full journal 2018 · retd. head, dept. of economics, christ church college, kanpur dr. vimal kumar...

ISSN 2321-6522

JAGRAN JOURNALOF COMMERCE ANDECONOMICS

Published By :Jagran College of Arts, Science and CommerceA Self Financing P.G. College Affiliated to C.S.J.M. University, Kanpur

Listed in UGC approved list of JournalsSl. No. 5878 Journal No. 43371

Prof. B.P. SinghChairman, Delhi School of Professional Studies and Research, Delhi Formerly Professor, Head and Dean Faculty of Commerce and BusinessDelhi School of Economics, University of Delhi

Prof. Arun KumarProfessor and Chairman, Economic Studies and Planning Centre, JNU, New Delhi

Prof. Pramod Kumar SaxenaDean, Faculty of Commerce, HOD (Accountancy and Law) Dayalbagh Educational Institute, Agra

Prof. R.C. GuptaProfessor, (Commerce) and Director, Govt. M.L.B. College of Excellence, Gwalior.

Prof. O.P. ShuklaPrincipal, National Defence Academy, Pune

Prof. H.K. SinghProfessor, Faculty of Commerce, Banaras Hindu University, Varanasi

Prof H.M. MehrotraRetd. Head, Dept. of Economics, Christ Church College, Kanpur

Dr. Vimal KumarAsst. Professor, Dept. of Economics, IIT Kanpur

Editorial Advisory Board

Shri Yogendra Mohan GuptaChairman, Jagran Group and Jagran Education Foundation

Shri Mahendra Mohan GuptaCMD, Jagran Prakashan Ltd., Former Member Rajya Sabha

Smt. Ritu GuptaVice Chairperson, Jagran Education Foundation

Dr. J.N. GuptaCEO, Jagran Education Foundation

Our Patrons

JAGRAN JOURNAL OF COMMERCE AND ECONOMICSVol. 4, Issue 7, March 2018

Chief Editor

DirectorJagran College of Arts, Science and Commerce

March 31, 2018

Co-Editors

Circulation & Public Relation

ISSN 2321-6522 UGC Approved Sl. No. 5878 Journal No. 43371

Pink is the colour of the economic

survey 2017- 18 signifying the support and

promotion of the growing movement to

target and end of violence against women

and to promote women�s rights.

�WOMEN EMPOWERMENT� a term often

talked about but still struggling to realize

its true meaning and purpose. Economic

empowerment is considered as a stepping stone towards

carving a success path for women empowerment and it is

clearly reflected in the policy statement in the form of huge

allocation of resources and monetary aid. This year�s budget has

provided the women and child development ministry with an

increase in funds by almost 12% turning the total to Rs.24,700

Crores, encouragement to startup�s through Mudra Yojna

benefitting 76% of women is another milestone in this regard.

However in spite of all the positive efforts the ground reality is not

as bright and optimistic as it should be, probably because of the

big gap in compliance and actual execution.

The present issue emphasis on this aspect with some

interesting findings highlighting Government�s role and

contributions in a paper entitled � �Women Empowerment - The

path full of hurdles�. Other papers talk about Consumer Life.

Style, Special Economic Zone, Insurance Industry, Blue Ocean

Strategy, Labour Reforms, Mutual Funds, Online Advertisement,

Pay Commissions viz a viz Indian automobile Industry,

Sustainable Leadership with reference to Bhagwat Geeta and

Green products. With the view to provide some new insights to

the readers, the Journal is marching ahead.

INDEX

S.No. Name of the Paper and Authors Page No.

1. A Study on Ethical Principles of the Bhagavad Gita 1 - 9

for Sustainable Leadership

Akanksha Sharma and Parul Garg

2. Economics of Blue Ocean Strategy 10 - 15

Dr. Isha Jaswal, Tavishi Tewary, Abhishek Sharma

3. An Enquiry into Awareness towards Green Products: 16 - 23

A Demographic Perspective

Prashant Trivedi and Dr. Ritu Narang

4. Labour Reforms in India- Issues and Perspectives 24 - 30

Shinu Vig and Ijya Chugh

5. A Study of online Advertisement on the Basis of Customer Awareness 31 - 35

Dr. Ankit Gupta

6. Prospects of Industrial Developement in Uttar Pradesh 36 - 41

Dr. Asmita Dubey

7. A Paradigm Shift in Consumer Lifestyle 42 - 45

Dr. Meghna Aggarwal and Dr. Preeti Gupta

8. Mutual Funds: An Investment Vehicle for Double Digit Return 46 - 57

and Multiple Level of Diversification other than

Traditional Investment Avenues

Ankit Goel and Dr. Rajendra K. Khatik

9. Women Empowerment - The Path full of Hurdles 58 - 62

Harsh Kumar Chawla and Dr. Piyush Prakash

10. Economic Reforms and its Impact on the Insurance Industry in India 63 - 67

Dr. Arun Kumar, Sandeep Kumar Sonkar and Piyush Sharma

11. The Entrepreneur's Perceptive with regard to 68 - 70

Basic Amenities Provided in Special Economic Zone

Prof. Fr. Johnson SV and Dr. Pallavi Shrivastava

12. Recommendations of Pay Commissions 71 - 75

A Fuel to Indian Automobile Industry

Anshul Saxena and Dr. Pankaj Pandey

1

A Study on Ethical Principles of the Bhagavad Gita for Sustainable Leadership

*Akanksha Sharma**Parul Garg

The Bhagavad Gita, an epic poem and part of the Mahabharata composed more than 5,000 years ago by

Sage Vyasa, is a timeless leadership classic and its wisdom is highly relevant to contemporary leaders.

Hermeneutics have been employed for the study, which is a method to interpret ancient texts, combined

with some qualitative inputs received from various sources. The paper aims at delving into the divine principles

in Bhagavad Gita for its wisdom on sustainable leadership. The four principles which have been emphasized

by the Bhagavad-Gita apart from various other ethical principles are the mind management, self management,

management of duty and the relationship management. It exceptionally enlightens on aspects of

self-management and self-development by providing guidance to resolve 'conflict', 'poor productivity', and

'unmotivation' which are few common epidemics in organizations across the globe. The Bhagavad Gita tackles

these issues from the subliminal level of human psyche helping us to understand ourselves as well as the world.

It supports that once the basic thought process of human is improved, it will automatically enhance the

quality of his actions, and consequently, their results. This paper is significant for both sustainable leadership

theory and practice.

Key Words: Bhagavad Gita, Sustainable Leadership, Hermeneutics, Ethical principles, Management

Introduction

The Bhagavad Gita

The two words 'Bhagavad' and 'Gita' means “the song of the Lord”. Gita, a philosophical poem, was

authored by Sage Vyasa, the legendary compiler of the Mahabharata. Gita is a part of the epic Mahabharata

and comprises 18 chapters (700 verses). The Bhagavad Gita is a prehistoric philosophical poem that presents

the instructions of Krishna to Arjuna – two foremost leaders of the epic of Mahabharata. Mahabharata is the

epic of the clash between two warring clans – the Pandavas and the Kauravas. Before the battle of

Kurukshetra, Krishna, who is a friend and the charioteer of Arjuna, drives the chariot to the middle of the

battle field, so that Arjuna can examine his army and his enemies. Seeing his own kinsmen on the battlefield to

fight him, Arjuna quivered at the thought of killing them. Lord Krishna gave this knowledge to Arjuna who

refused to fight the battle against his kinsmen. After hearing Gita from Lord Krishna, Arjuna's doubts and

delusions were dispelled and he fought against Kauravas and led Pandavas to victory.

Few of the lessons entrenched within the Gita:

lLeaders need to be aware of the self and the surroundings.

lCharacter is heart for effective leadership.

lSelfish desires and hostility make the purpose of leadership vague.

lLeaders should accept challenges rather than avoiding them because they bring out the leaders' greatest

strengths.

lLeaders should be resilient and not weakened by pain and pleasure.

lLeaders achieve glory by exercising compassion and selfless service.

lEffectual leaders do not direct by fear or anger.

*MBA, Management student, BSACET Mathura**Assistant Professor, BSA College of Engineering & Technology, Mathura.

The Bhagavad Gita has been commented by many renowned scholars and philosophers from all over the

world and over the centuries many renowned scholars had elucidated its teaching in many publications and

lectures. It is universal and non-sectarian and its teachings are applicable not only to Indians (Hindus) but to

everybody. The message of the Bhagavad Gita is not only restricted to spiritual advancement but also in other

facets of human capital development, including leadership development. The Bhagavad Gita's ethical

principles begin from the good, particularly the moral concern of whether it is right for Arjuna to fight and kill

his kinsmen in the battle. Mahatma Gandhi who preached the Bhagavad Gita philosophy, said: “I find a verse

here and a verse there and I immediately begin to smile in the midst of overwhelming external tragedies – and

if they have left no visible, no indelible scar on me, I owe it all to the teachings of the Bhagavad-Gita”

The underlying essential truths of all great world scriptures can find harmony with infinite wisdom of the

Gita's mere 700 concise verses. The Bhagavad Gita was very expertly written by Sage Vyasa by intertwining

ancient facts with psychological and spiritual truths, presenting a word-portrait of the turbulent inner

conflicts that must be felt by both the material and the spiritual man. Arjuna has taken birth in his generation

to reinstate dharma (right action) in the world, but like many of us, he has failed to remember his purpose, the

vision for his life and his values. In response to Arjuna's distress, Lord Krishna with great empathy instructs the

teachings to Arjuna. Krishna continues to explicate that leaders must act to attain superior objectives, but the

mode that leaders perform themselves and what stimulates them are decisively important if the higher good

or dharma is to be the result. In brief, the ways will not validate the ends. To be more deep, Krishna makes a

division between doing and being: a leader must be from a place of purity, of right deed itself, in order for

"right action" to victory be truly honorable Arjuna must be in tune with his higher principle; he should no

longer apply rage as firewood for action. He should lay the good of all at the forefront of any individual gain or

fame. Fury should not be his intentional drive or his conduct or the result will be tainted.

According to the Indian scriptures, there are "three essential elements (or gunas) of nature that

determine the inherent characteristics of all created things." (Swami Chidvilasananda, My Lord Loves a Pure

Heart: The Yoga of Divine Virtues.) These three gunas are sattva, or pure - the quality of purity, light, harmony

and goodness; rajas, pure and impure - the quality of activity or passion; and tamas, or impure - the quality of

darkness and ignorance. Every person experiences all three of the gunas. At a point, one might feel peaceful

and happy for no obvious reason (sattvas); at another, one feel motivated to get "just one more thing"

finished (rajas) and other times, one may discover oneself fatigued and short tempered with anyone or

anything (tamas). These three intrinsic worth control everyone's life, though the magnitude differ according

to every persons' makeup.

The true measure of leader is the ability to recognize our temptations and to rise to a purer state whereby

we do that which needs to be done and we relinquish the rest. We are content no matter what the outcome.

Krishna exhorts each of us to look deep into our own souls to discover why we have taken on the mantle of

leadership. This examination stirs up the most fundamental questions: Who am I? Why am I here? These

questions and our answers determine if we live as ordinary human beings or as a force to restore dharma as

'Man's understanding of the world around him is proportional to the understanding of the self.'

Ethics

It is a moral principle or set of moral values held by an individual. Morals are the guidelines of behaviour

in accord with standards of right and wrong. It attempts to provide systematic and rational reasons for what is

right and virtuous and what is wrong and bad.

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Jagran Journal of Commerce and Economics, March 2018

Leadership Ethics

Leaders in organizations are facing the problem of ethics, on the choice between good or bad, and do's

and don'ts. A just leader is one whose behaviour is considered to reflect all the ethical qualities. The principle

objective of ethics has always been to produce morally upright individual leaders with good and acceptable

behaviour. Leadership ethics is becoming increasingly necessary because, if unchecked due to lack of

awareness, leaders can go unethical. There are plenty of contemporary evidences on unethical business

practices like corruption and fraud that are also some of the root causes of all evil within societies.

Other unethical practices include enticing the followers with hefty promises only to be forgotten once

they annex their leadership positions. Many leaders promise prosperity only to lose focus on people and their

well-being. Most important ingredients for preventing such unethical responses are servitude and

compassion that enables leadership renunciation, and also effective leadership.

In the Bhagavad-Gita, Sri Krishna defines the meaning of true renunciation. He says, true renunciation is

one that is undertaken with courage and without selfish attachments. By acknowledging one's

responsibilities and doing everything in his or her capacity to fulfil those responsibilities, a person performs a

true renunciation.

Ethical Principles

An ethical principle is a comprehensive framework within which specific ethical dilemmas may be

examined. These principles may offer direction in unravelling ethical issues that otherwise may not

necessarily be solved. Following are definitions of five ethical principles that have been functional within a

number of professions (Beauchamp & Childress, 1979):

lRespecting Autonomy

Human beings have the right to act according to a free will i.e., they are open to choose how they live their

lives given that their judgment do not negatively impact the lives of others. People also have the right to

employ liberty of thought or selection.

lDoing no Harm (Non-maleficent)

Interactions among people should not result in causing harm to each others. No activities that may have

the risk of harming others should be followed.

lBenefiting Others (Beneficence)

Human conduct should actively support the wellbeing of others.

lBeing just (Justice)

In the broadest way, it means being fair. This is in particular the case when the rights of one individual or

group are fair with another. Being just presuppose three standards- neutrality, parity, and reciprocity (based

on the fair rule: treat others as you wish to be treated).

lBeing Trustworthy (Fidelity)

It involves faithfulness, honesty, loyalty to promises and respect. Failure to stay loyal in dealing with

others denies individuals the prospect to exercise liberated choice in a relationship, therefore restricting their

self-sufficiency. From the Bhagavad Gita, it can be acknowledged that lust or selfish desire of the leaders is the

root cause of unethical practices. Sri Krishna said that it is the lust or desire of the leaders, latter transformed

3


into wrath, which compels them to commit such unethical practices. The definition of renunciation,

according to the Bhagavad Gita, suggests that the ethical leaders must practice altruistic giving and strive for

the collective good that encompasses achievement of goals for all. By practicing renunciation a leader can

easily become accustomed to above five ethical principles.

Sustainable Leadership

Sustainable simply means 'able to be maintained at certain level' and leadership means an ability to lead

others by guiding and directing them.

Sustainability

There are many definitions of sustainability. When focused on the ecosystem, the most commonly used

definitions was written in 1987 by the United Nation's Brundtland Commission, “Meeting the needs of the

present generation without compromising the ability of future generations to meet their own needs.” This

definition of sustainability denotes that though present populations may use what they need regarding the

earth's capital, this must be done in a manner which will leave ample resources for others, with minimal

waste. The responsibility in both on every person to modify his/her behaviours as well as organizations to

prevent over-consumption and reduce waste, to ensure a sustainable and healthy future. Socially and

environmentally responsible business practices reduce operational expenditures and improve relations with

stakeholders, together with increase in profitability and gaining competitive advantage.

Three key interlocking aspects of Sustainability

*Environmental (Planet)

*Social (People)

*Economic (Profit)

According to John Elkingon's triple bottom line, the People, the Planet and Profits are inter-reliant:

“society depends on the economy and the economy depends on the global ecosystem, whose health

represents the ultimate bottom line.”

Sustainable Leadership

Sustainable leadership substantially encompasses:

*Justice (does not harm the others and surrounding environment by being fair),

*Diversity (promotes diversity and cohesion),

*Resourcefulness (conserves expenditure), and

*Conservation (honours the past in creating the future.

Sustainable Leadership hold the triple bottom line conception, i.e., mindful views, conduct and

behaviours taking on a global view to identify the link between the planet and humankind; thereby, through

individual and organizational choices, affects environmental and social change.

Following are Sustainable Leadership principles

lUnderstanding the interconnections of systems- It is imperative to identify how each group of related

factors (people, objects, processes, etc…) are related and impact each other.

lThink globally and for future- Considering what existing and upcoming circumstances impacts leaders in

making decisions with other countries, society, communities, waste, resources, etc.

4


l

to formulate decisions that will shrink the negative impact on people, processes, the environment, and

economies.

lTransform business- Doing somewhat different within span of control like changing a habit which reduces

waste such as reading via an e-book or printing double sided.

lLead by example through actions- Being responsible for oneself, job, actions, and society. Hold the

business accountable to lead by example in its actions. Hold one accountable to reduce waste and

increase efficiency, others will follow.

Purpose

lTo explore and incorporate the ethical principles found in the Bhagavad-Gita in leadership context.

lTo outline the guidelines for mind management, self management, duty management and relationship

management.

lTo gain insights for success coupled with contentment and happiness.

Methodology

This study is based on the qualitative research methodology known as hermeneutics. It is related to the

name of the Greek God Hermes in his role as the interpreter of the messages of the gods. In the current

context, hermeneutics can be described as the understanding and interpretation of ancient texts.

