economic growth. The current Prime Minister Narendra Modiji has given emphasis on the skill. This study also tries to describe need of skill in the 21st century. Key Wards: - Skill development, Economic growth, Skill oriented education. Introduction Indian economy is growing economy. In the world,India has power of youth but still India getting problems to become a develop nation, due to lack of skill. Education is an important element of economy. Educated people can generate employment for themselves as well as others, but in India many people have degree, but still are not in position to generate employment for their self due to lack of skill. If people have skill so they can earn good incentives for their survival. Skill is not inbound quality but people can acquire through timing. Most of yours skills can transfer to new opportunities. Skilful people always have opportunities of work our current government of India has given more and more employment on the skill development and introduce many skill development programmes and scheme. Current honourable “Prime Minister Narendra Modiji” announced “Make in India” theme for the development of Indian economy. If people have a skill so there is no need to take high qualification or degree of recognized university. Many example are there, who have not good qualification or degrees still they are earning good incentives. In India many opportunities are there which are based on skill. Good imaginary person can open his/her advertising companies or can get job in this sector, good voice can become a good singer, good dance can become a good dancer. Skill enables an individual to start any business and can contribution, towards the development of economic growth. In the 21st century, most of the uneducated and also the unemployed were disregarded due to the inefficient adeptness that does not reach up to the expectations. Skill development could be uplifted among the young citizens through introspective adaptation over the expertise of the particular file work. Knowledge and empowerment from the professional planted individuals. Employability of the growing young demography is an important factor in the development of the country and the crisis of skill development has to be turn into opportunity to growth, said C. Rangarajan, Chairman of Madras School of Economics and farmer P.M. economics advisory committee. Research Methodology Type of research: -Descriptive research Collection of Data:-This research based on secondary data. All data have been collected from secondary sources. These are as following

Articles, 2. Journal, 3. Research papers, 4. Websites, etc. Objectives of the study

To indentify need and important of skill in the development. To check how skill play role in employment generation.



Scope of the study This research will be useful to students and researcher etc. It is also help to the university.

Limitations For this study all secondary data have been referred. No primary data have collected. This study have completed within very short period.

The Vice President of India Hon. Hamid Ansari also gave emphasised in the development of skill in the international conference, Delhi. He said that skill development will plays an important role towards achieving faster, sustainable and inclusive growth and making the country’s youth employable. He further said that knowledge and skill will increasingly become the primary determinations of the economic growth and development of the country. “For us in India, skill development would be critical for achieving faster, sustainable and inclusive growth on the one hand and for providing decent employment opportunities to the growing young population on the other. Skill building will also remain a potent tool to empower the individual and improve his/her social acceptance or value,’’ Ansari said. The Vice President said that in the twenty 21st century, the competiveness of a country in the global market place would depend on the strength of its economy, its contribution to existing and emerging branches of science and technology, and its ability to respond to the imperatives of a globalising world. Addressing a conference on skilling India for Global Competitiveness organised by the PHD chamber here, he said that knowledge and skills would increasingly become the primary determinants of economic growth and development and countries with higher and better levels of skills will adjust more effectively to the challenges and opportunities of growth in a globalised world. Ansari further said that today’s ‘’significant challenges need to be addressed before we can read the demographic dividend’’. The vice president opined that Government is cognizant of the important of skill development for our national development and global competiveness. The government, he said has put in place the policy and institutional frameworks and dedicated resources for implementing the national skilling agenda. The realisation of this agenda will have to be based on a vigorous partnership between government, suppliers of educational services, Industry and civil society. Failure to do for the country.. Important of skill: - . Economics is a system under which various activities are take place. For growing nation, there is need of growing and developing economic system in the country. For this, first the people who are living in the country should be educated, knowledgeable and full of enthusiasm. By taking education they can make themselves eligible for job. If they have job then they can survive in better way.They can earn money. When they can earn money? When they have jobs. Therefore for getting job, person should have a skill. Skill is the most important quality in the people by which they can rise themselves. Skill is the ability to do something in different way with thinking.Having skill, people have knowledge, ability and creative nature. Everyone has some skill only the need to find them, once if people knowing their skill, they can use it better way. It is also fact that if people do have any qualification or degree but if he has skill then he can get good job on the basis of skill. It is inbound quality or also can say god gift which no one can stole it or copy it. It is related to only that person. Due to skill we can proof our self to others. We can take an example of an entrepreneur, one has already that quality and skill then he/she can become a good entrepreneur. We can give many examples, that they achieve success on their skill rather than education. It is not mean that education is not important but with the education one should have skill too. One should have use the techniques, methods of right way .One should talk with others skilful that they should be impress. We can use our skill in different ways and different types.



If we are facing in the interview we have to behave with manner. It is said that, “First Impression is last Impression”. It is actually apply here. If we behave rightly and answering skill fully, then it creates good impression. In India, there is much more youth power .India called a youth’s country .But, some where this power is missing. It is not utilized on that level. This missing power should be put on right path and through which some positive steps will be take to develop the economy. There is a need of encouraging, promoting and support to people. In economic development there is need of skilful people who support the system. Examples of skilful people:-

Amitabh Bachchan: -“I was rejected for the job in All India Radio, because of my heavy voice.”

Hritik Roshan: - “His childhood was traumatised because of stammering,a speech disorders that surface when he was around six years old and plagues him even today.

J.K. Rowling: - Her novel “Harry Potter” was rejected by twelve publishing houses. Oprah winfrey: -she had enough and abusive childhood and was demoted from job as a

reporter because she was unfit for T.V. Albert Einstein:- In 1895, Einstein sat the entrance examinations for the Swiss Federal

Polytechnic in Zurich He failed to reach the required standard in the general part of the examination.

Conclusion:- There is a need to change the attitude. An individual towards the education. Government should take action and try to being some new changes in the present education scenario. In India, unemployment and poverty are the major problems, this problems occurred due to education because there are many deficiency in the education system. The candidates are getting theoretical knowledge and practical. Our education is degree oriented not skill oriented. It is creating money hurdles in the development of economic conditions. Due to lack of skill, an individual have degree but does not have skill. This creates problems of unemployment, poverty,wastage of man power and wastage of time,etc. Therefore, there is need that university provides skill oriented education, rather than provide degree oriented and government should also gives focus on it. “Education Should Be Skill Oriented Rather To Be Degree Oriented.” Reference:-

1. SIMS journal, Being Assertive – An Essential Skill for new managers, Prof. Chandra Mohan, 2. Prof. Preetha Leena, 3. Prof. Initha Rina. Published 2012, ISBN – 978-93-82062-74-5.

2. SanshodhanSamiksha, issued Aug. 2015, ISSN- 2278-9308. 3. Articles.economictimes.indiatimes.com. 4. www.mapsofindia.com.

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http://www.mapsofindia.com/



“HARNESSING FUTURE IN AUTOMOBILE SECTOR: INDIAN STAKES SKY HIGH!”

Dr.Hemant Bonde Patil Director, Dr.HBPIMR, Amravati.

About the Author- Dr.Hemant Bonde Patil, Director, Dr.HBPIMR, Amravati, Ex. Associate Professor with the Vidya Bharati Mahavidyalaya, was awarded a Ph.D. (Management Science) as a result of his research related with Business Management. He has a Masters in Political Science with International Relations as an area of specialization and PG bachelors in Mass Communications and Journalism. Besides his academic qualifications he has a rich experience of teaching and research at various institutions of repute. His research work has been well acclaimed not only at the national but also at the international level. Introduction & Basic Namaskar! Human Beings have been gifted by the creator a wonderful method of mobility using the two legs. Yes, for centuries the only way we could carry ourselves was by walking till we began to make use of animals. The use of animals depended on the avaiblity of them and the environment that surrounded like horses on plateaus, camels in deserts, elephants for load, mules for mountains, bullocks, donkeys for local work and so on. In the later times that followed carts, chariots and wagons were pulled using these. Times kept changing till the later part of world war one when invention of automobiles using fuel engines came over. Using crude rock oil which later became popular as rockel was the most primarily used fuel that powered the vehicles. After the world war two USA emerged as a powerful nation whose economy supported research and the nature of American Management systems that give no room to consensus in decision making gave way to a series of automobile making companies like Ford to lead the industrial sector. Rolls & Royce joined the movement by way of Fredrick Taylor`s thought coloring all its cars charcoal black just to cut cost which later became so popular that Rolls Royce could only be charcoal blacks. USA used the left hand drive concept and roads and highways were built accordingly. Same time in Europe, Jeeps and Mini Cars hit the markets as suiting their nature and right hand style being used. But, it was always a USA dominated market with methods of mass production of automobiles were derived and used. Shining luxury large size cars hit the roads satisfying ego of the owner making it a prestige status symbol to own cars. After the end of the world war two the nations who participated had majority of widows in their population due to which men’s jobs were then directly transferred to women giving way to gender equality. This gave in a new problem for designing cars that are smaller in size, easy to handle and reliable. Italian Fiat, German Mercedes, Czechoslovakian Skoda, Volkswagen etc made their entry and again it was USA who dominated the automobile market. Detroit, USA became the city homing the generation next automobile sector of the world and led its inventions and developments leading the complete sector. The self made arrogance of the American management was at its peak where a common inventor mechanic like Ford reached amazing heights. Even support products like the story where one fine Sunday morning newspaper reading John was being disturbed by the clanking sound of steel of his son`s bicycle. He called him close and covered the cycle wheels with rubber reducing the noise and inventing the pneumatic tires for automobiles. John Dunlop created history with his company leading in tire manufacture in the world. Many other parts gave way to new entrepreneurs making name, fame and fortune for themselves. After the world war two one small nation full of mountain terrain and with fishing as primary occupation of its population was completely devastated by the use of nuclear weapons against it. Two of its cities Hiroshima & Nagasaki still bear the brunt with third generation children born with disabilities. But this small nation rose up to the world like a boxer down on the ninth count and began the journey to economic development slowly but surely. Japanese Management spaks of consensus in decision making, team work and continuous acceptance of change. Unlike the American authorative style it used graceful ways and slowly entered the world market. Electronics, Automobiles, Infrastructure development and what not they began with zeal. Corporate organizations like Toyota, Suzuki, Honda, Sony, Yamaha, Mitsubishi and a very



long list started giving what the customers wanted. And before USA realized the same ones became number one and still are even in the US. They realized fuel efficiency, comfort and ability to adapt the changing trends of urbanization where easy to drive and easy to park played as much importance as being a status symbol. They convinced the users just large size cannot be a status symbol rather shining metallic colors with bucket seats and safety measures topped the scales. Moreover their target market would always be three tier top income, middle income and lower income. Besides the target markets also included ladies and old drivers making the corporate like Toyato world number one including in the US with operations and manufacturing in 287 nations including India where Qualis, Travera and the Fortuner leaders in just a wisp of time. Amazing methods of management lead them from ashes to being an economic super power. India too was a pioneer in manufacturing automobiles by way of Hindustan Motors supported by the Government of India as a public sector undertaking which helped the nation for decades in using indigenous technology. And then the Maruti Udyog with help of the Japanese became a dream come true selling largest number of vehicles in the Indian continent. Tata, Mahindra & Mahindra and many other private business houses entered the fray. It was after globalization that not only product entry was free but even production of the same could be done with ease. Dream cars from Volkswagen, Skoda, Honda, Hyundai, Fiat etc hit the markets and started to cut their share giving a choice to the automobile users of our dear country. Tata models of Indica and Mahindra Jeeps are well sought in the international market. But, now with changed times we need to rethink and utilize this opportunity for a better future in building a base for the world market. Conclusion The Indian Automobile making organizations have done well in creating a name for themselves but a lot has to be done. Fuel cost has always been a problem with cost being directly linked with avaiblity. Pollution by diesel and even petrol vehicles has literally become cause for concern in the Indian continent including remote Himalayan valley. Cities like Delhi are facing the brunt due to automobile pollution and traffic problems. Moreover high costing fuel has been the reason for price rise even of essential commodities. Suggestions: Now is the time for the government to rebuild a public sector undertaking that looks into designing and producing export quality cars that operate on nuclear fuel as substitute. These automobiles can be sold with life time fuel and making them secure by efficient electronic tamper proof passwords. Even after we have signed the CTBT it has room for utilization for public good and as these would be pollution free naturally would be very beneficial as well as low costing. Yes, a well far sought dream but with the support of ISRO my dear country can surely rise to this opportunity with the support of private sector to tap and lead the international automobile sector! Thanks very much! Jai Hind! Jai Bharat!

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“IMPACT OF SOCIAL MEDIA; WITH REFERENCE TO FACEBOOK, TWITTER”

Saurabh M. Bannore Student, (CBS – IMS) Raisoni Institute, Badnera Road, Amt

Darshan A. Khandarkar Student, (CBS – IMS) Raisoni Institute, Badnera Road, Amt

Abstract Social media is the voice of society. It connect people with each other, it occupied significant place in the society. Social sites are the very fast media for the exchange of information from one place to another place. Within a fraction of movement message/information can be transfer form one nation to another nation. There are many social sites, which are very popular such as facebook, twitter etc. This study explained impact of the social sites on the society besides provides many solutions to protect fraud. Key words: - Social sites, relation, media. Introduction Twitter, Facebook, LinkedIn, etc. are always brought up when discussing about social media. To get a crystal clear thought of what social media is, this term has to be split into two parts: social and media. Being social means requires interaction and networking and media is considered as a communication tool. Thus, social media can be considered platforms that help users interact and build up relationships. With the rapid development of technology, people can keep in touch with the rest of the world by using these platforms. Social Media has retouched many aspects of life. It also changed the way we do business, especially in marketing industry. In comparison with old media such as print and broadcast, new media allows marketers to promote products and spread messages to their customers in a very short period of time. Social media is an internet-based form of communication. Social Media’s platforms allow users to have conversations, share information and create web content. There are many forms of social media, including blogs, micro-blogs, wikis, social networking sites, photo-sharing sites, instant messaging, video-sharing sites, podcasts, widgets, virtual worlds, and more. Billions of people around the world use social media to share information and make connections. On a personal level, social media allows you to communicate with friends and family, learn new things, develop your interests, and be entertained. On a professional level, you can use social media to broaden your knowledge in a particular field and build your professional network by connecting with other professionals in your industry. At the company level, social media allows you to have a conversation with your audience, gain customer feedback, and elevate your brand. With so many new social media launching each year, deciding which one is best for your department can be overwhelming. It is important to be aware of emerging social media sites, and understand how they could fit into your communications strategy. However, not all social media sites will be conducive to your department's brand or marketing goals. Social media has become one of the most important parts of our daily life as it enables us to communicate with a lot of people. Social media sites are created to assist in online networking. These sites are generally communities created to support a common theme. Since the creation of social media such as My space, LinkedIn, and Facebook, individuals are given opportunities to meet new people and friends in their own and also in the other diverse communities across the world. By doing so, individuals can become friends or fans of the profile, and will be updated on current events, specials, and other essential information that the masses would like to share. In earlier days people cannot think about social networking because, in those days science was not so advanced, but due to advancement of technology over the period of time people has become very much accustomed to this particular method of socializing . It is a platform where our creations and thoughts are presented to a huge lot of masses. Social media is very informative, entertaining and it also aware us about various situations or events which are going on in the society or in the world at large. Social networking facilitates us to also



enhance our viewpoints as it enables us certain interactive learning activities also. Thus, to summarise social media are the most important and unstrained parts of human lives in the modern times. Social media is becoming an integral part of life online as social websites and applications proliferate. Most traditional online media include social components, such as comment fields for users. In business, social media is used to market products, promote brands, and connect to current customers and foster new business. Types of Social Media In the discussion regarding different categories of social media, five distinct types of social media outlets are focused on – 1) social networking sites, 2) social news, 3) media sharing, 4) blogs, and 5) microblogging. Each of these social media platforms has provided unique features and experiences to individuals and entities, for instance marketers and consumers, in the social media sphere. Review of Literatures In Mumbai mirror daily (2006), it was reported that so many terrorists and underworld people have got connected through social sites, for example Davood Ibrahim, Chotta Shakkil and so many underworld dawns are getting new manpower through social medias. Subrahmanyam (2006) suggests that youth spending on data services represents almost 50 percent of all mobile spending in most mutual markets. Not only youth the early adopters of Review of literature most new technologies, they are also among the more sophisticated users of it as well. In fact, Livingstone and Bober (2005) have coined the term reverse socialization to characterize the shifting nature of socialization that occurs in many families, as teenage children are often more knowledgeable than their parent about these technologies. Research has also suggested that adolescents interactions with these new technologies are often at the vanguard of trends. Among adolescents, communication is the most important use of the Internet and the popular communication applications include, e-mail, instant messaging (private, one-on-one, text based conversations), chat rooms (communication systems that allow text based conversation among multiple users), and the newest craze social networking sites (connects people together) including blogs, MySpace and Facebook. Although we know that adolescents are spending considerable amounts of time on these applications, many questions remain. Firstly, what are teens doing in communication forums such as chat rooms and blogs? What do they talk about? Secondly, are these online communication activities fundamentally changing adolescent behavior or are they simply providing new venues for traditional adolescent behavior? Lastly, what is the relation between teen virtual worlds and real worlds? Are teen participants leaving behind real lives when interacting online or do virtual worlds reflect themes that are traditionally adolescent ones? Research Methodology Type of research:- Descriptive research Collection of Data: - This research based on secondary data. There is no primary data. For this study data have been collected from following sources

1. Journals, 2. Research papers, 3. Books, 4. Project. Objectives of the study

1. To study the concept of social media. 2. To check the impact of social media. 3. To provide suggestions.

Scope of the study 1. The research will be useful to students, researcher etc. 2. It is also help various professional for preparing policy and strategy. 3. It is helpful to learn the concept and role of social media.

Limitations 1. This paper based on secondary data. No primary data collected.



2. This study have completed within very short period. Suggestions 1. Government should take initiative and stop all those advertisement which create negative impact on society. 2. In the schools and colleges premises there should be restriction on the operating of social sites like- Facebook and Twitter. 3. Government of India should make strong rules and regulation which protect interest of common people as well as those who will misuse information of others, they will get punishment. 4. There should be ban on the using of adult. 5. Social sites like – Facebook and Twitter should use as a media channel. 6. Don’t mention your personnel information because you don’t know who o target. 7. Be wary of what you’re posting if you use your pets name as a password anywhere don’t post about it on your social networking sites naming it. 9. Do not send confidential information through social networking sites. 10. Ensure your computer is up to date and has good antivirus protection; social networking sites are frequent targets of malware attacks. 11. Do not disclose your password because other can take undue advantages. 12. Do not respond to emails that claim to be from your bank requesting your account details. 13. Do not use any part of your social security number (or any other sensitive information like a credit card number) as a password. Conclusion 1. Social sites play crucial role in connecting people to each other. 2. Social sites acts as a media as well as create awareness about social issues. 3. It is very fast and powerful tool for spreading information about any particular event. 4. It is very easy or simple way to convey massage and also reduce distance between rural and urban places. 5. After analysing collected data we can conclude that social sites are not useful to students because it misguide to college and school students. 6. In the present time criminals or terrorist taking undue advantages from various social sites. They attract youth towards their mission. 7. Among all social sites facebook and Twitter are more popular social sites. 8. Social sites are not only useful to particular group of person instead this, it is useful to every person whether it is businessmen, professional household or students. 9. As a media social sites occupied significant place and it make available fact in the eye of society. References:- 1. Business Research Book, Author; Prof. Nirmal Jain. 2. Research Methodology Book, Author; prof. C.R. Kothari. 3. Social economics Book, Author; Erik qualman. 4. Twitter power Book, Author; Anthony Robbins. 8. Social media metrics Book, Author; Jim sterne. 9. The social media marketing Book, Author; Dan Zarrella. 10. A Social media marketing Handbook, Author; Darren Barepoat. Websites:- 1. www.lariylitwin.com 2. www.Jonzaga.edu 3. www.theseus.fit

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“PRINCIPLES OF BUSINESS MANAGEMENT: - WITH REFERENCE TO KAUTILYA ARTHSHASTRA

( AACHARYA CHANAKYA'S).” Ankit V. Wadurkar Student. Prerna Institute of Commerce, run by (Prerna Vidhaymandir trust, Amt.)

Abstract:- For the effective management we always look towards the western management thinkers. But now there is need to look towards our own history book. The land of history is the evidence that we had many legend management personality or management thinkers. Among these their was a scholar whose knowledge beyond the imagination. Who established empire of the mauyria’s. He was also advisory of King Chandragupta Mauyria’s. He was Aacharya Chanakya’s. This paper explores the principles given by Aacharya during the ruled of Mauriya’s, even the concept of company and industry were not in existence and how management can be done successfully. And tries to described importance of finance and human resources.

Key Words: - Kautilyas Arthshastra, Effective management, Sama, Danda, Bheda, Dandopya.

Introduction

Kautilya Arthshastra State the principles and concept of management. These principles and concept may be applied in our modern world and in the future also. An individual can not achieve the objective single-handed. Co-operation, group efforts, direction and control are necessary to achieve the objective or goal of an individual. In our modern world, an individual cannot survive separately. He has to rely upon others. So, managerial efficiency is an essential requisite to human being. There are many ancient thinkers who has contributed in the theoretical and practical field of Economics. The real hero is ‘Acharya Chanakya ‘ has other eight name also very popular Vatyasyan , Mmallanaag , Kautilya , Dramil, Pakshilswami , Varanak , Vishnugupta and Gul. Acharya Chanakya born with full of teeth, which indicate that he would become a king or an emperor. But he was brahimn so it was considered in appropriate. Thus, his teeth were brocan and it was predicate that he will make another person king and rule as per his direction. At very early age little chanakya started studying vedas. Even Acharya Chanakya had the leadership quality from childhood. His level of knowledge was beyond children of age. After the death of his father he want to Takshashila a world famous university of all kinds of education. There Acharya Chanakya study Vedas and uapanishedas. He was much more interested in economics and politics, after getting knowledge he gained proficiency in it. After completing his entire education, he become (teacher) Acharya of takshashila and stated teaching in the University. He left that my duty is not limited up to any subject so he not only tough various subject, but also thought about values, discipline, attitude and patriotism to his student to make them responsible citizens. There also called as management guru ancient india. Aarthashastra, the treaties of management was written by kautilya in 4th century befor christ .

Research Methodology Research type :- Descriptive method Data collection:- For this study secondary data have been collected from the various sources.

1. News paper, 2. Books, 3. Articles, 4. Journals.



Objectives of the study 1. To highlight the principles of management given by Kautilya’s. 2. To check the management process during the Mauriya’s ruled. 3. To identify the management during the Mauriya’s empire.

Scope of the study 1. In today’s competitive scenario this study helps to businessmen for preparing various strategies. 2. Researcher and students will get helps for doing further detail study. 3. This study provides direction to the effective management.

Limitations 1. This study total based on the secondary data. 2. May be there is some deficiency in this study.

Principles of Management given by Aacharya Chanakya; with reference to Kautilya Arthashastra India is a developing country. Here we found that we required effective management and it is essential for growth as well as development of the business. We are look towards the modern management for the effective management. But we should also look back into our history. In our history book many ancientor had given glorious management principles for effective management, our history book indicated that we had great management thinker and he was Aacharya Chanakya's. He propounded many principles of management. He believed that effective management can be possible by appointing right candidate at right place. Aacharya defined four elements for managing human being that is Sama, Daana, Bedha and Dandopaya. Sama refer to persuasion. Daana refers to offer incentives. Bedha refers to create conflict/ differentiate between the people and Dandopaya refers to punish to them who don’t follow universe Policy. All the Adhikarans, Prakashans and Adhyayas contained in Arthshastra suggest of strategies, policies and action to achieve these mission and objective of various heads of the department , the suppression of criminal, the six measure of foreign policy, wars and peace, treatise, opration of secret of the services etc, various policies and strategies and action direction toward the achievements of the goals and objective laid down. The Arthshastra has provided extensive organization structure . It mention a number of similarly the span of authority has also been marked. The department and authority mentioned are revenue accounts and audit and gold and previous stone, trade, forest, agriculture and supplies etc. The duties and in change of the department have been elaborate exhaustively. Rules procedure and reporting authority have been define. According to Aacharya, management of any organization Team ( Army ) and finance (Treasure ) enable to any system to work in proper direction to increases strength of the business. The entire responsibility goes to king, therefore he must appoint to those person who has knowledge about financial management. He should be able to take decision regarding distribution of available funds. Aacharya said, that king (Owner) must take report from head of finance department about available finance little mistake or ignorance can arise problems in the management of the (state) organization. This principle of management is applicable in the present era. Even in the good old days when the concept of a company or an organization were not in existence still focused had given on the management of finance. The study of arthshastra show that Monarchy is the ideal type of leadership style. The divine theory of kingship has been strongly advocate that king is the messenger of divine power and there is to on his power and authority he us the ultimate sources of all laws rules and regulation. However , it has been laid down that the king should follow a time table prescribe by the Shasta’s. He should have control over the senses. He should cultivate his intellect by associating with wise man and elders, keep a watchful eye by made of spies bring about security and well-being by studding the Vedas. He should attain popularity by association with what is of material advantages and maintain proper behavior. In the Arthshastra , controlling is an essential function of the administration. These take the forms of appointment of persons in secret services and role governing them.



Conclusion:- The forgoing discussion bring us to the conclusion that the modern management thinkers ( based on western ideology) is the developed from of the ancient management thinker i.e. Aacharya Chanakya’s.

Kautilya’s Arthashastra covered all most each and every aspect of management and so he should get that much weighted as much as the other management has been given.

References:-

Dainik Bhaskar news paper, issued on 17th jan. 2016, Page No. 2. 1. International journal of Management and social sciences Research, Volume 2, No. 5, May 2013.

Effective Strategy for Organisational Development: With Reference to Kautilya’s Arthashastra .Sathya Narayanan SR, Faculty in Business Administration, Sri Malolan College of Arts and Science, Madurantakam

2. Kautilya's Arthashastra, by R. Shamasastry. 3. Chanakya- The first complete management guru by Rajshekar Krishnan. 4. Management History: The relevance of Kautilya’s Arthashastra in contemporary management.

Author, Balakrishnan Muniapan School of Business & Enterprise Swinburne University of Technology,Sarawak Campus

5. Concept of Management and Evolution of Management Thought, Author, Prof. K. B. Akhilesh, Department of Management Studies Indian Institute of Science, Bangalore.

6. Asian Social Science, Vol. 4, No. 1 ,January 2008. Kautilya’s Arthashastra and Perspectives On Organizational Management. Balakrishnan Muniapan Curtin University of Technology, Malaysia. Principles of Business management Book, Author; Prof. Rahul o. Oza, Dr. Nakul A. Deshmukh.

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MARKETING SKILLS IN RETAIL BANKING AND INSURANCE

Dr.V.R.Gavhale G.S.College Khamgaon.

Abstract:- Marketing starts with the customers and ends with customers. A market is a group of people who share a similar need. Marketing management is the conscious effort to achieve desired exchange outcomes with target markets. The marketer’s basic skill lies in influencing the level, timing, and composition of demand for a product, service, organization, place, person or idea. Marketing can be vital to an organization’s success. In recent years numerous service firms and nonprofit organisations have found marketing to be necessary and worthwhile. Introduction (Needs Wants And Demands):- 'Marketing is so basic that it cannot be considered as separate function. It is the whole business seen from the point of view of its final result, that is, from the customer's point of view'.- Peter Drucker. Marketing is the force that harnesses a nation's industrial capacity to meet the society's material wants. It uplifts the standard of living of people in society. Marketing must not be seen narrowly as the task of finding clever ways to sell the company's products. Many people confuse marketing with some of its sub functions, such as advertising and selling. Authentic marketing is not the art of selling what you make but knowing what to make. It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profit to the producers, and benefits for the stakeholders. Market leadership is gained by creating customer satisfaction through product innovation, product quality, and customer service. If these are absent, no amount of advertising, sales promotion, or salesmanship can compensate. Today's smart companies are not merely looking for sales; they are investing in long term, mutually satisfying customer relationships based on delivering quality, service and value Marketing starts with the human needs and wants. People need food, air, water, clothing and shelter to survive. They also have a strong desire for recreation, health, education, and other services. They have strong performances for particular versions and brands of basic goods and services. A human need is a state of felt deprivation of some basic satisfaction. People require food, clothing, shelter, safety, belonging, esteem and a few other things for survival. These needs are not created by their society or by marketers; they exist in the very texture of human biology and the human condition. Wants are desires for specific satisfiers of these deeper needs. The Role of marketing in the banking industry:- The Role of marketing in the banking industry continues to change. For many years the primary focus of bank marketing was public relations. Then the focus shifted to advertising and sales promotion. That was followed by focus on the development of a sales culture. Although all the elements of the marketing concept – customer satisfaction, profit integrated framework and social responsibility – will remain important, customer satisfaction must receive the greatest emphasis in the years ahead. The chief concerns of most bank executives still focus on legal and regulatory issues, according to most surveys. Community banks are particularly concerned with eliminating barriers that give unfair advantages to financial services competitors, such as credit unions. However, another concern pertains to technology. Bank Marketing Approach:- We define bank marketing as follows: ―Bank marketing is the aggregate of functions, directed at providing services to satisfy customers’ financial (and other related) needs and wants, more effectively and efficiently. Banking industry is essentially a service industry which provides various types of banking and allied services to its clients. Bank customers are such persons and organizations that have surplus or shortage of funds and those who need various types of financial and related services provided by the banking sector. These customers belong to different strata of economy, different geographical locations



and different professions and businesses. Naturally, the need of each individual group of customers is distinct from the needs of other groups. It is, therefore, necessary to identify different homogenous groups and even sub-groups of customers, and then with utmost precision determine their needs, design schemes to suit their exact needs, and deliver the most efficiently. Banks, generally, have been working out various services and products at the level of the Head Office and these are traded through their retail outlets (branches) to different customers at the grass-roots level. This is the so called ‘Top to Bottom' approach. However, bank marketing requires a change in this traditional outlook. It should be 'bottom to top' approach with customers at the grass-roots level as the focal point for working out various products / schemes to suit the needs of different homogenous groups of customers. Thus, bank marketing approach, in general, is a group or "Collective" approach. Customers Relationship Management, on the other hand, is an individualistic approach which concentrates on certain select customers from the homogeneous groups, and develops sustainable relationships with them for adding value to the bank. This may be termed as a "Selective" approach thus, bank marketing concept, whether "collective" approach or "selective" approach, is a fundamental recognition of the fact that banks need customer oriented approach. In other words, bank marketing is the design and delivery of customer needed services worked out by keeping in view the corporate objectives of the bank and environmental constraints. Principal aspects of Bank Marketing:- 1. Customer Oriented Services. 2. Design & Delivery of Such Services. 3. Environmental & Other Constraints. 4. Marketing Concepts – Its Application to Banking. Marketing Strategy in Banking Sector:- 1. Consumer Behavior and Segmentation. 2. Customer Relationship Management. 3. Identification of Target Customers & their Needs. Marketing Mix in Bank:- The second element in formulation of marketing strategy is development of proper marketing mix, so as to satisfy the needs of the target group of customers. This would involve decisions regarding product, place, price, promotion, process, physical evidence, and people. Insurance Why ? Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of Insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death. It also provides capital to the society as the funds accumulated are invested in productive heads. Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your positive contributions. Insurance marketing:- The term Insurance Marketing refers to the marketing of Insurance services with the aim to create customer and generate profit through customer satisfaction. The Insurance Marketing focuses on the formulation of an ideal mix for Insurance business so that the Insurance organisation survives and thrives in the right perspective. Marketing --Mix For Insurance Companies:- The to best meet the needs of its targeted market. The Insurance business deals in selling services and therefore due weight-age in the formation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P's of marketing i.e. the product, its price, place, promotion, people, process & physical attraction.