Hermeneutics as the methodology of interpretation is concerned with problems that arise when dealing

with meaningful human actions and the products of such actions, most importantly texts. It is widely applied

in many field of social science such as philosophy, religion and theology, law, sociology and also international

relations.

For this study, the Bhagavad-Gita was analysed by using the above methodology. He analysis was done

based on four stages, namely identification, investigation, interpretation and integration. These are briefly

explained as follows:

lIdentification stage - involves searching for the relevant direct and indirect leadership verses or shlokas

from the text.

lInvestigation stage - detailed analysis of the verses in terms of context and contents.

lInterpretation stage - providing the meaning and the relevance of the verses in the contemporary

context.

lIntegration stage- involves adopting, modifying the lessons from the verses and provide commentary

from the perspectives of leadership ethics.

Thus, Ethical principles provide generalized frameworks that may be employed in the resolution of

ethical dilemmas in our daily lives. These principles may be applied to our interpersonal relationships as well

as to our professional lives. However it helps to govern our professional behaviour and to offer some guidance

for the resolution of commonly faced ethical issues that occur in the practice of our chosen professions.

Ethical Principles in Bhagavad Gita for Sustainable Leadership

The Bhagavad-Gita, song of the Lord, is a source of complete wisdom for every aspects of one's life. It can

be experienced as a powerful catalyst for transformation of self and thus making positive change in one's

Protect nature and people- Distinguishing how activities taken shape people and the environment. Trying

5


behaviour and actions. With a population of over a billion, India, the world's largest democracy, is gaining

attention of the world not only towards economic growth and market potential but also towards its essence

which lies in its rich heritage of scriptures, ethics and culture. As Westerners seek to understand Indian

culture, they find that India's ancient scriptures offer some insight into cultural norms and values, as well as

meaningful lessons for the modern day practice of leadership management. The Bhagavad Gita represents

struggles or battles that modern day leaders confront and their responsibilities towards multiple

stakeholders.

Krishna's discourses in Bhagavad Gita are aimed at enlightening Arjuna to accept his 'new role of a leader'

in the battle of Kurukshetra. Thousands of years later, it can be correlated with situational leadership- a

leader's ability to read each situation and to adapt accordingly. Many contemporary leadership topics such as

emotional intelligence, situational leadership, character and integrity were already discussed in the Bhagavad

Gita thousands of years ago.

This study aims at searching for leadership ethics that helps in sustainability of right practices.

It Focuses on four principles :-

1. Mind Management

Mind may be defined as a cognitive entity that processes feelings, emotions, thinking, and perception. Its

management is important because whatever it processes have impact on a person's behaviour and actions.

Bhagavad Gita provides profound lessons on managing the mind.

Being Sthitpragya and Sthitdhi (One with steady understanding and steady mind)

iztgkfr ;nk dkekUlokZUikFkZ euksxrku~A vkReU;sokReuk rq"V% fLFkrizKLrnksP;rsAA 2-55

nq%[ks"ouqfnoXueuk% lq[ks"kq foxrLig%A ohrjkxHk;Øks/k% fLFkr/kheZqfu#P;rsAA 2-56

A stithpragya person while pursuing a noble cause remains unguided by any selfish motive or

consideration. One develops steady understanding when all cravings of mind disappear and person become

happy from within (Soul).

Such a mind is not disturbed in sorrow, does not crave, and remain free from passion, fear and anger. This

results in peace of mind which further leads to better focus on work and life along with contentment.

Focus on performance rather than end results

;íPNkykHklUrq"Vks n~oUn~okrhrks foeRlj%A le% fl¼kofl¼kS p dRokfi u fuc/;rsAA

When decisions of a leader are guided by collective good for all stakeholders and not for personal

benefits or exploitation of resources or people then he remains satisfied and steady in all situations. This leads

to stress management and anger management which consequently lead to better output in dynamic business

environment. Moreover, ethical leaders focus on identifying and applying right means for defining success

rather than the ends in terms of gain or failure.

Changing Mindset inertia

okalkfl th.kkZfu ;Fkk fogk; uokfu xº.kkfr ujks·ijkf.kA

rFkk 'kjhjkf.k fogk; th.kkZ&U;U;kfu la;kfr uokfu nsfgAA 2-22

Successful and sustainable leaders should continuously employ themselves in discarding old ideas (mind

6


sets) and embrace new ones because it is the basic element of novelty and creating competitive advantage.

An important matter in management of change is one of mind set. The biggest challenge among leaders and

organizations is mind set inertia. A person may dispose of many things but mindset is very difficult to discard.

This puts realistic limits to creating better leadership and organizations over time.

2. Self Management

It involves taking of responsibility for one's own behaviour and well-being. Bhagavad Gita provides

following lessons on self management:

Right Knowledge

;FkS/kkafl lfe¼ks·fXuHkZLelkRdq#rs·tqZuA KkukfXu% loZdekZf.k HkLelkRdq#rs rFkkAA 4-37

A leader can't do right action having wrong knowledge. In order to take good decision it requires to

look at the rapid changes that are taking position in technology world. Leaders require larger flexibility to

gear up and change themselves and their organizations. Leaders should adjust to another kind of awareness

where they are able to take in a lot more. This means that their consciousness of their world has to amplify.

This is how they will overcome the problems and produce better results.

Virtuous Character

vHk;a lRRola'kqf¼% Kku;ksxO;ofLFkfr%A nkua ne'p ;K'p Lok/;k;Lri vktZoe~AA16-1AA

vfgalk lR;eØkskLR;kx% 'kkfUrjiS'kque~A n;k Hkwrs"oyksyqIRoa eknZoa Îhjpkiye~AA6-2AA

rst% {kek /kfr% 'kkSpenzksgks ukfrekfurkA HkofUr lEina nSohefHktkrL; HkkjrAA16-3AA

Fearlessness; purification of one's existence; cultivation of spiritual knowledge; charity; self-control;

performance of sacrifice; study of the Vedas; austerity; simplicity; non-violence; truthfulness; freedom from

anger; renunciation; tranquillity; aversion to faultfinding; compassion for all living entities; freedom from

covetousness; gentleness; modesty; steady determination; vigour; forgiveness; fortitude; cleanliness; and

freedom from envy and from the passion for honour – these transcendental qualities, O son of Bharata,

belongs to godly men endowed with divine nature.

3. Management of Duty

;nk ;nk fg /keZL; XykfUkHkZofr HkkjrA vH;qRFkkue/keZL; rnkRekua ltkU;ge~AA4-7

ifj=k.kke lk/kquka fouk'kk; p nq"drke~A /keZlaLFkkiukFkkZ; lEHkokfe ;qxs ;qxsAA4-8

Constancy and long term sustainability of the organization take place because there are regenerative

points. When the system reach disequilibrium and shows symbols of being unstable and going away from,

control measures have to be engaged to re-establish the equilibrium in the system (controlling function of

management). If the regenerative points are absent, the system will become unbalanced. Similarly when

leaders work for personal benefits rather than mutual or collective, they create disequilibrium in

performance of their duties and right actions which results in disrupting of interpersonal relations, conflicts,

selfish individual motives rather than achieving organizational goals. So leaders should timely evaluate their

performance of duties and follow ethics to prevent disruption of work otherwise they will definitely be

removed from the position.

7


8


4. Relationship Management

Mutual dependency

nsokUHkko;rkusu rs nsok Hkko;Urq o%A ijLija Hkko;Ur% Js;% ijeokILFkA 3-11

It suggests that while we take care of the stakeholders they in turn take care of us. This sense of mutual

dependency begets ultimate success and prosperity in the long run. Since every person is mutually

dependent on each other, it is required to create synergy among various aspects of relationships in terms of

interpersonal relations, departments, society and other stakeholders.

Equality and Empathy

zfon~;kfou;lEoUus czkã.ks xfo gfLrfuA Jqfu pSo Üoikds p if.Mrk% lenf'kZu%AA 5-18

A leader is one who hates no person, who is empathetic to all, is free from attachment and egoism,

balanced in pleasure and pain and forgiving that leader in the Gita tradition is a humanistic leader, a person

who acts without self-gain, and who has great personal concerns for followers. Good leaders are filled with a

positive force and seek to do good by treating others with compassion and kindness. Once a person has such

knowledge, he attains peace in his mind balancing his work as well as life.

Conclusion

The Bhagavad Gita gives a 'vision of total life' which is deeper and broader than the western concept of

vision. Here, Lord Krishna counsels Arjuna on developing a broader 'vision of life' for attaining success and

happiness. "The quality of our actions and reactions depend upon our 'vision of life' as envisaged in the

Bhagavad Gita. Any leader by cultivating the ethical principles mentioned in Bhagavad Gita conquers his

enemies (including the inimical senses), wins permanent friendship of the honest people, and never loses an

inch of his position and loyalty of his subjects. A selfless leadership based organisation does not completely

shun individualism. In fact, it celebrates individualism in a different manner — through the freedom it offers

to its members to creatively express themselves towards the accomplishment of outcomes rather to check

individualism that is expressed in the desire to possess greater control and power. A person devoted to one's

own duty, attains perfection. The leader must maintain his/her values and not waver from those duties and

values. And finally, the leader must be a good role model and express the values of the organization through

his/her behaviour because 'no matter what a great man does, that others also do the same or imitate;

whatever he set as the standard, the other people follows (3:21).

;n~;nkpfjr Js"BLrRrnsosrjks tu%A l ;Rizek.ka dq#rs yksdLrnuqorZrsAA 21

Leaders who profess one set of values and act according to another set of values are not acting in

accordance with the Bhagavad Gita, not even in tune with ethics. So they must follow what they say.

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10

Economics of Blue Ocean Strategy *Dr. Isha Jaswal

**Tavishi Tewary ***Abhishek Sharma

*Associate Professor, Delhi Metropolitan Education, Noida**Assistant Professor, Amity University, Noida ***Marketing Executive, Planetcast Media Services Limited

While it is easy to agree that innovation is the key to success in contemporary market, modest emphasis is laid on

innovation and much time is devoted to target and achieve operational excellence, economies of scale and

scope, and sound administration. Breakthrough innovation is a result of several factors including a well defined

innovation strategy, concentration on formal and structured approach to innovation, learning from market

acceptance and consumer resistance, deviation from trends and fads, and entrepreneurial collaboration. A

strategic vision is crucial for an organization's success in the long-run. However, much of academic innovation

principles become challenging to apply in real time. The paper focuses on the popular blue ocean strategy and

its validity as a strategic framework. It focuses on key challenges in implementation of blue ocean strategy in

real time and their practicability. The economics of various tools of blue ocean strategy are also highlighted.

Hence, while checking the validity of the tools, we also will be able to understand the credibility of the rosy

concept.

Keywords: Blue Ocean, Red Ocean, Value creation, Innovation, Strategy.

Introduction

Ever since the term strategy became a part of management, it has become an important concern of both

academicians and managers. Success of a firm has been known to depend upon various key factors like

strategy, external environment and the ability of the firm to identify and adapt along with dynamics of the

demand and needs. Modern industries in the Indian economy, have witnessed intense rise in competition.

The key reasons behind rising competition most certainly are the rocketing global population, rapidly

depleting resources, easy access to global knowledge, booming technology, favorable political environment

and a rising sentiment of entrepreneurship. With international players stepping in Indian markets, local

vendors and manufacturers have faced intense competition, and multinational companies have managed to

capture huge pieces of the whole cake, leaving less than adequate for the domestic players in their own

homeland. Since earlier times, various approaches to survive the competition have been proposed by

academic scholars throughout the 1900's. However, competition- direct or indirect remains a crucial and

essential part of business. All strategic frameworks build around survival and competitive warfare. Unlike

traditional military approach, one slicing strategy, introduced in 2005, is blue ocean strategy.

Blue ocean strategy lays its foundation on the argument that entrepreneurs and leading firms have

succeeded by consistently creating new markets rather than competing in old saturated markets. Leaders

have put in their resources in the development of new and innovative products and services through

contemporary blue ocean approach.

In the study, the focus is on blue ocean strategy and its implementation in Indian markets. An attempt has

been made to answer the key questions that have arisen during their implementation in the real time. The test

for validity of the blue ocean strategy will allow understanding of the tools of the blue ocean strategy in a

better way.

Literature Review

Business

The managers in privately owned business entities focus to maximize shareholders' wealth and

effectively administer the primary components of business value, i.e., financial resources, capital resources

and human resources. Research suggests that the entry strategy of a business in a new industry is crucial to its

success in both short and long run. The price an acquiring firm will generally have to pay to acquire a firm in

these markets is approximately equal to the discounted present value of the acquired firm. Firms that wish to

obtain expected return above normal returns from implementing product market strategies must be

consistently better informed concerning the future value of those strategies than other firms acting in the

same strategic factor markets. Other apparent sources of advantage in strategy implementation are, in fact,

either a manifestation of these special insights into the future value of strategies, or a manifestation of a firm's

good fortune and luck.

Strategies

Competition is an inherent feature in an industry. In India, Competition Commission of India, established

with the motive to promote healthy competition, frames policies and regulates competitive markets. It

functions as a regulative body. The enduring competitive advantage in a global economy lies increasingly in

proximity (local knowledge and business networks) and unusual competitive success of business clusters like

Hollywood, Silicon Valley, Nehru Place. Marshall (1890) argues that business clusters enjoy economies of

agglomeration, which in turn offers a competitive advantage to the players. Innovation is seen fundamental in

creating new competitive advantages (Kuah, 2002).

Kim and Mauborgne (2004) argue that competing in overcrowded industries cannot sustain high

performance. The real opportunity is to create blue oceans in uncontested market space. Authors advice that

both new and existing companies to create new markets and avoid competition. It encourages the

organization decision-makers to invest in the unexplored opportunities rather than the entering the existing

industry with an early profit-making vision.

In the last decades, several popular strategic frameworks have been published, including the five forces thframework by Porter (1979) and the business model canvas by Osterwalder (2004). The 20 century has

offered various military and warfare influenced strategic frameworks which concentrate on fighting the

opponent and survival in the market. Terms like Chief Executing Officer, Five Forces, and Flanking Attack

Strategy are all military terms which create a sense of competition in organizations and students. Kim and

Mauborgne (2005) introduce a theory which advises leaders to create new markets and make competition

irrelevant. The authors introduce the concept of Blue Oceans and Red Oceans. Blue Oceans represent all the

existing competitive markets whereas Blue Ocean is the markets which lie outside the boundaries of the red

ocean. These are untapped markets and resemble to the dark areas of the competitive universe. However, it

has no defined boundaries and is a part of infinite set. It is also been proved lately that blue oceans can be

created within red oceans. The entire strategy is to make a new market.

Giannoulis and Zdravkovic (2014) argue that Blue Ocean strategy has attracted attention due to the

successful innovative solution it offers. They argue that the introduction of iTunes by Apple Inc. as a case

highlights a blue ocean in digital music. Blue Ocean shifts strategy building approach from value creation to

value innovation.. It advises the leaders to avoid red oceans and resource wastage in competitive strategies.

They highlight that resources should be invested in new products and services, thus new market creation.

Besanko et.al (1999), back in the early 90's, had also argued that the only way to make competition irrelevant

is to stop trying to beat the competition.

Blegvad (2010), argues that blue ocean strategy combines value creation and innovation by redefining

the product or service in a way that creates incremental value. Kabukin(2014) also supports that successful

strategic moves had a focus on Value Innovation.

11


It should be clearly understood that bringing down costs should not be confused with bringing down the

prices, or vice-versa. Successful value innovation should be done in such a way that company's actions

favorably affect both the cost structures of the company as well as value proposition offered to the buyers. No

company has ever exercised direct control over profit, market share and other factors of success. In fact, these

factors are actually the outputs that can be controlled with a certain input factors. The resources available to

the organization are limited, and thus there is a fundamental need to understand the Blue Oceans strategy

and realize the factors for successfully implementing the Blue Oceans Strategy in modern market. One

essential element in Blue Oceans is focusing on the non-customers or as Besanko et.al (1999) had claimed-

focus on the industry that does not exist. This can be confusing and rather be understood as asked to divert

focus from the existing industries and explore for new opportunities, needs and demands. Blue Ocean is

entirely about creating new industries. It introduces a Four Action Framework, analogous to Five Forces

Model. This is termed as the Four Actions Framework. Noren and Wang (2010) claim that for reconstructing

the industry's value propositions to create a blue ocean strategy, the company must identify which factors to

eliminate, factors to reduce, which factors to increase and which new factors to create.