LIC:- Life Insurance Corporation of India (LIC) is a monolithic company from last few decades. After the successful implementation of economic reforms in life insurance sector in India, LIC of India has made several positive efforts to triumph the hearts of the people. To achieve that LIC of India have adopted a number of new trends in marketing strategies for introducing innovative technologies. This study is an attempt to know about the recent trends followed by LIC of India in order to make their products available to each and every forthcoming customer in the life insurance market. The present research paper is a comprehensive study to know whether the implemented strategies have truly helped LIC of India in the changing trends of the society and will also suggest how these recent trends have helped LIC of India as a whole to manage the existing leading position in the life insurance market. Marketing Strategies Adopted by LIC of India:- In order to facilitate their consumers expediently LIC of India has adopted wide-ranging marketing strategies to acquire reach, frequency and impact onto the panorama of life insurance coverage. This section of the research study will focus on the diverse marketing strategies adopted by LIC of India to reduce the competitive pressure and uphold their first positionin the Indian life insurance market 1. Facilities to their existing employees. 2. Housing Loan to Agents. 3. Sports. 4. Employees’ Training. 5. Increasing the number of individual Agents. 6. Introduced Life - Plus Offices. 7. Increase in Women employees. 8. Bank assurance and Alternate Channels. 9. Corporate Communication. 10. International Joint Ventures. Marketing Mix For Insurance Companies :- The marketing mix is the combination of marketing activities that an organization engages in so as to best meet the needs of its targeted market. The Insurance business deals in selling services and therefore due weight age in the formation of marketing mix for the Insurance business is needed. The marketing mix includes sub-mixes of the 7 P‘s of marketing i.e. the product, its price, place, promotion, people, process & physical attraction. Role Of IRDA In Insurance Sector:- IRDA is Insurance Regulatory Development Authority, that has been set up to protect the interests of the policy holders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental there to Insurance Regulatory and Development Authority To protect the interests of the policyholders Insurance Regulatory & Development Authority is regulatory and development authority under Government of India in order to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry. It is basically a ten members' team comprising of a Chairman, five full time members and four part-time members, all appointed by Government of India. This organization came into being in 1999 after the bill of IRDA was passed in the Indian parliament. Conclusion:- In India, banks hope to maximize expensive existing networks by selling a range of products. It is anticipated that rather than formal ownership arrangements, a loose network of alliance between insurers and banks will emerge, popularly known as bank assurance. Another innovative distribution channel that could be used are the non-financial organisations. We can‘t deny the fact that if foreign banks are performing fantastically, it is not only due to the sophisticated information technologies they use but the result of a fair synchronization of new information technologies and a team of personally committed employees. The development of human resources makes the ways for the formation of human capital.



References:- www.google. co.in Concept of Marketing www.google .co.in Concept of Sales www.irdaorg www.bimaonline.com http//:www.businessindia.in http//:www.google.co.in http//:www.obcindia.co.in http//:www.sify.com) http//:www.wikipedia.com (ac

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http://www.google/

http://www.google/

http://www.bimaonline.com/



E- COMMERCE IN INDIA Dr.Jayant Prabhakar Bobde. Associate Professor. S.N.Arts & U.K.Commerce College, Akola.

E-Commerce in India is one of the fast growing sectors of India’s Digital Economy. The leader in retail e-commerce Flipkart recently announcing that it crossed $ 1 Billion in sales early this year , this development has sent many small e-commerce companies scrambling to gather a piece of the online e-tailing action. One of the pioneers of the Indian IT Industry , Mr Narayan Murthy recently announced that he would partner with Amazon India to launch a joint venture to create a new e-commerce entity for the Indian Market. CARE ratings recently released a detailed pdf report on it’s assessment of the fast growing e-commerce sector in India which can be accessed below. The report provides the latest trends and developments in Ecommerce in India for the years 2014-2015. E-Commerce Market in India – Report E-Commerce is gaining momentum globally with Asian economies like China, India and Indonesia being the fastest growing e-commerce markets. E-commerce in India is growing at a fast pace with an estimated size of Rs.43,930 crore in FY13 and a CAGR of 43.8% (FY08-13). As per the internetworldstats.com – The top 20 countries in the internet by number of users as on June 30, 2012, India ranks 3rd after China and US. The ecommerce industry is mainly dominated by the travel segment which accounts for more than 70% of the transactions of industry and e-retail’s share in e-commerce stands at approximately 12.5%. In spite of the robust growth, the ecommerce industry is still in a nascent stage with significant e- commerce ventures being started by young first-time entrepreneurs. The e-commerce industry in India lags far behind various developed and developing countries (share of ecommerce to total retail is approximately 1.5% vis-à-vis 5.8% in US) mainly on account of low internet penetration due to poor infrastructure.

http://www.thehindubusinessline.com/companies/narayana-murthys-catamaran-ventures-teams-up-with-amazon-asia-for-ecommerce-biz/article6155857.ece

http://indiamicrofinance.com/world-internet-trends-2014-2015.html



E-Commerce in India : Evolving Models The Indian e-commerce industry comprises two key business models: B2B (90% of market share) and the remaining 10% comprise of B2C. India and China, unlike US are characterized by ‘Marketplace Model’, while US follows inventory-based/independent model. ‘Market Place’ model only provides platform to a large number of manufacturers/traders (especially MSMEs) to advertise their products (which translates to benefit the MSMEs in the form of increased turnover) as well as manages related functions and in turn the entity earns commission from sellers for goods and services. The B2B players do not carry inventory while in the other model-B2C, the merchant owns the goods. Currently FDI is restricted in B2C model in India. E-Retailing: At an inflexion point The e-retailing market in India is estimated at Rs.5,513 crore in FY13 with a robust CAGR of 30.5% (FY08-FY13). However, e-retailing in India constitutes a miniscule 0.2% of the total retail market and 2.3% of organised retail in India. E-retailing industry in India is fragmented with a few large players at the top and race for high valuation has led to fierce competition and aggressive growth. Furthermore, the industry has also witnessed consolidation with the largest acquisition of Myntra by Flipkart. The trend is likely to continue in future given the foray of Amazon, inability to raise follow-up capital from PE by majority start-ups in the past couple of years and likely opening of FDI in B2C. Below-average penetration of e-retailing, has led to explosive growth of unique visitors during July 2011 to July 2012 within Indian retail online market.

Key Drivers for E-Retailing Today’s consumer, especially the middle-class urban and semi-urban India, who are increasingly pressurized due to paucity of time as well as lured by convenience and increased use of plastic money are all leading way to more online consumption. Furthermore, favorable demographic profile (75% of internet users are aged between 15-34), limited geographical reach by brick & mortar model, increasing internet penetration, increasing smartphone usage & declining data charges offer high market potential for e-retailing in India. India’s growth potential Since the eCommerce industry is fast rising, changes can be seen over a year. The sector in India has grown by 34% (CAGR) since 2009 to touch 16.4 billion USD in 2014 . The sector is expected to be in the range of 22 billion USD in 2015.

http://indiamicrofinance.com/online-shopping-india-2015.html



Indian Ecommerce : Growing under constraints The inability to provide a direct connect with consumer is the biggest challenge in e-retailing. Further, apart from low internet penetration, like low debit card/credit card usage which is being offset by cash on delivery, multiple languages, and logistics issues which is being managed by building in-house logistics by players are also some of the challenges faced by players. However with the help of technology, backbone of e-retailing, an attempt is made to bridge this gap. Also, other challenges are developing efficient supply chainmanagement,customer relationship management solution and enhanced security systems which form heart of e-retailing. Foreign capital inflow is the next logical step to build the necessary infrastructure. FDI in B2C: Next Logical Step FDI in ecommerce in India has seen around US$1.3 billion of foreign investment in the ecommerce industry since 2010 to June 2013 and a large number of deals compared with some other peers on account of huge potential seen in India.

At present, 100% FDI is allowed in business-to-business (B2B) e-commerce. Restriction on FDI in B2CInventory / Independent model has restricted the growth of this segment on account of lack of financial backing required for their expansion plans. Equity funding is important for growth of e-retailing given the large requirements on account of deep discounts given to customer as an acquisition strategy, for establishing logistics and creating differentiation in terms of customer service. FDI in B2C: Pros and Cons FDI in B2C model is likely to have a positive impact on overall economic development.It will provide the required significant financial backing to the young entreprenuers. MSMEs, if provided financial backing, will be able to enhance their coverage through e-commerce platform.Long-term committed investment will also bring in know how and improve efficiencies in the supply chain necessary for the industry and also lead to competitive pricing.It will boost the ancilliary industries like logistics, warehousing, online advertising etc. Minimum investment requirement, if mandated, in backend may also lead to infrastructure development. On the other hand, with opening of FDI in B2C model, monopolies of foreign retailers may adversely impact the domestic industry Brick and Mortar players as well as existing B2C players leading to consolidation in the industry. It may shrink the Indian Entrepreneurship & MSME sector. However, foreign player’s entry with certain riders like mandated minimum local sourcing with the MSMEs will lead to increased manufacturing activities. Conclusion The Winning Leap, emergence of new technologies, especially mobile, in India has sparked a social change that’s difficult to quantify. While mobile, internet, and social media penetration and growth can be



quantified, describing the changes in social values and lifestyles that have accompanied those trends is far more challenging. New technologies such as virtual walls and virtual mirrors will further help improve the retail customer experience, thereby encouraging greater consumption. Virtual mirrors let shoppers ‘try on’ clothes and accessories virtually before making buying decisions. Virtual walls help customers scan barcodes for items on an electronic wall using their mobile phones and place orders with retailers. Tesco in South Korea was an early adopter of this technology. In India, HomeShop18 has launched India’s first virtual-shopping wall. Scan N Shop at New Delhi’s international airport uses a similar technological interface. A key outcome of the technology revolution in India has been connectivity, which has fuelled unprecedented access to information. Millions of people who had little means to join the national discourse can now gain new insights into the world around them. Farmers know crop prices. Consumers understand global standards of product and service quality. Rural Indians recognise the differences between the opportunities available to them and those available to their urban counterparts. And citizens have a mass forum for expressing their political opinions. The upshot of this connectivity revolution has been empowerment of Indians. The number of mobile subscribers in India jumped from 261 million in 2007-2008 to 910 million in 2013-2014. Along with telephony, internet penetration is soaring in rural and urban India. Moreover, the number of rural internet users is growing by 58% annually. Increases in the number of smartphones and 3G subscriptions are further driving this growth. Indeed, the number of smartphone users is expected to grow at a CAGR 91% from 2012 through 2016, jumping from 29 million to 382 million. Similarly, the number of 3G subscribers could expand at a CAGR of 84%—from 23 million to 266 million—during the same period. Thanks to rising internet penetration, the gross number of online users in India now exceeds the number of people who have completed primary education. This shift emphasises the increasing relevance of India’s digital economy. The number of internet users soared from approximately 20 million in 2004 to nearly 250 million in 2014. By contrast, the number of people who have studied beyond the eighth standard is about 200 million, indicating that even uneducated people are accessing the internet. While increases in the use of traditional options for gaining knowledge, such as education, may be linear, the proliferation of knowledge through the use of new digital technologies appears exponential. The eCommerce industry in India may currently be behind its counterparts in a number of developed countries and even some emerging markets. However, with India’s GDP growth pegged at 6.4% by the International Monetary Fund and the World Bank, it is expected to grow rapidly. Moreover, the Indian eCommerce industry has access to funds from within the country and international investors. Overall, the eCommerce sector is maturing and a number of serious players are entering the market. What differentiates the Indian eCommerce market from that of a country like China is that while market concentration in China is largely on account of Alibaba-owned Taobao and Tmall (with these players holding a higher percentage of market share than the top players in most of the other major markets), in India the market share is divided amongst several ecommerce companies, each coming up with its own business model. As a result, customers have a wide range of products and services to choose from. In our view, there is humongous potential for eCommerce companies owing to the growing internet user base and advancements in technology. However, this will not be without its share of challenges, be it operational, regulatory, or digital. How a company prepares itself to meet these challenges will decide whether or not it succeeds.



Reference:-

1. Rifkin,Jeremy (2012), ‘The Third Industrial Revolution: How the Internet, Green Electricity, and 3‐D Printing are Ushering in a Sustainable Era of Distributed Capital,’ The World Financial Review, April 1.

2. Hazelton, Bill, ‘History of E‐ Commerce,’ Spirecast, August 19, 2009 3. E‐ commerce in India: Evolution, Growth and Challenges, a Report by MSLGROUP India, a part of the

PublicisGroupe,www.slideshare.net/mslgroup/2ecommerce‐in‐india‐evolution‐ growth‐and‐Challenges

4. Rebirthof E‐ commerce in India, a Report by Ernst & Young, www.slideshare.net/mailforveena/ernst‐ and‐young‐rebirthof‐ecommerce‐in‐india‐report

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http://www.slideshare.net/mslgroup/2ecommerce‐in‐india‐evolution‐

http://www.slideshare.net/mailforveena/ernst



“INTERFACE BETWEEN ECONOMY – INDUSTRY AND COMPANY (I.E. EIC).”

Onkesh P. Khadekar Student, CBS – IMS, Raisoni Institute of Management study, Anjangaon bari road, badnera, Amravati,

Ajinkya S. Rahatgaonkar Student, CBS – IMS, Raisoni Institute of Management study, Anjangaon bari road, badnera, Amravati,

Abstract Indian economy is mixed economy. In the development and growth of economy, industry and company have given uncountable contribution. In India many kinds of industries as well as companies are there which have contributed in the GDP of the Indian economy. There is very close relation between economy, industries and company. Earlier Indian economy depends on the agricultural sectors but today it depends on various sectors such as various kinds of industries i.e. Primary industry, 2. Genetic industry, 3. Extractive industry, 4. Manufacturing industry, 5. Constructive industry, 6. Service industry. This study described relationship between economy, industry and company that how industry contributed in the development process. How industries improve or help in the development of Indian Economy condition. Key words: - Economic development, employment, innovation, relation among EIC. Introduction Economic development of any nation is totally depends on industries. Industries play an important role in the Indian Economy. Without industries, economic development is not possible. A growing industrial sector is crucial to greater economic development and takes in a number of areas as a country develops. Ensuring steady industrial growth helps to compliment and sustain continued economic development. A well developed industrial sector, covering various different areas is vital to the economic development of a country. With a variety of different industrial sectors that feed off each other, a well balanced industrial sector is at the centre of economic development. With a strong industrial base, economic planning becomes less risky, being able to plan ahead also assists industrial growth with profits re-invested into infrastructure development which in turn helps to boost and attract industry. In a backward and developing economy like India, industries are indispensable. Development of industries is not only indispensable for India, but there is also good scope for the development of industries in India. India has many favorable factors for the development of industries. Business are the growth,drives of the economics of the country the employ people, provide income to the working population buy resources, sell product, brings innovation generate foreign capital, fulfill our daily necessities etc. business can be multinational, national, or domestic scale and employee people of all skill set (in full time and part time or contractual position) this generates employment at all levels across the country. Businesses also generate indirect employment in term of people engaged in raw material production that business need and also those involve in selling this product large scale business import and export raw material ,product and services and generates foreign exchange for the economy. In a competitive market, businesses create innovation and novelty and also provide entrepreneur opportunity. All this (and other associated activities) drive the economics of a country. How industries improve or help in the development of Indian Economy condition. But first will meaning of industry. The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products. The products are consumer's goods as well as producer's goods. Consumer goods are goods, which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's goods are the goods used by manufacturers for producing some other goods. E.g. Machinery, tools, equipments, etc. Expansion of trade and commerce depends on industrial growth. It represents the supply side of market.



Research methodology Research type: - This study adopted descriptive research. Collection of Data:- Type of Data/Data Source used: Secondary Data/Data source. The present study is based on secondary data. Basically, the required 2. Articles from Newspapers, Magazines and Journals, and 3. From the various related web-sites which deal directly or indirectly with the topics related to FDI and Indian retail sector. After searching the important web-sites, relevant information was down loaded and analyzed to address the objectives of present study. Objectives of the study

1. To identify role of industries and companies in the development of the Indian economy condition. 2. To check the relationship between the economy, industries and companies. 3. To find out the needs of industries for economy growth.

Limitations of the study 1. The study is based on published data and information. No primary data is being collected. 2. Every care has been taken to entice qualitative and correct data; still secondary data have collected for the purposes other than problem at hand. 3. The objectives, nature and methods used to collect secondary data may not be appropriate to the present situation. 4. Secondary data may be lacking in accuracy, or they may not be completely current or dependable. 5. Time constraint remained the major limitation in the study 6. Before using secondary data, it is important to evaluate them on above mentioned factors. So, it consumes the same time as the primary data. Meaning of Interface The relation or the interdependence of industries, companies and the economy that is we called interface.

The relation is stated as like as the plant is depend on water and sunrays for his growth , the student is depend on his teacher or guru likewise the economy is depended on the development of the companies and the industries. As it is only possible when the new industries and companies are started their business that time it will help that the income of government is increase and if the revenue is generated then it will help to provide or create the new policies which help to the new entrepreneur for starting their businesses and which it will also help to generate employment.

Because, the new entrepreneur earn a huge amount of profit when government gives him a policies like tax benefits, space or place for the establishment of huge infrastructure, in chief rate, easily availability of finance with help of and when they are generating revenue then they also create a employment which help to reduce the unemployment, which was the biggest reason for very slow development or underdevelopment of economy.

To maintain the good relation between EIC (economy, industry and company), there is a need of smooth functioning which lead to the maintain a god relation and it is very big and plus point for good relation.

If the new companies are started their business them it leads to sources of income for government which help to develop the infrastructure of our country and with the help of the at the flow of money in the market is also fluctuating which help to control the inflection (rate). it also leads to generate foreign currencies which help to increase revenues and it will also increases or gives or help to emphasis on (EXIM Policy) export and import policy. As we know that the our economy mostly depended on the import that is many of the thing we need to import as they also produces but not in well quality.

Many of the things are not produce that’s why we need to import it. But, some extent if suppose this companies are produce product in our country then it will help to develop our economy and which leads and also help to established a new industries and promote the small scale industry which leads or ready to deal or work with large organization which help to maintain or create a good relation between the economy industry and the business.

Meaning of Industry The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products. The products are consumer's goods as well as producer's goods. Consumer goods are goods, which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's goods are the goods used by manufacturers for producing some



other goods. E.g. Machinery, tools, equipments, etc. Expansion of trade and commerce depends on industrial growth. It represents the supply side of market.

The following points explain the relation of industrial in the development to economic growth:

Modernization of Industry: Industrial development is necessary for modernization of agriculture. In India, agriculture is traditional and backward. The cost of production is high and productivity is low. We need tractors, threshers, pump sets and harvesters to modernize agriculture. To increase productivity, we need chemical fertilizers, pesticides and weedicides etc. These are all industrial products. Without industrial development, these goods cannot be produced. Agricultural products like jute, cotton, sugarcane etc. are raw materials. To prepare finished products like flex, textiles and sugar etc. We need industrialization. So industrial development is necessary for modernization of agriculture.

Development of Science and Technology: Industrial development encourages the development of science and technology. The industrial enterprises conduct research and develop new products. Ethanol in the form of biofuel is an example of industrial development. Industry conducts research on its wastes and develop byproducts like biodiesel from jatropha seeds. Due to industrialization, we have made progress in atomic science, satellite communication and missiles etc.

Capital formation :- Acute deficiency of capital is the main problem of Indian economy. In agricultural sector, the surplus is small. It’s mobilization is also very difficult. In large scale industries, the surplus is very high. By using external and internal economies, industries can get higher profit. These profits can be reinvested for expansion and development so industrialization helps in capital formation.

Industrialisation and urbanization:- Urbanization succeeds industrialization. Industrialisation in a particular region brings growth of transport and communication school, colleges, technical institutions, banking and health facilities are established near industrial base. Rourkela was dense forest but now is ultra modern town in Orissa. Many ancillary units have been established after setting up of big industry. Self reliance in Defence production :- To achieve self reliance in defence production, industrialization is necessary. During war and emergency dependence on foreign countries for war weapons may prove fatal. Self-reliance in capital goods and industrial infrastructure is also necessary. Atomic explosion at Pokhran (Rajasthan) and Agni Missile are examples of industrial growth. Importance in International Trade :- Industrialization plays an important role in the promotion of trade.; The advanced nations gain in trade than countries who are industrially backward. The underdeveloped countries export primary products and import industrial products. Agricultural products command lower prices and their demand is generally elastic. While industrial products command higher values & their demand is inelastic. This causes trade gap. To meet the deficit in balance of payments we have to produce import substitute products or go for export promotion through industrial development. Use of Natural Resources :- It is a common saying that India is a rich country inhabited by the proor. It implies that India is rich in natural resources but due to lack of capital and technology, these resources have not been tapped. Resources should be properly utilized to transform them into finished industrial products. The British people took India’s cheap raw materials for producing industrial goods in their country. India was used as a market for their industrial products. So India fought with poverty and England gained during industrial revolution. Hence industrialization plays important role fo4r proper utilization of resources.



Navigation or poverty and unemployment :- Poverty and unemployment can be eradicated quickly through road omdistroao satopm It has occurred in industrially advanced countries like Japan. The slow growth of industrial sector is responsible for widespread poverty and mass unemployment. So with fast growth of industrial sector,l surplus labour from villages can be put into use in industry.

Main Sector of Economic Development: Industry is viewed as leading sector to economic development. We can have economies of scale by applying advanced technology and division of labour and scientific management. So production and employment will increase rapidly. This will bring economic growth and capital formation.

Fast Growth of National and per Capita Income:

Industrial development helps in the rapid growth of national and per capita income. The history of economic development of advanced countries shows that there is a close relation between the level of industrial development and the level of national and per capita income. For instance, the share of industrial sector to national income was 26% and the per capita income in year 2000 was 36,240 dollar in USA.

The share of agriculture in the same year was only 2%. In Japan, the share of industrial sector in her GDP was 36% and her per capita income was 36210 dollar. In India due to industrialization, the contribution of industrial sector to GDP has gone upto 28.5% in 2000-01 and per capita income has risen to Rs. 16,486 in 2000.

Sign of Higher Standard of Living and Social Change:

A country cannot produce goods and services of high quality in order to attain decent living standard without the progress of industrial sector.

Conclusion

In the 21st century India succeed in many things. Human being is unable to survive without blood, for human being blood is essential. Similarly, for economy, industry is blood without it growth is not possible. There is very close relationship between economy and industries. There is need to study the role of industrial sector so concrete action can be taken towards the development of industrial areas. Industries is the life blood as well as soul of Indian economy. We can not imagine without it. It has huge potential to generate employment opportunity, increase productivity, etc. It has major contribution in the GDP of Indian Economy. Besides these it promotes innovation. Therefore, Government of India must take serious action towards the development of Industrial areas.

References:-

1. Business Environment Book, Prof. Nirmal Jain, nakoda publication, Indor, 6th revised edition. 2. Economicdiscussion.net 3. Kalyancity life blog.com 4. Slideshare.com 5. Yourarticles.com.

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HR IN SERVICE SECTOR : CHANGES AND CHALLANGES

Mrs. A.P.Khandelwal

HOD Of Accounts & Statistics Dept & BBA

Shankarlal Khandelwal College, Akola.

This paper includes Introduction, HR in Service Sector , Importance of HR ,Changes in HRM ,Challenges for HR in service sector and conclusions.

Introduction Human resource is the process of bringing people and organizations together so that goals of each other met. Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper initiatives. IN the world of globalization Indian organizations are also witnessing a change in systems, management cultures and philosophy due to the global alignment of Indian organizations. There is need for multi skill development . Role of HRM is becoming more important. Importance of HR a) The Evolving Business Paradigm : One of the factors behind organizations giving a lot of attention to

their people is the nature of the firms in the current business environment. Given the fact that there has been a steady movement towards an economy based on services, it becomes important for firms engaged in the service sector to keep their employees motivated and productive. Even in the manufacturing and the traditional sectors, the need to remain competitive has meant that firms in these sectors deploy strategies that make effective use of their resources. This changed business landscape has come about as a result of a paradigm shift in the way businesses and firms view their employees as more than just resources and instead adopt a “people first” approach.

b) Strategic Management and HRM : As discussed in the articles on modern day HRM practices, there is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success. The aims of strategic management are to provide the organization with a sense of direction and a feeling of purpose. The days when the HR manager was concerned with administrative duties is over and the current HRM practices in many industries are taken as seriously as say, the marketing and production functions.

c) Importance of HRM for Organizational Success : The practice of HRM must be viewed through the prism of overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals. For instance, if the training needs of the employees are simply met with perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that the employees spend in training but also a loss of direction. Hence, the organization that takes its HRM policies seriously will ensure that training is based on focused and topical methods.

HR in Service Sector It is very important to give importance to HR for the development of the organization. It is backbone of all types of organization. It is necessary for the management to invest considerable time and amount, to learn the changing scenario of the HR Department in 21st century. In order to survive in today’s competitive world HR Department should consciously update itself with the transformation in HR and be aware of the HR issues cropping up. Driven by number of significant internal and external environmental forces HRM has

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progressed from a largely maintenance function, with little if any bottom line impact, to what many scholars and practitioners today regard as the source of sustained competitive advantage for organizations operating in a global economy. Changes in HRM: Some of the significant Changes that are likely to take place in the human resource management are as follows:

1. Increase in education levels - Due to technological progress and the spread of educational institutions workers will increasingly become aware of their higher level needs, managers will have to evolve appropriate policies and techniques to motivate the knowledge of the workers. Better educated and organized workforce will demand greater discretion and autonomy at the workplace.

2. Technological development - This is require retraining and midcareer training of both workers and managers. Rise of the international cooperation is proving new challenge for personnel function.

3. Changing composition of work force - Workforce includes man and women. As percentage of educated women increase the number of working women is also increases Manpower planning of every organization will have to take into consideration the potential availability of talent in their groups. Changing mix of the workforce will lead to new values in organization.

4. Occupational health and safety - Due to legislative presence and trade union movement will have to be more healthy and safety conscious in future.

5. Increasing government role: In India personnel management has become very legalized. In future private organization will have to coordinate their labour welfare programmes to support government efforts for improving public health, education training and development and infrastructure.

6. Organizational development - In future, change will have to be initited and managed to improve organizational effectiveness. Top management will become more actively in the development of human resources.

7. New work ethics - Greater forces will be on project and team forms of organization. As changing work ethics requires increasing emphasis on individual. Jobs will have to redesigned to provide challenge.

8. Development planning - Personnel management will be involved increasingly in organizational planning, structure, composition etc. Greater cost consciousness and profit orientations will be required on the part of the personnel department.

9. Better appraisal and reward systems - Organizations will be required to share gains of higher periodicity with workers more objective and result oriented systems of performance appraisal and performance linked compensation will have to be developed.

10. New personnel policies - New and better policies will be required for the workforce of the future. Traditional management will give way to professional management with greater forces on human dignity.

In future HR management will face new challenges and perform new responsibilities. Participative leadership will take place more importance. Creative skills will have to be redeveloped and rewarded emphasis will shift from legal and rule bound approach to more open and humanitarian approach. Safety and security measures will increases in future. Management will have to develop safety and security measures for the personnel management. Challenges for HR in service sector

1. Recruitment Planning :- Recruitment planning is most important component in new people management with special reference to Service industry. We have to deal with human assets so it becomes important and have good quality of people in the organization. We have to take the recruitment planning in very serious manner to ensure that we can get best talent in the organization.

2. Performance management :- Now the challenges how to manage the performance of your employees. You have to get right person in a organization to manage your business. The challenge



should be to create a performance culture where you can provide opportunities for enhance performance, where optimum performance becomes a way life.

3. Training and development :- This is another challenging area in service industry. We have to chalk out a suitable strategy for training & development so that employees are well equipped to handle the challenges in advance.

4. Compensation management :- The service industry is one of the high paying industry. This is very competitive industry, we have to attract best talent, offer best possible compensation package to the employees. But the really challenge should be how we are able to incorporate all the subsystems in HR. Ultimately this would help the organization for achieving exceptional performance. People have to be groomed to get in with the performance culture. We have to create an environment that stimulates the creation of knowledge; its sustenance will be the challenge for IT companies in the future. HR department cannot function with traditional systems. Now the role will shift to HR facilitator, to facilitate change process. HR facilitator will have to involve the whole organization in this process and act as a guide, coach, counselor and facilitator. The major issue for these companies to get right man for right job. We have to find person with the required skills, experiences, mind sets, and also he must be suitable for these organizations.

5. Attrition and Retention :- Service sector industries are having high degree of attrition. The challenges for these companies is to keep this attrition rate as low as possible. Various companies adopt different techniques to retain their employees like high pay packets, ESOP, other benefits. So we have to keep this attrition rate as low as possible to retain super achievers.

6. Retaining and engaging a changing workforce: As the demographic composition of the workforce changes, their motivations and expectations evolve too. It is imperative that HR understands what is most valued by these workers. Is it compensation, or prestige, or perhaps autonomy at work? In many cases, HR will have to adapt their incentives, benefits policies, and retention strategies for workers that are not just driven by financial compensation. It is not enough simply to recruit able staff. Companies have to make sure that their people are committed, productive, and do not leave after a short period, incurring substantial turnover costs and wasting all previous training invested in them.

7. Aligning technology best practices to global management strategy : In the last 20 years, new communication technology, such as email, mobile phones and web and videoconferencing has not only facilitated closer contact with clients in distant lands, it has allowed multinational companies to form cross-border teams, where colleagues can communicate with each other constantly, despite not being located in the same place. In short, technology has enabled the international expansion that companies seek. Saving on business travel and relocation costs for individual workers have been other major benefits. Virtual teams also significantly enlarge the pool of available knowledge. Individual team members can offer extensive experience with different markets and an understanding of geographically disparate customer demands and sensitivities. An overwhelming majority (83 percent) of executives in a 2014 Economist Intelligence Unit report agreed that a diverse workforce improves their company’s ability to capture and retain a diverse client base. Culturally diverse virtual teams also stimulate innovation and creativity. Groupthink—decision-making within a group, characterized by uncritical conformity—is more likely within a team composed of people from the same background.

8. Managing the risks of a global operation : Despite their clear benefits and growing importance, managing remote, cross-border teams presents management challenges that the corporate world is still learning to tackle. A 2009 Economist Intelligence Unit executive survey reported that one-third of virtual teams are thought to be badly managed. There are some obvious practical obstacles in running a virtual team. For example, all the members must feel comfortable using all the various communication technologies. Time differences can also complicate organization and co-ordination. Human interaction may be less smooth without face-to-face communication. Natural social bonds are more difficult to develop when people only meet virtually. This makes building an environment of trust and cooperation more problematic, resulting in regular misunderstandings. When disagreements do arise, the less frequent contact makes them harder to resolve.



Challenges for Human Resources in a Digital World With technologies evolving every day, human resources professionals are realizing that the fast-paced, ever-changing digital world impacts their jobs and workplaces — not only today, but in the future. As organizations and business leaders position themselves for the future, the following five workplace challenges will continue to change human resources. 1. Evaluating Early Adoption : Truth be told, HR is traditionally not known for early adoption. While some people will try all of the latest and greatest options, others will want to wait until platforms have been proven. Being on either extreme could be detrimental. It’s important to evaluate each and sometimes take a chance. 2. Balancing High Tech and High Touch : Being able to recognize the need for a technology solution will be a significant business advantage. HR will have to evaluate what functions can be automated and still provide desired levels of service. With increasing technologically advanced options, human resources professionals will be tasked to figure out when processes should be automated, versus when a human face or voice is the best route. 3. Information Curation : HR is experiencing a flood of information. It will be critical to have an effective means of filtering necessary and relevant information. The new term in the digital space is curation. For recruiters, the ability to sort through loads of information — including applications from various platforms and employment data — will be a skill worth honing. 4. Training for Accountability : Many of these challenges come down to being better communicators in order to effectively leverage the digital space. As such, HR needs to place a priority on management and leadership training to ensure line managers are able to effectively convey expectations and outcomes. 5. Metrics and Measurement : There’s no question that HR needs to create data structures that will deliver information on business goals not only to help the company understand their workforce, but also to optimize their talent-related processes. While many advances have been made in the human resources digital space, there are still new developments to look forward to. HR professionals will need to remain aware of these challenges and develop their own strategies to stay within the path of progress.

Conclusion The practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully. And this does not bode well for the success of the organization. Bibliography Human Resource Management by Robert L. Mathis, John H. Jackson

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Silicon India News, “Infosys has trained 100,000 graduates at Mysore campus,” May 31 2012. (http://www.siliconindia.com/news/technology/Infosys-Has-Trained-100000-Graduates-at-Mysore-Campus-nid-118218-cid-2.html). Gallup, “Worldwide, 13 per cent of employees are engaged at work,” Oct 8 2013. (http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx).

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http://mashable.com/2011/01/06/curation-tools/

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http://www.siliconindia.com/news/technology/Infosys-Has-Trained-100000-Graduates-at-Mysore-Campus-nid-118218-cid-2.html

http://www.siliconindia.com/news/technology/Infosys-Has-Trained-100000-Graduates-at-Mysore-Campus-nid-118218-cid-2.html

http://www.gallup.com/poll/165269/worldwide-employees-engaged-work.aspx



GROWTH AND DEVELOPMENT OF INDIAN TOURISM INDUSTRY

Satish G. Prasad Research scholar

ABSTRACT

The importance of tourism to economic development has been recognized widely due to its contribution to the balance of payments, GDP and employment. Since last few years, Indian tourism industry has been growing at a rapid pace and it has vast potential for generating employment and earning large amount of foreign exchange. So it is imperative to study the growth and development of Indian tourism industry. In the present paper the growth and development of Indian tourism industry has been studied. For this purpose, data has been collected from secondary sources such as Bureau of Immigration, Ministry of Tourism, Govt. of India and World Travel and Tourism Council. To analyze the collected data, Compound Annual Growth Rate (CAGR) has been calculated. Results showed that tourism is the largest service industry in India, with a contribution of US$34.008billion to the national GDP and 7.4 percent to the total employment in the year 2011. India witnessed more than 5 million annual foreign tourist arrivals and more than 740 million domestic tourist visits in the year 2011. Moreover, it is suggested that the central and state government should take initiatives to develop tourism in India.

Introduction

One of the chief reasons that government supports and promotes tourism throughout the world is that it has a positive impact upon economic growth and development (Ivanov and Webster, 2006). The growth of tourism in broad term refers to the gradual evolution of tourism which is considered to be a factor of the productivity for a country’s economy (Dritsakis, 2004).The first conscious and organized effort to promote tourism in India was made in 1945 when a committee was set up by the government of India under the chairmanship of Sir John Sergeant, educational adviser to the government of India (Krishna, 1993). Thereafter, the development of tourism was taken up in a planned manner in 1956 coinciding with the second five year plan. The sixth plan marked the beginning of a new era when tourism began to be considered as a major instrument for social integration and economic development (www.incredibleindia.com).A national policy on tourism was announced in 1982. Later on in 1988, the national committee on tourism formulated a comprehensive plan for achieving sustainable growth in tourism (www.ibef.org). In 1992, a national action plan was prepared and in 1996 the national strategy for promotion of tourism and in 1997, a new tourism policy was drafted. The policy has recognized the roles of central and state governments, public sector undertakings and the private sectors in the development of tourism (http://en.wikipedia.org/wiki/Tourism)

Tourism activities are considered to be one of the major sources of economic growth. It can be regarded as a mechanism of generating the employment as well as income in both formal and informal sectors (Khalil, 2007). Travel and tourism is the world’s largest industry and jobs creator across national and regional economies (Aliquah, 2010). The speedy growth of tourism causes an increase of household incomes and government revenues through multiplier effects, improvements in the balance of payments, and growth of the tourism industry (Kareishan, 2010). Travel and tourism has not only become one of the world’s largest industry but also grows consistently every year (Gupta and Gupta, 2007). The international tourist arrivals have shown an uninterrupted growth of 683.3 million in the year 2000 to 940 million in the year 2010. The international tourism receipts have increased from US$ 475.3 million in the year 1990 to US$ 919.0 million in the year 2010. Tourism industry is contributing 6.23 percent in the GDP of the country (WTO, 2010).India was ranked eleventh in the Asia pacific region regarding international tourist arrivals and 40th overall in the year 2010 (WTO, 2010). Indian tourism industry is expected to be the second largest employer in the world by 2019 (WTTC, 2009). Indian tourism industry is growing and it has vast potential for generating employment and earning large amount of foreign exchange.

http://en.wikipedia.org/wiki/Tourism



Conceptual Background The tourism and its effect on the economic activities had been discussed by various researchers

worldwide. Bahamni-oskooee and Alse (1993) studied the Korean tourism industry and concluded that economic expansion leads to economic growth. Kulendracan and Wilson (2000) observed a strong reciprocal relationship between international trade and international travel. Balaguer and Cantavella-Jorda (2002) studied the role of tourism’s long-run economic development. They confirmed that the tourism is an important tool for economic growth. Dritsakis (2004) showed that tourism has a long-run economic growth effect for Greece. Eugenio-Martin et al. (2004) investigated the relationship between tourism and economic growth for Latin American countries from 1985 to 1998. The findings indicated that tourism development can contribute to the economic growth of medium or low-income countries, while such a role is vague for developed countries. Guduz and Hatemi (2005) found empirical support for the tourism-led growth hypothesis in case of Turkey.Oh (2005) studied the Korean tourism and concluded that the increase in tourism income effects economic growth. Fayissa and Tadasee (2007) using a panel data of 42 African countries, concluded that receipts from tourism industry significantly contribute to economic growth of Sub-Saharan African countries. Lee and Chang (2008) found the unidirectional relationship running from tourism towards growth in case of OECD countries whereas a bidirectional causality relationship exists for non-OECD countries. These research papers presented the importance of tourism as a significant growth enhancing factor; but very few studies have highlighted that the tourism can lead economic growth in India. Thus there was a need to elicit the influence of tourism development on economic growth in India.

Objectives of the Study- Following are the specific objectives of the study:

1. To study the growth and development of tourism industry in India. 2. To study the contribution of tourism sector in GDP and employment in India. 3.

Data Base and Research Methodology For the data collection, secondary sources have been used such as websites of Ministry of Tourism

of India, Tourism Corporations, Bureau of Immigration, Govt. of India, World Tourism Organization (WTO), World Travel and Tourism Council (WTTC) and Annual reports of Tourism Ministry, India. Foreign tourist arrivals (FTAs) and Foreign exchange earnings (FEEs) data have been taken for the period of 21 years i.e. 1991 to 2011 from the website of World Tourism Organization. Data for the domestic and foreign tourists’ visits has been taken from Bureau of Immigration, Govt. of India. Data for GDP and employment has been taken from World Travel and Tourism Council (WTTC). Compound Annual Growth Rate (CAGR) has been calculated to analyze the data. The formula used for CAGR is as follows. CAGR: = ((End Value/Start Value) ^ (1/ (Periods - 1)) -1 Discussion and Analysis of Growth and Development of Tourism in India India is full of attractions so lots of tourists visit here. Table no. one presents the number of Foreign Tourists Arrivals (FTAs) in India during the period of 21 years i.e. 1991 through 2011 along with growth rates. Tourism in India has registered a significant growth in recent years. In May, 1992 the National Action Plan for tourism was announced to motivate private sector for their participation in the tourism sector. Moreover, the credit for the increase in foreign tourists’ arrival goes to the Planning Commission because it allotted funds for the development of tourism infrastructure during the eighth five year plan. There had been a remarkable growth from the year 2002 to 2005 in foreign tourist’s arrival due to the various efforts made by government of India including promoting India through the ‘Incredible India’ campaign in overseas markets which led to increase in tourism growth by about 65 percent during the period of three years i.e. from the level of 2.38 million in 2002 to 3.92 million in 2005.



Table 1: Foreign Tourists Arrivals (FTAs) in India, 1991-2011

Year

FTA in India (in Million)

% Change over the Previous Year

1991 1.67 -

1992 1.86 11.3

1993 1.76 -5.5

1994 1.88 6.9

1995 2.12 12.6

1996 2.29 7.7

1997 2.37 3.8

1998 2.36 -0.7

1999 2.48 5.2

2000 2.65 6.7

2001 2.54 -4.2

2002 2.38 -6.0

2003 2.73 14.3

2004 3.46 26.5

2005 3.92 13.3

2006 4.45 13.5

2007 5.08 14.3

2008 5.28 4.0

2009 5.16 -2.2

2010 5.77 11.8

2011 6.29 9.01

CAGR 6.85%

For the Indian tourism sector the year 2008-09 has been a year of challenge and response with a drop seen in number of foreign tourists due to impact of the global economic crisis, out broken of H1N1 influenza and terrorist attacks at Taj Hotel and other significant locations in Mumbai. Nevertheless Indian tourism sector outperformed the global growth of 2 percent in international tourists’ arrival in 2008. FTAs, in India during the year 2010 were 5.77 million with a growth rate of 11.8 percent as compared to the FTAs of 5.16 million and growth rate of -2.2 percent during the year 2009. The major reason for growth rate in foreign tourists’ arrival in the year 2010 was Commonwealth Games. The 9.01percent growth rate in FTAs for the year 2011 over the year 2009 for India is much better than World Tourism Organization (WTO)’s growth rate of 7 percent for the world during the same period. The compound annual growth rate (CAGR) in FTAs in India during the period 1991 through 2011 was 6.85 percent. Tourism is an important sector of Indian economy and contributes substantially in the country’s Foreign Exchange Earnings (FEEs) also. Table no. two depicts the foreign exchange earnings from tourism in India during the period 1991 through 2011 and also its growth rate over previous year. Table 2: Foreign Tourists Arrivals (FTAs) in India, 1991-2011

Year

FEE from Tourism in India (in US$ Million) % Change over the previous year

1991 1861 -

1992 2126 14.2

1993 2124 -0.1

1994 2272 7.0

1995 2583 13.7



1996 2832 9.6

1997 2889 2.0

1998 2948 2.0

1999 3009 2.1

2000 3460 15.0

2001 3198 -7.6

2002 3103 -3.0

2003 4463 43.8

2004 6170 38.2

2005 7493 21.4

2006 8634 15.2

2007 10729 24.3

2008 11747 9.5

2009 11394 -3.0

2010 14193 24.6

2011 1564 16.70

CAGR 11.55%

Source: WTO, 2011

The “Incredible India” campaign was one of the most successful campaign and its results were reflected in increase in the foreign exchange earnings (FEEs) also. As highlighted by the table no. two above, the international tourism receipts were stagnated around 3000 million before the launch of “Incredible India”. After its launch in 2002, results evidently show the significant growth in foreign exchange earnings. FEEs from tourism during the year 2010 were US$ 14193 million as compared to US$ 11394 million during the year 2009 and US $ 11747 million during the year 2008. The growth rate in FEEs in US$ terms during the year 2010 was 24.6 percent as compared to a decline of 3 percent in the year 2009 over the year 2008. But, there is decline in foreign exchange earnings in the year 2011. Thus, growth rate observed in the year 2010 was substantially high. The compound annual growth rate (CAGR) in FEEs in India during the period of 21 years i.e. from the year 1991 to 2011 was 11.55 percent. Table no. three presents the statistics of domestic and foreign tourists who visited India during the year 1991 to the year 2010. As seen from this table, there has been a continuous increasing trend in domestic tourist visits, with the compound annual growth rate (CAGR) of 13.50 percent. The foreign tourists’ visits too have been increasing over the years, though there was a negative growth in the year 1992 and in the year 2002. The foreign tourist visits to India during the year 1991 to the year 2011 witnessed a CAGR of 9.56 percent. Table 3: Domestic and Foreign Tourist Visits to India (Numbers), 1991-2010

Year No. of Tourists Annual Growth Rate

1991

Domestic Foreign Domestic Foreign

66670303 3146652 - -

1992 81455861 3095160 22.2 -1.6

1993 105811696 3541727 29.9 14.4

1994 127118655 4030216 20.1 13.8

1995 136643600 4641279 7.5 15.2

1996 140119672 5030342 2.5 8.4

1997 159877208 5500419 14.1 9.3

1998 168196000 5539704 5.2 3.7

1999 190671034 5832015 13.4 5.3



2000 220106911 5893542 15.4 1.1

2001 236469599 5436261 7.4 7.8

2002 269598028 5157518 14 -5.1

2003 309038335 6708479 14.6 30.1

2004 366267522 8360278 18.5 24.6

2005 392014270 9947524 7.0 19.0

2006 462321054 11738892 17.9 18.0

2007 526564478 13256637 13.9 12.9

2008 563034107 14380633 6.9 8.5

2009 668800482 14372300 18.8 -0.1

2010 740214297 17852777 10.7 24.2

CAGR 13.50% 9.56%

Source: WTO, 2011 In 1992, a national action plan was prepared which motivated major players of the tourism sector

to boost up tourism industry. After its implementation, there is much improvement in domestic as well as foreign tourists’ arrival. On 12 March 1993, a series of 13 bombs led to decline in tourism sector in the year 1994. The credit for increase in foreign as well as domestic tourists’ arrival in the year 1997 goes to New Tourism Policy which was framed and implemented strictly by Ministry of Tourism, India. The activities of bombings like Brahmaputra Mail train bombing in the year 1996; Coimbatore bombings in the year 1998; terrorist attack on Red Fort in the year 2000; Jammu and Kashmir legislative assembly attack in the year 2001 and attack on the parliament complex in New Delhi in the year 2001 affected the international tourist arrivals adversely in India. In order to increase the foreign tourist arrivals, Tourism Ministry and Government of India promoted the “Incredible India” campaign jointly in the year 2002. The reasons for decline in tourism in 2009 were incidents such as the Mumbai terror attacks, global financial recession, increased cost pressures and increased airfare. But, still the domestic tourists’ visits are at such a higher level compared to the international tourists’ visits. Apart from that, awareness level of the foreign tourists is in general higher as compared to the domestic tourists (Wikipedia, 2007). The year 2009 witnessed a growth of 18.8 percent in domestic tourist visits over the year 2008, which is higher than the growth of 6.9 percent in the year 2008 over the year 2007. During the year 2009, the visits by foreign tourists have shown a negative growth of 0.1 percent over the year 2008, as compared to an increase of 8.5 percent in the year 2008 over the year 2007. Table no. four presents direct and total contribution of travel and tourism industry in GDP of India.

Table 4: Domestic and Foreign Tourist Visits to India (Numbers), 1991-2010

Year

Total ontribution to GDP(US$

Billions)

Total Growth

(%)Direct Contribution To GDP(US$ Billions)

Direct Growth (%)

1991 36.871 2.2 10.568 0.4

1992 37.992 3 11.012 4.1

1993 36.445 -4 11.205 1.7

1994 42.267 15.9 12.469 11.2

1995 49.519 17.1 13.963 7.8

1996 52.544 6.1 15.064 6

1997 60.265 14.5 16.832 8.3

1998 62.804 4.31 17.858 6

1999 68.146 8.5 19.343 8.3

2000 74.332 9.0 21.828 12.8

2001 61.122 -7.7 17.923 -17.8

2002 72.443 18.5 21.453 19.6

2003 81.7 12.7 24.265 13.1



2004 87.154 6.6 25.331 4.3

2005 72.27 -17 22.346 -11..7

2006 73.015 1 25.169 12.6

2007 100.744 37.9 27.725 10.1

2008 68.171 -32.3 29.15 5.1

2009 67.288 -1.2 29.316 0.5

2010 73.312 8.9 31.283 6.7

2011 79.697 8.70 34.008 8.71

CAGR 3.92% 6.018%

Source: Bureau of Immigration, Govt. of India, 2010

Direct contribution to GDP means GDP generated by industries that deal directly with tourists, including hotels, travel agents, airlines and other passenger transport services, as well as the activities of restaurants and leisure industries that deal directly with tourists. It is equivalent to total internal travel and tourism spending within a country less the purchases made by those industries (including imports) (World Travel and Tourism Council, 2010). Total contribution to GDP means GDP generated directly by the travel and tourism industry plus its indirect and induced impacts (Tourism Satellite Account, 2010). Indirect contribution of tourism industry to GDP can be calculated by calculating the difference between total contribution and direct contribution. The total contribution of travel and tourism industry to GDP increased from US$36.871 billion in the year 1991 to US$79.697 billion in the year 2011. It was highest in the year 2007 i.e. 100.744 billion. Total real growth rate has been in the range from -32.3 percent to 37.9 percent during these 21 years. Direct contribution in GDP has been in the range from -17.8 percent to 19.6 percent. The compound annual growth rate (CAGR) of direct contribution of tourism industry to GDP was 6.018 percent whereas compound annual growth rate of total contribution to tourism was 3.92 percent in India during the year 1991 to the year 2011, which clearly reflects the contribution of the travel and tourism industry. Tourism sector also plays an important role in creating job opportunities both in direct and indirect ways. The Indian government seeks to develop the employment in the tourism sector by setting development plans and international collaborations. Table no. five presents the total and direct contribution of travel and tourism industry to the employment. Direct contribution to employment means the number of direct jobs within the Travel and Tourism industry. Total contribution to employment means the number of jobs generated directly in the Travel & Tourism industry plus the indirect and induced contributions. Table five shows that total contribution of travel and tourism industry to employment has been increased from 37404.3(000) to 37654.7 (000) from the year 1990 to the year 2011. It was highest in the year 2004 i.e. 48739.3(000). Total real growth rate has been in the range from -19.2 percent to 16.6 percent during these 21 years. The reason for high real growth in direct job opportunities was the investment made by central government in hospitality sector, airlines and other passenger transportation services in the year 2000. On the other hand in the year 2001, government invested only in induced and indirect activities to motivate the tourism sector and ignore the investment in direct job opportunities due to lack of finance (Planning commission, 2007). The collaboration with international players e.g. Action Plan on tourism cooperation between India and Singapore in 2009, Action Plan between India and Russia in 2008 and collaboration of India and Indonesia in hospitality sector raises the direct job opportunities in the year 2006. The direct contribution of travel and tourism industry to the employment increased from 15265.1(000) to 24931.3(000) from the year 1990 to 2011. The direct contribution of travel and tourism industry to employment was highest in the year 2000 with 23.1 percent share in Indian economy. Total real growth rate has been in the range from -15.1 percent to 23.1 percent during these 21 years The CAGR in direct job opportunities was 2.48 percent whereas CAGR in total job opportunities was 0.03 percent in India during 1991 to 2011. Conclusions and Suggestions Tourism is one of the key sectors of the Indian economy leading the international trade in services and representing the leading income activity for many regions. Tourism industry in India is growing and it has



vast potential for generating employment and earning large amount of foreign exchange too besides giving a support to the country’s overall economic and social development. Tourism in India should be developed in such a way that it accommodates and entertains visitors in a way that is minimally intrusive or destructive to the environment. Moreover, since tourism is a multi-dimensional activity, and basically a service industry, it would be necessary that all wings of the Central and State governments, private sector and voluntary organizations become active partners in the endeavor to attain sustainable growth in tourism if India is to become a world player in the tourism industry. The events like Commonwealth Games and Cricket World Cup have contributed a lot to promote tourism in India. A policy implication which may be drawn from this study is that India can improve its economic growth performance by strategically harnessing the contribution of the tourism industry and improving their governance performance. Since tourism is an important engine of local development, it is necessary to increase domestic tourism too in order to have more decentralization of local development caused by such activity. References • Aliquah, K. M. and Al-rfou, A.M. (2010). Analytical Study for Tourism Sector and its Effects on Jordanian Economy during the Period (1970-1989). European Journal of Economics, Finance and Administrative Sciences, 18, 1-8. • Bahmani-Oskooee, M. and Alse, J. (1993). Export Growth and Economic Growth: An Application of Co integration and Error Correction Modeling. Journal of Developing Areas, 2(4), 535–542. • Balaguer, J. and Cantavella-Jorda, M. (2002). Tourism as a Long-Run Economic Growth Factor: The Spanish Case. Applied Economics, 34, 877–884. • Dritsakis, N. (2004). Tourism as a Long-run Economic Growth Factor: An Empirical Investigation for Greece. Tourism Economics, 10(3), 305-316. • Eugenio-Martin, J. L., Morales, N.M. and Scarpa, R. (2004). Tourism and Economic Growth in Latin American Countries: A Panel Data Approach. Social Science Research, Network Electronic Paper. No.26, Retrieved fromC:\downloads\#hl=en&biw=1362&b ih=512&q=Tourism+and+Economic+Growth+in+Latin+American+Countrie+Data+ Approach”,+&aq=&aqi=&aql=&oq=&fp=71e61a034e6361f.htm. • Fayissa, B. and Tadasse, B. (2007). The Impact of Tourism on Economic Growth and Development in Africa. Middle Tennessee State University. Department of Economics and Finance. Working Paper Series, No. 16. Retrieved from http://frank.mtsu.edu/~berc/ working/TourismAfricawp.pdf • Gunduz, L. and Hatemi-J, A. (2005). Is the Tourism-Led Growth Hypothesis Valid for Turkey?. Applied Economics Letters, 1(8), 499-504. • Gupta, D. and Gupta, D.D. (2007). Adoption and Use of ICT in Indian Tourism: Interventions for the top tourist destination of India. Paper presented in Conference on tourism in India, IIMK, 15-17May., Retrieved from http://dspace.iimk.ac.in/ bitstream/2259/538/1/65-74.pdf. • Ivanov, S. and Webster, C. (2006). Measuring the impacts of Tourism on Economic Growth. Tourism Economics, 13(3), 379-388. • Khalil S., Mehmood K.K., and Waliullah (2007). Role of Tourism in Economic Growth Empirical Evidence from Pakistan Economy. The Pakistan Development Review, 46(4), 985-995. • Kreishan, F. M. (2010). Tourism and Economic Growth: The case of Jordan. European journal of social sciences, 15 (2), 1-6. • Krishna, A.G. (1993). Case study on the Effects of Tourism on Culture and the Environment. Retrieved from http://unesdoc.unesco.org/images/0012/001216/121600eo.pdf. • Kulendran, N. and Wilson, K. (2000). Is there a Relationship between International Trade and International Travel?. Applied Economics, 32 (8), 1001–1009. • Lee, C. and Chang, C. (2008). Tourism Development and Economic Growth: A Closer Look at Panels. Tourism Management, 29(1), 180-192. • Oh, C. (2005). The Contribution of Tourism Development to Economic Growth in the Korean Economy. Tourism Management, 26(1), 39-44. • Planning Commission Report, India. 2007. • Tourism Satellite Account, World Tourism and Travel council, India. 2010. • UNWTO Tourism Highlights. (2009). Retrieved from http://mkt.unwto.org/en/content/ tourism-highlights • World Tourism Organization (2009), “News from the World Tourism Organization”, Retrieved from http://www.world-tourism.

http://frank.mtsu.edu/~berc/

http://dspace.iimk.ac.in/

http://mkt.unwto.org/en/content/

http://www.world-tourism/



Websites consulted • www.journeymart.com/de/india.aspx • www.tourism.gov.inwww.ibef.org • www.incredibleindia.org • www:en.wikipedia.org/wiki/Tourism • www.gdrc.org/uem/eco-tour/envi/index.html • www.//tourism.gov.in/statistics/statistics.htm • www.wttc.org/eng/Tourism_Research/ • www.tourisminindia.com/ • www.india-tourism.net/ • www.unwto.org/facts/eng/highlights.htm • www.ibef.org.com

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“ROLE OF INDUSTRIES IN THE MAKE IN INDIA”

Mayur D. Raut Student, Prerna Institute Of Commerce, Amravati Run By Prerna Vidhaymandir Trust,

Harshal P. Kale Student, Prerna Institute Of Commerce, Amravati Run By (Prerna Vidhaymandir Trust,

Abstract This paper explores the importance of make in India theme. As we know that India has uncountable potential and skill human resources still it is very difficult for us to become develop nation. Make in India program initiated by the current government of India. This study helps in knowing needs and importance of current working policy as well as how government trying to become develop country. Key words: -Economic development. Employment, FDI, Skill

Introduction Economic development of any nation is totally depends on industries. Industries play an important role in the Indian Economy. Without industries, economic development is not possible. A growing industrial sector is crucial to greater economic development and takes in a number of areas as a country develops. Ensuring steady industrial growth helps to compliment and sustain continued economic development. A well developed industrial sector, covering various different areas is vital to the economic development of a country. With a variety of different industrial sectors that feed off each other, a well balanced industrial sector is at the centre of economic development. With a strong industrial base, economic planning becomes less risky, being able to plan ahead also assists industrial growth with profits re-invested into infrastructure development which in turn helps to boost and attract industry. In a backward and developing economy like India, industries are indispensable. Development of industries is not only indispensable for India, but there is also good scope for the development of industries in India. India has many favorable factors for the development of industries. Business are the growth, drives of the economics of the country the employ people, provide income to the working population buy resources, sell product, brings innovation generate foreign capital, fulfill our daily necessities etc. business can be multinational, national, or domestic scale and employee people of all skill set (in full time and part time or contractual position) this generates employment at all levels across the country. Businesses also generate indirect employment in term of people engaged in raw material production that business need and also those involve in selling this product large scale business import and export raw material ,product and services and generates foreign exchange for the economy. In a competitive market , businesses create innovation and novelty and also provide entrepreneur opportunity. All this (and other associated activities) drive the economic of a country. Objectives of the study

1. To study of impact of make in India theme in the development of Industrial areas. 2. To highlights the policy. 3. To Identify the sectors on which more focused have been given.

Research Methodology

Research Type: Descriptive Research Type of Data/Data Source used: Secondary Data/Data source. The present study is based on secondary data. Basically, the required information has been derived from Articles from Newspapers, Magazines and Journals, and

From the various related web-sites which deal directly or indirectly with the topics related to FDI and Indian retail sector. After searching the important web-sites, relevant information was down loaded and analyzed to address the objectives of present study.

Limitations of the study



1. The study is based on published data and information. No primary data is being collected.

2. Every care has been taken to entice qualitative and correct data; still secondary data have collected for the purposes other than problem at hand.

3. Secondary data may be lacking in accuracy, or they may not be completely current or dependable.

4. Time constraint remained the major limitation in the study

5. Before using secondary data, it is important to evaluate them on above mentioned factors. So, it consumes the same time as the primary data.