Strategy Canvas, introduced by Chan Kim and Mauborgne (2005), is an illustrative framework that can be

used to map the company's current value proposition and then compare it to the industry average. The

strategy canvas can also be applied to create a Blue Ocean Strategy by illustrating a new set of value

propositions that can be compared to the industry average in order to analyze which of these propositions are

most appealing to customers. The x-axis of the strategy canvas is defined as the value factors of a value

proposition within the industry. They are marked as high/low on the y-axis. The value factors are the

components of the value proposition that builds up the total value proposition. The value factors describe

the factors that make up the value proposition appealing for a customer (Noren and Wang , 2010)

Kim and Mauborgne (1999) illustrate in their paper on one side that the focus of the majority of

companies is on match and beat the competition. Resulting, most of the strategies are equal as used by the

competitors. These companies have comparable focus on the scope of products, customers and services their

industry are offering. According to Kim and Mauborgne (1999), companies end up competing either on the

basis of incremental basis of improvements in cost or quality or both.

In the Blue Ocean Strategy, Kim and Mauborgne (2004) implement the ideas of ignoring competition

and creation of new markets. Kim and Mauborgne (2004) go even further in their Blue Ocean Strategy book

and make both of these statements quintessence of the Blue Ocean Strategy also more radical as making the

competition irrelevant and creation of completely new and uncontested market.

Blue Ocean and Monopoly

As long as there are profits in a particular market, more and more vendors will arrive to serve that market

until it reaches a saturation point. Hence it would be wise to formulate strategy and know when to use the

blue ocean strategy and when to stay in the competition and when to break free. One obvious answer is that it

is wise to exit the competition when the market becomes saturated and growth rate goes negative. Hence, it is

wise to say that till the market is profitable financially it may be a good idea to stay in competition However,

when the profits have declined substantially, firm may look towards the blue oceans

It may be interesting to note that the nature of blue ocean strategy is quite similar to that of a monopoly,

where firms enjoy entire market for a limited usable period of time. It has been observed that Blue ocean

strategy creates temporary monopolies. It may also be interesting to ask when should be the right time for

12


existing companies to exit Red Ocean and create their own blue ocean. According to Novinson (2012) this is

most effective when markets are saturated or in decline. Therefore the company should seek out the non-

customers for their new customer base.

It can be identified that creating blue oceans is different from product differentiation. Product

differentiation is done with an intention to enhance more value so that the cost of the product increases. On

the other side, Blue Ocean players aim at identifying the latent (hidden) needs and offering new and

innovative values and solutions values that are created for the first time and brought uniquely in front of the

world. The price of such products and services can entirely lie in the control of the organization.

Overcoming the fear of the dark side of the ocean

The boundaries of Red Ocean and Blue Ocean exist in the manager's mind. The core problem is

identifying the new market which is uncontested and untouched. The other paradigm shift is the shift in

perspective from competition to value creation till competition enters and the blue ocean becomes a red

ocean. From here, it can be understand that competition will remain an essential element of the industry and

so all blue oceans will become Red Ocean in a span of time. What is interesting to know is the life cycles of a

blue ocean, i.e., for how much time can players leverage the benefits of the blue ocean. First let us see the

reasons that influence managers to stay in the red ocean and have high inertia.

lInnovation which is expensive and risky

lLack of Market power, which has moved from companies to consumers and government.

lLack of motivation

lHigh Failure rates of new products

The reasons behind the companies staying within the Red Oceans have been termed as the mental Red

Ocean traps which were proposed by W. Chan Kim and Renee Mauborgne .The reasons are as under. The first

reason is the fact that the managers are groomed with a belief that markets are customer driven. Hence in an

attempt to satisfy the existing customers, they miss out the non-customers, who have different pains and

insights and serve as the real inspiration for exiting the red oceans. Confusing market creation with niche

identification and relying on only technological innovation also lead to entrapment in Red Ocean strategy.

Dynamic Pricing corridor

As the demand for the goods in the blue ocean markets increase, the price of the goods or services will

rise in accordance to the law of demand. Hence there is a need of a dynamic blue ocean price corridor model

that keeps the law of demand into account and keeps track of the rise or fall of quantity demanded and its

effect on the price. A dynamic price corridor is an effective tool that allows setting the price based on the

changing environment.

Once a firm enters the blue ocean and places itself as a monopolistically competitive firm; then According

to the Say's Law; the supply of goods automatically generates its own demand. Although pricing represents

one of the most visible decision factors for marketing teams, it tends to be one of the least creative parts of the

marketing strategy (Pitt et.al , 1997).

Entrepreneurial Pricing

This strategy deviates from the traditional pricing approaches and takes innovativeness, assumption of

13


risk and pro-activeness into consideration when setting prices.

One of the important aspects of the theory and practice of firms is development of an optimal dynamic pricing

strategy. Traditional marketing models consider the consumer as a rational agent who makes decisions based

on current prices. However, in the dynamics, with repeated purchases, consumers form price expectations or

reference prices which are compared with current prices. This effect is known as “the reference price effect”.

Reference prices are determined by the following factors:

lMemories of past prices. The price paid for the goods the previous time becomes a comparison basis for

new prices.

lThe prices of related products and services.

lThe price of the favorite brand.

lThe nature of the industry. For example, people have come to expect large discounts in clothes shops.

When they see clothes on sale at a full price, they may remember that these prices are likely to be

reduced at a later stage.

lThe price which occurs in the market most often.

lThe fair price. Each consumer has their own opinion about what price level is fair.

Fibich et al. (2005) concluded that the effect of the reference price is most noticeable immediately after a

price change, before consumers have had time to adjust their internal reference prices. The monopoly can

increase its total profit in the presence of the reference effect exactly in the initial periods.

Role of customers in blue ocean markets

Blue ocean markets give limited access to customers in terms of price control. Blue ocean markets are

price dictators and have full control over the price, also being monopolistic; these players regulate the prices

of the market as well. Other factors like government, external environment, indirect demands and impact of

indirect competitors affect the costs of the company which is then borne by the customers. However it may be

interesting to know if the company has the freedom to raise prices without losing the customers and if they

do, then how much prices can they raise. Other key issues can help to identify the role of customers in the blue

ocean markets, then being implementing the value innovation, role of creativity in value innovation, how to

break the value tradeoff, factors in breaking the cost-value tradeoff, principles of implementing the cost-value

tradeoff, does availability of alternatives increase demand.

Conclusion

Blue ocean strategy and creative innovation are similar concepts and widely known. Yet their application

remains limited among the few leading players in the industry. Thus, the study finds that the exposure to the

blue ocean strategy increases the chances of its application. It will also help in identifying different latent

reasons for staying in the red ocean, and offer the required framework to enter the blue oceans. Thus the

managers in the contemporary business world will be able to find out whether the company is offering

customers radically superior value and the firm's price levels are accessible to the mass of buyers in the target

market. The suggested pricing model can serve as a framework for contemporary businesses including e-

commerce, banking and investments, stock markets and other intensively data-driven industries. Currently, it

assembles useful ideas and tools for companies to succeed in business. Though huge volumes of data may be

required in implementation of a few blue ocean tools, the theory is already being implemented as a part of

the grand strategic framework in all leading organizations. The framework will continue to mature as new case

14


studies emerge in forthcoming years, empowering the approach as the modern alternative to age old tools

and ideologies.

References

· Alfred Marshall, Cluster Theory, Principal of Economics, 1890.

· Besanko D, Dranove D, Shanley M. 1999. Economics of Strategy (2nd edition). Wiley: New York.

· Blegvad (2010). A Search for Blue Oceans.

· Fibich, G., Gavious, A., & Lowengart, O. (2005). The dynamics of price elasticity of demand in the presence of reference price

effects. Journal of The Academy of Marketing Science, 33(1), 66–78

· Giannoulis, C. & Zdravkovic (2014). Linking Strategic Innovation to Requirements: a look into Blue Ocean Strategy.

· http://www.cci.gov.in/sites/default/files/cci_pdf/competitionact2012.pdf

· https://hbr.org/2015/03/red-ocean-traps

· Kabukin, D. (2014). Reviewing the Blue Ocean Strategy. Is the Blue Ocean Strategy valid and reliable?

· Kim, C. W. and R. Mauborgne (1997). 'Value innovation: The strategic logic of high growth', Harvard Business Review, January-

February, pp. 103-112.

· Kim, W. C. & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review

· Kim, W. C. & Mauborgne, R. (2005). Blue Ocean Strategy: From theory to practice. California Management Review.

· Kim, W. C. & Mauborgne, R. (2015). Growth Strategy. Havard Business Review.

· Kuah, Adrian T.H. (2002), Cluster Theory and the Small Business: 206 - 228, Journal of Research in Marketing and

Entrepreneurship: Volume Four, Issue 3.

· Michael Porter (1998). Clusters and the New Economies of Competition, Havard Business Review, November December 1998.

· Noren, Wang (2010). Mapping the Business Strategy: A Strategic Management Analysis.

· Novinson, E. (2012).Importance of the Blue Ocean Strategy to a Business. Retrieved from

· http://www.ehow.com/info_7743376_importance-blue-ocean-strategy-business.html

· Osterwalder, A. 2004. The business model ontology—A proposition in a design science approach. Dissertation 173, University of

Lausanne, Switzerland

· Pitt, Leyland, F., Berthon, Pierre R. Morris, M. H. (1997). Entrepreneurial Pricing: The Cinderella of marketing strategy,

Management Decision

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16

An Enquiry into Awareness towards Green Products: A Demographic Perspective

***Assistant Professor, Department of Business Administration, University of Lucknow , Lucknow

Research Scholar, Department of Business Administration, University of Lucknow , Lucknow

*Prashant Trivedi**Dr. Ritu Narang

The government of India has undertaken several initiatives to regulate and promote the issue of sustainability.

Setting up of Bureau of Energy Efficiency (BEE) which has introduced star rating of electrical equipments is one

such endeavour. The present study examines the relationship of demographic variables of respondents and their

awareness level about BEE and star rated electronic products. The results show that the demographic variables

age and gender are not significantly associated with awareness of BEE and Star ratings while education and

income level have significant association. This necessitates a concerted effort to promote awareness about

green products and promote their consumption. The findings have great implications for government,

educational institutes, marketers and other stakeholders of society.

Keywords: Green Marketing, Demographic variables, Sustainability, Indian Consumers.

Introduction

India is a large country with a huge and fast growing economy. More earning members in a family, young

population, independent lifestyle and an urge to upgrade standard of living has made India a big market.

Many companies are successful in attracting these consumers. The ever increasing sale of products is

accompanied by a threat of overuse of limited natural resources, which raises concern for sustainability.

Studies conducted in developed nations in the area of sustainability establish that usage of green

products is one of the solutions to this problem. 'Green' is an umbrella term used for any product which is less

detrimental to environment when compared to its conventional counterpart, be it LED bulb, a star rated

equipment or a solar panel. Many initiatives have been undertaken by both government and companies to

make people aware about this issue and the need to curtail energy consumption. For instance, the

Government of India has constituted an autonomous body called Bureau of Energy Efficiency (BEE) in line

with its commitment to National Action Plan on Climate Change to both regulate and promote energy

efficiency. The key function of BEE includes setting up performance standards for various appliances,

developing labelling scheme like star rating in case of appliances like refrigerators, fans, AC, pumps, water

heaters, etc. It facilitates energy audits and also provides certification to auditors along with designing

regulation for consumption of energy. BEE is also trusted with the task of aiding institutions with financial

assistance for energy conservation projects and building awareness towards the issue and importance of

energy efficient labels like star rating which reflects the energy efficiency potential of appliances. Better star

rating means more output through less consumption of energy.

Consumers too, have a big role to play in ensuring sustainability through responsible consumption.

People are facing problems like climate change, pollution, greenhouse effect and are becoming concerned

about the issue of sustainability. Through this study we have tried to understand the relationship between

demographic factors and awareness level of Indian consumers towards green products.

Literature Review

Sustainability as a term has its roots in a text 'Sylvicultura Oeconomica' written by Hans Carl von

Carlowitz (as cited by Scoones, 2007 p.590). It is defined as "the need to ensure a better quality of life for all,

now and into the future, in a just and equitable manner, whilst living within the limits of supporting

ecosystems" (Agyeman, Bullard, and Evans, 2002, p.78). “Sustainable development is development that

meets the needs of the present without compromising the ability of future generations to meet their own

needs. (WCED, 1987: pp.43) Gladwin et al. (1995) postulates sustainability as a method to achieve

development, which is pragmatic, inclusive and secure. Sustainability depends heavily upon environmental

protection, reduction in waste and proper use of energy (Costanza, 1992). To help the cause of sustainability

green purchases are a necessity (Bae and Chun, 2010).

India is emerging as one of the most prominent market for companies due to its huge consumer base.

As per IBEF (2017), the growth rate shown by Indian consumer sector is ahead of the global estimates of

5%. India is predicted to become the third largest consumer market by the year 2025 (IBEF, 2017). This growth

can be attributed to a variety of reasons like change in family structure, rising disposal income and

increasing urbanisation (BCG, 2017). FICCI Report (2016) suggests that companies have huge chances to

grow as consumers are becoming more service oriented and convenience seeker. The aspiring middle class

consumer is driving the growth vehicle in Indian consumer market (MGI, 2007). There is a trend to upgrade

lifestyle which may sometimes lead to over purchase causing dearth and disturbance in balance and supply

of vital commodities (Tucker, 2002; Czinkota and Scuba, 2009). Further, it reminds us what McGregor (2003,

p.11) had postulated that “consumerism is more of a threat under postmodernism than modernism because

it has become a process of self-identification, a process that has to be continually fed by buying more things to

define who we are. We now use the products and services to define ourselves—it is all about images and

illusions; our reality is recreated on a daily basis by buying things.”

Demographic factors tend to impact purchase behaviour. Different age groups have their peculiar

attributes, their own likes and dislikes. As far as sustainability is concerned young and pre middle age

consumers are found to be more inclined towards sustainability (Mida, 2009). These findings have got

support from works of Anderson and Cunningham (1977) and Roberts and Bacon (1997). Jain and Kaur (2006)

also postulate a positive relationship between young consumers and green products purchase.

Mixed results are reported with respect to relationship between gender and green behaviour. Reynolds

et al (2007) and Samdahl and Robertson (1989) assert that there is no relation between gender and

consciousness towards sustainability. However, Eisler et al(2003) suggest that men are more environment

conscious while Lee (2008), MacDonald and Hara (1994), Banerjee and McKeage (1994), Parker et al. (2003),

Mida (2009), Peterson andMerchant (1986), Jain and Kaur(2006), Mainieri et al. (2010) and Diamantopoulos

et al. (2003) argue that a positive relation exists between 'concern for sustainability' and women.

Educational qualification of consumers is considered to influence the knowledge about the issue of

sustainability. Many studies have found a positive impact of education on green behaviour (Mainieri et

al.2010), (Schwartz and Miller, 1991) Zarnikau (2003), Jain andKaur(2006) and Mida (2009). Studies have

postulated that more income means better inclination towards green purchases (Peterson and Merchant,

1986; Zimmer, 1994; Diamantopoulos et al,2003; Mainieri et al,. 2010).

The literature has established the importance of demographic variables in the context of green purchase

behaviour in other countries. Green behaviour is preceded by awareness about green products. To our

knowledge there is no work done in India that examines the impact of demographic factors on awareness

towards green products. In the present study, we have tried to examine this relation with respect to purchase

of refrigerators.

17


Methodology and Data Collection

We have taken into consideration the most polluted cities in India namely Delhi, Allahabad, Lucknow,

Kanpur and Firozabad for our study. Electronic shops in each of these cities were randomly chosen and a total

of 600 people were approached. Data was collected in proportion of the population of each city through a

structured questionnaire about awareness of BEE and star rating. We got 475 complete responses which were

further recorded and analysed in SPSS 20.

Results

Table 1Aand 2A respectively show the level of awareness towards BEE and star rating among different age

groups of respondents. Chi square test statistics of 8.785 (Sig value >.05) indicates that there is no significant

association between different age groups and awareness towards BEE (Table 1B).

Table 1A: Age * BEE awareness Cross-tabulation

Age Group BEE awareness Total

Fully Slightly No idea

18-25 33 97 185 315

26-35 8 28 75 111

Above 35 10 10 29 49

Total 51 135 289 475

Value df Asymp. Sig. (2-sided)

aPearson Chi-Square 8.785 4 .067

Likelihood Ratio 8.149 4 .086

Linear-by-Linear .001 1 .978Association

N of Valid Cases 475

Table 1B Chi-Square Tests

Chi square test statistics of 6.719 (Sig value >.05) indicates that there is no significant association between different age groups and their awareness about star rating (Table 2B).

Table 2A: Age * Star rating awareness Cross-tabulation

Age Group Total


18-25 132 119 64 315

26-35 57 41 13 111

Above35 17 22 10 49

Total 206 182 87 475

Star rating awareness

18




Likelihood Rati 7.027 4 .134



Table 2B: Chi-Square Tests

Majority of the respondents were in the age group of 18-25 years (see Table-1A) while only 10.31% were

above 35 years, it was found that BEE awareness level is very low at all level 289 out of 475 respondents have

said that they have no idea about it, while star rating awareness is comparatively better. 206 out of 475

respondents (Table-2A) are fully aware about it.