How industries improve or help in the development of Indian Economy condition. But first will see meaning of Industry. Meaning of Industry. The production side of business activity is referred as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products.The products are consumer's goods as well as producer's goods. Consumer goods are goods, which are used finally by consumers. E.g. Food grains, textiles, cosmetics, VCR, etc. Producer's goods are the goods used by manufacturers for producing some other goods. E.g. Machinery, tools, equipments, etc. Expansion of trade and commerce depends on industrial growth. It represents the supply side of market. Make in India is an initiative of the Government of India to encourage multinational, as well as domestic, companies to manufacture their products in India. It was launched by Prime Minister Narendra Modi on 25 September 2014. India would emerge, after initiation of the program in 2015, as the top destination globally for foreign direct investment, surpassing China as well as the United States. The major objective behind the initiative is to focus on job creation and skill enhancement in twenty-five sectors of the economy. The initiative also aims at high quality standards and minimising the impact on the environment. The initiative hopes to attract capital and technological investment in India. 100% FDI is permitted in all the above sectors, except for space (74%), defence (49%) and news media (26%) The Prime Minister called for all those associated with the campaign, especially the entrepreneurs and the corporates, to step and discharge their duties as Indian nationals by First Developing India and for investors to endow the country with foreign direct investments. The Prime Minister also promised that his administration would aid the investors by making India a pleasant experience and that his government considered overall development of the nation an article of faith rather than a political agenda. He also laid a robust foundation for his vision of a technology-savvy Digital India as complementary to Make In India. He stressed on the employment generation and poverty alleviation that would inevitably accompany the success of this campaign. Policy adopted by Government of India. The Indian Government has brought about various changes in its standing policies to encourage the MAKE IN INDIA program. These changes are in form of New Initiatives, increased FDI, improved IPR apparatus and a robust infrastructure for Manufacturing. New Initiatives 1. Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis through eBiz portal. 2. Validity of Industrial license extended to three years. 3. Major components of Defence products’ list excluded from industrial licensing. 4. Dual use items having military as well as civilian applications deregulated. 5. Services of all Central Govt. Departments & Ministries will be integrated with the eBiz – a single window IT platform for services by 31 Dec. 2014. 6. Process of obtaining environmental clearances made online. 7. All returns should be filed on-line through a unified form. 8. A check-list of required compliances should be placed on Ministry’s/Department’s web portal. Foreign Direct Investment

https://en.wikipedia.org/wiki/Government_of_India

https://en.wikipedia.org/wiki/Multinational_corporation

https://en.wikipedia.org/wiki/India

https://en.wikipedia.org/wiki/Prime_Minister_of_India

https://en.wikipedia.org/wiki/Narendra_Modi

https://en.wikipedia.org/wiki/Foreign_direct_investment

https://en.wikipedia.org/wiki/China

https://en.wikipedia.org/wiki/United_States

https://en.wikipedia.org/wiki/Space_industry

https://en.wikipedia.org/wiki/Defence_industry

https://en.wikipedia.org/wiki/Media_of_India



1. 100% FDI allowed in the telecom sector. 2.100% FDI in single-brand retail. 3. FDI in commodity exchanges, stock exchanges & depositories, power exchanges, petroleum refining by PSUs, courier services under the government route has now been brought under the automatic route. 4. Removal of restriction in tea plantation sector. 5. FDI limit raised to 74% in credit information & 100% in asset reconstruction companies. 6. FDI limit of 26% in defence sector raised to 49% under Government approval route. Foreign Portfolio Investment up to 24% permitted under automatic route. FDI beyond 49% is also allowed on a case to case basis with the approval of Cabinet Committee on Security. 7. Construction, operation and maintenance of specified activities of Railway sector opened to 100% foreign direct investment under automatic route. Advantages of Investing in Industry Sector. 1. Make in India scheme will create large scale employment opportunities to low skill workforce since majority of workforce in India are low skilled. 2. India is hugely dependent on FDI to keep the economy positive. Make in India scheme will attract more FDI to revitalize Indian economy. 3. Any manufacturing hub needs supply of parts which is boon for SME’s. Make in India will help to generate indirect employment through SME’s. 4. Manufacturing sector helps to reduce India’s trade deficit through exports. 5. India is the largest consumer market. Any company investing in India under Make in India initiative will directly get access to huge market of 125 Cr people. 6. Job Creation, Enforcement to Secondary and Tertiary sector, boosting national economy. 7. Converting the India to a self-reliant country and to give the Indian economy global recognition. Conclusion India is a country where will get huge amount of potential, which can be helpful in the development of Indian economy but due to old and improper investment policy creating hurdles in the development. There is need of reforms in industrial strategies to make India a manufacturing hub. Favorable industrial framework need to be established that should attract more and more domestic as well as foreign industrialists towards Indian Territory. This study both empirically and rationally explained the patterns through which India can become a manufacturing hub. Favorable investment climate, assistance of financial services, relax and industry favorable government policies are the essential ingredients of “MAKE IN INDIA” For the achievement of these objectives make in India theme play crucial role. It helps Indian economy to become a developed economy. References:- 1. JRA – Global journal for research analysis, Volume 4, issue 9, Sep. 2015, make in India – Scheme for transforme India. Author: - S. Soundhariya 2. ISOR – Journal and business management (ISOP) Volume 17 issue 2 Feb. 2015, p.p 20-24. 3. WWW. Make in India.com. 4. WWW.Slideshared.net.

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FOREIGN DIRECT INVESTMENT IMPACT ON INDIAN ECONOMY

Sagar P. Pawar. Student

Prerna Institute Of Commerce, Amt. Run By Prerna Vidhaymandir Trust.

Kajal L.Kadu. Student

Rerna Institute Of Commerce, Amt. Run By Prerna Vidhaymandir Trust.

Bhavana S.Sambhare. Student

Prerna Institute Of Commerce, Amt. Run By Prerna Vidhaymandir Trust.

ABSTRACT Foreign direct investment is an important indicator of development of every nation. It plays crucially role for raising productivity through mobilising of financial resources, technology and innovative and improved management techniques with proper use of funds. India is a country who gets maximum FDI either through automatic route or government route. So, this research paper tries to focus on role of FDI in Development of Indian economy, as it concentrates on factors like increase in GDP and employment. Foreign Direct Investment is one and only major instrument of attracting International Economic Integration in any economy. It serves as a link between investment and saving. Many developing countries like India, are facing the deficit of savings. This problem can be solved with the help of Foreign Direct Investment. Foreign investment helps in reducing the defect of BOP. The flow of foreign investment is a profit making industry like insurance, real estate and business services and serving as a catalyst for the growth of economy in India. This study explores the important, need and role of fdi in the development process. Key Words:- Foreign Direct Investment,[ GDP] Gross Domestic Product, Foreign indirect investment, Balance of Payment ,Employment. INTRODUCTION FDI in different sectors helped India to attain a financial stability and economic growth. FDI has boosted investment in various sectors of India. It helps in upliftment of the economic life of Indians. Foreign investment plays a significant role in development of any economy as like India. Many countries provide many incentives for attracting the foreign direct investment (FDI). Need of FDI depends on saving and investment rate in any country. Foreign Direct investment act as a bridge to fulfil the gap between investment and saving. In the process of economic development foreign capital helps to cover the domestic saving constraint and provide access to the superior technology that promote efficiency and productivity of the existing production capacity and generate new production opportunity. OBJECT:-

1) To know the requirement of amount of foreign investment by India, for its economic Development. 2) To focus on FDI inflow in India. 3) To understand the need for FDI in India. 4) To evaluate the impact of FDI on the Indian economy. 5) To know the flow of investment in India 6) To discuss the FDI policy framework in India

IMPACT ON ECONOMY Farmers The one of the current problem of Indian economic is fiscal deficit which is mostly caused by subsidy give to the farmers which is considered as unproductive. The one way to cut such subsidy is to make the farmers independent by making the system securing them to be paid good price for the commodity. The organized retailers that are capital gain are able to purchase directly from the farmers paying good price. So the government should be ensuring that the farmers are getting paid the price of what they are eligible to.



Infrastructure The players are imposed with the restriction of investing 50% of their investment on the Back end infrastructure. The ruling party in India where the economic development is suffered by lack of infrastructure is very cautious about to invest in such area. It would become base for economic in many ways, say transportation. Distribution The distribution system is one of the factors determining the cost of the product. As they are invested in the infrastructure, they could follow JIT. Say Wal-Mart, they are not interested in expending in the stock maintenance. Inflation Inflation is the unruly one which is challenge to the country where the price sensitive people are. The scale of economy, capital and large turnover are the base by which the lower prices are offered to the consumer. The entries of multinational players lead to healthy competition that lowers the price then inflation consequently. Food wastage With the poverty in one side, the wastage of food is on another side in the same country. It requires the effective distribution system to avoid food wastage. With the good back infrastructure , they can able to serve the goods in an optimization way. GDP The decline in the GDP mainly due to the agriculture sector is making the economist worry more. The FDI in retail would improve the GDP by, economist say 0.5%. The booming industry that has potential capacity would contribute the GDP higher. Employment The more employment would be created in the country either directly or indirectly where youth pass out is increasing as much as creation of employment. It would be generated in the agriculture, manufacturing, service industry which consists of GDP. The more people get employed would rehabilitate the economic cycle. Consumers The ultimate beneficiary from the opening of FDI in multi brand retail is consumer. They are left to choose the retail that would give them goods at lesser price. The more middle income people living in India are preferred to have shopping more modern in lesser cost. Retail Industry Allowing FDI in multi brand retail would infuse the new blood into the industry that has Potential . Foreign players that are competitive oriented would implement new strategy. CONCLUSION India’s Foreign Direct Investment (FDI) policy has been gradually liberalised to make the market more investor friendly. The results have been encouraging. For Indian economy which has tremendous potential, FDI has had a positive Impact . FDI inflow supplements domestic capital, as well as technology and skills of existing companies. It also helps to establish new companies. All of these contribute To economic growth of the Indian Economy. It can be observed from the above analysis that at the sect oral level of the Indian economy, FDI has helped to raise the output, productivity and employment in some sectors especially in service sector. Indian service sector is generating the proper employment options for skilled worker with high perks. On the other side banking and insurance sector help in providing the strength to the Indian economic condition and develop the foreign exchange system in country. So, we can conclude that FDI is always helps to create employment in the country and also support the small scale industries also and helps country to put an impression on the world wide level through liberalization and globalization. REFERENCES: www.abhinavjournal.com www.jimms.in www.fdi.com

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http://www.abhinavjournal.com/

http://www.jimms.in/

http://www.fdi.com/



“ROLE OF COMMERCE IN ECONOMIC DEVELOPMENT”

Arti P. Patre Student, K. L. College, Amravati.

Abstract India is the country where we found huge amount of scope for businesses. The present Indian economy is not only depending on agricultural but also on business as well as industries. For the development of Indian economy there is need for many companies, industries and business. Commerce play crucial role in the development of businesses. Without commerce businesses are unable to work. In other word’s we say commerce is the life blood of Business as well as Indian economy. This study explores the needs and role of commerce in the development process. This also described how commerce is significant. Introduction Commerce is plays very important role in economy. Commerce is helpful to producer, consumer, and common people also. Economic is the branch of social science commerce is plays the crucial role in social science like production, distribution, and other activities. Commerce functions as the central mechanism which drives capitalisms and certain other economic systems. It helps to division of trade or production which deals with exchange of goods and services all this factor help to development if industry is developed then employment is also increased and people get the income for satisfying their needs and they can increased their standardization automatically that people is developed if one person is developed so its helps to development of society and society is small part of nation when society is developednation is also developed it increase our economic developed. so it proves that commerce is directly related with the economy Every business activity performed some important role in economic development and every activity has its own identity.fore.g. banking activity its help to saving and provide loan to businessman and common people. Commerce is a branch of business. It is concerned with the exchange of goods and services. It includes all those activities, which directly or indirectly facilitate that exchange. Commerce looks after the distribution aspects of the business. Whatever is produced it must be consumed, to facilitate this consumption there must be a proper distribution channel. Here comes the need for commerce which is concerned with the smooth buying and selling of goods and services. Commerce is the activity of buying and selling of goods and services, especially on a large scale. The system includes legal, economic, and social. Objectives of the study

1. To identify the role of commerce in the development process. 2. To check the recent prospective of commerce. 3. To make the awareness of commerce. 4. To study relationship between Economy and Commerce.

Scope of the Study 1. This study helps to researcher and professional. It will also useful for the knowing relationship between economy and commerce. Academician will get idea and meaning of commerce that will it is essential for the development of any economy.

Research methodology Research Design Research Type:-Descriptive research. Data collection: - This study total based on the secondary data. This have been selected from various sources. These are as follow

Articles, Journal, Books, Websites.



Limitation:- This study based on the secondary data, may be collected data have some inaccuracy. Important of commerce 1. Commerce tries to satisfy increasing human wants:-Human wants are unlimited it can divided in two parts ‘basic wants’ and ‘secondary wants.Commerce is help to distribute the goods from one place to another. And anything can be produced in anywhere in the world by using these consumer can satisfy their needs. 2. Commerce help to increase our standard living: - standard of living refers to quality of the enjoyed by the member of a society. Commerce helps to the consumer for getting any goods at time and anywhere. That means its help increase their standard of living. 3. Commerce links between producer and consumer: - production is the activity which performed by producer and its help to consumer for satisfying their wants but there is long process between them so firstly that goods transfer from producer to wholesaler then retailer and lastly is consumer producer can produce goods as per the like and dislike of customer by using marketing research.so it is process which create contact between producer and consumer. 4.Commerce generates employment opportunities:-there are some agency of commerce like warehousing, transporting, banking, advertising etc. its helpful for the business for increasing production and when production is increasing so needs of employment also increasing and automatically employment opportunities 5. Commerce increase national income and wealth:-when production increases then national income is also increase. Ina developed country, manufacturing industries and commerce together accounts for nearly 80% of total national income. When national income is increase its help to increase the foreign exchange and we can easily earn income from foreign also. 6. Commerce helps in expansion of aids to trade: - with the growth in trade and commerce there is growing need of expansion and modernization of aids and trade. Aids and trade like banking, communication, advertising and publicity, transport, and insurance.This all facility is help to increase the modernization and globalization. 7. Commerce help to growth of industry: - commerce is helpful for industry for transporting there services and goods from one place to another and also help to getting the raw materials and other services. Commerce is providing the guideline for taking any decision related to production. 8. Commerce encourages international trade:-through the commerce producer can easily distribute their goods and services. By selling their goods to foreign they can earn foreign surplus and it’s useful for importing machinery from other country so it help to encourage international trade. 9. Commerce developed under developed countries:- backward areas are not developed because they are not get the services by using this facility of commerce they can do production and satisfy their needs completely. Underdeveloped countries can import skilled labour and technical know-how from developed countries. 10. Commerce helps during emergencies: - During emergencies like floods, earthquakes and wars, commerce provides the goods and medicine and satisfies their needs and relief that people from affected areas. Conclusion Development of Economy there is need of commerce, without commerce development business as well as economic is not possible. Commerce provides every essential factor which is helpful for our development and our economic development. Mobilization and globalization is also important for economic development and commerce provide standardization to production and society its helps to globalise our society and when society is developed so automatically our economic condition of nation is also developed. Commerce is helpful for businessman for performing business activity and provides guidance to government for taking decision related to development of any sector of our economic and right decision as well as timely decision needful for development. “Commerce is the life blood of business as well as Indian economy.”



References:-

1. http://en.m.wikipedia.org. 2. Blogspot.com. 3. http://googleweblight.com 4. www.preservearticles.com 5. IOSR journal and business and management(ISOR-JBM), Volume 17, Issue 2. Ver,IV (Feb,2015), PP

20-24.

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http://en.m.wikipedia.org/

http://googleweblight.com/

http://www.preservearticles.com/



“HEALTHY FOOD CONSUMER PRODUCTS: HIGH TIME FOR ESSENTIAL ACCOUNTABILITY!”


About the Author- Dr.Hemant Bonde Patil, Director, Dr.HBPIMR, Amravati, Ex. Associate Professor with the Vidya Bharati Mahavidyalaya, was awarded a Ph.D. (Management Science) as a result of his research related with Business Management. He has a Masters in Political Science with International Relations as an area of specialization and PG bachelors in Mass Communications and Journalism. Besides his academic qualifications he has a rich experience of teaching and research at various institutions of repute. His research work has been well acclaimed not only at the national but also at the international level.

Introduction & Base: Namaskar! Once born human beings need food to nourish them. The mother feeds herself and then breast feeds the infant child who starts to grow, walk, talk, run, speak and learn new things. But since birth one thing that every human being needs is food that not only satisfies hunger but also gives proper nourishment in form of essentials like carbohydrates, proteins, minerals, vitamins, fiber and many other ingredients that maintain the body and senses right. Food plays an important role like fuel and hence becomes a primary need for which human beings need to work.

In the ancient age human beings used to hunt for food and eat it raw like animals. As times changed they discovered the method to light up a fire and also cook it. In the later times the learnt the art of cultivation and produce different food materials like fruits, grains, pulses and also animal products like milk, meat, poultry and fish. Depending on the environment and avaiblity lifestyles were designed and the development of the art of making food got significance. Society was formed and the social norms gave in to culture, language and ways of life. Yes! Food plays a very important part in lives of our humans.

As humans discovered new lands and cultures thereof this art was exchanged into different forms and every religion had its own setup that reflects ways of life supporting healthy diets to support one`s mind and body. But, then every part of the world cannot be same as the weather and land composition differs so trade became inevitable leading to an international level. As growth of population was witnessed the need to produce more and more was evident and that gave birth to development of new varieties of food grains and hybrid animal varieties that support this need. New Jersey, USA developed a cattle form that gave ample of rich content milk and became popularly worldwide. Soon methods of artificial breeding were derived in every of animal and birds that were traditionally used as food materials. Methods of socializing were full of preparation of time consuming ways of cooking food with no other entertainment around. Everywhere in marriage ceremonies, funerals, birthday celebrations or whatever the occasion food played an important role.

Today lives of people have become so fast that the William Wordsworth`s poem Solitary Reaper`s first stanza fits into our lives, what is this life full of care, we have no time to stand and stare. But one thing that has never changed is we need food and need it fast. So Fast Food was derived that could be prepared instantly suiting our lifestyles. This gave way to a revolution of food and corporate started looking at it as a high consumer opportunity. European companies started to enter in the fray with bakery materials, biscuits, bread, sandwiches, cookies started to be displayed in events. One after another new ideas were invented to suit the time and became extreme popular.

Soon shortage of raw materials like right grains, vegetables, milk, eggs and meat was faced. At the primary stage use of insecticides and chemical fertilizers started being used to improve the yield and agricultural production. In the same way nutrients were injected into animals to get better results. But the birth of biotechnology and genetic engineering gave way to a boost like never before. The purpose was to create a nonstop flow of raw materials required by the population. We in India also witnessed this with silence s the traditional Jawar grains changed into hybrid giving amazing yield. In the same way `Operation Flood` encouraged the production of milk making India the highest producer of Milk Products in the world with



only three states Gujarat, Haryana and Maharashtra giving equals of the world. The operation also supported poultry and new English variety of Layers & Cockerels entered the markets removing the traditional gawran ones. Production of Eggs was taken up with zeal and in time reached peak. Government adveritises like dudh dudh dudh and Sunday ho ya Monday roz khaao Ande became popular and the result was very much desirable, healthy population.

The third world developed international community is very health conscious. On the other side the developing and underdeveloped communities could not control the process. And suddenly with nations like our own very dear India use of unhealthy methods became the rule of the day. Estrogen injections of high value were injected into the cattle increasing milk production which then went into the population unknowingly creating health hazards. In the same way poultry started using injections of aging and fattening chemicals. The hybrid grains, pulses and vegetables were also fed chemical fertilizers and sprayed insecticides and consumed by the masses without any control. All this led to even early aging, breast growth in men, hair loss, wrinkles and low immunity and many other psychological disorders in the population that consumed it at very high rate.

Recently the finding of high level Lead in Maggi nodules suddenly became an eye opener whatever reasons it surfaced. We have reached an era where we cannot just neglect dietary conduct of the population and need to make our business houses accountable in using such materials that prove to be a health hazard. Diseases like Chicken Gunia, Swine Flu and many others are a result of low immunity of the large size population. This also gives way to mental disorders, family and social strife, disputes, violence and even crimes and suicides.

Conclusion:

Food material is a primary need of population of any nation across the globe. It’s the responsibility of the corporate world as well as the government to ethically deal with such matters that are concerned to the well being of the population. Just profit making should never be the prime object of these business houses rather they should have a holistic approach. Moreover the population should be educated in ways of identifying the appropriate diet styles and usage even if they do not have time for the same.

Suggestions:

Recently Sikkim was declared and awarded with an organic statehood status showing the amazing spirit of clean ways of life. We need to realize importance of methods of controlling misuse of technology to earn profit and encourage minimum use of chemicals that are proving to be hazardous to not only the environment but also the population. The government should set examples and standards to be followed and accountability in the same maintained. With this we cannot only serve our own population but also freely export our food products which are very popular in the third world developed nations generating foreign exchange that helps our economy and brings healthy smiles!

Jai Hind! Jai Bharat!

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“PROBLEMS: MAHARASHTRA CO – OPERATIVE SUGAR FACTORY.”

Rutuja R. Ghurde Student, Prerna Institute Of Commerce Amt. Run By ,Prerna Vidhaymanir Trust

Vaishnavi S. Deshpande Student, Prerna Institute Of Commerce Amt. Run

By ,Prerna Vidhaymanir Trust.

Abstract- Sugar industry occupies an important position on the industrial map of the state of Maharashtra. These factories played a major role in the socio-economic development of rural areas in Maharashtra. The growth of various urban centres is helping to solve the problem of unemployment by providing employment in the growing industries and business. In this investigation primary and secondary data are used. This paper explores problems of M.S. sugar factory. Introduction The human society is the best example of co – operation and co-operation first build the society while other manage it. The co-operative movement is well encouraged in Maharashtra due to efforts taken by Mahatma Phule and Rajarshi Shahu Maharaj. The co –operation is the only way to achieve the prosperity for Indian economy, it is well understood by Mahatma Gandhi. The first sugar co – operative factory was set up by late Padmashree Vithalrao Vikhe Patil as well as support also given by Late Vaikunth Mehta and Prof. Dhananjay Rao Gadgil for establishing sugar factory in Maharashtra. This co – operative acts as a changed agent. It made tremendous changes in the lives of millions of villages. This also promoted and gave support to roads, educations and even culture of rural area. Sugar factory is the third largest Indian industry, next only to the iron and steel and cotton mill industry. In all over India approximately it has more than 250units with capital investment of over Rs. 600 crores. But now in present time it suffering from many problems and these problems related to management. It is not only income generating machine or sugar producing machinery but they are biggest employers. In 2005 to 2006 near about there were 173 sugar factories are registered under the Maharashtra state co – operative act and among them 90% or more than 90% factories were co – operative sugar factories and these are located/situated at different place, some of are in western Maharashtra, Marathwada and Vidharbha. More than 50% situated in western Maharashtra and these units have given great contribution in the development of western Maharashtra. Near about 25 to 30 million people, 1.7 million employees and 4 to 5 million labours directly related to these factory for their live hood. We are in the age of technology. In this age all industries should adopt modern technology and improve management system. Hence, there is requirement of technology. It is the national and social need that the management of sugar co – operative should be improved by accepting modern technology. The development of rural Maharashtra mainly depend on the progress and survival of sugar co – operatives and it is possible through efficient management. As earlier we said that these societies has many problems and all these related to management like negligence of farmers, improper management, untrained manpower, lack of transparency, fraud, malpractices and corruption etc. these all problems affect the working condition of the Maharashtra sugar co – operative. It adopt computer system but due to insufficient research and development, it has not accepted by industries. Today, world in highly competitive world. In this world survival is not easy, for the successful survival it has to manage information. Management of information refers to collection of data, delivery of highly qualitative information to the decision maker at the right time and keep past and present information carefully for future this possible through information technology and organisation have to make use of information technology.



Meaning The co – operative sugar factories is a voluntary association that are promoted by the members, for the members, operating on co – operative principles. As we known, Indian economy is the agricultural economy. Sugar industry is the second largest agro based industry in India. It has great contribution of India GDP. It play pivotal role in catering requirement of sugar not only in India but also across the world. The annual price paid for sugarcane by the sugar factories approximately 15000 crore per year. It annual turnover is Rs 25000 crore. Objectives of the study

1. To identify the problems of Maharashtra state sugar factory. 2. To check the history of sugar factory. 3. To check the production capacity of sugar factory and compare with other sugar factories.

Research methodology Research type: - Descriptive research Data Collection: - This study based on the secondary data. This information has been collected from different sources. These are as under Journal, Articles, Books,

Limitations:- 1. This study based on secondary data. 2. There may some changes. 3. This study have done in very short period of time.

Problems:- 1. Problems of supply of sugarcane: - The sugar industry faced problem of irregular supply of cane. The supply of sugarcane is fluctuating in nature and price also not stable. This will result poor performance of sugar factories. 2. High cost production:- It is another major issue or problem of sugar industry. The cost of production of sugar industry is very high. India is very backward in the production of sugarcane per acre. It produce approximately 19.6 tonnes sugarcane as against 80.9 tonnes in Hawail, 39 tonnes in U.A.R and 30 tonnes in Indonesia. The quality of Indian sugarcane is very low. So, it required lot much investment for producing high quality of sugar. 3. Lack of technology:- Sugar industry has old technology. Due to lack of new technology and modernisation, it has to suffer from various problems like: - low production, low quality and high cost of production etc. This will affect the growth of sugar industries in Maharashtra. 4. Lack of professionals on the management:- Today globalisation occupied significant place in every economy whether it is developed, developing and underdeveloped. Globalisation is the mother of cut throw competition. In this situation effective management is very essential. Improper management born various problem in the factories. In Maharashtra sugar factories has no command on management. Management of these factories is in hand of semiliterate farmers and lead by politicians. These politicians take undue advantages as well as encourage malpractices and misappropriation. This will lead to mismanagement of factories. Sugar factory considered second largest agro based sector. It has huge resource like men, material, machine and money etc. It is the responsibility of management to take optimum utilisation of available resources. 5. Low per capital consumption:- In India the per capita consumption of sugar is only 16.3 kg as to compare to USA, its consumption rate is 48.8 kg., 53.6 kg in U.K. and 79.2 kg. In Cuba. This means in India the demand is very low and creates problems in the sale of sugar.



6. Delay in decision – making:- The management of sugar co – operative industry based or work on co – operative principle. In the decision – making process there is involvement of large numbers of people so it take lot much time for taking decision. 7. Problem of price crash:- Today, the price of sugarcane is more than the price of sugar. This delay payment of farmers because sugar producers mills suffering losses and take more time in the payment of sugarcane farmers. Then, sugarcane planting go down. Hence, farmers will be unable to supply sugarcane timely. It will create problem of shortage. 8. Small and uneconomic units:- In India there are large number of units are small and uneconomic in size. The average capacity of daily crushing near about 1000 to 1500 tonnes per day. But as compare to other countries Maharashtra capacity is very low. 1050 tones in Brazil, 2086 tonnes in Mexico, 1370 tonnes in Argentina etc. The India sugar productivity team and the Gunda Rao Committee and Sen Committee has recommended to expand capacity of existing units to achieve better productivity as well as economy of size. Findings

The co-operative sugar factory is established in a rural setting it becomes possible for the organization to help generate various ancillary activities for the benefit of local farmers and other member of rural society. Sugar co-operative provides the basis for organization other economic activities such as modern poultries, dairies, irrigation schemes, banks, goober gas plants, better breeding of cows and many other such activities which contribute largely to the betterment of the economic conditions not only of the farmers but also landless labourers and other people in the area. The factory also establishes school, heath centers for medical facilities with modern hospitals and dispensaries and organizes various cultural and sports activities. A considerable amount is set apart by many co-operative factories to make the life of the local inhabitants more purposeful and meaningful. Thus diversification of production activities leads to a process of rural industrialization which also is employment generating.

SUGGESTIONS

1. Support price of sugarcane should be fixed so as to stabilize sugarcane production.

2. The experience is that it is the prices of Gur and Khandsari, and not sugar, which determine how much area would be planted under sugarcane crop.

3. Another area of consideration is greater corporatisation of the industry.

4. To compensate for the losses incurred by growers the sugar factories.

5. Lack of optimum utilization of by-products needs attention because it would not only help ion reduction of cost of production but also improve the economic status of the sugarcane growers.

6.The co-operative sugar factories should give more attention on the professional management, new techniques in administration, to produce the by-products, cogeneration projects, increase efficiency of workers, control on corruption, increase market competitiveness, away from politics, instant decision making etc.

Conclusion:-

In the development of economy it plays crucial role. Specially, co-operative sugar factory has given contribution in the development of rural areas. In this study we found that M.S. co-operative sugar factory have huge amount of capacity but to lack of facilities as well as improper management the full capacity is not utilizing.



Reference:- 1.International Journal of Agriculture Sciences, ISSN: 0975-3710 & E-ISSN: 0975–9107, Volume 4, Issue 1, 2012, pp-168-171, ROLE OF CO-OPERATIVE SUGAR FACTORIES IN RURAL DEVELOPMENT : A CASE STUDY OF DAMAJI SUGAR FACTORY, MANGALWEDA. 2. Ram Vichar Sinha (1998), ‘Sugar Industry in India’, Deep and Deep Publication New Delhi. 3. RESEARCH FRONT, ISSN (Print) 2320 – 6446, (Online) 2320 – 8341, MAHARASHTRA SUGAR INDUSTRY: PROBLEMS AND PROSPECTS, Vinod Pawar Assistant Professor, A.S.S. Mahavidyalay, Medha, Dist – Satara (MS), Dr. S. B. Zodage Associate Professor, Chhatrapati Shivaji College, Satara (Maharashtra). 4. Munich Personal RePEc Archive, The Role of Cooperative Societies in Economic Development, Dogarawa Ahmad Bello, Ahmadu Bello University, Zaria-Nigeria.

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CO – OPERATIVE BANK: NEEDS, ROLE AND IMPORTANCE

Ruchita D. Thakare Student, Prerna Institute Of Commerce, Run By Prerna Vidhaymandir Trust, Amravati.

Pooja D. Shyamsunder Student, Prerna Institute Of Commerce , Run By Prerna Vidhaymandir Trust, Amravati.

Abstract Development of economy is all about development of societies. It required sufficient amount of capital. In India rural areas suffering from lack of financial support, in such case co-operative bank banks plays crucial role in the development of economy condition because it makes available required finance to needy sectors. This paper explores the needs, importance and Deficiency of co – operative Banks so reader will get ideas that where these banks are lacking. This study also explained needs and important of these banks. Introduction Finance is the backbone of any business or activity. Without it no one can performed any task. Specially, more credit required in rural areas. In such condition co – operative Banks play significant role in the development of rural areas. Co – operative Banks is indicate in its name that it is a financial institution, formed by some members for eliminating profit of Banker and money lenders. It has much more important in India than anywhere else in the world. The prime object behind establishment of co – operative banks is to protect interest of rural areas poorer section people and make available credit at cheaper rate of interest.In rural areas, as far as the agricultural and related activities are concerned, the supply of credit was inadequate, and poor people exploited by the moneylender as well as getting credit at high rate of interest. So, co – operative Bank mobilize deposit and offered agricultural credit with a wider outreach and provide institutional credit to the farmers. It is also an important instrument in introducing various schemes, like subsidy for the poorer section. Co – operative banks assist or finance agricultural based activity like – Farming, Cattle, Milk, etc. This banks also finance in urban areas for purpose of 1) Self – employment, 2) small – scale unit, 3) industries, 4) home finance, 5) Consumer finance, 6) Personal finance.These Banks generally provides wide range of banking services to its members like – loans, deposit, banking account etc. Here, one essential thing is co – operative Banks is differ from stockholder Banks in terms of organization, their goals, value and governance etc.specially, co – operative banks work for the benefits of the Agricultural sector. Origin of Co –operative Banking For solving problems of Indian Economy as well as Agricultural Sector, co – operative movement had took placed and felt need of those organization which can help in the development of the country. Origin of co – operative Banking movement can be found out near 19th century, after getting successful result of co – operative movement in Britain and credit co – operative movement in Germany, such society formed in India. The first Agricultural Credit co – operative Act was passed in the year 1904. Under this Act, many co – operative societies were formed. But this Act was restricted so by passing new Act, 1912, co – operative Banks set up for meeting increasing demand of credit. Now, co – operative movement In India well established. The first co – operative Act, passed in the year 1904. In 1914 the Maclagen Committee suggested three tier structure of co – operative banking viz. Primary Agricultural Credit Societies at root level, Central co – operative Bank at District Level and State Co – operative Bank at state level or Apex Level. The Co – operative Bank came in existence in India in the beginning of 20th century. It is considered that in India the Anyonya Co – operative Banks is the first co – operative bank in Asia which was formed nearly 100 years back in India.It was established in 1889 with the name of AnyonyaSahayakariMandali Co – operative Bank limited, its primary objective was to provide alternative source of finance and rescue from moneylender exploitation for Baroda’s residents.



Area of Operation 1. Co – operative Banks performed all general function of Bank like – accepting deposit, lending loans and remittance facility etc. 2. Co – operative banks is a part of Indian money market and Capital Market. 3. Co – operative Banks offer limited banking products and services, it mainly work for the benefits of agricultural sectors. Now, it is also providing home loan. Thus, in the year 1915 Maclagen committee suggested that there Apex body at every state of the nation. This Apex body have been established in every state, it will assist or make available finance to Central co – operative banks, on the other hand central co – operative banks provide financial assistance to the Primary Agricultural credit societies. Apex body means state co – operative Banks bear entire responsibility of management, it supervise and monitor work of other tire of banking structure. It also suggest State Government that for smooth functioning, which rule and regulation or Act should imposed. In such way system of co – operative banks works. Objectives of co – operative Bank 1) To make available credit: - The first or prime objective of co – operative bank is to make available loan at concessional rate of interest for the productive purpose. It enable small farmers and workers to work more and more by offering loans against personal security. 2) To Supervises or monitor: - It is also essential objective of co – operative banks, it supervises activity of borrowers that they are using loans for which it was granted. 3) To Mobilisation of funds: - As we know, wants are unlimited but resources i.e. finance are limited. Co – operative banks carefully lends or invest funds and sanction loans only those person who real wants. It give first priority to agricultural sector. 4) To rescue poor person :-Formally, there were not sufficient financial institution in India due to this almost all rural people or weaker section person were taking loan/advance from moneylender at high rate of interest, moneylender was taking undue advantage. Therefore, like other objectives of co – operative bank it is also essential objective. Objectives of the study

1. To know the concept of co-operative sector 2. To check the role of co-operative banks 3. To check the functions of co-operative banks 4. To identify the problems of co-operative banks

Research Methodology Research Type: - Descriptive research Data collection: - Data collected from the secondary sources.

Articles, journal, Books and news paper. Scope of the study

1. Research and professional will get help. 2. Academicians and students will also get information about co-operative banks. 3. Co-operative banks can also their problems. 4. Co-operatives banks will get ideas about the weakness as well as this study enables them to find

out the solutions. Limitations

1. This study mainly depends on the secondary data. 2. There can be some variation in the secondary data.

Types of Co – operative Banks State Co – operative Banks In the year 1915 Maclagen committee suggested three tier structure of co – operative Banks. State Co – operative Banks are the apex body or main body or they are at the top in the three – tire structure. It offer short – term and medium term credit. It is principal body in a state which is registered under the societies Act, 1912. Its primary objectives is make available or provide finance facilities of the other co – operative societies which are affiliated to it. State Co – operative Bank accept deposit from members, non –



member’s general public and other local authorities etc. They also get financial support or receive loans from the RBI, NABARD. The core function of state co – operative banks is to assist the central co – operative banks. It also acts as intermediaries between RBI and Central Co – operative Banks and primary Agricultural Credit Societies. It provides credit to central co – operative banks. There is no direct connection between state co – operative bank and primary agricultural credit societies, central co – operative banks acts as an intermediary between two these banks. Due to Apex body state co – operative bank supervises or monitored each and every activity of central co – operative banks. Formally, individuals were also purchased the shares of state co – operative banks. But now this practice has been stopped central co – operative banks and the state government subscribe to the share capital of state co – operative banks. As earlier said, central co – operative banks do not deal directly. It sanctioned or gave loans to central co – operative banks and it sanctioned or gave loans to primary agricultural creditsocieties and these societies lend the funds to the ultimate borrower, state co – operative bank provide loans, cash credit and overdraft facility to tis members. There is certain limit or restriction is fixed for each central co – operative banks, that upto this limit it can borrow from state co – operative banks. State co – operative bank lend short – term loans for a period of less than one year or 12th months and medium - term loans for a period of less than 3 years. Functions of State Co – operative Bank 1) To acts as an intermediary: - State Co – operative Bank is the apex bank of the co – operative structure. It acts as an intermediary between the central co – operative bank and the money market. It borrow money from money market and make available to central co – operative bank. State co – operative bank has to bear big responsibility because it has to meet the financial requirement of central co – operative bank. 2) Acts as balancing centre: - It is another essential function of state co – operative bank. It has to maintain continuity in the supply of credit in the state. For this purpose it has to maintain balance among all central co – operative banks. State Co – operative bank collect excess funds from those central co – operative banks which have excessive funds and lend this amount to those central co – operative banks who suffer from financial deficiency. 3)To acts as advisor and Guide: - The state co – operative bank has power to check and inspects the working of central co – operative bank. Time to time is also give guidance and assist as and when necessary. 4) Keep watch on borrowers: - State co – operative bank provide short term and medium term loans to borrowers. Co -operative sugar factory, industrial co – operative society, central co – operative banks and primary co – operative banks etc. required loans for the medium period and this requirement cater by the state co – operative banks. After lending credit to these societies, state co –operative bank watch that they are using loans only for those purpose for which they have borrowed. It provide time to time guidance and try to stop misuse of advance. It also appoint any eligible person to audit its affiliated societies and eliminate fraud etc. 5) Supervisory function: -State Co – operative Bank is the top bank in the structure. This bank act for central co –operative bank. It lend loans, it assist at the time of emergency, it keep watch on the working of central co –operative bank. It provide guidance such types of responsibility has to perform by state co – operative bank. State co – operative bank visit time to time at central co – operative bank. It check all the transactions which have been done by this societies. It go through various transaction and record that how much loans landed and to whom? How much investment made by bank? And in which form. If any central co – operative banks avoided or does not follow any rules and regulation so in this case they will not get any financial support to central co – operative bank will stop to supply of credit. 6) To supply funds :- The rural areas small farmers and other weaker section of poorer people take credit from primary agricultural credit societies, which it has to fulfil but due to inadequate finance this societies are not able to meet the requirement of needy person. For catering need of funds it borrowed from central co – operative bank. But many time this bank also unable to lend sufficient funds. Therefore, central co – operative bank take credit form state co – operative bank or apex body and lend to primary credit societies.



And these societies, in turn, lend the funds to the ultimate borrower i.e. famers, workers and furniture makers etc. Thus, in this way apex body supply funds to its affiliated societies. 7) To maintain co – ordination :- In the state there are various co – operative societies are working like – consumer co – operative societies, industrial co – operative societies, co – operative banks and producers co – operative societies etc. Such types of many co – operative banks and societies are in the state. The main reason behind encouragement of co – operative movement is to develop rural areas and meet their financial and non – financial demand for achieving this object co – ordination is very essential. Without co – ordination development is not possible. Therefore, it is the responsibility of the state co – operative bank to maintain or bring co – ordination among all these societies and work in right direction. 8) Advise to state Government: -Apex body of co – operative bank is the representative of other co – operative banks like – central co – operative banks and primary societies. It suggestand assist to state government in designing plans and rules for the development in the rural areas. It also helps in the implementation of various Act and regulations. Problems/Defects of State Co – operative Banks 1) Inadequate funds: - State Co – operative bank raised capital/funds by issuing share and accepting deposit etc. In the state there is huge demand for finance. In comparison of demand state co – operative bank does not has sufficient finance. So, it borrowed advance from state Government and NABARD for fulfilment of financial need. 2) Defective lending policy: - State Co – operative bank has defective lending method. In reality, while lending loans to Central Co – operative Banks, apex bank must go through from financial position as well as to check repaying capacity of central co – operative banks but without consider it lend credit to central co – operative banks. In many time, while demanding loans these banks do not present or tell reality of its financial position. So, it become very difficult task to the State Co – operative Bank i.e. Apex Body to fixed credit limit. 3) Timely Recoveryproblem: - The loans/ credit made by apex body to the central co – operative banks posed serious problem of recovery. Due tono timely recovery of loans affect the working of state co – operative banks. It will be not in a position to achieve its goals successfully. 4) Lack of management :- It is necessary to keep control on the working of central co – operative banks but according to all India rural committee survey report stated that due to lack of skilful or train manpower state co – operative bank has no control over the working of central co – operative banks.This create various deficiency in the employee’s work of apex body because state co – operative bank has no sufficient train manpower. On the other hand it will encourage malpractices, dishonesty and efficient management within the central co – operative banks. 5) Improper Investment policy: - The investment policy of state co – operative bank is not well planned. While investing money in various sector state co – operative bank don’t consider risk factors. In many time, it lend loans to central co – operative banks under the political pressure, without considering financial position of central co – operative banks or other co – operative societies so it also create overdue situation. Central Co – operative Banks Central Co – operative Bank e middle tier of co – operative credit institution. It acts as an intermediaries between state co – operative bank and primary agricultural credit societies. State Co – operative bank is the apex body so it has power to control or supervise their affairs. Central Co – operative Bank work at district level. The Standing Advisory Committee on Agricultural Credit of the RBI (1952) stated that there should be only one central co – operative bank at every district. All India Rural Credit Survey Committee also agreed with the suggestion given by S.A.C.on A. But, still in some state there is more than one central co – operative societies. Share capital consists of the shares purchased by individual member, by state government and by primary agricultural credit societies. It can get loans from the state co – operative bank and the RBI. Central co – operative bank received funds in form of saving, current, recurring and fixed deposits from individual as well as primary co – operative societies. It is compulsory to this bank to create a statutory reserve fund



out of it profit. Central co – operative bank lend money to its affiliated societies or member societies for short term and medium term period against the security of land, fixed deposits, gold, houses, life insurance policy etc. It granted loans upto certain limit for each member societies. The rate of interest is 3%. This income bank used to meet the operational expenses or distribute surplus in form of dividend on share capital or build up the reserve funds. Functions of Central Co – operative Bank 1) To act as an intermediary: - Central Co – operative bank is in at middle stage of co – operative credit institution. State co – operative bank do not deal directly with primary societies. Central co – operative bank act as the connecting state co – operative bank and primary societies. 2) To act as a guide: - Central co – operative bank has power to control the working of the primary societies. It also provide guidance of its member societies. 3) Accepting deposit: - Like commercial banks, central co – operative banks accepted deposits from general public. It opened its various branches at rural areas and lend amount of deposits for the development of rural areas. It accept various kinds of deposit like – current, saving and fixed deposits etc. On such types of deposit it offer high rate of interest. 4) Lending loans: - District Central Co – operative Banks provided loans to its member societies. This bank offer loans only for a period of short – term and medium term. It never offer loans for a long period because NABARD provide loans for a long period. This banks provide medium term loans for the production purpose. It means farmers can purchased seeds, equipment for the agricultural purpose. 5) Expansion of branch: - Central Co – operative Bank has main office at district place. But for maintaining contact and relationship with them, it is necessary to open branches at every place of district. For effective working as well as smooth functioning central co – operative bank has to open branches, it indicate that bank is at development stage. Therefore, it is another essential function of central co – operative bank. 6) Act as a balancing centre: -central co – operative bank has to maintain balance between all the co – operative banks. Central co – operative bank collect excess funds, from those, who has and distribute them, who does not has or suffer from inadequate funds. Thus, for smooth functioning this function perform by the central co – operative banks. Problems/Limitation and defects of Central Co – operative Banks 1) InadequateCapital: - District central co – operative bank suffer from inadequate financial facilities. It does not has its own capital that’s why central co – operative banks cannot discharged its functions effectively. 2) Complex lending process: - Primary societies take long time for sanctioning loans to tis members/borrowers because it has to send all documents to central co – operative bank for taking approval but central co – operative bank required lot much time for the inspection and investigation of the documents. So, borrowers have to wait for the order of central co – operative bank. 3) Delay in sanction: - After complete investing and inspection it also take long period of time. Because at every stage of inspection it put many reasons and due to this problem it get late. 4) Delay in repayment: - It is major issue in front of central co – operative bank. Members/borrowers do not pay advance at right time. Central co – operative bank have to take strict action against this problem. But, not timely recovery or delay in repayment affect the working condition of central co – operative bank. 5) Political interference: - Unnecessary political interference influenced growth or development of the central co – operative bank. It encourage felling of selfishness, fraud and malpractices. This will decline performance of central co – operative bank. 6) Lack of proper management: - The management of central co – operative bank is not proper. It is management policy is not well organised. It does not has train or skilful manpower. There is lack of managerial skill among staff and employees. This will result poor performance of central co – operative bank. 7) It is not possible to retain every transaction. Maintaining proper books of accounts is the best solution for every problems. But it is the biggest problem of central co – operative bank. It has not maintained proper books of accounts. As a result, there is scope for manipulation and malpractices etc.



NOTE: - Development of Indian Economy depends on an every aspects of the country. With the development of urban areas, development of rural area is very important for the country point of view. Indian economy is agricultural economy because in India more than 65% people unemployment depends on the agricultural sector or agricultural related activity. For development of agricultural sector there is requirement of sufficient finance. Co – operative banks play very crucial role in the meeting of this requirement. But it has some defect/limitations and problems, which creates difficulties in the smooth functioning of co – operative banks. For removing these difficulties, there are some suggestion for the development of co – operative banks. These are as below; 1. The all co – operative banks should go for the modern banking system like internet banking, credit cards, ATM, etc. 2.The banks should plan to introduce new schemes for attracting new customers and satisfying the present ones. 3. The co – operative banks go for the expansion of its branches. 4. The co – operative banks give more customer service satisfaction and cater their all needs. 5. Appoint skilful employees and train and development them. 6.Adopt well organised investment plans for its customers. 7. Connect link with nationalised banks. 8. Maintaining proper books of accounts. 9. While lending loans give first priority to agricultural sectors and its related activity. 10. Proper communication among all co – operative banks i.e. Apex body, central co – operative banks and primary agricultural credit societies. 11. Timely inspection, audit and investigation of co – operative banks. 12. Develop co – operative movement. 13. Make simple and easy lending process and sanction loans after checking financial positions and repaying capacity of borrowers. 14. to channelized or mobilized or to take optimum utilisation of deposits. Conclusion:- Rural areas mainly depend on the finance. Commerce or private banks are not in the position to provide sufficient amount of finance. In such case co-operative banks plays crucial role in the development of rural areas. Therefore, government of India should take imitative and give more and more attention on the development of co-operative banks. Reference:- 1.International Journal of Agriculture Sciences, ISSN: 0975-3710 & E-ISSN: 0975–9107, Volume 4, Issue 1, 2012, pp-168-171, ROLE OF CO-OPERATIVE SUGAR FACTORIES IN RURAL DEVELOPMENT : A CASE STUDY OF DAMAJI SUGAR FACTORY, MANGALWEDA.

2. Ram Vichar Sinha (1998), ‘Sugar Industry in India’, Deep and Deep Publication New Delhi.

3. RESEARCH FRONT, ISSN (Print) 2320 – 6446, (Online) 2320 – 8341, MAHARASHTRA SUGAR INDUSTRY: PROBLEMS AND PROSPECTS, Vinod Pawar Assistant Professor, A.S.S. Mahavidyalay, Medha, Dist – Satara (MS), Dr. S. B. Zodage Associate Professor, Chhatrapati Shivaji College, Satara (Maharashtra).

4. Munich Personal RePEc Archive, The Role of Cooperative Societies in

Economic Development, Dogarawa Ahmad Bello, Ahmadu Bello University, Zaria-Nigeria.

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“PROBLEMS OF AGRICULTURE SECTORS: WITH REFERENCE TO VIDHARBAH.”

Tejaswini J. Kansule Student,Prernainstitude Of Commerce, Run By Prerna Vidhyamandir Trust, Amravati.

Abstract Agriculture is the main element of Indian economy. In the present era approximately 60% population depends on the agriculture and agricultural related business. Government of India should give more attention towards the development of Indian agriculture sector because its contribution in the GDP is decreasing. This study explores the problems of Indian agriculture as well as explained remedies for solving agriculture problems. Introduction:- Agriculture, the backbone of Indian economy, contributes to the overall economics growth of the country and determines the standard of life for more than 50% of the Indian population. Agriculture contributes only about 14% to the overall GDP but its impact is felt in the manufacturing sector as well as the service sector as the rural population has become a significant consumer of goods and services in the last couple of decades. The relationship between agriculture and economic development, this issue has been in controversy. The econometric model analysis in the case of China for the year 1952-2007 shows that there has always been a positive relation between agricultural and economic growth. Agriculture makes a contribution to economy growth. We conclude: (1) although the share of agriculture in GDP has declined significantly over time, the contribution of agricultural growth has maintained an upward trend with the elimination of the price index and it has made an important market, foreign exchange, factor, output contributions to nonagricultural growth and then it remains an irreplaceable driving force for economic growth; (2) economic growth strongly does not necessarily need a higher GDP growth rate in the agricultural sector. China should and have strength to enter the stage of industry nurturing agriculture. Enhancing agricultural contributions needs to continue to encourage the transfer of rural labor, raise the level of consumption of rural residents, encourage export and increase farmers' income so that the national economy develops rapidly and orderly. Objectives of agriculture sector: The overall objective of agriculture sector is to increase growth, sustainability and equity by raising agriculture output and to increase rural incomes, particularly for the poor . morespecifically ,the objectives in the agriculture sector are to; Raise domestic food production through improvement in input supply, increased farmer awareness and greater availability of agriculture credit. Lead efforts to fight poverty in the rural community through higher income to farmers and increased rural employment. Preservation of the environment and natural resources, and activating the role of community participation to ensure sustainability. Improve marketing efficiency and decrease post-harvest losses and development of exporting capacities. Some of the major problems and their possible solutions have been explain as follows:

Seeds: Seed is a critical and basic input for attaining higher crop yields and sustained growth in agricultural production. Distribution of assured quality seed is as critical as the production of such seeds. Unfortunately, good quality seeds are out of reach of the majority of farmers, especially small and marginal farmers mainly because of exorbitant prices of better seeds. In order to solve this problem, the Government of India established the National Seeds Corporation (NSC) in 1963 and the State Farmers Corporation of India (SFCI) in 1969. Thirteen State Seed Corporations (SSCs) were also established to augment the supply of improved seeds to the farmers.High Yielding Variety



Programme (HYVP) was launched in 1966-67 as a major thrust plan to increase the production of food grains in the country. The Indian seed industry had exhibited impressive growth in the past and is expected to provide further potential for growth in agricultural production: The role of seed industry is not only to produce adequate quantity of quality seeds but also to achieve varietal diversity to suit various agro-climatic zones of the country. The policy statements are designed towards making available to the Indian farmer, adequate quantities of seed of superior quality at the appropriate time and place and at an affordable price so as to meet the country’s food and nutritional security goals. Indian seeds programme largely adheres to limited generation system for seed multiplication. The system recognizes three kinds of generation, namely breeder, foundation and certified seeds. Breeder seed is the basic seed and first stage in seed production. Foundation seed is the second stage in seed production chain and is the progeny of breeder seed. Certified seed is the ultimate stage in seed production chain and is the progeny of foundation seed. Production of breeder and foundation seeds and certified seeds distribution has gone up at an annual average rate of 3.4 per cent, 7.5 per cent and 9.5 per cent respectively, between 2001-02 and 2005-06). Irrigation: Although India is the second largest irrigated country of the world after China, only one-third of the cropped area is under irrigation. Irrigation is the most important agricultural input in a tropical monsoon country like India where rainfall is uncertain, unreliable and erratic India cannot achieve sustained progress in agriculture unless and until more than half of the cropped area is brought under assured irrigation. This is testified by the success story of agricultural progress in Punjab Haryana and western part of Uttar Pradesh where over half of the cropped area is under irrigation! Large tracts still await irrigation to boost the agricultural output. Manures, Fertilizers and Biocides: Indian soils have been used for growing crops over thousands of years without caring much for replenishing. This has led to depletion and exhaustion of soils resulting in their low productivity. The average yields of almost all the crops are among the lowest in the world. This is a serious problem which can be solved by using more manures and fertilizers. Manures and fertilizers play the same role in relation to soils as good food in relation to body. Just as a well-nourished body is capable of doing any good job, a well-nourished soil is capable of giving good yields. It has been estimated that about 70 per cent of growth in agricultural production can be attributed to increased fertilizer application. Thus increase in the consumption of fertilizers is a barometer of agricultural prosperity. However, there are practical difficulties in providing sufficient manures and fertilizers in all parts of a country of India’s dimensions inhabited by poor peasants. Cow dung provides the best manure to the soils. But its use as such is limited because much of cow dung is used as kitchen fuel in the shape of dung cakes. Reduction in the supply of fire wood and increasing demand for fuel in the rural areas due to increase in population has further complicated the problem. Chemical fertilizers are costly and are often beyond the reach of the poor farmers. The fertilizer problem is, therefore, both acute and complex. It has been felt that organic manures are essential for keeping the soil in good health. The country has a potential of 650 million tonnes of rural and 160 lakh tonnes of urban compost which is not fully utilized at present. The utilization of this potential will solve the twin problem of disposal of waste and providing manure to the soil. The government has given high incentive especially in the form of heavy subsidy for using chemical fertilizers. There was practically no use of chemical fertilizers at the time of Independence As a result of initiative by the government and due to change in the attitude of some progressive farmers, the consumption of fertilizers increased tremendously.



Lack of mechanization: In spite of the large scale mechanization of agriculture in some parts of the country, most of the agricultural operations in larger parts are carried on by human hand using simple and conventional tools and implements like wooden plough, sickle, etc. Little or no use of machines is made in ploughing, sowing, irrigating, thinning and pruning, weeding, harvesting threshing and transporting the crops. This is specially the case with small and marginal farmers. It results in huge wastage of human labor and in low yields per capita labor force some progress has been made for mechanizing agriculture in India after Independence. Need for mechanization was specially felt with the advent of Green Revolution in 1960s. Strategies and programs have been directed towards replacement of traditional and inefficient implements by improved ones, enabling the farmer to own tractors, power tillers, harvesters and other machines. Inadequate storage facilities: Storage facilities in the rural areas are either totally absent or grossly inadequate. Under such conditions the farmers are compelled to sell their produce immediately after the harvest at the prevailing market prices which are bound to be low. Such distress sale deprives the farmers of their legitimate income. At present there are number of agencies engaged in warehousing and storage activities. The Food Corporation of India (F.C.I.), the Central Warehousing Corporation (C.W.C.) and State Warehousing Corporation are among the principal agencies engaged in this task. These agencies help in building up buffer stock, which can be used in the hour of need. The Central Government is also implementing the scheme for establishment of national Grid of Rural God owns since 1979-80. Scarcity of capital: Agriculture is an important industry and like all other industries it also requires capital. The role of capital input is becoming more and more important with the advancement of farm technology. Since the agriculturists’ capital is locked up in his lands and stocks, he is obliged to borrow money for stimulating the tempo of agricultural production. The main suppliers of money to the farmer are the money-lenders, traders and commission agents who charge high rate of interest and purchase the agricultural produce at very low price. All India Rural Credit Survey Committee showed that in 1950-51 the share of money lenders stood at as high as 68.6 per cent of the total rural credit and in 1975-76 their share declined to 43 per cent of the credit needs of the farmers. This shows that the money lender is losing ground but is still the single largest contributor of agricultural credit. Rural credit scenario has undergone a significant change and institutional agencies such as Central Cooperative Banks, State Cooperative Banks, Commercial Banks, Cooperative Credit Agencies and some Government Agencies are extending loans to farmers on easy terms. Inadequate transport: One of the main handicaps with Indian agriculture is the lack of cheap and efficient means of transportation. Even at present there are lakhs of villages which are not well connected with main roads or with market centers. Most roads in the rural areas are bullock- cart roads and become useless in the rainy season. Under these circumstances the farmers cannot carry their produce to the main market and are forced to sell it in the local market at low price. Linking each village by metalled road is a gigantic task and it needs huge sums of money to complete this task. References:

1) E-Business and E-Government (ICEE), 2010 International Conference on 7-9 May 2010 Page(s): 5315 - 5318 Print ISBN:978-0-7695-3997-3 INSPEC Accession Number:11562376

2) Copyright © 2015 YourArticleLibrary.com

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http://ieeexplore.ieee.org/xpl/mostRecentIssue.jsp?punumber=5589107



SHAREHOLDER VALUE CREATION: AN OVERVIEW

Dr. P .B Kharche J K V Mv Malkapur ________________________________________________________________________________

INTRODUCTION

More than ever, corporate executives are under increasing pressure to demonstrate on a regular basis that they are creating shareholder value. This pressure has led to an emergence of a variety of measures that claim to quantify value-creating performance.

Creating value for shareholders is now a widely accepted corporate objective. The interest in value creation has been stimulated by several developments. Capital markets are becoming increasingly global. Investors can readily shift investments to higher

yielding, often foreign, opportunities. Institutional investors, which traditionally were passive investors, have begun exerting influence on

corporate managements to create value for shareholders. Corporate governance is shifting, with owners now demanding accountability from corporate

executives. Manifestations of the increased assertiveness of shareholders include the necessity for executives to justify their compensation levels, and well-publicized lists of underperforming companies and overpaid executives.

Business press is emphasizing shareholder value creation in performance rating exercises. Greater attention is being paid to link top management compensation to shareholder returns.

Defining Shareholder Value, and – Wealth Creation

From the economist's viewpoint, value is created when management generates revenues over and above the economic costs to generate these revenues. Costs come from four sources: employee wages and benefits; material, supplies, and economic depreciation of physical assets; taxes; and the opportunity cost of using the capital.

Under this value-based view, value is only created when revenues exceed all costs including a capital charge. This value accrues mostly to shareholders because they are the residual owners of the firm.

Shareholders expect management to generate value over and above the costs of resources consumed, including the cost of using capital. If suppliers of capital do not receive a fair return to compensate them for the risk they are taking, they will withdraw their capital in search of better returns, since value will be lost. A company that is destroying value will always struggle to attract further capital to finance expansion since it will be hamstrung by a share price that stands at a discount to the underlying value of its assets and by higher interest rates on debt or bank loans demanded by creditors.

Wealth creation refers to changes in the wealth of shareholders on a periodic (annual) basis. Applicable to exchange-listed firms, changes in shareholder wealth are inferred mostly from changes in stock prices, dividends paid, and equity raised during the period. Since stock prices reflect investor expectations about future cash flows, creating wealth for shareholders requires that the firm undertake investment decisions that have a positive net present value (NPV).

Although used interchangeably, there is a subtle difference between value creation and wealth creation. The value perspective is based on measuring value directly from accounting-based information with some adjustments, while the wealth perspective relies mainly on stock market information. For a publicly traded firm these two concepts are identical when (i) management provides all pertinent information to capital markets, and (ii) the markets believe and have confidence in management.

Approaches for measuring shareholder value: 1. Marakon Approach:

Marakan Associates, an international management-consulting firm founded in1978, has done pioneering work in the area of value-based management. This measure considers the difference between



the ROE and required return on equity (cost of equity) as the source of value creation. This measure is a variation of the EV measures.

Instead of using capital as the entire base and the cost of capital for calculating the capital charge, this measure uses equity capital and the cost of equity to calculate the capital (equity) charge. Correspondingly, it uses economic value to equity holders (net of interest charges) rather than total firm value.

According to Marakan model shareholder wealth creation is measured as the difference between the market value3 and the book value of a firm's equity. The book value of a firm's equity, B, measures approximately the capital contributed by the shareholders, whereas the market value of equity, M, reflects how productively the firm has employed the capital contributed by the shareholders, as assessed by the stock market. Hence, the management creates value for shareholders if M exceeds B, decimates value if m is less than B, and maintains value is M is equal to B.

According to the Marakan model, the market-to-book values ratio is function of thee return on equity, the growth rate of dividends, and cost of equity.