About 196 men and 93 women had no idea about BEE (Table 3A). Chi square test statistics of 3.471 (Sig

value >.05) indicates that there is no significant association between different gender groups and their

awareness towards BEE (Table 3B).

Table 3A: Gender * BEE awareness Cross-tabulation

Gender Total


Male 28 92 196 316

Female 23 43 93 159

Total 51 135 289 475

BEE awareness




Linear-by-Linear 1.897 1 .168Association



About 62 men and 25 women had no idea about Star rating (Table 4A). Chi square test statistics of 2.304 (Sig value >.05) indicates that there is no significant association between different gender groups and their awareness towards star rating (Table 4B).

Table 4A: Gender * BEE awareness Cross-tabulation

Gender Total


Male 140 114 62 316

Female 66 68 25 159

Total 206 182 87 475

BEE awareness

19








About 289 respondents from different educational background had no idea about BEE (Table 5A). Chi square test statistics of 4.453 (Sig value >.05) indicates that there is no significant association between different educational qualification and awareness towards BEE (Table 5 A).

Table 5A: Qualification * BEE awareness Cross-tabulation

Educational Total

Qualification Fully Slightly No idea

Upto 12th 15 32 76 123

Graduate 17 35 95 147

Post Graduate 19 68 118 205

Total 51 135 289 475

BEE awareness







Out of 475 respondents, 182 are slightly aware about star rating while 87 are not aware at all (Table 6A).Chi square test statistics of 24.272 (Sig value <.05) indicates that there is a significant association between different educational qualifications and awareness towards star rating (Table 6B).

Table 6A: Qualification * Star rating awareness Cross-tabulation

Educational Total

Qualification Fully Slightly No idea

Upto 12th 34 51 38 123

Graduate 71 55 21 147

Post Graduate 101 76 28 205

Total 206 182 87 475

Star Rating awareness

20


Table 7A: Income * BEE awareness Cross-tabulation

Annual Income Total

in INR Fully Slightly No idea

0-200,000 20 70 157 247

200,000-500,000 18 40 68 126

above 500,000 13 25 64 102

Total 51 135 289 475

BEE awareness




Linear-by-Linear 1.255 1 .263AssociationN of Valid Cases 475








Majority of the respondents across different income groups have no idea about BEE (Table 7A). Chi square test statistics of 5.844 (Sig value >.05) indicates that there is no significant association between various income groups and awareness towards BEE (Table 7B).

Respondents from all income groups have inadequate awareness about Star rating (Table 8A).Chi square test statistics of 17.803 (Sig value <.05) indicates that there is a significant association between various income groups and their awareness towards star rating. People from higher income groups have more awareness about star rated products.

Table 8A: Income * Star rating awareness Cross-tabulation

Annual Income S Total

in INR Fully Slightly No idea

0-200,000 90 96 61 247

200,000-500,000 67 45 14 126

above 500,000 49 41 12 102

Total 206 182 87 475

tar rating awareness

21








Discussion and Implications

Majority of people are not fully aware about BEE and star rating products. Concerted efforts are

required to enhance the awareness level of customers about various agencies and their endeavours

pertaining to green products and green labelling. Lack of awareness about Star rating may hinder

respondents from buying green products. Majority of respondents were young (18-35 years) but were

inadequately informed about BEE, so the findings of previous studies (Mida, 2009; Anderson and

Cunningham, 1977) which say young consumers are more aware does not hold good in current Indian

context.

The result reveals that awareness is less among both males and females and more efforts need to be

made to make them aware about it. Income and education have no impact upon BEE awareness while they

become significant in case of awareness towards star ratings. This indicates a scenario which suggests

education plays an important role in creating awareness about green products. This can be done in school

and colleges and through conduct of seminars. It may be pertinent to mention that though there is a

compulsory subject on environmental science in our education curriculum yet the awareness level is not

high. More promotional programs, informative sessions, road–shows, nukkad-nataks can be done to make

consumers aware about contributing towards sustainability.

Conclusion

The study reveals that awareness which is imperative in driving green purchase is inadequate across all

categories of respondents. In order to make people aware more efforts are needed. Enhanced knowledge

is likely to build concern for sustainability and lead to green purchase.

The study was confined to 5 most polluted cities in India so it cannot be generalised to the entire

country. More studies can be conducted in different geographical areas. We have studied only

demographic variables. Other variables can be incorporated in further studies.

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24

Labour Reforms in India-Issues and Perspectives

India is one of the world's fastest growing economies in terms of GDP. But India's economic growth, although

impressive in the last decade, has not proven sufficient to generate quality jobs. According to World Bank's

Doing Business Report 2016, India stands at rank 130 out of 189 countries in Ease of Doing Business Index. In

order to steer the country to a golden age of domestic and foreign investment, India needs to improve the level of

ease of doing business. Industrial peace is a major influence in the economic growth of business. During the last

decade, industrial relations in India have seen deterioration which led to fierceness and conflict between

organizations and workers' trade unions. The age-old stringent laws have been hindering the development of

businesses in India. The industrialists have been demanding for change and the present NDA government's

intention of reforms aims to remove these roadblocks for trade. It will be a welcome change in the

manufacturing industry. This paper will take a close look on the existing labour laws that govern the country's

businesses and how the proposed reforms will affect one of the largest labour markets in the world.

Keywords: India, Labour reform, Wage, Ease of doing business, Trade Unions

Introduction

The need for reforming the labour legislations in India has been felt since long particularly after the

implementation of the economic reforms of the 1990s. Recently labour law reform has featured back on the

political agenda in India after the election of the Narendra Modi-led government at the centre in 2014. India's

labour laws are several decades old and suffer from rigidities which are withholding the economic

development of the country. It is argued that labour laws are worker-protective and are a major deterrent for

industrial investment and the growth of organized employment. Most criticized is the strict regulation on

employment retrenchments mentioned in Part V B of IDA(Industrial Dispute Act) 1947. Industry and business

groups, the media, and several economists have been complaining time and again that Indian labour laws are

set at an unsuitably high level for a developing economy like India, which would otherwise have an

opportunity to use its low-cost labour as a source of comparative advantage in the global trade. (Deakin and

Haldar, 2015; Chakraborty, 2015).

The Modi Government has proposed several labour reforms in the wake of these challenges faced by the

industry but these labour reforms have faced huge criticisms from the Trade Unions and the workers as they

believe that the so called reforms are not worker friendly at all but are industry friendly. These reforms have

been accused by the workers that they will snatch their rights of job security and to be a part of any Union or to

form the same. Both the Unions and Industry have engaged themselves in a tug of war like situation and have

been trying to pull the rope on their sides. This paper examines the current debate around these recent labour

law reforms and the issues and perspectives of both the groups affected by them, namely labour groups and

the industry.

Labour Market and Labour regulation in India

Indian labour market is one of the largest in the world with millions of people being employed by various

sectors. Agriculture sector had employed 53.2% workers in 2009-10, whereas manufacturing sector

employed 11%. The rest were employed in non-manufacturing and services sectors. Between 2004-05 and

2011-12, total employment in the country rose from 457.9 million to 472.4 million. Over the same period,

*Shinu Vig**Ijya Chugh

*Assistant Professor, Amity Business School, Noida**Student, Amity Business School, Noida

employment in the organised, non-agricultural sector rose from 28.8 million to 47.7 million, whereas

employment in the unorganised sector rose from 185.4 million to 209.6 million (68th NSS, 2012). India's

labour market is divided into two segments. One segment of the labour market, the organized or formal

sector, functions within an elaborate structure of protective legislation and institutions providing social

protection, and has been characterized by remarkably slow growth in employment. The other segment, the

unorganized or informal sector, has seen much more employment growth (Anant et al. 2006, Debroy, 2012).

Monitoring and understanding such a large labour force is very difficult, in order to maintain peaceful working

of businesses, laws play an important role to mediate between the employers and the workers.

A distinctive feature of the regulation of labour relations in India is the staggering presence of the State.

The regulatory framework has a plethora of laws covering diverse subjects such as industrial relations; worker

welfare and safety; social security; wage laws and a variety of special laws for different sectors/categories.

This elaborate legal framework, however, has some defining characteristics which affect its overall

effectiveness.(Anant, 2009). Particularly stringent restrictions on layoffs do go against the flexibility in the

economic environment. However, modifying such laws should not be the only objective of labour reforms in

India. In the overabundance of central and state government laws on labour issues, the overlaps and

contradictions run counter to good governance and the welfare of workers. Thus these laws must be

rationalized. (Anant et al .2009). A similar need for reform has been felt by the various state governments,

with Rajasthan leading the example. In 2014, Rajasthan amended its Industrial Disputes Act, the Contract

Labour Act, 1970, and the Factories Act, 1947. The most important out of these was the changes in the

Industrial Disputes Act that will now allow companies in Rajasthan employing up to 300 workers to lay them

off or close down the unit without seeking government's approval. However, as per the central government's

amendment to the IDA passed in 1982 (made effective in 1984), only companies employing up to 100 workers

were allowed to do so. Also, the minimum number of employees required for applying the Factories Act in

Rajasthan has been increased from 10 to 20 in electricity-powered factories and from 20 to 40 in factories

without power. It is likely that other states will follow the path, in particular where the Bharatiya Janata Party

(BJP) is in power. State of Madhya Pradesh has already passed a similar bill. (Chakraborty, 2015)

Agenda of Labour Reforms

The main agenda of the government behind the proposed labour reforms was to promote the 'ease of

doing business in India'. As part of this initiative, the government is working on rationalizing and simplifying

India's labour laws. The problem is that India has too many labour laws and overlapping provisions of these

laws create bottlenecks and hamper business growth. Government created a sub-committee on the

industrial relations code, but two large unions controlled by the opposition Congress and Communists

boycotted the meet. The changes are likely to make it less onerous for businesses to comply with labour laws

that have thwarted entrepreneurship and discouraged investments for decades. The proposals have,

however, stirred a political backlash, particularly from labour unions, which claim that the new rules will hurt

workers' interests. These proposed reforms has created a stir in the industry and are being questioned that

whether these will remove rigidities of overlapping labour laws in India or they will snatch away the basic

rights of the workers and unions.

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Major Labour Reforms

The major labour reforms made by Prime Minister Narendra Modi led government are as follows:-

Unified Labour Portal

There was a constant need for a transparent portal that should look after the various problems that

used to arise in the management of labour compliances. So keeping this in mind the present government has

decided to launch a unified labour portal which in vernacular will be termed as 'Shram Suvidha'. This web

portal is expected to help in managing the labour law compliances in the areas of labour inspection and its

enforcement, online registration of units, reporting of inspections, submission of consolidated annual returns

and redressal of grievances. This integrated portal will operate through common Unique Labour Identification

Number (in vernacular 'Shram Pehchan Sankhya') for each establishment.

Factories Act 1948: Problems

Employers in unorganized sectors, constituting small firms, have failed to comply with health, safety and

welfare provisions provided in this Act. It has also been said that Section 2(m) of Factories Act 1948, must be

amended to remove condition of ten workers for consideration of a premise as a factory. This will extend the

benefits of the law to unorganized sectors of the industry (Deb, 2010). In 2015, Rajasthan government

increased the categories for registration of a firm under the Factories Act, a regulation that puts a number of

stipulations on work hours and work days in addition to the minimum age requirement.

Factories (Amendment) Bill

Indian Industry has been crying about the provisions in Factories Act that they limit their scope of

productivity as they cannot engage women workers in overtime even if there is an urgent need. The long

awaited Factories (Amendment) Bill, 2014 intended to develop safety and health of workers and permit

women to be employed for night shifts in factories. It also seeks to increase the extent of overtime hours for

workers. The Bill also looks for lowering the criteria for annual leave with wages to ninety days from the

current two-hundred and forty days. The Bill, if approved, will also provide canteen facilities to factories

employing two hundred workers. This bill was also highly opposed by the workers as they aimed at lowering

their annual leaves along with the overtime of hours of the workers.

Industrial Disputes Act 1947: Problems

The Industrial Disputes Act has been by the biggest law in the history of Indian economy, since it directs

and controls the industrial relations directly. Researchers have found many flaws time and again in some of

the provisions of the Act that can be changed to adjust with today's demands. Collective bargaining is a better

method of resolving disputes than by compulsory adjudication (Sundar, 2014). According to Section 11-A

provision, labour court could alter the punishments of workmen found guilty of misconduct. There has been

high disagreement from the industry for this particular provision as many times courts granted lesser

punishment to delinquent workers in the past (Saini,2014).

Section 5-B, this provision has been in high controversies, where the industrialists want less stringent

provision, for this workers protest against any changes for this provision. The provision made it mandatory for

the companies employing 300 or more workers to seek permission from the government before closing down

the unit or retrenching/terminating the employees (Sodhi; Jha; Shah; Poddar, 2014; Mitra, 2015). This sort of

government permission is not required in any developed country and almost none of the emerging markets

26


require the permission of the government and consultations with trade unions (Poddar, 2014). Section 5B

earlier used to require a firm employing more than 100 workers to seek permission from its state government

for retrenching or laying off workers. But later in 2015, Rajasthan government first amended this threshold to

300 workers, which was later inculcated in Central amendments.

Section 9-A, requires employer to give 21 days notice of change in workers conditions (with respect to

change in technology, workload, manning, shift work etc). It is believed that it restricts industry's flexibility,

finds it difficult to adjust for the needs of the business growth (Saini, 2014). It is a serious drawback on the

functioning of factories as many changes are to be implemented at a short notice. The employers have been

demanding that this section should be completely deleted from the ID Act (Sodhi, 2014).

Code on Industrial Relations Bill

The Code on Industrial Relations Bill, 2015, combines Industrial Disputes Act, 1947, the Trade Unions Act,

1926, and the Industrial Employment (Standing Orders) Act, 1946.This bill was highly criticized by the trade ndunions and workers and was the major driver of the strike that was staged on 2 September, 2015. This bill

proposed that for factories employing more than 50 but less than 300 workers, government permission isn't

needed for lay-offs, retrenchment or closure of a unit and thus would make it tougher for the workers to form

unions. This bill basically wanted to alter the Chapter V B provision of IDA, 1947 which was the major reason of

the outbreak of the workers and trade unions. Trade Unions claimed that this bill will push a majority of

workers out of the scope of the labour laws as it has raised the limit of workers employed in an establishment

from 100 to 300 workers to comply with the laws and after that it has made retrenchment easy for the

establishments employing 300 workers. It also proposed that factories with 50-300 workers must give a 60-

day notice before closing any unit. In the case of any industry in which at least 100 workers are employed or

have been employed on any day in the preceding 12 months, the employer will constitute a works committee

Transparent Labour Inspection Scheme

Industries claim that there was an 'Inspector Raj' prevailing in the country as the Inspection Officers who

inspects their establishments often blackmail them of fraudulent reporting if they do not bribe them or pay

them a hefty amount. They also claimed that even after complying with all the laws due to the biasness of the

inspectors, the reports of the inspections are compromised and then they had to suffer for the same. So to

end this discretionary power given to the inspectors or in other words to end the 'Inspector Raj', government

have decided to launch a transparent labour inspection scheme. It has also proposed that in case of a serious

accident in an establishment or a locked down establishment, inspections would be mandatory but in other

case it would be optional and based on an automated computer generated system. The Inspectors will be

required to upload their inspection reports on to the portal within 72 hours of carrying out an inspection.

Universal Account Number

The Government has also announced the launch of Universal Account Number (UAN) for the members of

the Employees' Provident Fund. The UAN is expected to allow collation of accounts and viewing of updated

provident fund accounts by beneficiary employees. It will be portable throughout the work career of

members and can be used anywhere in India.

Trade Unions Act 1926

First, the act allows for a multiplicity of trade unions. The Trade Unions Act stipulates that any seven or

more workers can form a trade union and apply for registration. It has been found that wide-spread

27


malpractices in the offices of the registrar have increased infinitely to cause a lot of problems for the workers.

These practices should be stopped so that workers are not denied trade union registration on superficial

grounds. Officers give preference to only select few unions those with a possible back support from a higher

authority or a political party, which is not fair. In Section 18, the members enjoy immunity from criminal and

civil liability when furthering the interests of the trade union. This immunity allows them to call strikes, which

can hinder the smooth functioning of industrial units. This includes breaching terms of the employment

contract (Poddar, 2014).

In Section 22, the law provides the scope for outsiders to be a part of the trade union, of fifty percent of

the office bearers. This is undesirable as it opens the door to outsiders who can capture the unions and may

not have the interest of firm employees as their priority (Poddar, 2014).The concept of outsiders jabbing their

nose in the matters of an organization that they are not directly associated which exists only in India.