For an all-equity firm, both EV and the equity-spread method will provide identical values because there are no interest charges and debt capital to consider. Even for a firm that relies on some debt, the two measures will lead to identical insights provided there are no extraordinary gains and losses, the capital structure is stable, and a proper re-estimation of the cost of equity and debt is conducted.

A market is attractive only if the equity spread and economic profit earned by the average competitor is positive. If the average competitor's equity spread and economic profit are negative, the market is unattractive.

For an all-equity firm, both EV and the equity spread method will provide identical values because there are no interest charges and debt capital to consider. Even for a firm that relies on some debt, the two measures will lead to identical insights provided there are no extraordinary gains and losses, the capital structure is stable, and a proper re-estimation of the cost of equity and debt is conducted.

A market is attractive only if the equity spread and economic profit earned by the average competitor is positive. If the average competitor's equity spread and economic profit are negative, the market is unattractive. 2. ALCAR APPROACH:

The Alcar group Inc. a management and software company, has developed an approach to value-based management which is based on discounted cash flow analysis. In this framework, the emphasis is not on annual performance but on valuing expected performance. The implied value measure is akin to valuing the firm based on its future cash flows and is the method most closely related to the DCF/NPV framework.

With this approach, one estimates future cash flows of the firm over a reasonable horizon, assigns a continuing (terminal) value at the end of the horizon, estimates the cost of capital, and then estimates the value of the firm by calculating the present value of these estimated cash flows. This method of valuing the firm is identical to that followed in calculating NPV in a capital-budgeting context. Since the computation arrives at the value of the firm, the implied value of the firm's equity can be determined by subtracting the value of the current debt from the estimated value of the firm. This value is the implied value of the equity of the firm.

To estimate whether the firm's management has created shareholder value, one subtracts the implied value at the beginning of the year from the value estimated at the end of the year, adjusting for any dividends paid during the year. If this difference is positive (i.e., the estimated value of the equity has increased during the year) management can be said to have created shareholder value.

The Alcar approach has been well received by financial analysts for two main reasons: It is conceptually sound as it employs the discounted cash flow framework Alcar have made available computer software to popularize their approach

However, the Alcar approach seems to suffer from two main shortcomings: (1) In the Alcar approach, profitability is measured in terms of profit margin on sales. It is generally recognized that this is not a good index for comparative purposes. (2) Essentially a verbal model, it is needlessly cumbersome. Hence it requires a fairly involved computer programmed. .



3. McKINSEY APPROACH: McKinsey & Company a leading international consultancy firm has developed an approach to value-

based management which has been very well articulated by Tom Copeland, Tim Koller, and Jack Murrain of McKinsey & Company. According to them:

Properly executed, value based management is an approach to management whereby the company's overall aspirations, analytical techniques, and management processes are all aligned to help the company maximize its value by focusing decision making on the key drivers of value. The key steps in the McKinsey approach to value-based maximization are as follows: Ensure the supremacy of value maximization Find the value drivers Establish appropriate managerial processes Implement value-based management philosophy 4. ECONOMIC VALUE ADDED: Consulting firm Stern Steward has developed the concept of Economic Value Added. Companies across a broad spectrum of industries and a wide range of companies have joined the EVA badwagon. EVA is a useful tool to measure the wealth generated by a company for its equity shareholders. In other words, it is a measure of residual income after meeting the necessary requirements for funds. Chief features of EVA Approach: It is a performance measure that ties directly, theoretically as well as empirically, to shareholder wealth

creation. It converts accounting information into economic reality that is readily grasped by non-financial

managers. It is a simple yet effective way of teaching business literacy to everyone. It serves as a guide to every decision from strategic planning to capital budgeting to acquisitions to

operating decisions. It is an effective tool for investor communication. It is closest in both theory and construct to the net present value of a project in capital budgeting, as

opposed to the IRR. The value of a firm, in DCF terms, can be written in terms of the EVA of projects in place and the

present value of the EVA of future projects.

5. THE DISCOUNT CASH FLOW APPROACH: The true economic value of a firm or a business or a project or any strategy depends on the cash

flows and the appropriate discount rate (commensurate with the risk of cash flow). There are several methods for calculating the present value of a firm or a business/division or a project. In following pages we will discuss three main methods that are mostly used under discount cash flow approach. The first method uses the weighted average cost of debt and equity (WACC) to discount the net operating cash flows. When the value of a project with an estimated economic life or of a firm or business over a planning horizon is calculated, then an estimate of the terminal cash flows or value will also be made. Thus, the economic value of a project or business is: . Economic Value=Present Value of net operating cash flows+ Present value of terminal value

The second method of calculating the economic value explicitly incorporates the value created by financial leverage. The steps that are involved in this method of estimation of the firm's total value are as follows: 1. Estimate the firm's unlevered cash flows and terminal value 2. Determine the unlevered cost of capital 3. Discount the unlevered cash flows and terminal value by the unlevered cost of capital. 4. Calculate the present value of the interest tax shield discounting at the cost of debt. 5. Add these two values to obtain the levered firm's total value. 6. Subtract the value of debt from the total value to obtain the value of the firm's shares. 7. Divide the value of shares by the number of shares to obtain the economic value per share.



The third method to determine the shareholder economic value is to calculate the value of equity by discounting cash flows available to shareholders by the cost of equity. The present value of equity is given as below: : Economic value of equity= Present value of equity cash flows+ Present value of terminal investment . Conclusion:

The shareholder value creation approach helps to strengthen the competitive position of the firm by focusing on wealth creation. It provides an objective and consistent framework of evaluation and decision-making across all functions, departments and units of the firm. It can be easily implemented since cash flow data can be obtained by suitably adapting the firm's existing system of financial projection and planning. The only additional input needed is the cost of capital. The adoption of the shareholder value creation approach does require a change of the mind-set and educating managers about the shareholders value approach and its implementation.

Bibliography: Pandey I. M. "Financial Management", Vikas publishing house New Delhi Chandra Prasanna "Financial Management Theory and Practice, Tata McGraw-Hill, New Delhi

Fifth Edition. www.Valuebasedmanagement.com

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EconomSUSTAINABLEDEVELOPMENT OF SOLAR IRRIGATION PUMPS FOR AGRICULTURE IN MAHARASHTRA

Dr.Ulhas N. Medshikar Department Of Commerce, Shri Shivaji College, Akola.

Abstract: The Maharashtra agriculture sector is already facing many problems relating to sustainability. Since the solar pumping systems are integrated with micro irrigation, the inherent multifold advantages of micro irrigation which include huge water saving increase in yields, fertilizer savings and other input cost savings are at the door-step of the farmers. Apart from this, increase in productivity would lead to increase in net income of farmers by 3-4 times as compared to rain fed farming. Small and marginal farmers are deprived of both water and power. Most of them hardly have any irrigation facility. Majority of the small farmers have to depend on rain-fed farming for their livelihood. Their income levels are very low. This innovative model of Integrated Solar Powered Micro Irrigation involving different components such as development of on-farm water source, like farm ponds, solar pumping systems, piping and micro irrigation systems would ensure reliability of water supply and power supply to the small farms in Maharashtra.er for watering their farms.lar pump, Irrigation, Economic Viability, small farmers. Introduction: Water is the most important single requirement for the growth of the plant. Crop can be raised successfully only if water available in adequate quantity. Irrigation is required not only in low rainfall areas and during non-rainy season but also during long break in rains in good rainfall areas. Water requirement have to be met from ground or surface water resources. In India, irrigation works are classified into major, medium, and minor irrigation works. Wells have been use in the country for irrigation from time immemorial. Their number increased as the cultivated area increased. Solar pumps have a unique cost structure with very high capital investment and near-zero marginal cost of pumping. This makes it very similar to electric pump owners who face high flat tariffs with a rationed power supply at zero marginal cost.

For the sustain of agriculture by the government of Maharashtra five lakh solar pumps would be installed in the state in the next five year for agricultural purposes for this Pointing out that almost Rs 8,000 crore had been spent in the last 5-6 years on relief measures alone. relief measures weren’t a lasting solution to the drought situation and for setting up solar pumps would bring down the demand for power should reduce. All expert committees had pointed out that Maharashtra had low agricultural productivity and should increase its irrigation facilities. Farmers’ tariffs depend on the installed horse power (HP) capacityof their in to ensure lower bills is rampant with a poor payment situation. Agricultural consumers pay just Rs3, 014 annually for a 3 HP pump; the state government pitches in with the balance amount in the Rs14, 098 total bill. For a 5 HP pump, the farmer pays Rs7,669 of the Rs23,336 bill. A large number of pumps in the state are 5 HP ones, from the Maharashtra State Electricity Distribution Company Limited. This is the government’s vision for ensuring that farmers, even in areas where transmission lines cannot be laid, can generate power.

These pumps are available in Market multiple configurations starting from 1 HP to 5 HP the following table showing Capacity of pumps.

Capacity of Solar Pump Type of Pump Cost ofPump

Water TableDepth

1.8 kW

Surface/Submersible 2.60 Lakh Upto 10m

2.2 kW Surface/Submersible 3.50 Lakh 10-20m

3.0 kW

Surface/Submersible 4.40 Lakh 10-20m



5.0 kW

Submersible 7.50 Lakh 20m onwardsupto40m

7.5 kW

Submersible 9.20 Lakh 100m

Source:SHAKTI (2014). Subsidy support required for farmers:

The subsidy support can be brought down from 95% to around 85%.Farmer pays only a portion of his Electricity bill savings.In the budget for 2014–2015, the government of India has launchinga scheme of “Solar Power Driven Agricultural Pump Sets” and “WaterPumping Stations” for energizing one lakh pumps with an allocationof Rs. 400 crore. The government of Maharashtra has also launcheda scheme To promote the nonconventional energy sources for longterm energy security. Under the Central Government scheme, theState Government has undertaken a pilot project of installation of7,540 solar agricultural pump sets. It is expected that farmers will getassured electricity supply under the scheme.

Starting with the pump, the amount of solar power needed dependson the specific water table depth of a farm; the further the water isfrom the ground, the more power would be needed to pump thatwater up for irrigation. This in turn depends on the geography of aparticular region; taking the as an example, water level depths varybetween 2-5 meters below ground level, so for one hectare of land,an estimated 600 watts of solar required for pumping water.

Objectives: (1)To know the policy for small andmarginal farmers adapt to solar pumps for irrigation. (2)To analyze the without subsidies are economically unviable forfarmers as compared to conventional electric and diesel pumps. Methodology and Data:

In this paper, Researchers use the data both secondary sources anda primary source. Survey questionnaire conducted in 10 villages of Akola district in Maharashtra.In each village; the goal was to surveyall land-owning farmers. In total, Researcher surveyed 50 individualland-owning farmers across the ten villages. Results and Discussion:

The specific water pumping costs are the main criterion for an appraisalof different pumping technologies. These are the costs causedby a pumping system, taking investment costs as well as runningcosts. Economics of Solar Water Pumps vs. Diesel-SubmersibleIrrigation Pumps.

Cost component for installation of solar pump Vs Diesel – Powerpump

Type of irrigation Pump Diesel Submersible Solar

Capital Cost 25,000 20,000 4,40,000

Source: Authors’ own analysis. The government of Maharashtra will be given subsidy after installationsystem. High cost involved in

renewing systems and lack of irrigationwater source. Use of this micro-irrigation technology by farmershas been reported 64% very low as compared with the potentialthis technology offers by the Government.

It indicate that without subsidies, solar pumps are economically unviablefor small and marginal land holders farmers as compared to conventionalelectric and diesel pumps. Consequently, most investmentdecisions tend to favor diesel pumps over Solar pumps systems. Thatdrawback may be compensated, and the farmers’ financial risk minimized,by way of appropriate financing and assistance models. Costs too high:

Few farmers can afford the initial investment. Around 85% of farmershave less than ten hectares of land and they cannot afford agricultureinputs like seed, fertilizers and pesticides, let alone the installation ofsolar water pumps to irrigate their land.



Conclusion The result shows that Small-scale irrigation pumping is one of themore attractive applications for solar power. Solar pumps were unreliableas it depended on weather conditions. That instead, de-centralizedsolar power plants could be established to provide electricityto farmers. Around 85% of farmers in Maharashtra, whom were marginaland dry-land farmers, would not be able to pay for the pumps.Despite all these challenges and issues that need to be worked out,the notion of meeting electricity to irrigation needs holds immensepromise. To date, these initiatives have been pursued separately andhave not taken advantage of solar as a common generation source. ReferencesVol4, Issue-8, August-2015 • ISSN No 2277 - 8160 1. NitinBassi Irrigation and Energy Nexus Solar Pumps Are Not Viable Economic & Political Weekly,march 7, 2015 2.NitinBassi (2013): “Assessing Potential of Water Rights and Energy Pricing in Making Groundwater Use for Irrigation Sustainable in India,” 3. M. A. Hossain, M. S. Hassan,M. A. Mottalib,M. Hossain,’Feasibility of solar pump for sustainable irrigation in Bangladesh Int J Energy Environ Eng (2015) 4.Solar Pumping An Introduction and Update on the Technology, Performance, Costs, and Economics Roy Barlow, Bernard McNelis, and Anthony DerrickWorld Bank Technical Paper Number 168 (1993) 5.Biswas, H., Hossain, H.: Solar Pump: a possible solution of irrigation and electric power crisis ofBangladesh.

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“A Study on Development of Companies through Merger”

Dr.ArvindChaudhari

Professor , H.O.D. and Research Guide,

Bhusawal Arts, Science and

P.Nahata Commère Collège,

Bhusawal.

PashminaRajendra Shah

Research Scholar

Abstract:

Growth is always the main objective of any organization and for expanding their business activities most of the firms go under Merger and Acquisitions for gearing higher profit and expanding market share. Merger and Acquisitions is the need of business enterprises for achieving economies of scale, growth, diversification, synergy, financial planning, Globalization of economy, and monopolistic approach also creates interest amongst companies for Merger and Acquisitions in order to increase the market power. The purpose of the present paper is to look at the various growth aspects of merger in different sectors like luggage Industries and entertainment sector.

The paper compares pre and post merger financial performance of merged companies with the help of financial parameters like, Gross Profit Margin, Net Profit Margin, Operating Profit Margin, Return on capital employed, Return on Equity and Debt Equity Ratio. This study reveals that the changes occurring in the acquiring firms based on above-mentioned financial parameters.

Keywords: Merger, Acquisition, Ratio analysis, growth, corporate restructuring.

Introduction:

Mergers and acquisitions (M&A) and corporate restructuring are aimportant part of thecorporate finance. Deals can be worthhundreds of millions, or even billions, of dollars. They can dictate the fortunes ofthe companies involved for years to come. For a CEO, leading an M&A canrepresent the highlight of a whole career.

The Concept:

One plus one makes three: this equation is the special alchemy of a merger or anacquisition. The key principle behind buying a company is to create shareholdervalue over and above that of the sum of the two companies. Two companiestogether are more valuable than two separate companies - at least, that's thereason behind M&A.This rationale is particularly alluring to companies when times are tough. Strongcompanies will act to buy other companies to create a more competitive, costefficientcompany. The companies will come together hoping to gain a greatermarket share or to achieve greater efficiency. Because of these potentialbenefits, target companies will often agree to be purchased when they know theycannot survive alone.

Benefits of merger:

1. Economies of scale:This occurs when a larger firm with increased output can reduce average costs. Lower average costs enable lower prices for consumers.

Different economies of scale include:

Technical economies; if the firm has significant fixed costs then the new larger firm would have lower average costs.

Bulk buying – A bigger firm can get a discount for buying large quantities of raw materials. Financial – better rate of interest for large company. Organizational – one head office rather than two is more efficient.

Note a vertical merger would have less potential economies of scale than a horizontal merger e.g. a vertical merger could not benefit form technical economies of scale. However in a vertical merger there could still be financial and risk-bearing economies.Some industries will have more economies of scale than others.



For example, car manufacture has high fixed costs and so gives more economies of scale than two clothing retailers.

2. International Competition: Mergers can help firms deal with the threat of multinationals and compete on an international scale.

3. Mergers may allow greater investment in R&D: This is because the new firm will have more profit which can be used to finance risky investment. This can lead to a better quality of goods for consumers. This is important for industries such as pharmaceuticals which require a lot of investment.

4. Greater Efficiency: Redundancies can be merited if they can be employed more efficiently.

5. Protect an industry from closing:Mergers may be beneficial in a declining industry where firms are struggling to stay afloat. For example, the UK government allowed a merger between Lloyds TSB and HBOS when the banking industry was in crisis.

6. Diversification: In a conglomerate merger two firms in different industries merge. Here the benefit could be sharing knowledge which might be applicable to the different industry. For example, AOL and Time-Warner merger hoped to gain benefit from both new internet industry and old media firm

Review of literature: The following are the few existing studies reviewed which were conducted by researchers in the view of analyzing the financial performance during merger activity in different time periods.

Monika Jain ,Kiransoni(2013)Mergers In Indian Banks: A Case Study On Mergers Of Icici Bank Ltd And The Bank Of Rajasthan:

The present paper examines the impact of mergers and acquisitions on the financial efficiency of the merger of ICICI bank and Bank of Rajasthan.By using the ratio analysis approach, we calculate the change in the position of the companies during the period 2011-2012.There is no significant change in liquidity position of the firms. The result of the study indicate that M&A cases in India show a significant correlation between financial performance and the M&A deal, in the long run, and the acquiring firms were able to generate value.

Post-merger financial performance of select acquiring IT companies in India:Aruna.G, S.Nirmala: Current paper shows that impact of merger and acquisitions on the financial performance of IT companies by using ratio analysis approach for different IT companies for four years, and researcher also used T-test to find out statistical significance.

Merger and Acquisition AMyth? (From anIndian Acquirer's Perspective) by Chatterjee, Sutapa; Banerjee, Sharmistha. Globsyn Management Journal 7.1/2 (JanDec 2013): 1733: Current study shows that after calculating all financial ratios that merger is good for organizations but they also have to think about shareholders growth.

Research Methodology:

Objectives of the Study

To study the concept of merger.

To search development through merger of companies. Hypothesis of the Study

Companies are Developed through merger. Sampling Method:

While selecting sample the researcher is used non-probability convenient sampling method. With reference Entertainment channels companies and Luggage manufacturing companiesare to be taken into consideration to formulate the total population. Researcher select ETC Networks Ltd. And Zee Entertainment Enterprises Ltd, Aristocrat Luggage Ltd. andVIP Industries Ltd..for the study



Data Collection:

Primary and Secondary data

Data Analysis:

Pre-merger and post-merger operating performance ratios were estimated and the averages (mean) computed for the entire set of sample firms, which have gone through mergers during different period for different industries. The average ratios for each of the industry sub-samples were also computed. Average pre-merger and post-merger financial performance ratios were compared to see if there was any statistically significant change in operating performance due to mergers, using “paired two sample t-test” at confidence level of 0.05.

Tools used for Data Analysis:

In order to analysis & evaluation of the collected data, tools like Ratio analysis, also Mean &paired’-test .

DATA ANALYSIS AND INTERPRETATION:

Table No.01

Mean 5 years Pre-merger & 5 Post-Merger Ratios for Merging ETC Networks Ltd. & Zee Entertainment Enterprises Ltd.

Contents Year Status

Mean Std.Deviation t-Value

Operating Profit Margin Ratio 2006-10 Pre 29.278 12.7378931 -0.564725949

2011-15 Post 32.582 2.98247716

Gross Profit margin ration 2006-10 Pre 30.092 10.6482801 -0.274105417

2011-15 Post 31.454 3.17230673

Net profit margin ration 2006-10 Pre 23.092 11.8837061 -0.284990797

2011-15 Post 24.62 1.58431373

Return on Capital Employed

2006-10 Pre 15.816 6.72356899 -3.642761588

2011-15 Post 27.448 2.40326237

Debt Equity ratio 2006-10 Pre 0.13 0.10606602 -1.012844666

2011-15 Post 0.364 0.50559866

Return on Networth 2006-10 Pre 11.99 5.79380272 -2.548778299

2011-15 Post 24.422 9.24057736

Source:http://www.moneycontrol.com/financials/zeeentertainmententerprises/ratios/ZEE#ZEE

From the above Table No.01 of the comparison of the pre-merger & post-merger operating performance ratios for the entire sample set of acquiring firms from Entertainment Industry showed that there is slightly increase in all ratios.

In operating profit margin there is marginal improvement in mean i.e. 29.278 to 32.582 but the improvement is not statistically significant (probability value for calculated t is 0.60 is greater than0.05) (calculated t value of -0.5647 is less than the critical t value at 95% confidence and at 4 degrees of freedom -2.77) The standard deviation from mean before and after Merger shows that the post-merger operating profit margin ratio is more homogenous.

In gross profit margin there is marginal improvement in mean i.e. 30.092 to 31.454 but the improvement is not statistically significant (probability value for calculated t is 0.79 is greater than 0.05) (calculated t value of -0.274105417 is less than the critical t value at 95% confidence and at 5 degrees of freedom -2.57) The standard deviation from mean before and after Merger shows that the post-merger gross profit margin ratio is more homogenous.

In Net profit margin there is marginal improvement in mean i.e. 23.092to 24.62 but the improvement is not statistically significant (probability value for calculated t is 0.79 is greater than 0.05) (calculated t value



of -0.284990797 is less than the critical t value at 95% confidence and at 4 degrees of freedom -2.77) The standard deviation from mean before and after Merger shows that the post-merger Net profit margin ratio is more homogenous.

In Return on Capital there is marginal improvement in mean i.e. 15.816 to 27.448 but the improvement is statistically significant (probability value for calculated t is 0.01 is lesser than 0.05) (calculated t value of -3.642761588 is greater than the critical t value at 95% confidence and at 5 degrees of freedom -2.57) The standard deviation from mean before and after Merger shows that the post-merger return on capital is more homogenous.

In Debt Equity ratio there is marginal improvement in mean i.e. 0.13 to 0.364 but the improvement is statistically not significant (probability value for calculated t is 0.36 greater than 0.05) (calculated t value of-1.012844666is greater than the critical t value at 95% confidence and at 4 degrees of freedom -2.77) The standard deviation from mean before and after Merger shows that the post-merger operating Debt Equity Ratio is not homogenous.

In Return on Net worth there is marginal improvement in mean i.e. 11.99 to24.422 but the improvement is statistically significant (probability value for calculated t is 0.03lesser than 0.05) (calculated t value of-2.548778299 is greater than the critical t value at 95% confidence and at 7 degrees of freedom -2.36) The standard deviation from mean before and after Merger shows that the post-merger return on net-worth is not homogenous.

Table No.02

Mean 5 years Pre-Merger &5 years Post-Merger Ratios for Merging Aristocrat Luggage Ltd.AndVIP Industries Ltd.

Contents Year Status Mean Std. Deviation t-Value

Operating Profit Margin Ratio 2004-08 Pre 8.698 0.78785786 -1.89367

2009-13 Post 10.79666667 4.705670338

Gross Profit margin ration 2004-08 Pre 7.994 0.8878795 -0.81666

2009-13 Post 8.086666667 4.709462107

Net profit margin ration 2004-08 Pre 2.422 0.61572721 -2.5378

2009-13 Post 5.888 2.991198756

Return on Capital Employed

2004-08 Pre 13.798 2.88164363 -2.0395

2009-13 Post 23.628 10.38505753

Debt Equity Ratio 2004-08 Pre 1.568 1.568 3.473585

2009-13 Post 0.664 0.283689972

Return on Networth 2004-08 Pre 11.206 1.99505138 -2.42125

2009-13 Post 22.354 10.1002193

Source:http://www.moneycontrol.com/financials/vipindustries/ratios/VIP#VIP

From the above Table No.02 of the comparison of the pre-merger & post-merger operating performance ratios for the entire sample set of acquiring firms from luggage Industry showed that there is slightly increase in all ratios.

In operating profit margin there is marginal improvement in mean i.e. 8.698to 10.796but the improvement is not statistically significant (probability value for calculated t is 0.13 is greater than 0.05) (calculated t value of -1.89367is less than the critical t value at 95% confidence and at 4 degrees of freedom 2.77) The standard deviation from mean before and after Merger shows that the post-merger operating profit margin ratio is more homogenous.

In gross profit margin there is marginal improvement in mean i.e. 7.994to 8.086but the improvement is not statistically significant (probability value for calculated t is 0.45 is greater than 0.05) (calculated t value of -0.81666 is less than the critical t value at 95% confidence and at 4 degrees of freedom -2.77) The standard deviation from mean before and after Merger shows that the post-merger gross profit margin ratio is more homogenous.



In Net profit margin there is marginal improvement in mean i.e. 2.422to 5.888but the improvement is not statistically significant (probability value for calculated t is 0.06 is greater than 0.05) (calculated t value of -2.5378 is less than the critical t value at 95% confidence and at 4 degrees of freedom -2.77) The standard deviation from mean before and after Merger shows that the post-merger Net profit margin ratio is more homogenous.

In Return on Capital there is marginal improvement in mean i.e. 13.798To23.628but the improvement is statistically significant (probability value for calculated t is 0.09 is greater than 0.05) (calculated t value of -2.0395is smaller than the critical t value at 95% confidence and at 5 degrees of freedom -2.57) The standard deviation from mean before and after Merger shows that the post-merger return on capital is more homogenous.

In Debt Equity ratio there is marginal improvement in mean i.e. 1.568to 0.664but the improvement is statistically significant (probability value for calculated t is 0.01lesser than 0.05) (calculated t value of3.473585is greater than the critical t value at 95% confidence and at 6 degrees of freedom 2.44) The standard deviation from mean before and after Merger shows that the post-merger operating Debt Equity Ratio is not homogenous.

In Return on Net worth there is marginal improvement in mean i.e. 11.206to 22.354but the improvement is notstatistically significant (probability value for calculated t is 0.07greater than 0.05) (calculated t value of -2.42125is lesser than the critical t value at 95% confidence and at 4 degrees of freedom -2.77) The standard deviation from mean before and after Merger shows that the post-merger return on net worth is homogenous.

CONCLUSIONS:

This study is undertaken to test whether the industry type has an impact on the outcome of merger for the merging firm in Luggage and entertainment industry, in terms of impact on operating performance and market share. The results from the analysis of pre- and post-merger operating performance ratios for the acquiring firms in the sample showed that, there is positive impact on operating performance in post-merger period. On the other side,. Type of industry does seem to make a difference to the post-merger operating performance of acquiring firms.

Future research in this area could be an extension of the present study, by estimating and comparing with industry/sector averages, and the differences, if any, could be explored further to derive further insights. Researchers could also analyze the post-merger returns to shareholders of acquiring firms involved in mergers in India, to correlate with findings of studies indicating poor post-merger performance.

REFERENCES:

1.http://www.economicshelp.org/microessays/competition/benefits-mergers/

2.http://www.mbda.gov/blogger/mergers-and-acquisitions/benefits-merger-or-acquisition

3. http://www.moneycontrol.com/financials/zeeentertainmententerprises/ratios/ZEE#ZEE

4. http://www.moneycontrol.com/financials/vipindustries/ratios/VIP#VIP

5.Research Methodology by Dr.SunilDoke

6.Agrawal, A.; Jaffe, J. F., and Mandelker, G. N., (1992). “The Post-Merger Performance of Acquiring Firms: A Re-Examination of An Anomaly”, Journal of Finance, Volume: 47, pp. 1605-1621.

7.Dilip, K. Patro; Howard, Tuckman, and Xiaoli, Wang, (2007). “Do Mergers and Acquisitions Create Shareholder Wealth in the Pharmaceutical Industry?”, International Journal of Pharmaceutical and Healthcare Marketing, Volume: 1, Number: 1, pp. 58-78.

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http://www.moneycontrol.com/financials/vipindustries/ratios/VIP#VIP



ACCOUNTING EDUCATION & RESEARCH WITH REFERENCE TO GOVERNMENT ACCOUNTING AND AUDIT

Prof A.K.Dhanagare G.S.Collage Khamagaon, Dist.Buldana.