The political and government institutional groups subjugated the social interchange forums such as the

tripartite Indian Labour Conference and used them not only for discussions with the communal players (i.e.

trade unions and the employers' organizations) but also to drive home its agenda. It was in this sense a

“corporatist” organization (Rudoph & Rudolph, 1987). Due to the colonial heirloom of a politics-led-trade

union movement, the ruling parties have been continuing controls over the trade union. The Congress Party

used these forces at work to suppress the Communist trade unions' threat in the industrial relations systems.

Later, this became useful even for the regional governments like the DMK Party in the 1970s and so on

(Ramaswamy, 1984). The Act bestows on Unions a provision for creation of a political fund for being used for

different political purposes. This is another provision which has attracted bitter criticism (Saini,

2014).Workers are also getting lazy and less efficient in their work leading to low productivity and high losses

for the organisations. Organisations are pressured by the workers' behaviour towards them. The labour

disputes and pro-worker legislations inhibit location choice and new investments (Singh, 2015).

Labour Code on Wage Bill (LCWB)

Ministry of Labour and Employment has decided to draft Labour Code on Wage Bill by amalgamating the

Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965 and the Equal

Remuneration Act, 1976

The important modification in the minimum wage rule is the allocation of complete power to the states

to formulate the wages. The LCWB allows them to “revise from time to time the minimum rate of wages or

remuneration provided that while fixing or revising such minimum wage the state government shall take into

consideration any guidelines made by the Minimum Wages Advisory Board constituted by the Central

government.”

The compliances are also made possible by permitting filing of e-returns and maintenance of e-registers.

In a gallant step, the LCWB initiates the concept of “self certification” and generates a system for a “web

generated inspection”. The LCWB seeks to bestow discretion on the government to decide on the eligibility

limit for bonus and the maximum wage for computation of the bonus. The 'Jan DhanYojana' launched by the

government has helped in providing banking facilities to the workers who earlier did not have bank accounts

and thus has made it easy for the bonuses to be transferred to the accounts of the workers which is also a

proposal of this LCW Bill. The LCWB establishes Non-Government Organisations as disputants who can file

claims on behalf of the affected party. The LCWB ensures that the job of the employer is to pay the different

dues of the employees including distribution of the wages upon the death of the employee.

28


Objections raised by Workers

It has been noticed that the Trade Unions are against the labour reforms and any changes in the laws

made by the Centre. Trade Unions have been protesting against the government demanding to abandon the

plans of selling-off the stakes in State-run organisations and to shut down fruitless and unproductive

factories. Unions say that as an alternative, the ailing units should be revitalized. They claim that if the

government modifies key laws like the Factory Establishment Act, Bonus Act and Industrial relations, then

seventy-five percent of the workforce will be out of the jurisdiction of labour laws. It is being said that the

government plans to take small factories, having up to forty workers, out of the labour laws. Unions say this

would cease the job safety of most of the workers. The new labour laws are expected to diminish the influence

of trade unions and make the labour market more flexible. Hence Unions are getting insecure over their hold

in the market. Unions are demanding to withdraw the proposed changes in the labour laws and to stop the

disinvestment and privatisation of PSUs. Unions are also demanding an increase in the bonus of upper limit as

well as broadening the exposure of health insurance and provident fund. They say that the health insurance

facilities and provident funds should also include construction workers and workers in schemes such as

aanganwadis. Major reason behind agitation of workers was that they were not even consulted while drafting

these reforms.

Backlash of WorkersndMillions of workers across India went on a strike on 2 September, 2015 in protest against planned labour

law reforms. Unions claim that the reforms proposed by the government will put jobs at risk and they

demanded to scrap the changes that would make the retrenchment of workers easy and will also make it

easier to lay off workers. The strike, the biggest in India for more than two years, included staff at state-run

banks and mines as well as some factory, construction and transport workers. Women workers in Kolkata

staged a sit-in strike. The whole worker community came on roads and showed their disagreement for the

proposed labour reforms.

Industry Perspective

Industry has welcomed the proposed labour reforms by extending full support to the government on the

same. Industry claims that it will help in organizing the labour market in the country. They also claim that for

urbanization and development to take place, labour must be formalised in India. The proposed labour

reforms will help in ending the prevailing 'Inspector Raj' which according to the industry professionals has

harassed them a lot. These reforms will help in creating a conducive environment for growth of trade and

industry and will help in bringing transparency in social security benefits of the workers. The rigid labour laws

are the main reason behind the stalling economic growth of our country. It has been well-known that China's

flexible and trade friendly labour laws have made sure that investments in Chinese manufacturing keep

coming in, whereas in India the rigid and over-protective labour laws have always been a cause of concern for

the investors. This rigidity of labour laws makes it difficult for the organization to adopt new technology as it

would require retrenchment of workers which cannot be done without prior permission from the

government. This discourages Foreign Direct Investment due to the fear that it would not be possible for the

industry to fire unproductive workers.. As these proposed reforms claims to amend the Chapter V B of IDA

1947, it will help in promoting the ease of doing business in India and will help in attracting more FDI in the

country which in turn will help in boosting the economic growth of the country. Industry is thus very optimistic

regarding the reforms as it will curtail the discretion power of inspectors during the inspection process as the

29


whole process would be automated now and the rigidities in the labour laws will be removed which will help

in increasing their productivity and will also help in increasing their scope of operations. Government is

focussing on automating the entire process so it will also reduce the paper work and will promote and bring

transparency of the whole process as everything will be online now.

Conclusion

With these proposed labour reforms a tug-of-war like situation has been created in the country and both

the sides are trying to pull the rope on their sides. The reforms should be made in such a manner that it creates

a win-win situation for both the workers and the industry but as of now they are more industry aligned and if

the picture remains the same then it will not help in organizing the labour of the country but will hamper the

industrial harmony. It is important that along with improving the economic growth of the country the reforms

should bring industrial peace as well.

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http://www.economicsdiscussion.net/labour/labour-reform-in-india-an-overview/6515

lShah, H. (2014), “Transition to labor law reform: state-level initiatives and informal sector labor relations. A Review of Economic &

Social Development, 50(1), 33-50.

lSodhi, J. S. (2014), “Labour Law Reform in India. Indian Journal of Industrial Relation, 50(1), 100-117

lVerma, A., and Gomes, A. V. M. (2014), “Labor market flexibility & trajectories of development: Lessons from Brazil, India and China”,

Indian Journal of Industrial Relations, 50(1), 51.

Anant, T. C. A. (2009),“Revisiting labour market regulation”, Indian Journal of Labour Economics, 52(2), 195-202.

30


31

*Asst. Professor & Head, Department of Commerce & Management, Dream Valley College, Gwalior (M.P)

A Study of Online Advertisement on the Basis of Customer Awareness

*Dr. Ankit Gupta

Present study focuses on current scenario of advertisement effectiveness among urban consumers as well as

rural consumer through online. Researchers have collected data from Gwalior region and selecting 199

respondents after removing outliers. Today online advertisement effect every part of population in Gwalior

region which is buy the product or sale the product on the basis of requirement among the people which may be

male and female separately. So researcher can specify market which is online market for the customer

awareness. The study is causal in nature and convenient sampling technique is used for collecting primary data.

Reliability, normality, factor analysis and T-test have been applied for providing the outcome of the study.

Keywords: Online, Advertisement, Products, Customers.

Introduction

Advertisement is known as public awareness regarding the products, service and ideas; it is a paid and

unpaid form for providing information of all the above things. But now these days it is useful on generation

demand which is hi-tech on showing the new technology which is called online advertisement, with new

features, ideal celebrity and uniqueness of products. The advertisement also called promotional activity of

the products showing the multi branding promotion activity with special offers for attracting all consumers.

Advertising is paid form of communication, although some forms of advertising, such as public service

announcements (PSAs), use donated space and time. Not only is the message paid for, but the sponsor is

identified. Most advertising tries to persuade or influence the consumer to do something, although in some

cases the point of the message is simply to inform consumers and make them aware of the product or

company. In other words, it is strategic communication driven by objectives, and these objectives can be

measured to determine whether the advertising was effective. Advertising reaches a large audience of

potential consumers. The message is conveyed through many different kinds of mass media, which are largely

non-personal. It means that advertising isn't directed to a specific person, although this is changing with the

introduction of the internet and more interactive media. A Modern definition, then, would be: Advertising is

paid persuasive communication that uses non-personal mass media–as well as other forms of interactive

communication–to reach broad audience to connect an identified sponsor with a target audience.

Literature Review

Baker W. E. & Lutz R. J. (2000), researcher found three immediate implications of the relevance-

accessibility model for advertising decision-makers. First as target market BRI increases, it is prudent to shift

advertising message appeal strategy from generating good feelings about the brand, to establishing brand

credibility, to demonstrating brand superiority.

Cao J. (1999), all is surrounded by a vast amount of advertising. Everybody, therefore, has some thoughts

on the subject. The tendency is to judge advertising as good or bad, to single out advertisements that one

likes or dislikes, one wonders if advertising is worth the large amount of money spent on it and also to

question the contribution advertising makes on social welfare, and so on.

Cateora P. R. et. al (2008), the goals of advertising around the world vary substantially. For example,

Chinese manufacturers are establishing new brands as their economy expands; Unilever is introducing a new

product-line extension, Dove Shampoo, in East Asian market; and Russia's airline Aerofloat is seeking to

upgrade its quality image, all these marketing problems require careful marketing research and thoughtful

and creative advertising campaigns in country, regional, and global markets, respectively.

Chung C. and Kaiser H. M. (1999), the assumption of a constant impact on sales per dollar expended on

advertising can be divided into two assumptions: a) the cost per exposure is constant, and b) the relationship

between an exposure unit and its impact on sales is constant.

Dunnett J. and Hoek J. (1996), the purpose of this study was to explore the effectiveness of cinema

advertising in a more robust manner. The study had the following objectives: 1. To quantify the proportion of

cinema audiences who had an opportunity to see advertising messages screened prior to a movie. 2. To

calculate the number of brands recalled by movie goers exposed to advertising messages. 3. To detail the level

of advertisement recognition displayed by movie goers exposed to advertising messages.

Farahat A. and Bailey M. (2012), (1) Most of the work in evaluating the effectiveness of targeted

advertising has focused on behavioural targeting and (2) since targeted users are chosen based upon similar

behaviour, traditional measures of advertising effectiveness are very likely to ignore a strong selection bias;

the targeted users' behaviour is very likely to be highly correlated with the measured response.

Objectives

lTo find out standardized measures of evaluation of advertisement effectiveness through online

lTo find out factors affecting the advertisement through online

lTo find out the impact of advertisement on different gender of the customers through online

Methodology

Data Collection

Primary Data

Researcher has collected data from different place of the Gwalior region i.e. Gwalior, Shivpuri, Datia,

Ashok Nagar, Guna and Dabra. Used non probability sampling procedure for selecting respondent for the

study, collected data 199 after removing outliers

Secondary Data

Researcher collected secondary data from different sources i.e. news papers, magazines, reports (Govt.

/Corporate), journals, books, and other source through online, etc.

Tools used for data analysis

Researcher used reliability test, normality test, t-test, and factor analysis for analysing the data of the

study, using SPSS trial version software.

Observation and Results

Normality Test for All Variables

Tests of NormalityaKolmogorov-Smirnov Shapiro-Wilk

Ads_Effectiveness

Statistic df Sig. Statistic df Sig.

.085 194 .072 .983 194 .051

a. Lilliefors Significance Correction

After the normality analysis researcher found insignificant value i.e. data was normally distributed and there are no outliers.

Reliability Test

Basically reliability test used for checking out whether the questionnaire is reliable or not, but in below table has been shown Cronbach's Alpha value (.765) indicate the questionnaire has been reliable and provide us relevant information as well. Because it is more than the standard value of Cronbach's Alpha value (.7)

32


Realiability Statisctics

Cronbach'sAlpha

N of Items

.765 14

KMO Bartlett's TestThis Statistical tools used research for checking out adequacy of data for factor analysis and found Kaiser-

Meyer-Olkin Value is .700, Chi-Square Value 479.557 in 0.0% level of significance it is also indicate data adequate for factor analysis.

KMO and Bartlett's Test

Kaiser-Myer-Olkin Measure of Sampling Adequacy.

Approx. Chi-Square

Df.

Sig.

Bartlett's Test of Sphericity

.700

479.557

91

.000

Component

Faith Awareness Satisfied Interest

Advertising is believable. .819

Advertising is trustworthy .752

Overall, I consider Advertising a good thing. .682

Advertising provides accurate information

about products/ services .611

Advertising has positive effects on the economy. .695

Advertising is good source of product's information .686

Advertising is suitable means of spending time .600

Advertising supplies relevant information .550

Advertising raises our standard of living .414

Advertising is credible .740

Overall, I like Advertising in our Area .690

Advertising is pleasing. .792

Advertising is entertaining .677

Advertising results in better products for the public .304

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations.

Factor Distribution

33


On the basis of initial Eigen Value statistical tools divided data as four major factors i.e. Faith, Awareness,

Satisfied and Interest. In the first factor we have four statements i.e. Advertising is believable (.819),

Advertising is trustworthy (.752), Overall, I consider Advertising a good thing (.682) and Advertising provides

accurate information about products/ services (.611). In the second factor we have five statements i.e.

Advertising has positive effects on the economy (.695), Advertising is good source of product's information

(.686), Advertising is suitable means of spending time (.600), Advertising supplies relevant information (.550)

and Advertising raises our standard of living (.414). In third Factor there are 2 statement i.e. Advertising is

credible (.740) and Overall, I like Advertising in our Area (.690) and last factor have three statements which are

Advertising is pleasing (.792), advertising is entertaining (.677) and Advertising results in better products for

the public (.304).

T-test between Advertisement effectiveness on customer awareness

H : It states no significant impact of advertisement on different gender of the customers through Online0

Group Statistics

Gender of Respondent N Mean Std. Deviation Std. Error Mean

Ads_Effectivenes

S

Male

Female

112

87

47.7054

48.9655

7.05658

6.07214

.66678

.65100

Independent Samples Test

On the basis of T-value and level of the significance (.186) which indicates that impact of online

advertisement has no significant statistical difference on different gender of the customers. Hence the null

hypothesis is accepted.

Suggestions

lThe number of companies advertising online is soaring, but even then fraud and deception may reduce

consumer confidence. Therefore, it should be ensured that products and services are described

truthfully in online advertisements.

Levene'sTest for

Equality ofVariances

t-test for Equality of Means

F Sig. t df Sig. (2-

tailed)

Mean

Difference

Std. Error

Difference

95% Confidence Interval of

the Difference

Lower Upper

.911 .341 -1.327 197 .186 -1.26016 .94960 -3.13284 .61252

-1.352 194.900 .178 -1.26016 .93188 -3.09803 .57771

Equalvariancesassumed

Equalvariancesnotassumed

Ads_Effectivenesss

34


l

customers.

lTo avoid interference in work, advertisements should be designed to meet the preferences of target

customers or target audience.

lUse of multi-media' and use of banner advertisements give viewers a chance to interact with banners

which helps in online advertising.

Conclusion

All the previous study of various literatures has been helpful in our present research. Several theories

have been advanced to explain the impact of Advertising on Communication-Effect on Purchase Behaviour.

This research helps us to identify the major factors affecting the advertisement through online which are

whether advertisement is believable, trustworthy, credible and provides good source of information or not.

Online advertising features force consumers to make relationship with company's brand which leads to

increase brand image in consumer's mind.

An internet broadcast model is what many major advertisers have been waiting for. They want to make

Internet advertising more like television advertising. Actually, they want to make it better than TV advertising:

all visuals impact of traditional broadcast with the additional value of interactivity. The goal of advertisers is to

make their ads more involving. Interactive advertising allows customers to become more involved because

they initiate most of the action. Experiences during this interaction will drive brand attitudes. The important

trend is that web advertising is moving away from the banner and marketers are experimenting with new

forms such as games and interactive product demonstrations in such new forms as pop-up windows,

daughter windows and side frames. Feedback is the strengths of Internet sites, and an effective site captures

information from visitors in a systematic way that can be used in strategic planning. It is a type of real-time

research. Copy testing methods are beginning to be developed to evaluate a site's ability to motivate click-

through behaviour. Finally it is concluded that the online advertising is informative and impacts both the

gender equally.