Abstract Business and merchant accounting methods are different than government accounting system because government accounting system is ruling over the nation and keeps various departments i.e. production, service utility or entertainment industry etc. The operations of department of government sometimes include under talking of a commercial or quasi-commercial character and industrial factory or a store. It is still necessary that the financial results of the undertaking should be expressed in the normal commercial form so that the cost of the services or undertaking may be accurately known. In the government account there are few problems affected adversely. In the case of central and stat government transaction communication procedure, bank accounts and uniformity are improper. In the paper i suggested central and stat government should adopt t fully computerized accounting system in routine procedure of all transactions and adopted accounting system should b familiar with global accounting standards. Improvement programs i.e. symposium, seminar is helpful for sustaining the accounting system. Graduate level accounting syllabus should be modified as per government accounting procedure and methods. KeyWords: Controller General of Accounts, Consolidated Fund, Contingency Fund, and Public Accounts Availability of Data: Quoted data and information are available from public sources, which are mentioned in references. Introduction: In the world there are number of accounting method are used. Business and merchant accounting methods are different than government accounting system because government accounting system is ruling over the nation and keeps various departments i.e. production, service utility or entertainment industry etc. government accounting system is wider than the any specific company accounts. In the paper I would like to discuss about Indian government accounting procedure & methods as well as few important problems. For same purpose first of all I discussed the definitions related to government accounting system: [1] Controller General of Accounts: CGA designation are used in Ministry of Finance, Department of Expenditure and responsible for prescribing the form of accounting of the union and states and to frame or revise, rules and manuals relating thereto on behalf of the president of India in terms of article 150 of the constitution of India. [2] Consolidated Fund: Consolidated fund of Indian or of a state referred to in clause (1) of article 266 of constitution or of a union territory government referred to in section 47 of the union territories act 1963 or all the three as the context may imply. . [3] Contingency Fund: Contingency fund of India established in pursuance of clause (1) of article 267 of the constitution or the contingency fund of a state established in pursuance of clause (2) article 267 of constitution. [4] Government: Means the central union government or state government or union territory government or all the three as the context may imply. . [5] Public Accounts: Means public accounts of India or state government referred in clause (2) of article 266 of the constitution or both as the context may imply. General Outline of the system of accounts:

There are basically two parts, one related to central government and other related to state government:



(1) Central government and union territory administration: : (a) All receipts is on behalf of the central government shall be paid in to the bank. Drawls are on behalf of the central government from the bank shall made by cheque drawn thereon. There shall be accounted for by the bank as receipt and payments on behalf of the concerned Ministry and or department of the central government. (b) At present some miscellaneous receipt and transactions take place at state treasuries. Such transactions excluding those pertaining to civil pensions are accounted for by the treasuries in the state section of accounts under head 8658 suspense accounts for necessary cash settlement with the account officer concerned. (c) Officers of the civil ministries department of the central government who are allowed to pay their receipt in the consolidated fund or public accounts in lump for expenditure or from the contingency fund It shall submit detailed accounts of their transactions to their respective account officer. (d) Received accounts from the bank and department officer and from the book adjustment initiated in an account officer. . (e) The pay and account officer will send to his/her principal office in the ministry department or union territoryadministrationamonthly-complied account. (f) In respect of central transaction taking place at state/central treasuries account are at present maintainedbySAG. (g) The cash balance of central government in the books of CGA at close of each month will be reconciled with the statements of closing cash balance. (2) State government and union territory administration: : (a) All receipts are on behalf of each state government and on behalf of each union territory shall be paid into its treasury or the banks. . (b) Receipts realized in the public works, forest and any other department, which may be authorized on behalf and shall be paid into a treasury or the bank in lump. . (c) Payments are on behalf of state government and on behalf of union territory shall ordinarily be made either at its treasury or the bank. . (d) At the beginning of each month each Accountant General will receive from the treasuries under his/her jurisdiction monthly account supported by the requisite schedules, vouchers in receipt of transactions.. (e) From the account furnished by the treasury and civil department officers are referred to in clause (b) and (c) above. . (f) The transaction relation to department, deposit and remittance head's appearing in the treasury cash account and list of payments and in the department and other abstracts will be collected for the whole circle of accounts under each head of accounts. . (g) The Accountant General concerned will submit a copy of the monthly account of each state government. Performa Accounts: The operations of department of government some times include under talking of a commercial or quasi-commercial character and industrial factory or a store. It is still necessary that the financial results of the undertaking should be expressed in the normal commercial form so that the cost of the services or undertaking may be accurately known. This implies the maintenance of suitable capital. Manufacturing, trading and profit & loss account and as the government system of accounting being on a purely cash basis is unsuitable for each commercial accounts. They will usually be kept on a Performa basis outside the general accounts of Government of India. The department authorities shall maintain these Performa accounts themselves in such form as may be prescribed. Basic Structure of the form of the accounts: (1) Period of Accounts:

The annual accounts of the central, state and union territory government shall record transactions, which take place during financial year running from 1st April to 31st March.



(2) Cash basis Accounts: With the exception of such book adjustments as may be authorized by these rules on the advice of the CAGI The transaction in government accounts shall represents the actual cash receipt and disbursement during a financial year. (3) Currency in which accounts are kept: The account of government shall be maintained in Indian currency i.e. rupee (4) Form of Accounts: There are mainly three parts i.e. consolidated fund, contingency fund and public account. In consolidated fund there are two divisions i.e. revenue consisting of section for receipts heads [Revenue Accounts] and expenditure heads [Revenue Accounts] capital, public debts, loan consisting of section of receipts heads [capital accounts] where as contingency fund accounts shall be recorded to the transactions connected with the government set up under article 2670 of the constitutional section 48 of the union territory act 1963 Public account transactions relating to the debt deposit, advances, remittances and suspense shall be recorded. Problems of government accounting:

In the government account there are few problems affected adversely. In the case of central and stat government transaction communication procedure, bank accounts and uniformity are improper. Compare with private and merchant accounting, government accounting having primarily procedure, as well as loops of numbers of business laws therefore it becomes infective in real situation. Suggestions for Improvement: Central and stat government should adopt fully computerized accounting system in routine procedure of all transactions and adopted accounting system should b familiar with global accounting standards. Improvement programs i.e. symposium, seminar is helpful for sustaining the accounting system. Graduate level accounting syllabus should be modified as per government accounting procedure and methods. University Grants Commission [UGC] and All India Council for Technical Education [AICTE] Deleting unusual business laws should suggest it because they create more problems in routine government transaction. Reduce communication gaps between central, union territory and state government accounting system. Thus accounting system should be simple, high speed and adopted appropriate accounting model of accounting standards for government system. Conclusion: In the age of globalization Indian government accounting system has a wide range of characteristics, laws and connection with all state government accounting system. Some basic problems should be improved harmoniously for effectiveness of government accounting systems in reality. References: 1) Bidwai, Chenoi & Ghosh, " India under Seize" 2) CAGI, "Accounting Code Vol. -1", & 4 3) Frank Wood, "Business Accounting", 5th Edition, Pitman publishing, London 4) Ministry of Finance Department of Expenditure Controller General of Accounts," Government Rules - 1990", Revised Edition.

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LONG TERM SURVIVAL: ESSENTIAL TOP MANAGEMENT BUSINESS OBJECTIVE!


About the Author- Dr.Hemant Bonde Patil, Director, Dr.HBPIMR, Amravati, Ex. Associate Professor with the Vidya Bharati Mahavidyalaya, was awarded a Ph.D. (Management Science) as a result of his research related with Business Management. He has a Masters in Political Science with International Relations as an area of specialization and PG bachelors in Mass Communications and Journalism. Besides his academic qualifications he has a rich experience of teaching and research at various institutions of repute. His research work has been well acclaimed not only at the national but also at the international level.

Introduction & Basics: The birth of every business entity is a germ child of someone or a group of some who pursue their dreams. The intensity of desire to make that dream true results into the foundation of the enterprise and efforts thereof can surely transform it into a business empire. The beginning of every step towards a dream needs lots of patience supported by vision which slowly but surely moves towards reality. Sacrifices made at the initial stage always reflect the organizational culture later and keeps the growth rate steady. Today with the ideology of globalization put into practice the new generation business community deals with a complete new set of challenges. These challenges do not dampen their spirits rather gives them strength to keep on the good work and the results follow. Yes! The business community does rely on age old establishment which is one reason we find year of establishment being displayed telling us they are here since long and here to stay. Raymond`s since 1925 means a lot to tell us it is here due to the trust shown.

Yes! There was a time when the sole business objective was profit making and staying higher in economic value. The growth too was gradual and as the business class was limited to only those who dared to risk and make it to the top completion was at a very low level. But with globalization suddenly the doors opened to all those who were in search of opportunity and explore possibility of any business operation that suits their purpose. This is the time when business organizations need to think beyond just making profit and sticking to the traditional business mindset. Rather what is needed is to make sure they follow every aspect that can not only help their business to grow but also keep it intact.

The first thing that comes to mind would always be to retain share holders faith in order to move ahead. The share holders invest their hard earned money into business houses and it’s the responsibility of these business houses to maintain cordial relations with them and also strive to give back returns on their investment to a fair level. There was a time when the investors in share market showed patience in decision making. With changed times and the environment thereof they too now have a variety of choices and may change at a spur of a moment. Yes they stay and stay firmly if the business organization deals with them in a proper way.

Then there are the customers who at last make every dream come true. With changed times they are well informed and demand and deserve the best money can buy. Naturally it’s the responsibility of the business enterprise to not only try to give them the best but also maintain cordial relations for future. Moreover it’s the customers who play the role of ambassadors for any business organization and need to never be neglected.

The employees who put their efforts into making the dream reality also play a very significant role. Moreover with no room for any kind of error naturally they need to not only competent but also completely motivated to give their best at every level. It’s the employees who face the brunt of competition and continue to bring glory to the business organization. But with changed times they too do not believe in stretching it till it breaks. The business organizations need to attract competent work force, motivate them and retain them by keeping them satisfied or they may leave to join some other organization fast. And with high costing operations employees need to be satisfied to give their best. With globalization competition like never before has come over. Here is where the work force plays a very



important role and needs to be empowered to support the achievement of organizational goals and survive in an ever changing environment.

The old age concept of do it all yourself has now changed into share the work with other corporate. Hence naturally the supporting corporate who provide other services like the vendors of products to be used as raw materials and service providers have become equally important. We need bankers, transporters, security, advertising agencies, exporters, raw material vendors and even marketing organizations at every level. Relationships with these support organizations need to be cordial which again takes up to be a prime objective of enterprises today.

Besides these a long list still exist who at last play a very important role in bringing the long term survival a success like the government organizations like sales tax, excise & customs, labor departments etc. The judiciary and legal area also need equal consideration so as to keep up with the changing legalities of business. Moreover the international political environment also plays a very important role and hence every business entity which is or plans to enter the international markets need to keep up-to-date knowledge and find partners to support the operations.

Conclusion: Yes! Dynamics of business operations today have no room for negligence of any of the above matters discussed. Only then corporate houses can survive long term and they have to rise above just profit making and come up as international members of community that respects globalization and also show an initiative to blend in this culture.

Suggestions: Corporate world should realize that just profit making cannot help it in surviving for long rather social responsibility and support of every element which plays a role needs to be taken seriously. The business schools should include courses, subjects and trainings to the corporate citizens in these areas so as to facilitate them to survive for long time and not face bankruptcy, acquisitions, mergers, lockouts etc in a environment that has now become complex. With this corporate houses from home developing nations like my dear India can surely not only survive but also prosper as global organizations helping the world economy and brotherhood!

Jai Hind! Jai Bharat!

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“WHY INDIAN YOUTH DO NOT JOIN DEFENSE SERVICES”

Dr. SURESH S. KAWITKAR Mba, Ph.D, Amie [Mech.] Indian Air Force Veteran Head [Academics], Department Of Management Vidyabharati Mahavidyalaya, Camp, Amravati.

INTRODUCTION :-- It was said that the population of India is the biggest liability. But in last ten years India could convert this weakness into the strength. India is on the verge of entering into the block of developed nation. Also on the basis of population India is demanding the permanent seat into UNO. Hence it can be said that India is socially, educationally and economically developed nation. But it is irony that India is facing a problem of shortage of manpower in defense services. Is there a shortage of patriotism in our country? Or the Indians have lost the national sense? The Indian defense services have launched a massive awareness drive to get young people in the armed forces. Despite glossy advertisement campaigns like ‘be an Army man: Be a winner for life’, “The Indian navy, An ocean of opportunities”, “Touch the sky with glory”, the armed forces continue to face a serious shortage of manpower namely the commissioned officers.

PROBLEMS: India’s army, the world’s fourth largest, is failing to attract enough youngsters with “officer-like qualities” for its 1.13-million strong Army. The authorized strength of Indian Air Force is 12,136, whereas the Indian Navy has an authorized strength of 8,797 officers. Indian forces are facing a massive exodus from its ranks, with more and more officers opting for premature retirement. The problem was aggravated when about 3,000 officers sought premature retirement in the last three years. Most of them moved to the lucrative corporate sector. Inability to retain the trained personnel is a major issue. Today’s knowledge-based youth seeks not just superior salaries, but the freedom to retain mobility in the career market. Poor service conditions and the other compensatory packages to make career in forces an unattractive one.

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Applications for the Indian armed forces have seen a dip in the recent past. With more officers quitting service mid-way, and more officers opting for voluntary retirement, the defense forces are facing a real problem. Apart from this, the young workforce today prefers to join the private sector, with the advantages of higher earning potential, and the freedom of shifting jobs. PROBABLE CAUSES /PROBLEMS MAJOR-- 1] People believe that the armed forces are the choice of the people who do not get into any institutes of higher education. And also that getting into the armed forces do not require any intelligence to get you through 2] Patriotism itself attracts the true citizen to the defense services. Many people voluntarily try for the defense services, but get failed in the selection criteria by one or the other means. 3] One of the reason for the Armed Forces not getting the right type of youth for their officer cadre is that youth from rural background and less developed states like UP and Bihar are not able to qualify in the selection process it being very scientific and tough. 4] Other problem is the marketing of the forces. I think corporate do a good job in attracting talent. Armed forces were once an automatic choice for many when job opportunities were lesser. But not today. 5] Ex- servicemen pathetic condition is been observed by the youth .Hence youth don’t feel like to join the services. 6] Parents and relative demoralize them for the fear of losing them. 7] The service conditions, promotion prospects, job satisfaction and post-retirement provisions for Indian military officers have deteriorated in relation to other forms of available and comparable employment. OTHER RELATED CAUSES

Army has severe promotional bottlenecks. Today’s marriage dynamic demands an environment for husband–wife working opportunities. Today’s youth seeks a corporate culture which values people Frequent transfers Isolation from family High levels of stress Low pay in comparison to the risk involved Military’s tough lifestyle Post-marriage life in the forces is not comfortable. Single child culture Fear of getting killed

ADVANTAGES OF JOINILG FORCES ARE



Solid Job Security

Attractive Pay and Allowances

Great Facilities for You and Your Family

Great Food at No Cost

Awesome Foreign Assignments

Scope for Higher Education

Respect Wherever You Go

First Priority of Physical Fitness

Great Post Retirement Options

Opportunity to serve the nation

I being a veteran of Indian Air Force , given 20 years of distinguished service to the nation is confident that, if right information along with creation of national sense is nurtured in the youth there will be big rush to join military services.

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PAPER ON RETAIL SECTOR DYNAMICS AND DEVELOPMENT PROSPECTIVE IN INDIA

Sanjaykumar Vijaykumar Agrawal Assistant Professor In Commerce Seth. G. B. Murarka Arts And Commerce College, Shegaon.

ABSTRACT: - Retailing is the most important factor in channel of distribution. Retailers cater the needs of consumer by supplying them goods and services according to their demand Retail sector is an important pillar of Indian Economy which contributes 22% of its gross domestic product (GDP). It is an important source of employment and provides opportunities for employment and self employment to large extent. Dominance of Traditional Sector, numerous retail outlets, personal ownership, limited area of operation and unskilled management etc. were the feature of retail trade in India. However, the scenario is changing rapidly due to opening of departmental stores, malls, supermarkets, etc. in urban area the share of organized sector is growing rapidly. There is wide scope of development of retail sector in India due to its large population diversity in topological condition and variety of culture and relation. Owing to large market and opportunities international players are interested to enter in the Indian Market. The Govt. of India has resolved to permit 51% foreign direct investment (FDI) in multi brand and 100% in single brand retailing. The investment will open new areas for retail trade and industries. Thus retail sector has bright future for sustainable development in India. The paper aims to throw light on the far going changes occurring in Indian economy specially in the field of retail trade and industry. The objective of this paper is to explain the role of retail sector in Indian Economy, its prospective and future challenges. It also aims to suggest remedial measures to overcome the challenges. Meaning of Retail: - The word retail is derived from the French word retailer which means to cut a peace or break from bulk. In simple words retailing means supplying goods and services to end users. Retailing means buying and selling goods and services to customers. A retailer buyes goods on large scale and sells them in small quantity to ultimate consumers according to their demand. Retailers catters the needs of consumers by supplying them goods of their choice at affordable prices. They also provide after sales services retail industry is the industry which produces goods for selling directly to consumers as per their demand. The industry has contributed largely in the economic development of many countries in world and it is most fast growing industry in the present age. Evolution of Retail Sector in India: - Retail sector in India Comprises traditional and organized sector. The traditional form of retailing existed from centuries. They were owners managed shops which catered the needs of consumers in urban and rural areas. The origins of retailing in India was in the form of emergence of Kirana shops and mom and pop stores which cater the needs of local people. Govt of India supported the rural retailers and indigenous stores came in existence which the help of Khadi and Village Industry Commission changes in retail sector occurred when chain shops come in existence in 1980. Textile industries like Raymond’s, S. Kumar’s etc. footwear industry like Bata & Titan watches etc. opened their chain shops and sold their product directly to consumers. Organized sector in retailing was in the beginning stage in 1995 shopping malls emerged in the Urban areas, supermarkets and hyper markets came in existence. These made improvement in supply chain system and provided shopping opportunities to customers under one roof. With the advancement of science and technology and internet, E-commerce has revolutionized the retail sector in last decade. Thus the retail sector in India has changed over the years and is expanding very fast. The retail sector in India is



expanding rapidly the retail trade which was $ 330 Billion in 2006-07 is likely to increased by 10% per annum and expected to be $640 billion in 2015. It is expected that it will be double in next five years and will be $ 13 Trillion in 2020. The share of organized sector in retailing was limited to 4% in 2005. It is 8% in 2014-15 and is growing rapidly and is expected to be 20% in 2020. Dynamic conditions of Indian Economy and Retail Sector: - Indian economy is a developing economy. Since independence, so many changes are occurring in economic social and political conditions. These changes have resulted in rapid development of retail sector in India. a) Increasing Population: - India is second larges country in terms of population, just next to China. The population is increasing rapidly and likely to be on top in near future. Owing to mass population there is unending demand for consumer goods and services which is growing continuously day by day. b) Increase in GDP: - Due to planned economic development, agricultural and industrial production has increased many times. Indian Economy is growing rapidly with 8% per annum increased in GDP. It has resulted in increase in national and per capita income of individuals. c) Increasing in disposable income: - Increase in employment opportunities for youth and adults resulted in increase in their disposable income. In India propensity to consume is very high. So demand of consumer goods, durable goods and articles of comfort and luxury is increasing with increasing income resulting in increase in retail trade. d) Increasing number of dual income families: - With increasing number of working woman and dual income families i.e. families in which husband and wife both are working – the family income of working class people is increasing which results in increasing in retail trade e) Change in Lifestyle & Consumer Behaviour: - Due to increase in working population and middle income group people. There life style has changed large extend. People are interested in travel and tourism, consumer durables, electronics and other articles of comfort and luxury so demand for such item is increasing largely day by day. f) Emergence of Organized Sector: The retails sector in India comprises organized and traditional (unorganized) sector. The share of unorganized sector is about 90% while the share of organized sector was limited to 5% in 2005-06 which is growing rapidly and expected to be 20% in 2020. g) Store design: - Shopping malls and super markets are growing at faster rate. Availability of goods and other services. Under one roof attracts people for shopping experiences with entertainment and refreshment. The store design result in increase in retail trade. Brand consciousness and attraction for new articles many international players entered and introduced so many new articles in India. 60% of the population is young who are brand conscious and prefer to purchase branded item thus brand consciousness and attraction of new articles resulted in increasing retail trade. h) Evolution of E-Commerce: - Development of science and technology and spread of internet facility made online shopping easy and in the reach of common people. Many new articles of comfort and luxury are available at chipper rate than open market at one click. The facility of credit card, cash on delivery etc have made E-Commerce very popular and so online retail trader is increasing very fast. i) Change in Govt. Policies: - New Govt. policies are favorable for growth of retail trade. The Govt. of India has resolved to permit 51% foreign direct investment (FDI) in multi brand and 100% in single brand retailing. Policies of “Make in India skillful India” etc. are helpful in employment generation and necessary facilities are provided. Prospective of Retail Trade in India: - India is second largest country in term of population and fifth larges country in terms of retail trade. The retail trade in India is growing at faster rate. Retail trade which was $330 Billion in 2006-07 has



increased to $640 Billion in 2014-15. It is expected to grow rapidly and will be double upto $ 13 Trillion in 2020. In India 60% of the population is young and largely of middle class. Their increasing income and high propensity to consume is leading to fast growth of retail market. There are 21 Lacs middle class families which will grow to 90 Lacs families in 2030 and retail trade will be five times of the present level. Thus the prospective of retail sector in India is very bright. Due to less competition and non saturation in Indian market, so many International players are interested to penetrate and explore Indian Market. The new policy of 51% FDI in multi brand retail sector & 100% FDI in single brand retail sector, it is expected to grow rapidly Challenges for Retail Sector in India: - 1. Retail sector in India is dominated by unorganized sector. Organized sector is very low in India. In

present it is only 8% where as the share of organize sector in developed countries like USA is more than 80%.

2. In India the retail outlets are traditional. Although there are more than five lacs retail outlets, 90% of them have space less than 500 Sq. Ft. Thus the retail space is very less than International Standard.

3. Most of the retail outlets in India are traditional. They are owned and managed by single person. The retail sector provides employment to only 33% of the working population which is very low.

4. Lack of skilled personal is the important challenges for retail sector. The owners and family members who run retail shop are untrained and unskilled. They have no knowledge of packing and standardizing and new methods if selling.

5. Inefficient chain of supply create hurdle in growth of retail sector. There is a long chain of wholesalers and middle man between producers and retailers. They grab lot of profit resulting in increasing price for consumers.

6. There are different laws of sales in different states. The law do not favours retail trade. 7. Lack of proper, infrastructure is the major problems facing in development of organized sector. Cost

of property and real estate is increasing by alarming rate in urban areas. So the capital cost of constructing Malls and Super Markets and Hyper market is very high.

8. India is a large country with topological and cultural diversity. So many types of goods and articles are demanded throughout the country. It is impossible for the small retailers to satisfy the needs of consumers. Again different types of items are available in different brands and size so the retailers have to maintain buffer stock. It not only increases cost of operation but also the problems of dead stock results into huge losses for business.

9. Fraud and mal practices in retail trade is the most difficult challenge to handle. Fraud by traders, miss management by employees, threats of theft, dacoity, shoplifting and insecurity are the problems which create hurdle in growth of retail trade in India.

10. Lack of finance facility and shortage of capital are the problems for development of retail trade. Most of the retail outlets are run by individuals and household with limited financial resources, non availability of easy loans restrict expansion.

11. Retails trader in India is limited to local customer only. So area of operation is very small. Malls and super markets are developed in urban areas and not in rural areas.

12. Online shopping is becoming popular in urban areas but illiteracy, lack of internet facilities, and credit facilities in Rural areas do not allow E-Commerce to flourish in Rural areas.

13. Though Govt. is giving stress on FDI in retail sector, there is opposition by local retailers and political leaders so FDI in retail sector cannot be achieved and the advantages cannot be realize.

Suggestions for growth of retail trade: - It is necessary to overcome the above problems for rapid and sustainable growth of retail trade in India. The following suggestions are worth noting in this context. 1. Organized sector of retail trade should be promoted. Supermarkets and Departmental stores should

be started in small towns and in rural areas. 2. Proper training should be imparted to employees for their skill development in marketing trained

and skilled staff will be able to render better services to the customers.



3. The long chain of middle man between producer and retailer should be abolish elimination of wholesaler will enable the retailer to buy goods directly from producer. Efficient system of supply will help in reducing the profit f middleman and passing on the benefit to customer by reduction in price.

4. The rates of sales tax and tax law should be uniform throughout the country. 5. Banks and financial institutions should be promoted to provide short term middle term and long

term finance to retailer, easy loan and cash credit system at concessional rate of interest will avoid shortage of capital.

6. Infrastructure facility should be provided for development of malls and supermarkets in semi urban and rural area.

7. FDI in retail sector be promoted in organized sector so that better services can be provided to mass population living in rural area.

8. More facilities should be provided for online shopping so that customer can buy quality goods directly from producer at cheaper rate than open market. Fraud and malpractices in retailing should be strictly prohibited. Retailers should concentrate on customer satisfaction rather than their own profit. The policy of more sales with less return should be adopted with honesty.

Conclusion

Retail trade plays a vital role in development of Indian Economy and its contribution is 22% of its GDP. It is also helpful in creating employment opportunities to large extent. The prospective of retail sector in India is very bright. Owing to large market less competition and non saturation, many international players are interested to explore Indian Market, Govt. Policies like “Make in India Skilful India” are also favourable for development of retail trade in India. The retail sector in India is growing rapidly and there are tremendous opportunities for further growth. Introduction of FDI and growth of organized sector in retail trade will result in increase in volumn of retail trade, increase in customer satisfaction and welfare and also flourish the retail industry undoubtedly India will be retailers paradise in near future.

Bibliography: 1. Retail marketing management – David Gilbert 2. Retail Industry – Current Trends – Dhananjay Keskar 3. Research Methodology – Ram Ahuja 4. Marketing Management – Pillai and Bhagwati

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URBAN SUSTAINABILITY APPROACH – A THEORETICAL CONCEPT

Mr. Amol O. Agrawal FY-LLB(3 Years) Dr. PANJABRAO DESHMUKH COLLEGE OF LAW , AMRAVATI.

Abstract For an Indian city to achieve a sustainable urban development, five pillars of sustainability have been identified; political, physical, ecological, social and economic. The ecological, social and economic are pillars from the common definition of sustainability, however they have different meaning and focus in the Indian context. This Paper aims to enable improved urban sustainability in India. The purpose and objective have been accomplished through the implementation of three research questions. The questions have been answered by a literary review of existing theories. India is facing many challenges in order to reach a sustainable urban development. Together with urbanisation and growth in population, corruption is the main challenge since many other follows. These are lack of awareness in the field of sustainability, short term planning and the focus on profit as well as public safety and poverty. If India is serious about developing its cities sustainably, it is significant for the Indian government to take an inspiring role in using and promoting sustainability. Keywords Urbanisation, Urban sustainability, Pillars of sustainability, WSP India, The Green City, Urban development, Indian cities Introduction There is a commonly accepted view of sustainability which implies that for sustainability to be achieved three pillars should be taken into account; environment, economy and society. Today, 52% of the world’s population lives in cities and every day they are joined by another 180,000 individuals. Cities survival and success in today’s global market depends on being competitive, attractive and to be able to use limited resources sustainably to fulfill the requirements of their population. By 2050 the urban population in India is estimated to reach 50% of the total. This implements a drastic growth of the existing cities and the difficulty of planning them to become sustainable. The growth has inflicted damage upon the environment and implemented the prime agenda of exploring possibilities of creating a living environment which is self-sufficient, ecologically balanced and culturally stimulating. Thus, India attempts to become one of the global leaders in sustainable built environment by 2025 Aim

The purpose is to enable improved urban sustainability in India. Objective

The objective is to chart the Indian characteristics as well as to identify difficulties regarding urban sustainability.

Research questions

The paper revolves around the following research questions;

What does urban sustainability mean in an Indian context compared to the common one?

What strategies are implemented in the attempts to achieve sustainable urban success in India?

What main challenges still exist to overcome in order to reach urban sustainability in India?

Sustainability – the common definition The expression sustainability deduces from the Latin word ‘sustinere’ which means to up-hold.

The definition of sustainable development contains two key points;



particular is the essential need of the world’s poor, to which overriding priority should be given”.

ability to meet present and future needs

The need of urban sustainability

The UN-HABITAT states that; “The city is the home of prosperity”. In cities, access to public goods and basic needs are found. Happiness and fulfillment are brought to urban dwellers by the realisation of desires, goals and different aspects of lives. The city is a place where it is possible to experience an increase of prosperity as well as personal and shared well-being.

Industrialisation as a contributor Industrialisation aims at describing a period of social and economic change in relation to technological modernisation which in turn is a part of a modernisation process

Global urban growth and urbanisation The first phenomena of urbanisation happened during the industrial revolution. From 1750 to 1950, the number of urban dwellers increased from 15 to 423 million which is equal to a rise from 10% to 52%. It can be compared to the urbanisation happening in low-income countries today, called the second wave of urbanisation, where the number of urban dwellers is expected to rise from 309 million in 1950 to 3.9 billion in 2030.A century ago only two out of ten people lived in urban areas and the total population of the world was two billion. Today, the global population is six billion people and it is currently increasing with nearly 60 million every year. This means that every second person in the world now lives in a city.

Urban growth and urbanisation in India

India has lately experienced industrialisation, motorisation and urbanisation at once. This driven by globalisation and increasing international economic cooperation which have made the cities flourish. After China, India has the second largest urban system in the world. It is the largest democracy in the world and is one of the fastest growing countries. This makes the Indian cities exposed to aggressive urbanisation which is both a benefit and difficulty for the country. Businesses and the government find it hard to create enough jobs to meet the demands of the population. Unemployment is therefore a problem which leads to people applying for government-funds and benefits. In turn, the government loses money which usually leads to reduction of energy, health care, education and public transport. Waste management and security are areas that get less prioritized or even forgotten. One result of these issues is poverty which slows down the economic growth.

Urban climate change Cities are major contributors to climate change which is forcing the topic of cities into the field of sustainable development. The urban growth and escalating population has inflicted damage upon the environment, especially in terms of climate change and global warming. Even though cities cover only 2% of the Earth’s surface, they consume 75% of the world’s resources. The activities a city generates, for example the energy consumption, transportation, manufacturing and waste management are main sources for greenhouse gas (GHG) emissions. Another major issue in urban areas is the rising local temperatures called ’urban heat islands’. The urban heat islands are created when the temperature in cities are higher than in the less developed and rural areas around it.

Sustainable urban development

The ecological pillar The most considered aspect when it comes to sustainability is the environment. Ecological sustainability means long-term environmental practices. These practices involve keeping the number of people below the maximum ability of a certain region. It also includes enabling the use of renewable resources and preventing the use of non-renewable resources. One view of environmental sustainability is to create a balance between the economic and social progress with environmental protection.



The economic pillar It is often said that economic sustainability is to recognize several approaches that make it possible to use existing resources to their best benefit. It is also said that the economy is depending on society and the environment. Achieving economic sustainability in a city means creating a good climate where it is easy for smaller enterprises to establish themselves. A city that appeals to people and businesses through recreational activities, culture and entertainment should be strived after in order to achieve a successful economy. Further, it is important for the public sector and the infrastructure to be properly developed and work efficiently. The social pillar Social sustainability means a better quality of life for all members of society and that the individuals are in focus. A social sustainable city needs to provide all conditions that the inhabitants need to be able to live a good and healthy life. These conditions consist of good neighborhoods, improved and extended bicycle routes and sidewalks as well as comfortable public transportation. These will all contribute to reduction of the use of the private car. The three pillars of sustainability have to be set in a city’s context. Image 1 show the relationship between them when it comes to achieving urban sustainability.

Urban Sustainability meaning in Indian context India is imitating the western principles in urban sustainability which contributes to a social urban segregation since it only addresses the rich. The west takes a leading role and act as a good example for a developing country to follow, even though that is not always the case. From our experiences, the western world seems to consider themselves to already have achieved the issues in the social pillar which is why it is overlooked. When India then imitates this practice, crucial areas are neglected which is more noticeable in India than in the west? It is therefore difficult to translate the western methods to the Indian context in an efficient manner. It is the ecological pillar that is always the most considered. Another reason is that achievements in ecological sustainability are easier to measure and compare to the set standards and goals. The comparison has further become a competition in performance, especially when marketing projects and companies. This puts the other pillars, mostly the social one, on the side line. We have also



experienced the short term planning with its focus on quick economic profit and the impact on the urban environment in India. Because of the urbanisation and the rapid urban growth, the Indian cities quickly have to meet the needs of a growing city. This is done by a rushed urban planning process which leads to a focus on short term solutions since they are both easier and quicker to apply. This results in the need of maintenance which is a good example of where the economic, ecological and the physical pillars connect. The political pillar is the one that we believe requires most attention. The Indian government stands for many concerns in the other pillars. It has the power to change but lacks the will. Strategies implemented in the attempts to achieve sustainable urban success in India Even though many strategies such as the planning for spatial forms are considered and implemented, urban sprawl will still happen but in a different manner. Along with a better economy as well as the increase in population, a demand for larger real estates will appear and the city will therefore spread. With a continuous increase of population follows the difficulty in keeping the cities’ development sustainable. This in turn leads to uncomfortable questions being reflected upon; is it right to control the growth of a population for a healthier urban development? It seems like India is determined not to be classified as a developing country. This can be noticed through the government’s misplaced attention by using international methods and focuses. It leads to marginalised groups being neglected and excluded from future plans of the Indian city. Without focus on the crucial areas and efforts towards involving and removing poverty, a country and its cities cannot become sustainable. During our stay we heard about the government’s temporary remove of beggars from the streets. The beggars were relocated to places not likely to be visited by tourists to avoid an interpreted poor picture of the country. This again confirms the constant focus on short term solutions. The government’s JNNURM mission is an example of how ambitious a strategy can look in theory and how the practice is reactive instead of proactive. To accomplish more comprehensive strategies the gaps between theory and practice needs to be eliminated. New theories and practices explicit for developing countries and their contexts should therefore be established. Implemented systems for measuring sustainability are mainly directed towards the environmental. The stricter observations and the promotion of sustainability from international organisations are causing the misplaced focus in India. The environmental performance is easier to measure and compare to the set international objectives. This makes it possible for India to get interpreted as a competitive country when it comes to sustainability. Even though the ecological pillar gets prioritised in the measuring systems, the law implementation and the control of the promised design actually being achieved is missing. This makes builders using the benefits without building what was first initiated. Main challenges still existing to overcome in order to reach urban sustainability in India Waste management, water, sewerage and traffic are extremely visible challenges facing urban India. Traffic is the one of them considered easiest to address by sufficient public transport. The emergence of economic growth has led to an increased middle class and car ownership. Thus, we conclude that a rich country is not a country where the poor drive a car; it is where the rich travel by public transport. We have also observed short term planning as a result of the lack of awareness as well as the Indian mind set; build – neglect – rebuild. In this context it is essential to be aware about that the practicing construction workers in India are previous farmers without training or education. We believe that if India’s stakeholders admit that sustainable urban development needs a long term approach and start to exert the practice of it, they have come far. Hence, there is a great need of education and increased awareness, not only among construction workers but also among the citizens of India. When discussing the Green City and its practices, one question keeps coming back to us; why invest in a completely new development instead of focusing on the problems in already established cities? We therefore interpret this development as a prestige project that only promotes a sustainability façade instead of digging deeper and try solving the actual problems. Though, we also identify the Green City as a motivator that generates both awareness and interest in the continued work towards urban sustainability in India. Corruption together with growth in population and urbanisation are the substantial challenges to overcome in the process towards urban sustainability in India. They underlie most of the other difficulties. Corruption has been identified as the main challenge in India. It affects the law implementation, policies and strategies which are important for an urban development to be sustainable. Problems follow and the cities of India are therefore struggling with their existing features. Basic services such as waste management, water and sewerage as well as traffic are main challenges since they are heavily pressured by the increasing population. Poverty is also a key to urban sustainability since it is proved to slow down the economic growth of a city. The built form has become



complex and disorganised. The urgency of maintenance and transformation of the infrastructure has resulted in implementation of remedial solutions. This causes the short term planning which is recognised as another main difficulty to overcome. The findings imply that the lack of maintenance and short term planning is connected through a vicious circle. The reliance of the current “working” infrastructure is identified as another underlying problem. The quick problem solutions can further be derived to the lack of awareness in the field of sustainability. The lack of awareness causes difficulties in knowing what sufficient methods to use in order to achieve sustainability. The planning stages have been identified as a contributor to the existing gap between theory and practice. When they tend to melt together, the ambition of urban sustainability disappears. The quick profit mentality of stakeholders together with the high cost of sustainable solutions is recognised as reasons. The diffused planning stage in India causes a quicker planning and construction process than in the west. Clients want to see physical progress as soon as possible which is why the sustainability approach, in these cases, gets neglected. This demonstrates that urban sustainability may look better in theory than in practice. The main challenges, corruption and growth in population, are identified to be included in the political and social pillars of sustainability.

Conclusions The Indian context is complex and with different interpretations of the term sustainability it becomes difficult to evaluate. It is therefore important to have a holistic approach towards the term. The discussion should be on how to connect the sustainable urban development with the urban form and structure. The task of the upcoming years is to narrow the gap between the theory and practice. Today’s record is that India is succeeding brilliantly on some levels such as economic growth yet failing miserably when it comes to political sustainability. If India is sincere about a sustainable urban development, it is important for the Indian government to take a leadership position in using and promoting sustainability. Even though it takes hard work, urban sustainability will start with a sustainable government. The subject of this Paper is a never ending debate since the topic has as many interpretations as interpreters.

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http://www.bath.ac.uk/i-see/research/sustainability



Jain, Anil. A sustainable vision for urban India. Institute of town planners 7 no.4 (2010): 74-89. http://itpi.org.in/pdfs/oct2_10.pdf (Accessed 2013-02-21). 5World green building council. Indian GBC Holds Green Building Congress. World green building council. 2013. http://www.worldgbc.org/activities/news/global/indian-gbc-holds-green-building-congress/ Our Common Future, Chapter 2: Towards Sustainable Development. World Commission on Environment and Development. http://www.un-documents.net/ocf-02.htm Reese, Jasmine. 5 Major Problems with Urbanization. http://www.ehow.com/info_10056161_5-major-problems-urbanization.html Sullivan, A, Steven M. Sheffrin. Economics: Principles in action. New Jersey, Pearson Prentice Hall. 2003 p. 472. ISBN 0-13-063085-3 Sustain. The Shorter Oxford English Dictionary. Oxford: Clarendon Press, 1964. 38Our Common Future, Chapter 2: Towards Sustainable Development. World Commission on Environment and Development. http://www.un-documents.net/ocf-02.htm. Southwest Urban Hydrology. Urban Heat Island Effect. (2012). http://www.southwesturbanhydrology.com/urbanization-concerns/urban-heat-island-effect/ Sankhe, Shirish. India’s urban awakening: Building inclusive cities, sustaining economic growth. McKinsey Global Institute. (2010). Three pillars of sustainability. 2010. http://huntsvillegreenplan.blogspot.in/2010/02/three-pillars-of-sustainability.html Urbanization’s second wave: A different scale. UNFPA state of world population 2007. http://web.unfpa.org/swp/2007/english/chapter_1/urbanization.html

Webb, Flemmich. Sustainable cities: innovative urban planning in Singapore. Guardian Professional. (2012) http://www.guardian.co.uk/sustainable-business/sustainable-cities-innovative-urban-planning-singapore

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http://www.un-documents.net/ocf-02.htm

http://www.ehow.com/info_10056161_5-major-problems-urbanization.html

http://www.ehow.com/info_10056161_5-major-problems-urbanization.html

http://www.un-documents.net/ocf-02.htm

http://www.southwesturbanhydrology.com/urbanization-concerns/urban-heat-island-effect/

http://huntsvillegreenplan.blogspot.in/2010/02/three-pillars-of-sustainability.html

http://huntsvillegreenplan.blogspot.in/2010/02/three-pillars-of-sustainability.html

http://www.guardian.co.uk/sustainable-business/sustainable-cities-innovative-urban-planning-singapore



SOLID WASTE MANAGEMENT - SOFTWARE (RFID BASED SOLID WASTE COLLECTION MONITORING SYSTEM)

Prof. Sarvesh S. Rathi Assistant Professor HVPM COET MBA Department, Amravati.

Abstract Technology will play a vital role in coming future to manage the waste collection system and to support clean energy concept around the world. In this paper we have provided software based monitory system for solid waste management which is now a major problem in India nowadays and which can be used in various ways so as to decrease pollution and also to generate useful materials from it. This paper focuses on solid waste management system software which is based on RFID. Here we have discussed in detail about the software its use and also Solid Waste Collection Monitoring System. In this Paper, an attempt has been made to propose an Automated Solid Waste Collection Monitoring System using RFID technology integrated with GSM under the Swatch Bharat Abhiyan Initiated by Our Hon. Prime Minister Shri Narendra Modi. Introduction RFID based Solid Waste Management System:

Rapid growth in urban population leads to a dramatic increase in municipal solid waste (excluding industrial, construction, hospital waste) with severe socio economic and environmental impact. Therefore, the need for managing municipal solid waste in an efficient way has become acute.

Highlighted Features

• 100% mapping of location of bins. • Complete Listing for location of waste bins and their capacity. • Real time management of missed collection points. • Timetables indicating Place and time of waste collection. • Point to point collection monitoring and control. • Statistics on the weight of waste collected. • Reports on the daily, weekly or annual quantity of waste Collected , produced for each geographic

point of interest, performance of vehicles, and status of bins etc... • Management Of information system (MIS) & civilian complaints. • Transparency in civic administration.Process Architecture

Software Specificatio



These are the different modules of the software being developed Waste Bins Manager

HF RFID Tags Manager

Supervisor / Driver Manager

Live Status Monitoring

History Monitoring

MIS Reports

Sample Screen Shots of Application

(For reference Purpose Only)

Waste Bin & RFID Tags Manager

Supervisor / Driver Manager



Live Status & History of Collection

MIS Reports



General Terms & Conditions

Warranty o 1 year repair/replacement warranty on the hardware. (Subject to clause D.) o 7 Days repair/Replacement warranty on all type of tags & cards (Subject to clause D.) o Warranty doesn’t cover any cable, connector or adapters.

The Company warrants that in normal usage and with proper maintenance, its hardware will conform to their specification for a period of 12 months from the date of delivery, subject to the conditions, limitations and procedure listed below. Delivery

Delivery will start 6-8 Weeks (appx.) from date of receipt of purchase order and advance payment. Limitations Company shall be limited to the repair or replacement of any parts of the hardware product, which are defective in materials during Warranty Period Specified from the date of delivery. Provided hardware is made available at place of initial installation/delivery. Company Shall not be liable in any way for Product failure, or any resulting loss or damage which arises from:

a. Use of product in a way for which it was not designed or intended. b. Corrosion, degradation or wear and tear. c. Failure to service or maintain the product in accordance with company recommendations. d. Faulty or deficient installation of the product. e. Any tampering, modification or alteration of the product. f. Conditions that exceed the products performance specifications or safe working loads. g. Internal damage caused to supplied hardware and damages due to natural

Disasters & calamities are not covered under AMC or during warranty period. h. This warranty does not cover any incidental costs incurred for the investigation, removal,

carriage, transport or installation of product. i. Service by anyone other than authorized representatives shall be taken as warranty void

unless it accords with Written Permission, guidelines and standards of workmanship.

Liability Company Informatics shall not be responsible for

o Any loss of anticipated turnover or profit or indirect, consequential or economic loss. o Damages, costs or expenses payable to any third party. o Death or personal injury. o Any loss in warranty of any other device / hardware due to installation of device.

Other

o The proposal will be valid for duration of 14 days from the date of submission. o Company Informatics reserves all rights for the data provided in this proposal.

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BANKING Ku. Sonali Sanjay Gosavi Smt. Kesharbai Lahoti Mahavidyalaya, Vidya Nagar, Morshi Road, Amravati.

ABSTRACT The Multi Banking System Interface is targeted to the future banking solution for the users who is having multiple bank accounts in multiple banks. This interface integrates all existing banks and provides business solutions for both retail and corporate.

This system acts as a standard interface between the clients and all the banks. By using this portal any client who maintain accounts in various banks can directly log on to Multi Banking System Interface and make any kind of transactions. In the backend, system will take care of the entire obligation required in order to carry on transaction smoothly.

The author reviews the theoretical and empirical literature to examine the traditional perception that the following trade-off exists between economic efficiency and stability in the banking system: a competitive banking system is more efficient and therefore important to growth, but market power is necessary for stability in the banking system. That this trade-off exists is not clear. Market power can have positive implications for efficiency, and the potentially negative implications of competition on stability may be manageable through prudential regulation. Neither extreme (perfect competition nor monopoly) is likely ideal. Rather, it may be optimal to facilitate an environment that promotes competitive behaviour (contestability), thereby minimizing the potential costs of market power while realizing benefits from any residual that remains. It can be very difficult to assess the contestability of a banking market. Recent work suggests that the number of banks and the degree of concentration are not, in themselves, sufficient indicators of contestability. Other factors play a strong role, including regulatory policies that promote competition, a well-developed financial system, the effects of branch networks, and the effect and uptake of technological advancements.

INTRODUCTION The Domain “Banking System " keeps the day by day tally record as a complete banking. It can keep the information of Account type, account opening form, Deposit, Withdrawal, and Searching the transaction, Transaction report, Individual account opening form, Group Account. The exciting part of this project is; it displays Transaction reports, Statistical Summary of Account type and Interest Information Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the backbone of modern business. Development of any country mainly depends upon the banking system. The term bank is either derived from old Italian word 'banca' or from a French word 'banque' both mean a 'Bench' or 'money exchange table'. In olden days, European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposit and it lends money to those who need it. A bank has a following features: 1] Dealing in money , 2] Individual / Firm / Company , 3] Acceptance of Deposit 4] Giving Advances

5] Payment and Withdrawal

6] Agency and Utility Services



7] Profit and Service Orientation 8] Ever increasing Functions The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government, the other two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence, became the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian government nationalised 14 major private banks. In 1980, 6 more private banks were nationalized. These nationalized banks are the majority of lenders in the Indian economy. They dominate the banking sector because of their large size and widespread networks. The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The term commercial banks refers to both scheduled and non-scheduled commercial banks which are regulated under the Banking Regulation Act, 1949. Generally banking in India is fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with facilities like microfinance. Withdrawal facility to its customers in the form of cheques and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts, etc. Banking in India in the modern sense originated in the last decades of the 18th century. Among the first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829-32; and the General Bank of India, established in 1786 but failed in 1791. The largest bank, and the oldest still in existence, is the State Bank of India (S.B.I). It originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government, the other two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence, became the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934. In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian government nationalised 14 major private banks. In 1980, 6 more private banks were nationalized. These nationalized banks are the majority of lenders in the Indian economy. They dominate the banking sector because of their large size and widespread networks. The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalised banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The term commercial banks refers to both scheduled and non-scheduled commercial banks which are regulated under the Banking Regulation Act, 1949. Generally banking in India is fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with facilities likemicrofinance.

https://en.wikipedia.org/wiki/State_Bank_of_India

https://en.wikipedia.org/wiki/Bank_of_Calcutta

https://en.wikipedia.org/wiki/Bank_of_Bengal

https://en.wikipedia.org/wiki/Presidencies_and_provinces_of_British_India

https://en.wikipedia.org/wiki/Bank_of_Bombay

https://en.wikipedia.org/wiki/Bank_of_Madras

https://en.wikipedia.org/wiki/Bank_of_Madras

https://en.wikipedia.org/wiki/Imperial_Bank_of_India


https://en.wikipedia.org/wiki/Reserve_Bank_of_India

https://en.wikipedia.org/wiki/Reserve_Bank_of_India_Act,_1934

https://en.wikipedia.org/wiki/State_Bank_of_India#Associate_banks



https://en.wikipedia.org/wiki/Nationalised

https://en.wikipedia.org/wiki/Indian_economy

https://en.wikipedia.org/wiki/Scheduled_bank


https://en.wikipedia.org/wiki/Regional_Rural_Bank

https://en.wikipedia.org/wiki/Banking_Regulation_Act,_1949

https://en.wikipedia.org/wiki/National_Bank_for_Agriculture_and_Rural_Development

https://en.wikipedia.org/wiki/National_Bank_for_Agriculture_and_Rural_Development

https://en.wikipedia.org/wiki/Microfinance



Adoption of banking technology The IT revolution has had a great impact on the Indian banking system. The use of computers has led to the introduction of online banking in India. The use of computers in the banking sector in India has increased many fold after the economic liberalisation of 1991 as the country's banking sector has been exposed to the world's market. Indian banks were finding it difficult to compete with the international banks in terms of customer service, without the use of information technology. The RBI set up a number of committees to define and co-ordinate banking technology. These have included: In 1984 was formed the Committee on Mechanisation in the Banking Industry (1984) whose chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of India. The major recommendations of this committee were introducing MICR technology in all the banks in the metropolises in India. This provided for the use of standardized cheque forms and encoders. In 1988, the RBI set up the Committee on Computerisation in Banks (1988) headed by Dr. C Rangarajan. It emphasized that settlement operation must be computerized in the clearing houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patnaand Thiruvananthapuram. It further stated that there should be National Clearing of inter-city cheques at Kolkata, Mumbai,Delhi, Chennai and MICR should be made operational. It also focused on computerisation of branches and increasing connectivity among branches through computers. It also suggested modalities for implementing on-line banking. The committee submitted its reports in 1989 and computerisation began from 1993 with the settlement between IBA and bank employees' associations. In 1994, the Committee on Technology Issues relating to Payment systems, Cheque Clearing and Securities Settlement in the Banking Industry (1994) was set up under Chairman W S Saraf. It emphasized Electronic Funds Transfer (EFT) system, with the BANKNET communications network as its carrier. It also said that MICR clearing should be set up in all branches of all those banks with more than 100 branches. In 1995, the Committee for proposing Legislation on Electronic Funds Transfer and other Electronic Payments (1995) again emphasized EFT system. Review of literature Review of literature has vital relevance with any research work due to literature review the possibility of repetition of study can be eliminated and another dimension can be selected for the study. The literature review helps researcher to remove limitations of existing work or may assist to extend prevailing study. Several research have been conducted to analyse the different aspects of performance of commercial banks in India and abroad. But there are very few research and literature available on the subject related to financial reforms and its impact on Indian banks. The available literature and research are divided into four major parts according to the area of research i.e. literature related to: 1. Review of Literature related to Performance Appraisal of Banks 2. Review of Literature related to Policy Framework and Recommendations for Banks 3. Review of Literature related to Impact of Reforms on Indian Banks 4. Review of Literature related to Service Quality of Indian Banks2 The above mentioned literature have been obtained from following four major sources such as (i) Ph.D. research conducted in India, (ii) The research / studies carried over by the institutions like RBI, ICRA Limited and business magazines like Financial Express, Business Today, Money Outlook, Business India, etc. and (iii) Research Studies of individual scholars published in journals and magazines and (iv) websites of RBI, Govt. of India and websites of various banks. The present study is undertaken in the light of the methodology adopted and conclusions emerged in the earlier studies relating to the performance evaluation, financial reforms and their impact on the Indian banking sector. and a comparison between the two. Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on customer's order."

https://en.wikipedia.org/wiki/Online_banking

https://en.wikipedia.org/wiki/MICR

https://en.wikipedia.org/wiki/Clearing_house_(finance)

https://en.wikipedia.org/wiki/Bhubaneshwar

https://en.wikipedia.org/wiki/Guwahati

https://en.wikipedia.org/wiki/Jaipur

https://en.wikipedia.org/wiki/Patna

https://en.wikipedia.org/wiki/Thiruvananthapuram

https://en.wikipedia.org/wiki/Cheque

https://en.wikipedia.org/wiki/Kolkata

https://en.wikipedia.org/wiki/Mumbai

https://en.wikipedia.org/wiki/Delhi

https://en.wikipedia.org/wiki/Chennai

https://en.wikipedia.org/wiki/Payment_system

https://en.wikipedia.org/wiki/Clearing_(finance)

https://en.wikipedia.org/wiki/Settlement_(finance)

https://en.wikipedia.org/wiki/Settlement_(finance)

https://en.wikipedia.org/wiki/Electronic_Funds_Transfer

https://en.wikipedia.org/wiki/Electronic_Funds_Transfer



Types of Banks

1] Saving Banks

Saving banks are established to create saving habit among the people. These banks are helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks. Postal department also performs the functions of saving bank.

2] Commercial Banks

Commercial banks are established with an objective to help businessmen. These banks collect money from general public and give short-term loans to businessmen by way of cash credits, overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of exchange, remittance money from one place to another place. In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial banks were nationalised by Government of India. The policies regarding deposits, loans, rate of interest, etc. of these banks are controlled by the Central Bank.

3] Industrial Banks / Development Banks

Industrial / Development banks collect cash by issuing shares & debentures and providing long-term loans to industries. The main objective of these banks is to provide long-term loans for expansion and modernisation of industries.

In India such banks are established on a large scale after independence. They are Industrial Finance Corporation of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI) and Industrial Development Bank of India (IDBI).

4] Land Mortgage / Land Development Banks

Land Mortgage or Land Development banks are also known as Agricultural Banks because these are formed to finance agricultural sector. They also help in land development.

In India, Government has come forward to assist these banks. The Government has guaranteed the debentures issued by such banks. There is a great risk involved in the financing of agriculture and generally commercial banks do not take much interest in financing agricultural sector.

5] Indigenous Banks

Indigenous banks means Money Lenders and Sahukars. They collect deposits from general public and grant loans to the needy persons out of their own funds as well as from deposits. These indigenous banks are popular in villages and small towns. They perform combined functions of trading and banking activities. Certain well-known Indian communities like Marwari's and Multani even today run specialised indigenous banks.

6] Central / Federal / National Bank

Every country of the world has a central bank. In India, Reserve Bank of India, in U.S.A, Federal Reserve and in U.K, Bank of England. These central banks are the bankers of the other banks. They provide specialised functions i.e. issue of paper currency, working as bankers of government, supervising and controlling foreign exchange. A central bank is a non-profit making institution. It does not deal with the

http://kalyan-city.blogspot.com/2010/09/commercial-banks-definitions-primary.html

http://kalyan-city.blogspot.com/2010/09/nationalisation-of-banks-in-india.html

http://www.ifciltd.com/

http://www.icicibank.com/

http://www.idbi.com/

http://www.federalreserve.gov/

http://www.federalreserve.gov/

http://www.bankofengland.co.uk/



public but it deals with other banks. The principal responsibility of Central Bank is thorough control on currency of a country.

7] Co-operative Banks

In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They generally give credit facilities to small farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available in rural as well as in urban areas. The functions of these banks are just similar to commercial banks.

8] Exchange Banks

Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working in India. These banks are mainly concerned with financing foreign trade.

Following are the various functions of Exchange Banks :-

1.Remitting money from one country to another country,

2.Discounting of foreign bills,

3.Buying and Selling Gold and Silver, and

4.Helping Import and Export Trade.

9] Consumers Banks

Consumers bank is a new addition to the existing type of banks. Such banks are usually found only in advanced countries like U.S.A. and Germany. The main objective of this bank is to give loans to consumers for purchase of the durables like Motor car, television set, washing machine, furniture, etc. The consumers have to repay the loans in easy instalments. Objectives 1] To promote and develop in India sound and progressive banking principles, practices and conventions and to contribute to the developments of creative banking. 2] To render assistance and to provide various common services to Members and to the banking industry. 3] To develop and implement new ideas and innovations in banking services, operations and procedures. 4] To organize co-ordination and co-operation on procedural, legal, technical, administrative or professional problems and practices of banks and the banking industry. 5] To initiate advance planning for introduction of new systems or services in the banking industry. 6] To collect, classify and circulate statistical and other information on the structure and working of the banking system. Hypothesis Banking systems have been with us for as long as people have been using money. Banks and other financial institutions provide security for individuals, businesses and governments, alike. In general, what banks do is pretty easy to figure out. For the average person banks accept deposits, make loans, provide a safe place for money and valuables, and act as payment agents between merchants and banks. Banks are quite important to the economy and are involved in such economic activities as issuing money, settling payments, credit intermediation, maturity transformation and money creation in the form of fractional reserve banking. PRIMARY AND SECONDARY a] Primary data The Primary Function of Commercial banks are as follows:- 1] Accepting Deposits:- The bank generally accepts deposit by the way of opening following accounts: a) Fixed Deposit Account:- This is also known as ‘Term Deposit’ or ‘Time Deposit’ account. Money in this account is accepted for a fixed period, say one, two or ten years.



b) Current Deposit Account:-This is also known as ‘Demand Deposit’ or ‘Current Deposit’. This account is generally opened by Businessman, Companies and Institutions who may have to withdraw money several times in a day. c) Saving Deposit Account:- The main aim of these accounts is to encourage and mobilize small savings of the public. This type of account is generally opened by small and middle income group persons.

d] Recurring Deposit Account:- The purpose of these accounts is to encourage monthly savings by the public, particular by the fixed income group. Generally money in these accounts is deposited in monthly instalments for a fixed period.

2] Advancing of Loans:-

a] Overdraft Facility:- The Bank grants overdraft facility to its reliable and respectable depositors. It enables companies and businessman to withdrawn amount over and above their actual balance in their current account. This is known as ‘Overdraft Facility’. In the case of overdraft a customer pays interest on the amount by which his current account is actually overdrawn. He does not have to pay interest on the entire amount of overdraft sanctioned to him by the bank. Companies, firms, traders are given such facilities on their current account which they kept with the bank.

b] Cash Credit:- The bank may advance in the form of cash credit. In this system bank advances loans on the basis of security of shares, debentures, other securities and tangible assets. It may also be based on the promissory notes of the borrowers. In cash credit banks grants loans and deposit it in the borrowers account. The borrower can withdraw this amount at any time according to his convenience. The interest is charged only on the used amount. The borrower need not pay interest on the entire amount.

c] Discounting of Bills of Exchange:- Commercial banks can also lend money by discounting bills of exchange. In case the holder of a bill needs money immediately, he can get his bills discounted by a commercial bank. It should be noted that ordinary bills are not discounting by the bank. The bank charges a commission for discounting of bills.

d] Credit Creation (Loans and Advances):- Credit creation is a unique function of the commercial banks. Here the bank gives a specified sum of money to a person or a firm against some collateral security. The loan money is credited to the account of the borrower and the borrower can withdrawn loan amount according to his requirement. The borrower has to pay interest on the entire amount of loan from the date of sanctioning of loan to the date of repayment of loan.

e] Consumer Credit:- These loans are given to the householders for the purchase of durable consumer goods like Washing Machine, T.V etc. or higher education and marriage etc. Such credit repaid by easy installments within the given period of time.

B] Secondary data

The Secondary Functions of Commercial Bank are as follows:

1]Agency or Representative Function:-The bank performs various Agency functions or services for its customers. For these services, the bank charges a commission from its customers. A few services are rendered by the bank to its customer free of charge. The various agency services rendered by the bank are as follows:

a] Collection and Payments of Credit Instrument:- The banks collect the payment of cheques, bills of exchange or other credit instruments on behalf of its customers from other bank and credit it in their accounts. Generally this service is rendered free of charge but on outstation credit instruments, bank charges and nominal fees.

b] Remittance Facilities:- On the request of the customer, bank helps in transferring funds from one place to another place. This service is rendered through bank drafts, cheques and mail transfers. Bank charges fee for its services. For Ex, on DD facility bank charges extra money.

c] Purchase and Sale of Security:- Bank purchases and sale’s securities in the share market on order and behalf of its customers. They charge appropriate commission for their services.



Reference Capiello, S. (2006) Public Enforcement and Class Actions Against Conflicts of Interest in Universal Banking – The US Experience Vis-à-vis Recent Italian Initiatives, Working Paper, Bank of Italy, Law and Economics Research Department. Chemmanur, T.J. and Fulghieri, P. (1994) ‘Investment bank reputation, information production, and financial intermediation’, Journal of Finance, March, Vol. 49, No. 14, pp.57–86. De Fontnouvelle, P., DeJesus-Rueff, V., Jordan, J.S. and Rosengren, E.S. (2006) Capital and Risk: New Evidence on Implications of Large Operational Losses, September, Working Paper, Federal Reserve Bank of Boston. De Long, G., Saunders, A. and Walter, I. (2007) Pricing Reputation-Sensitive Events in Banking and Financial Services,” New York University, Department of Finance Working Paper (in draft). Fiordelisi, F., Soana, M-G. and Schwizer, P. (2013) ‘The determinants of reputational risk in the banking sector’, Journal of Banking and Finance, Vol. 37, No. 8, pp.1359–1371. Galbraith, J.K. (1973) Economics and the Public Purpose, Macmillan, New York. Gillet, R., Hübner, G. and Plunus, S. (2010) ‘Operational risk and reputation in the financial industry’, Journal of Banking and Finance, Vol. 34, No. 4, pp.224–235. Hoechle, D., Schmid, M., Walter, I. and Yermack, D. (2012) ‘How much of the diversification discount can be explained by poor corporate governance?’, Journal of Financial Economics, Vol. 103, pp.41–60. International Monetary Fund (2009) Global Financial Stability Report, April, IMF, Washington, DC. Kanatas, G. and Qi, J. (2003) ‘Integration of lending and underwriting: implications of scope economies’, Journal of Finance, Vol. 58, No. 3, pp.1167–1191. Karpoff, J., Lee, D.S. and Martin, G.S. (2008) ‘The cost to firms of cooking the books’, Journal of Financial and Quantitative Analysis, September, Vol. 43 pp.581–612. Laeven, L. and Levine, R. (2007) ‘Is there a diversification discount in financial conglomerates?’, Journal of Financial Economics, Vol. 85, No. 16, pp.331–367. Plunus, S., Gillet, R. and Hübner, G. (2012) ‘Reputational damage of operational loss on the bond market: evidence from the financial industry’, International Review of Financial Analysis, Vol. 24, No. 4, pp.66–73. Saunders, A. (1985) ‘Conflicts of interest: an economic view’, in Walter, I. (Ed.): Deregulating

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