ReferenceslBaker, W. E., & Lutz, R. J. (2000). An Empirical Test of an Updated Relevance-Accessibility Model of Advertising Effectiveness. Journal

of Advertising, Vol XXIX No 1, 01-13.

lCao, J. (1990). Evaluation of Advertising Effectiveness”. Bristol, UK: In Proceedings of 2nd UK Workshop of SIG on Multi-Agent

Systems UKMAS.

lCateora, P. R., Graham, J. L., & Salwan, P. (2008). International Marketing 13 Edition. New Delhi: Tata McGraw Hill Education

PrivateLimited.

lChung, C., & Kaiser, M. H. (2009). Measurement of Advertisingeffectiveness . Agribusiness Vol 15 No 4 John Viley and SonsInc., 525-

537.

lDunnett, J., & Hoek, J. (1996). An Evaluation of Cinema Advertising Effectiveness”. Marketing Bulletin 7 Research Note 2 pp.58-66.

lFarahat, A., & Bailey, M. (2012). How Effective is Targeted Advertising? France: WWW– Session: Advertising on the Web 1 Lyon.

lWalls, Moriarity & Burnett (2006). Advertising Principles & Practice, Prentice Hall Inc

lwww.google.co.in

lwww.wikipedia.org

lwww.snapdeal.com

lwww.flipkart.com

lwww.olx.in

lwww.scribd.com

Trust or confidence can be built in online business by using testimonials with the permission of

35


36

*

*Dr. Asmita Dubey

Prospects of Industrial Developement in Uttar Pradesh

Uttar Pradesh forming a part of the Indo –Gangatic plain in India has been a bedrock of

India's civilization in the past millennia is endowed with rich natural resources, temperate

climate and fertile argo climatic conditions.U.P.is the ultimate combination of human

endeavours in culture socio-economic and religious fields.

Uttar Pradesh is the most populous state in India, with a large pool of skilled, semi-skilled

and unskilled labour. Alternately, the population is also looked upon as the largest

consumer base in the country with around 200 million people. It is the largest producer of

food grains among all states in India and accounted for about 17.83 per cent share in the

country's total food grain output in 2016-17. The state has become a hub for the

semiconductor industry with several major players having their offices and research and

development (R&D) centres in Noida. The state has a well-developed social, physical and

industrial infrastructure. It also has good connectivity through 48 national highways, six

airports and rail links to all major cities. The state has witnessed a high rate of infrastructure

growth in the recent past. There has been a considerable rise in the number of industrial

clusters/hubs and Public-Private-Partnership (PPP) projects in the infrastructure domain.

Keywords: Gross State Domestic Product, Special Economic Zones, Industrial

Infrastructure, Liberalization

Introduction

Uttar Pradesh is the most populous state in India, with a large pool of skilled, semi-skilled and unskilled

labour. Alternately, the population is also looked upon as the largest consumer base in the country with

around 200 million people Between 2011-12 and 2016-17, Gross State Domestic Product (GSDP) expanded at

a Compound Annual Growth Rate (CAGR) of 10.36 per cent to US$ 203.04 billion whereas the Net State

Domestic Product (NSDP) expanded at a CAGR of 10.32 per cent to US$ 180.54 billion.The state's resources,

policy incentives, infrastructure and climate are best suited for investments in diverse sectors such as

Information Technology (IT), agro-based and food processing, light engineering goods, sports goods, textiles,

leather-based, tourism and biotechnology. The state has a well-developed social, physical and industrial

infrastructure. It also has good connectivity through 48 national highways, six airports and rail links to all

major cities. The state has witnessed a high rate of infrastructure growth in the recent past. There has been a

considerable rise in the number of industrial clusters/hubs and Public-Private-Partnership (PPP) projects in

the infrastructure domain.

The Uttar Pradesh State Industrial Development Corporation (UPSIDC) and the Department of

Infrastructure and Industrial Development are responsible for the development of industrial infrastructure in

the state.The state has a robust industrial infrastructure, including 15 industrial areas, 12 specialised parks,

four growth centres and industrial infrastructure development centres (IIDC). As of June 2017, the state had

19 notified special economic zones (SEZs).

37


Government Initiatives for Industrial Development in Uttar Pradesh

Uttar Pradesh has always been in the forefront in the area of industrial development. During the Vth, VIth

VIIth Five Year Plan, the industrial growth rate was 9.4, 11.8 & 10.9% respectively. In the post liberalization

period the industrial growth rate somewhat dropped. However, the state was able to meet the challenges.

The Industrial growth rate during the Xth Five Year Plan in the State revived and has been to the tune of 6.6%. It

is significant that during the period the world at large was hit by recession. The industrial growth rate was

targeted at 10% and that of manufacturing sector at 12% for XIth Five Year Plan, in order to achieve overall

8.5% GSDP growth. This requires huge investment in the industry sector along with up-gradation of existing

technology and modernization as well as creation of world class infrastructure. The state has been able to

achieve growth rate of GSDP as well as Industrial sector during first three years of XIth Five Year Plan as under:

Sl.No.

FinancialYear

GSDP Growth in % - (at constant price - 2004-05)

Industrial SectorGrowth in % - (at constant price -

2004-05)

1

2

3

2007-08

2008-09

2009-10

7.5

6.1

7.2

6.6

0.2

8.7

The state has contributed 8.1 per cent to the GDP of India in F.Y.2009-10 as the country's second largest

economy. The tertiary sector has been major contributor to the GSDP, followed by the primary sector and the

secondary sector ,as under :

30.80%22.40%

46.80% 50.20%

25.20% 25.6%

2004 - 05 2009 - 10

Primary Secondary Tertiary

It is felt that industrial growth of the State is largely depended on infrastructural facilities available in

the state. In order to enhance industrialization in the state, Uttar Pradesh is continuously improving

infrastructure facilities by providing speedy transportation of goods by constructing expressways,

up-gradation of highways, more availability of power to the industrial units, and so on. PPP model has

also been adopted by the State in various sectors like Road Sector, Power Sector, Urban Rejuvenation.

Uttar Pradesh proposes to bring investment through PPP mode worth Rs.2,64,204 crores in the 12th Five

Year Plan. As per a FICCI report on status of PPP projects in the country, Uttar Pradesh is amongst the top

five States of the country, in the implementation of PPP Projects .An investment of Rs.42,942 crores has

38


already been generated through part implementation of Yamuna Expressways, Municipal Solid Waste

Management Projects and some of the power projects.

UPSHA has been sanctioned a grant of Rs. 1,042.93 crores for their six highways projects under Viability

Gap Funding (VGF) scheme of Government of India, specially meant for promoting PPP projects and making

them financially viable. Developer for Delhi-Saharanpur- Yamunotri Road, Bareilly-Almora-Bagheshwar,

Varanasi –Shaktinagar and Meerut - Karnal Road state highways has been selected.

Capital Investment

Uttar Pradesh has generated a capital investment and employmentsin the State during the 11th plan as

under:-

S.No. Year Total(Micro, Small,

Medium & Heavy)

Mediumonly

Heavyonly

Total(Micro, Small,

Medium & Heavy)

Mediumonly

Heavyonly

Total(Micro, Small,

Medium & Heavy)

Mediumonly

Heavyonly

No. of Units Investment Rs. in Cr. Employment

1

2

3

4

5

2007-08

2008-09

2009-10

2010-11

2011-12(Up to Dec)

Total

32837

33771

37435

35861

27423

167327

53

35

83

72

50

293

35

10

87

53

96

281

4918.26

5176.63

11961.93

10446.03

13903.82

46396.67

391.78

299.03

584.95

488.43

412.49

2176.68

2421.59

1210.51

7006.86

5064.7

9422.04

25115.70

207720

212573

296469

253077

204050

1174.89

5019

1613

7214

6642

5572

26060

8913

1672

30171

9271

21801

71828

Source : Directorate of Industries, U.P.

Uttar Pradesh has launched Export Promotion Scheme to compete in National and International market

for the advancement of export section, under the Export Promotion Development Scheme, between year

2007-08 to 2009-10, 2454 units have been sanctioned a subsidy of Rs. 16 Cr. Infrastructure Facilities Further, in

order to promote investments and to boost industrialization in the State, Uttar Pradesh has developed many

SEZs, Industrial Clusters, Information technology Parks, Agro Parks the details of some of them are mentioned

below:

Development of Special Economic Zones

In the fast changing global economic scenario, Special Economic Zones are rightly called the engines of

growth. Uttar Pradesh Government in Aug 2007 announced U.P. Special Economic Zone(Amended) Policy-

2007 in order to foster the industrial and economic development and creating conducing environment for the

development of SEZs in the State. So far 56 SEZs proposals have been recommended by U.P. Government to

39


Government of India. Out of these proposals, 21SEZs have been Notified, Formal approval to 34 SEZs and In-

principle approval to 1 SEZ have been granted by Government of India .Eight numbers of SEZs are functional

out of which six have been developed under private sector. M/s. Moser Bear India Ltd., M/sWipro Ltd., M/s

HCL Technologies, M/s. Seaview Developers Ltd,M/s Aactivis Softech (P) Ltd. and M/s NIIT Technologies Ltd.

Have been developed by Private Sectors and two SEZs Moradabad SEZ,Noida SEZ have been developed by the

government,

Tronica City

Integrated Industrial Township has been developed over 1600 acres land in Ghaziabad, where land is

available for industrial, residential, institutional and commercial sectors.

Growth Centers

Growth Centers at Shahjhanpur, Jainpur (Kanpur Dehat), Jhansi,Dibiyapur (Auraiya) have been

completed. These Centers haveindustrial, residential and commercial sectors. Different sizes of plotshave

been developed to accommodate small/tiny, medium and large-scale industrial units at attractive rates.

Integrated Industrial Development Centers

To encourage development of small & tiny industries IntegratedIndustrial Development Centers have

been developed at (KosiKotwan) Mathura, Etah, Banthar (Unnao), Baghpat, Masuri Gulawati(Ghaziabad),

Kursi Road (Barabanki) and Chandauli (Varanasi) inarea of 50 acres approx. each, under Central Govt. Scheme.

Thesecentres are equipped with infrastructure facilities like road, drain,power distribution network, water

supply etc.

Cluster Development Scheme

The State Government to enhance investment has introduced Cluster Development Scheme under which

Industrial Cluster aredeveloped by upgrading infrastructure and removal of bottleneck for Industry. UP

government has sanctioned 5 Industry Clusters for Hard Intervention and 15 other industry clusters for Soft

Intervention.

Export Promotion Industrial Park

Under the Central Govt. scheme for promotion of exports two EPIPs are developed by UPSIDC on 200

acres at Gautam Budh Nagar andat Agra on 100 acres land, where high standard infrastructure facilities have

been provided including cement concrete road, integrated security system, earth station etc. Leather

Technology Park The state has one of the largest livestock populations in the country, which provides a strong

raw material base required for the industry. Leather & Leather goods industry has performed exceptionally

high comparative to all India figures and other regions of Council for Leather Exports. Recognizing its

importance, Leather TechnologyPark has been developed at Banthar, Unnao on 232 acres located onNH-25

on Kanpur – Lucknow road (4 – Lane) to accommodate leather tanneries and leather goods units.

Agro Parks

Uttar Pradesh with its diverse agro climatic conditions is richly endowed in the cultivation of variety of

crops. The State is leader in producing Wheat, Sugar Cane, Rice, Maize, Milk, Livestock, Poultry, total Fruits

and Vegetables in the Country. Around 33.94 Lac Hectares area of State is under Horticultural Crops. The

major Horticultural Crops in the State are – Mango, Guava, Aonla, Banana, Potato, Pee, Onion, Tomato,

40


Cucurbits, Cauliflower, Cabbage, Green Chilies, Garlic, Turmeric etc.The Food Processing sector in Uttar

Pradesh is in a nascent stage.Most units fall under un-organized private sector. The food fortification and

processing of cereals, pulses, and oilseeds some spice and condiments constitutes the Food Processing

industry in the state. Perishables like under fruits and vegetables with research-extension technology support

are marred by lack of remunerative markets, seasonal gluts during the peak production period lack of basic

infrastructure and support system.Two Agro Parks (over 180 acre of land) have been developed for food

processing industry at Lucknow & at Varanasi. These parks have been designed to meet the specific needs of

the agro and food processing industry. These specialized Infrastructures include Multi Chamber Cold Store

with Controlled Atmosphere facility and Washing-sorting-grading line.

Apparel Parks

In order to promote Apparel Industry, UPSIDC has setup Apparel Parks at Tronica City, Ghaziabad, at 12

Km. from I.S.B.T. Delhi and textile & Hosiery Park at Rooma Dist. Kanpur, at 10 Km. from Kanpur City. These

Industrial Parks have industry specific infrastructure, textile training center, fashion design center, quality

control laboratory, workshop cum tool room, common effluent treatment plant,conference hall, women

hostel etc. Textile-Training Centers by ATDC are in operation at both the Parks.ALT Ltd Bangalore is setting up

Training College/Fashion design Center/Quality Control laboratories at both Locations. Delhi-Mumbai

Industrial Corridor (DMIC)A joint initiative of the Governments of India and Japan, the Special Economic

Partnership Initiative (SEPI), DMIC envisages activating local commerce, enhancing foreign investment and

attaining sustainable development. With an overall length of 1483 kms and terminals at Dadri of Greater

Noida and the Jawaharlal Nehru port of Mumbai, the quality infrastructure is expected to extend to 150 kms

on both sides. 20 nodes (13 investment region and 7 Industrial zones) have been proposed of which two fall in

Uttar Pradesh – the first investment region node falls in Greater Noida and the other at Meerut-

Muzaffarnagar.

Dedicated Freight Corridor Project (DFC)

Uttar Pradesh is the biggest beneficiary of DFCC project. Out of the total length of Eastern Corridor 2700

Kms, the total stretch of corridor in the state is 1063 Kms.Districts involved are Saharanpur, Muzaffarnagar,

Meerut, Hapur (Panchsheelnagar), Ghaziabad, Bulandshahar, Gautam Budh Nagar,Aligarh, Mahamayanagar,

Agra, Ferozabad Etawah, Auriya, Kanpur ,Fatehpur, Kaushambhi, Allahabad, Mirzapur and Chandauli.

The possibility of development of logistic hubs at suitable places along the Eastern Freight Corridor may

be explored. Owing to the above efforts, Big Industrial houses of the country like Asian Paints, Bharat

Petroleum, Delphi Automotive Systems, Yamaha Motors, Honda Siel, LG Electronics, New Holland Tractors,

Pepsi, Hindustan Times, Moser Baer India,Vectra and Sheela Foams have chosen Uttar Pradesh as their

preferred industrial and operational base.

Food Processing Industry

Uttar Pradesh with its diverse agro climatic conditions is richly endowed in the cultivation of variety of

crops. The State is leader in producing Wheat, Sugar Cane, Rice, Maize, Milk, Livestock, Poultry, total Fruits

and Vegetables in the Country Uttar Pradesh contributes 18% of the Horticultural Produce in the national

basket, State contributes 36.74% of vegetables, 10.48% Fruits and 44.13% Potato. Around 33.94 Lac Hectares

41


area of State is under Horticultural Crops. The major Horticultural Crops in the State are – Mango, Guava,

Aonla, Banana, Potato, Pee, Onion, Tomato, Cucurbits, Cauliflower, Cabbage, Green Chilies, Garlic, Turmeric

etc. The Food Processing in the State is in the nascent stage under un-organized private sector. The food

fortification and processing of cereals, pulses, oilseeds some spice and condiments constitutes the Food

Processing industry in the state. Perishables like under fruits and vegetables with research-extension

technology support are marred by lack of remunerative markets, seasonal gluts during the peak production

period lack of basic infrastructure and support system. To promote investment in Food Processing, State

Government has declared Food Processing Industry as a thrust sector in its Industrial Policy.

l100% Stamp Duty exemption on purchase of land for setting up of Food Processing Industry.

l5 years Mandi Fee exemption on new units having an investment of Rs. 10 Crore or above in Plant &

Machinery.

l25% Capital Subsidy (maximum of Rs.25 Lacs) on the cost of Technical Civil Work and Plant & Machinery.

l50% Subsidy (maximum of Rs.100 Lacs) on setting up of Tissue Culture units.

l40% Subsidy (maximum of Rs.120 Lacs) on for setting up of multi chambered energy efficient cold

storages and fruit ripening chambers.

l50% Subsidy (maximum of Rs.25 Lacs) on establishment of Model Nursery.

l25% Subsidy (maximum of Rs.50 Lacs) on Post Harvest Management and processing of herbal and

aromatic plants.

Moradabad Special Economic Zone

This sector specific SEZ for handicrafts is developed in Moradabad over 467 acres close to New Delhi

International Airport (160Km).Moradabad is the biggest brass & silver handicrafts manufacturing & export

centre of India. Excellent infrastructure facilities have been provided with 24 hours security.

Conclusion : Industrial development has to play a vital role in the sound economic development of any

state. UP's large size relative to other Indian states and the professed goals of its policy makers and leaders

make it imperative for industries in this state to develop fast. UP's Industrial performance has remained

hampered by paucity poor quality of infrastructure and lack of incentives but in recent years various steps

have been taken by the government to boost the growth of industrial sector. The main reason impeding the

setting up of new industrial unit in UP is scarcity of land and secondly time-consuming clearance. To promote

industrial development government is emphasizing on participatory development in improving

infrastructural facilities and ensure sound industrial development.

References

lAnnual Survey of Industries,Various Issues

lDirectorate of Industries,U.P.

lDirectorate of Statistics and Economics,U.P.

l "Uttar Pradesh! History, Government, Map, & Population". Encyclopedia Britannica. Retrieved 6 November 2016.

l Office of the Development Commissioner (Small Scale Industries). Report on the second all-India census of small scale industrial units.

Development Commissioner, Small Scale Industries, Ministry of Industry, Govt. of India. p. 72. Archived from the original on 23 May 2013. Retrieved 4

August 2012.

lIndustries that play a vital role in the economy of the district". Maps of India. Archived from the original on 9 September 2012. Retrieved 24 September

2012.

42

*Assistant Professor, Deen Dayal Upadhyaya College, University of Delhi**Research Scholar, M.A. (Eco.) M.Com, PhD.

A Paradigm Shift In Consumer Lifestyle

*Dr. Meghna Aggarwal **Dr. Preeti Gupta

CK Prahlad, a reknowned management guru once said “To create value continuously we must create

knowledge and for creating knowledge suitable environment needs to be created.” His view has been

supported by Marketing Professional Dr. Ravi Kant Bhakat in his article where he emphasizes 'the changing

pattern from a pushy one-way autocratic business model towards a consumer pulling, collaborative and

democratic business will make the economic environment more interesting and consumer centric. A true

enterprise needs to follow the later strategy as the future of competition will be determined by customer

centric approach and collaborative culture towards nurturing business in an innovative way.'

The present paper focuses on the paradigm shift in consumer lifestyle and the way the marketers need to

adapt to stay relevant and competitive.

Keywords: consumer lifestyle, paradigm shift, marketers, environment

Introduction

The lifestyle and buying trends of urban India were very different in the yesteryears relative to what

we see today. It's not the channels, platforms or tools; the significant change is actually happening with

the consumer. The consumers' purchases were restricted to a limited few brands available. With the onset

of the New Economic Policy in 1991, India paved the way to globalization. The situation changed dramatically

and so did consumerism. Today, consumers completely control the market trend as the manufacturers

cater to their whims and fancies.

The current boom in consumerism can be attributed to India's large population of which a sizeable

section forms the working population who believe in working hard and spending luxuriously. However,

brands need to strategically price their products to gain a foothold in India as consumers in India have a

high degree of value orientation. Thus, Indian consumer tends to associate himself with products that

communicate the message of family values, traditions, care and affection. These nuances set India apart from

other developing nations. Companies are forced to considerably customize their products to suit the local

market and meet the requirements of consumerism in India.

Why the Paradigm Shift?

The consumer funnel has been taken for granted for a long time but today there has been a

significant fundamental shift in the way they discover, compare, decide and evaluate.

Where the consumers' past behavior was preferred by marketers, the consumer now-a-days,

prefers personalization i.e. he expects personal messages, experiences, services and much more. In other

words, the consumer needs a one to one experience across all their devices in their world and up to

their expectations. This fact has been aptly commented upon by Tamara Gruzbarg, Senior Director

of Analytics and Research, Gilt Groupe, when he says, “True personalization of customer experience will

stop being reserved for a select few and will need to become an operational principle for any marketer

who wants to remain relevant in an increasingly fragmented and regulated environment.”

Consumer loyalty needs to be encouraged with every marketing campaign or else the marketer

loses them to his competitors. The social sphere has given the consumer the power to sway the masses

and their loyalty matters more than ever before.

Loyalty Before….. Loyalty Now…….

Was Post Conversion Your Next Sale

Customer Service Team Your #1 Sales Team Advocacy

Product Team Problem Your Trust Signals

Was Reactive Word Of Mouth (wom) Leverage

Surveying Social Teams' #1 Purpose

One of the biggest shifts on the consumer side is how the noisy ecosystem has caused neurological

rewiring in our brains. Information is streamed in ever greater volumes and at ever rising velocities. Timeline

for decision making appears to have been compressed. Pressures to deliver immediate results seem to have

intensified. These forces have not just altered the way the consumers act but also the way they think.

Technological innovation has caused a permanent neurological rewiring.

Not only has there been a paradigm shift in consumerism in urban areas but in rural areas as well from

price-driven to quality-driven products as shown by a recent study on rural marketing by the Confederation of

Indian Industries. As per the knowledge that branded goods offer better quality is visible. Established “ up-

market” products of brands like Procter and Gamble, Hindustan Unilever Limited, Nirma, ITC etc. have found

loyal customer base as opposed to the situation about twenty years back when they were highly sensitive to

price and perceived value, the study said. Rural consumers spend around 13 percent of their income, the

second highest after food (35 percent), on Fast Moving Consumer Goods (FMCG). The FMCG industry in India

was worth $ 16.03 billion in August 2008 and the rural market accounted for 57percent of the share. The

sector showed the rural markets posted about 20 percent growth in rural India against 20 percent in the urban

areas, according to the CII study.

The rural India has been relatively insulated from the crippling blow of the global slowdown. On the other

hand, the slowdown has slowed the growth of urban middle class consumption. The rural demand has been

fuelled mainly by funds infusion from Debt Loan Waiver Scheme, National Rural Employment Guarantee Act

and increase in the Minimum Support Price of various crops.

With the process of urbanization and industrialization, developments in science and technology, we find

growing needs of rural people for seeds and fertilizers, grocery, machineries and appliances like mobile

phones, AC, refrigerator, motor vehicles, medicines and treatment, insurance and various other services.

Dinesh Malhotra, General Manager of Linterland (rural arm of Lintas) points out, “with media exposure and

increasing literacy levels, people in rural India are now demanding a better lifestyle. The educated rural

yuppie (males in the 15-34 age groups) is moving out to work in nearby towns and cities and sending money

home to his family. This has created an indirect increase in disposable incomes and a surge in demand. It has

also been expressed in the Economic Times that due to structural changes happening in the rural landscape,

which makes that market indispensable for any business, the living standard of rural consumers has improved

in the last few years. This is due to Employment Guarantee Schemes and an increase in the minimum support 1price of major crops. In certain cases the rural consumer is as affluent as his urban counterpart.

43


1What Rural consumers wants', The Economic Times, April 9, 2009, Internet Edition.

The consumer, rural as well as urban, is more empowered than ever before and its their words, images

and commentary that shape a brand. They have the power, the platform and the motivation, provide more

feedback than ever and expect more than ever.

Consumer sovereignty is a major paradigm shift from traditional values that view professional autonomy

above other consumer values. Consumer sovereignty suggests that clients have the power, authority and

responsibility to be involved.

While discussing the Indian consumer of the present days, a reference to the phenomenon of

'premiumisation' is inescapable. Today, a good segment of the Indian consumer, especially the upper end, is

constantly 'trading-up' in its purchases, consumption and living style. They premiumise as they believe those

brands provide value and they are keen to own that value. Thus, premiumisation is a reflection of the changing

consumer dynamics, the higher lifestyle and aspirational positions assumed by the consumers. Higher

disposable incomes, availability of easy financing options, growth of modern format retail and the showroom

concept in retailing of FMCGs are various contributing factors to the premiumisation. Along with

premiumisation, we come across the phenomenon of Masstige as well. It is a combination of mass and

prestige. The consumers here simultaneously patronize both mass brands and prestige brands. Masstige is all

about people choosing to premiumise selectively.

These changes combined together have created a significant paradigm shift in today's consumer. The

shift has caused new team structures, new ideas, new infrastructure, new KPIs and so much more. It has

brought every consumer value and has made him smile – the way it should have been all along.

In sum thirteen different factors describe India as an emerging consumer society. While these factors are

not considered to be exhaustive, they are representative of the movement of India towards a consumer

oriented society. The factors are:

1) Burgeoning middle class, it's changing values and pent up consumer demand.

2) Changing women's roles, their labour participation and the changing structure of the family.

3) Rising consumer aspirations and expectations across many segments of the population.

4) Increased consumer spending on luxury items aided by past savings and the introduction of the

credit system.

5) New types of shopping environments and outlets.

6) Media proliferation, satellite and cable TV and the thriving film industry.

7) High degree of consumer awareness and sophistication across different segments.

8) Media sophistication and familiarity with English language among media people and a wide segment

of the population.

9) Emergence of travelling Indian consumer immigrants in US and England, overseas workers, tourists,

professionals and their exposure to world-wide consumer products.

10) Strong domestic consumer goods manufacturing sector.

11) Resurfacing of hedonistic cultural elements after centuries of dormant state.

12) Entry of multinational corporations into India, and

13) The emergence of the rural consumer sector.

44


The Way Forward

The Indian consumers have raised their yardstick of expectations from the industry and the trade due to

globalised competition and evolutionary changes within the economy. The exposure of the Indian consumers

to the global standards of quality, services and ethical practices has raised their bar of what they should

expect from the Indian marketers. The Indian consumers expect and want the marketers to follow same

global practices in India too, as followed by the multinational companies in other developed countries across

the world. The consumers' attitude towards all kinds of products and services exhibit a paradigm shift in their

consumption and buying patterns. The Indian market today witnesses shift from the dearth to the sufficient

availability in products and goods that had faced many kinds of production and availability crunches, making

the market shift from the seller's market for many products to a buyer's market. The expected utility from

many kinds of products/services of the Indian consumers in the urbanized economy has transformed from the

functional to lifestyle. The eating habits of the young urban professionals are getting globalized, shifting from

the traditional Indian meals to Indianite pizzas of Pizza Hut, Barista's coffee and Burger King's burgers'. The

Indian consumers today look for the advantage of the effort and the economy for the price and time and

convenience spent by him on buying the products as against just the price advantage, as it had been done for

years together in a closed and protected economy. As it is, the spread of banking operations across the

country, the plastic currency of the credit cards and the availability of low-interest finance schemes, price or

the cost of the product is increasingly becoming a smaller factor in a purchase decision in a whole range of

consumer durables today. Upgrading to better and more expensive products is the in thing and it is taken as a

way of life.

References

lApplbaum, Kalman (2004) The Marketing Era: From Professional Practice to Global Provisioning. New York: Routledge .

lArnould, Eric J. and Thompson, Craig (2005) 'Consumer Culture Theory (CCT): Twenty Years of Research', Journal of Consumer

Research 31(4): 868–882.

lBadiner, Allan Hunt (2002) Mindfulness in the Marketplace: Compassionate Responses to Consumerism.Berkeley, CA: Parallax Press.

lBelk, Russell W. , Wallendorf, Melanie and Sherry, John F., Jr. (1989) 'The Sacred and Profane in Consumer Behavior: Theodicy on the

Odyssey' , Journal of Consumer Research 16(1): 1–38 .

lColchoy, Franck (1998) 'Another Discipline for the Market Economy: Marketing as a Performative Knowledge and Know-How for

Capitalism', in Michel Callon (ed.) The Laws of the Markets, pp. 194–221. Oxford: Blackwell.

lFirat, Fuat and Venkatesh, Alladi (1995) 'Liberatory Postmodernism and the Re-enchantment of Consumption', Journal of Consumer

Research 22(3): 239–267.

lFournier, Susan (1998) 'Consumers and Their Brands: Developing Relationship Theory in Consumer Research', Journal of Consumer

Research 24(4): 343–373.

lHirschman, Elizabeth and Holbrook, Morris (1982) 'The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and

Fun' , Journal of Consumer Research 9(2): 132–140 .

lHolt, Doug (1995) 'How Consumers Consume: A Typology of Consumption Practices', Journal of Consumer Research 22(1): 1–16.

lSheth, Jagdish (1979) 'The Surpluses and Shortages in Consumer Behavior Theory and Research', Journal of the Academy of

Marketing Science 7(4): 414–426.

lSolomon, Michael (2003) Conquering Consumer space: Marketing Strategies for a Branded World. New York: American

Management Association.

45


46

Mutual Funds: An Investment Vehicle for Double Digit Return and Multiple Level of Diversification other than Traditional Investment Avenues

* Ankit Goel **Dr. Rajendra K. Khatik

*SRF (UGC) School of Commerce & Business Studies, Jiwaji University, Gwalior (M.P.)**Sr. Assistant Professor, School of Commerce and Business Studies, Jiwaji University, Gwalior, (M.P.)

In the current scenario despite of availability of several new products in the market, most investors still invest

their money in traditional investment avenues like banks saving account, fixed deposits, Post office schemes,

PPF etc. However if we focus on these traditional investment avenues they are rarely good on parameters like

liquidity and giving real returns after considering inflation on day to day basis. Against the recent reduction in

the interest rates by banks and other non risky investment avenues mutual funds are proving their worth as a

well-built investment avenue for wealth creation as it has been seen from past year data that majority have

given double digit returns. Mutual funds provide a platform for a common investor to participate in the Indian

capital market with professional fund management. The available plethora schemes of mutual funds provides

variety of options to suit the individual objectives whatever their age, financial position, risk tolerance and

return expectations along with many advantages like liquidity, professional management, tax advantage and

better returns. It has been seen that time is getting change as investors are becoming more financial literate,

taking personal involvement in decisions of investments and shifting their preference from traditional avenues

to mutual funds and other new products. The objective of this research paper is to know the preference of

investors towards investment in Mutual funds other than Non Risky Investment options in Mathura and also to

know the factors considered while investing in mutual funds. Primary data using judgment sampling through

questionnaire method as well as secondary data from wide range of literature from various journal publications

had been utilized. The findings shows that those who have invested in mutual funds are satisfied and happy with

more returns but still they depend on brokers for their investments advice as the investors lack of awareness. The

paper also aims to suggest ways to improve the present level of perception. The study suggested strong

regulatory framework, increased innovations; better services to the investors could make mutual fund schemes

more popular and investor friendly.

Keywords: Investment, Mutual Funds, Perception, Banks.

Introduction

In the current era to meet out the future obligations and for wealth creation, investment in traditional

investment avenues is not enough as the return provided by these avenues are not much even after

considering factors like inflation and others. Secondly returns on these options are decreasing gradually on a

regular basis as banks like SBI, Yes Bank and HDFC have further reduced their interest rates and also due to

various other reasons like job insecurities, fast paced life, things getting expensive, etc. Being financially

competent is the most important aspect for everyone. To get financially competent one has to do proper

financial planning. Further these financial plans must be dynamic to reflect the ongoing changing market

environment and the changing needs of the individuals. Financial planning reduces the uncertainties though

diversification. Presently Mutual funds are one of the best investment avenue available among various

investment options. The available plethora schemes of mutual funds provides variety of options to suit the

individual objectives whatever their age, financial position, risk tolerance and return expectations along with

many advantages like liquidity, tax advantage, better returns, professional management and many others.

Mutual funds in India invest across various investment classes and provide an ideal medium for investors,

while also offering the benefit of professional management at low costs. Past data has shown that mutual

funds are giving better returns as compared to traditional investment avenues. SIP (systematic investment

plan) is considered to be one of the best ways to invest in mutual funds. SIP is a method of investing a fixed

sum, regularly, in a mutual fund scheme. In this research paper the researcher has also compared mutual

funds with various traditional investment options to explore the benefits of shifting towards mutual funds.

For getting success in terms of achieving their financial goals one has to keep in mind three things- Start early,

Invest on a regular basis and Be updated. The paper provides investors perception towards mutual funds

as compared to traditional investment avenues.

Literature Review

V. Rathnamani (2013) concluded that many investors are preferred to invest in mutual funds in order to

have high return at low level of risk, safety, liquidity.

Tarak Paul, (2012), assesses the Gap between Expectations and Experiences of Mutual Funds of around

260 Investors in Guwahati city and has found out that there is a significant gap between the mutual fund

investors' expectations and experiences.

A P Pati and D. Shome (2011) in their article “Do Households Still Prefer Bank Deposits?-An Analysis of

shift in Savings and Savings Determinants” Published in The IUP Journal of Bank Management, Feb-2011

concluded that Financial reforms have, in the recent years, opened up several avenues for the households for

savings. The study suggest that despite the reform, households are still preferring the safe channels of bank

deposit schemes rather than switching over to high yielding but risky channels of savings. However, between

the two phases (pre- and post-liberalization period) a significant structural shift of savings in bank deposit is

observed. Variables like income and inflation are found to be statistically significant determinants of savings in

bank deposit of Indian households.

Soumya saha and Munmun Day (2011) in their article “Analysis of Factors Affecting Investors Perception

of Mutual Fund Investment” published in The IUP journal of Management Research, April 2011 concluded

that consumer behavior is an important area of research studies. Investors expectation is a very important

factor in this regard that needs to be analysed by all alternative investment avenues. The success of any

mutual fund depends on how efficiently it has been able to meet the investor's expectations. MF industry in

India has a large untapped market. Electronic sale of financial products is gaining volumes with the

widespread acceptability of e-buying.

BBS Parihar, Rajeev Sharma, and Deepika Singh parihar (2009) in their article “Analyzing Investors

Attitude towards Mutual Funds as a Investment Option” published in The Icfaian Journal of Management

Research, July 2009 concluded that a) Majority of investors have still not formed any attitude towards mutual

fund investments. It has been observed that the main reason behind this is lack of awareness of investors

about the concept and working of the mutual funds. b) Moreover, as far as the demographic variables are

concerned, age, gender and income have been found influencing the attitude of investors towards mutual

funds significantly. Whereas, amazingly, the other two demographic variables (education and occupation),

have not been found influencing the attitude of investors towards mutual funds. c) According to them, the

factors responsible for investment in mutual funds are, 'return potential' has got first rank, 'liquidity has got

second rank and 'flexibility', 'affordability' and 'transparency' have been ranked third, fourth and fifth,

respectively.

Prof. Gauri Prabhu and Dr. N.M. Vechalekar tried to makes an attempt to identify various factors affecting

perception of investors regarding investment in Mutual Funds. The study conducted showed that the Mutual

47


Fund investors mainly belong to the age group 19 years to 55 years and fall in the income group of Rs. 70000

and above. The study also revealed that diversification and tax benefits are the main factors of mutual funds

that allure the investors towards it.

Rajeswari. T.R, Moorthy Rama V.E., Srinivasan Ajay (1999) in their studies have conducted a survey

among Mutual Fund Investors in Urban and Semi Urban centers to study the factors influencing the

fund/scheme selection behaviour of Retail Investors. They suggested that AMCs should design products

consciously to meet the investors' needs and should be alert to capture the changing market moods and be

innovative. Continuous product development and introduction of innovative products, is important to attract

and retain this market segment.

Objectives of the study

l To study the preference of Investors towards various investment avenues.

l To identify the factors considered while taking investment decisions in mutual funds.

l To explore the benefits of investing in mutual funds over non risky investment avenues.

Research Methodology

Research Design

This research study is descriptive in nature.

Data Collection Instrument

Both the primary and secondary data collection methods were considered. The primary data was

collected through a questionnaire designed for the study. Secondary data was taken from Research papers,

Journals, Magazines and Websites.

Sampling Plan

lTargeted population: Retail Investors

lSampling unit: Individual Retail Investors

lSampling method: Judgment sampling

lSample size: 355

Data Analysis and Interpretation

Table 1 : Gender

CumulativeFrequency Percent Valid Percent Percent

Valid Male 273 76.9 76.9 76.9

Female 82 23.1 23.1 100.0

Total 355 100.0 100.0

Source: Researcher Survey

Interpretation: In the present study out of total 355 respondents 76.9% are male and rest 23.1% are

females.

48


CumulativeFrequency Percent Valid Percent Percent

Valid Less than 30 Years 27 7.6 7.6 7.6

30 to 45 Years 164 46.2 46.2 53.8

45 to 60 Years 125 35.2 35.2 89.0

Above 60 Years 39 11.0 11.0 100.0

Total 355 100.0 100.0


Table 2: Age of Respondents

Interpretation: Out of total respondents 46.2% belong to age group of 30 to 45 years that is 46.2%. After that

35.2% of the respondents belong to age group of 45 to 60 years followed by 11% was in the age group of more

than 60 years. Only 7.6% of the respondents were below the age of 30 years.

Valid CumulativeFrequency Percent Percent Percent

Valid Undergraduate 16 4.5 4.5 4.5

Graduate 108 30.4 30.4 34.9

Post Graduate 190 53.5 53.5 88.5

Professional Qualification 41 11.5 11.5 100.0

Total 355 100.0 100.0


Table 3: Academic Qualification

Interpretation: 53.5% of the respondents in the present study are post graduate followed by 30.4%

who are graduate and only 12% of the respondents are having professional qualification like CA, CS,

ICWA etc.

Table 4: Occupation


Valid Business 83 23.4 23.4 23.4

Service 215 60.6 60.6 84.0

Professional 57 16.0 16.0 100.0

Total 355 100.0 100.0


Interpretation: Around 60.6% of the respondents are from service occupation and 23.4% are businessman

and 16% are professionals in the present study.

49



Table 5: Annual Income

Interpretation: It was found in the study that the respondents having earning between Rs. 500001 to

Rs. 750000 which accounted for around 45% of total respondents. This is followed by people who were

having annual earning between Rs. 250001 to Rs. 500000 who belonged to approximately 32% of total

respondents. People earning less than Rs. 250000 and more than Rs.750000 were nearby equal and

accounted for nearly 11% each.


Valid

Rs. 250001 - Rs.500000 114 32.1 32.1 42.8

Rs. 500001 - Rs. 750000 162 45.6 45.6 88.4

Above Rs. 750000 41 11.6 11.6 100.0

Total 355 100.0 100.0

Less than Rs. 250000 38 10.7 10.7 10.7


Table 6: Purpose of Investment

Particulars Frequency % of cases Rank

Saving 297 84 3

Tax Benefit 275 77 5

Higher Return 310 87 1

Capital Appreciation 288 81 4

Beat Inflation 301 85 2

Others 29 8 6

Interpretation: It is found in the survey that firstly investors invest with the intention of getting higher

return secondly to beat inflation followed by savings capital appreciation and tax benefits.


Table 7: Risk Bearing Capacity


Valid Willing to take as much risk as possible 65 18.3 18.3 18.3

Modest Risk Taker 208 58.6 58.6 76.9

Less Risk Taker 82 23.1 23.1 100.0

Total 355 100.0 100.0

Interpretation: 58.6% of the respondents are modest risk takers which is good for mutual fund

investing. Only 23.1% of the respondents are the one who avoid taking risk. 18.3% of the respondents

belong to a category that is ready to take more risk in their investments.

50



Table 8: Investment Options

S.No. Particulars Frequency % of cases

I Banks ( Saving A/c, Fixed Deposit) 355 100

II Insurance 202 57

III Post Office 307 86

IV Gold/ Silver 188 53

V Bonds/ Debenture 42 12

VI PPF 253 71

VII Mutual Funds 355 100

VIII Share market 87 25

Table 9: Most preferred Investment option

Interpretation: When asked for the most preferred investment option and to rank them it is found that still

investor prefer to invest in banks on priority basis. It is not surprising to see that mutual funds score 2nd rank

as it provides a good return in long run. Post office and Gold/Silver gained 3rd and 4th ranking. Insurance

acquired 5 ranking, PPF 6th ranking and lastly bonds ranked seventh.

Interpretation: The result of analysis to this question reveals that Banks are the one of the important

investment avenue in which all of the investors have invested their money either in fixed deposit forms or

either they have kept the money in saving account. In the study only those investors have been considered

who have invested in mutual funds. This is the reason all the investors have invested in mutual funds too.

After banks and Mutual Funds the other two investment options which were most considered are post office

and PPF. Insurance and investment in gold/ silver are less preferred investment avenues for investment of

money by Investors. Out of various investment options Bonds was least preferred investment avenue among

all.


Investment Options Rank1 Rank2 Rank 3 Rank 4 Rank 5 Rank 6 Rank7 Total OverallRank

Banks ( Saving A/c, Fixed Deposit) 254 67 7 2 0 25 0 2273 1

Insurance 0 56 57 82 47 47 66 1250 5

Post Office 43 86 18 79 66 38 25 1522 3

Gold/ Silver 8 52 43 100 62 64 26 1323 4

Bonds 0 25 0 0 80 100 150 740 7

PPF 25 19 66 15 87 55 88 1138 6

Mutual Funds 25 50 164 77 13 26 0 1694 2

51




Valid Equity/ Growth Schemes 66 18.6 18.6 18.6

Balance Scheme 226 63.7 63.7 82.3

Debt/Income Scheme 63 17.7 17.7 100.0

Total 355 100.0 100.0

Table 10 : Mutual Funds Preferred scheme

Interpretation: It is found that balanced mutual fund schemes are mostly the one in which 63.7% of the respondents have invested. 18.6 % of the respondents preferred equity scheme followed by debt schemes that are less preferred as only 17.7% have invested in it.



Valid One time Investment 26 7.3 7.3 7.3

Systematic Investment Plan 329 92.7 92.7 100.0

Total 355 100.0 100.0

Table 11: Mode of Mutual Funds Investment

Interpretation: 93% of the respondents invested through SIP. There are only 7% respondents who prefer to invest lump-sum amount rather than SIPs.



Valid Online mode 19 5.4 5.4 5.4

Offline Mode 336 94.6 94.6 100.0

Total 355 100.0 100.0

Table 12 : Online vs. Offline

Interpretation: 95% of the respondents are still investing in mutual fund by offline mode and only 5% of the respondents are investing by online mode.


Valid Cumulative

Frequency Percent Percent Percent

Valid Self 33 9.3 9.3 9.3

Internet 21 5.9 5.9 15.2

Brokers/Agents 240 67.6 67.6 82.8

Friends/Relatives 39 11.0 11.0 93.8

Television/Newspapers 22 6.2 6.2 100.0

Total 355 100.0 100.0

Table 13 : Source of Information

52


Interpretation: The study reveals that agents and brokers still play a major role in advising investors for

investing in Mutual funds. Around 67.6% of the respondents have shown their consent that their primary

source of information were brokers / agents.

Extraction of Mutual Funds Factors

Reliability Statistics

Reliability Statistics

Cronbach's Alpha No. of Items

.754 16

Reliability of items was considered while deciding mutual fund investments which was tested and Cronbach's

alpha value was .754 which is treated as good and is a sign of further procedure can be done.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .829

Bartlett's Test of Sphericity Approx. Chi-Square 1844.971

Df 120

Sig. .000

The Kaiser-Meyer- Olkin (KMO Test) is applied to check the adequacy of sample before applying factor

analysis. Its value should be more than 0.5 for a satisfactory applying factor analysis. KMO test was applied

here and value of .829 has come out which shows that data adequacy is greater and can further be moved on.

Bartlett's Test of Sphericity is second indication of strength of relationship in terms of correlation among

variables. It tests the null hypothesis that there is no relationship among the variables. In other words it

assumes the null hypothesis that all the variables are unrelated. If the probability is less than .05 it rejects the

null hypothesis and allows to further continue with the study as the assumption before conducting factor

analysis is that there should be correlation among the variables. Here the sig. value came less than .05 which

signifies that there is correlation among variables and scale is accepted.

Factor Analysis from SPSS 22.0 was applied on the instrument covering mutual fund statements. To

extract the various factors under Factor Analysis technique the Principal Component Analysis method was

used with varimax rotation method. By applying PCA and Varimax as a outcome so many factors were

generated during the process, however those factors whose Eigen value was more than 1 were retained and

rest of the factors were not considered. As a result only five factors were considered for the study whose Eigen

value was more than 1. These 5 factors were accounted for more than 66% variability of the original value.

The Eigen values with their loadings are shown below in the table.

53


Component

1 2 3 4 5

Portfolio of the Scheme .792

Exit Load/ Schemes Expense ratio .613

Availability of Tax Benefits .741

Services Provided .863

Rating by a Research Agency

(CRISIL, ICRA etc.) .752

Past Performance of Mutual

Fund Schemes .856

Current Net Asset Value of

Mutual Fund .816

Asset Size of the Mutual

Fund Scheme .744

Expectation of High Return .738

Reputation of Mutual Fund

Company/ Brand Image .968

Redemption Period .881

Withdraw of money at any

point of time .880

Riskiness of scheme .775

Safety of money invested .720

Expertise of Fund Manager of AMC .751

Diversification .747

aRotated Component Matrix

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 5 iterations

Five factors were extracted from Factor Analysis which are referred as the mutual funds decision factors.

The five factors are mentioned below in the table:

54


Factor Item Eigen

Value Variance Loading Name

1 Portfolio of the Scheme 4.586 15.663 .792Exit Load/ Schemes Expense ratio .613 Structure andAvailability of Tax Benefits Asset .741 Size Size of the Mutual Fund Scheme .744

2 Past Performance of Mutual Fund 2.290 14.314 .856SchemesCurrent Net Asset Value of .816 PerformanceMutual FundExpectation of High Return .738

3 Riskiness of scheme 1.1563 14.135 .775Safety of money invested .720 Security/ RiskExpertise of Fund Manager of AMC .751 MappingDiversification .747

4 Services Provided 1.150 12.923 .863Rating by a Research Agency .752(CRISIL, ICRA etc.) ProfessionalReputation of Mutual Fund ExpertiseCompany/ Brand Image .968

5 Redemption Period 1.111 9.834 .881 LiquidityWithdraw of money at any .880point of time

% of Factor Factor

Factors Influencing Mutual Funds Investments Decision

Structure and Size

Structure and Size of the scheme came out as one of the most important factor which states the various types of components which a investor consider before investing. According to this investors checks the portfolio of the scheme which includes whether it is equity oriented, debt oriented or the combination of two (balance schemes) and who are the various companies. Long term investors generally go for equity oriented scheme. Exit Load and other scheme expense ratio are also the part of structure of scheme. Structure also includes that whether the availability of tax benefits is being provided by the scheme or not. Asset Size of the scheme is also one of the components which majority of the investor checks while investing in mutual funds.

Security/ Risk Mapping

Security or risk mapping factor is another most important factor which a investor pays attention before selecting a scheme to invest in. Investors check that how risky the scheme is and according to his risk appetite he selects the one which matches his risk taking ability. Investors also check that how much the scheme is diversified so that it becomes less risky. Investors check the fund managers expertise in terms of how secure is their money and also like to analyse the risk and return associated with the scheme in order to provide better return than investing in direct equity. All these form a factor which is trying to map the risk and security from the investor's perspective.

Performance

Performance is an important factor which investors consider before investing in any scheme. It consists of various aspects checking which an investor is looking for before investing finally in a scheme. Investors check

55


the current net asset value of the mutual fund and check it from past NAV and compare the past performance of the schemes before investing it. As a performance indicator investors also have an expectation of high return from the scheme in which they are going to invest.

Professional Expertise

This factor includes three components which are Services Provided by the companies after investment in a scheme. The second one is Rating by a Research Agency (CRISIL, ICRA etc.) for a particular scheme and the last one is Reputation of Mutual Fund Company/ Brand Image. All these together form a part and shows the professional expertise of a scheme and an influencing factor while taking decision to invest in mutual funds.

Liquidity

It refers to that when money can be withdrawn from the scheme. It also includes factors like what redemption period scheme is stating while at the launch of the scheme. It also includes that what provisions schemes do have when an investor want to exit the scheme before its maturity. All these factors investors consider while investing in a scheme which frame liquidity of the scheme.

Findings

l Majority of the Investors are moderate risk taker but not at higher level. There are also some investors who are young and ready to take more risk in their investments.

l As it comes in light that investors invest firstly to get higher return which is not possible only by investing in traditional non risky avenues because of less return provided by them.

l Banks are the investment avenues which are selected as an investment avenue nearly by all investors.

l Nowadays investors are giving preference to Mutual funds after banks because of higher returns and availability of various schemes according to their requirements.

l Majority of the respondents takes the help of brokers and use internet to get the information about mutual funds.

l SIP is more preferred than investing in a lump sum manner by mutual fund investors.

l Still majority of the investors invest in mutual funds through offline mode.

Recommendations and Suggestions

l Majority of respondents are the one who are ready to take risk so for them mutual funds is a better investment avenue as it provides better return while having little exposure of risk which varies according to the various schemes.

l Mutual funds can be the best investment avenues to all those who want to get return more than inflation and want to increase their wealth as the return provided by them is much higher than traditional avenues in the medium and long span of time.

l Past data reveals that Mutual funds provides better return for long run so the investors should be made aware that those who are investing in mutual fund for long period can be a better investment avenue.

l Investors should be make aware that nowadays online investments can be made by the investors directly in Mutual Funds without even disclosing their investments to brokers and can also track them online at any point of time and this will also reduce their cost.

l Mutual fund companies and brokers should make investors aware and provide training to the investors for investing through online mode as compared to offline as it saves time and cost also.

56


l

scheme according to their needs so as to increase their satisfaction level with a better understanding.

l As Majority of Investors have shown their interest in investing in Mutual funds so the companies should come up with some lucrative ways so as to further build up the confidence of investors.

Conclusion

The Indian mutual fund industry is in its growth phase and showing a tremendous growth at present and still possesses a remarkable scope for further development. The foremost reasons for still less capture and untapped of mutual fund industry in India is the lack of awareness of the benefits of mutual fund and assume it as a high risky vehicle of investment. Mutual fund companies should come forward with full support for the investors in terms of advisory services, help involvement of investor in portfolio design, ensure full disclosure of related information to investor, proper consultancy should be given by mutual fund companies to the investors in understanding terms and conditions of different mutual fund schemes and such type of fund designing should be promoted that will ensure to satisfy needs of investors. All this will create a win-win situation for both to Investors point of view as well as from economy growth. Government is also working for the benefits of investors as market regulator. SEBI is coming forward for the investors protection so in another way building confidence to invest in new schemes and products.

Referencesl

(1), pp. 23-24.

lChalam, G. V, (2003), Investors Behavioural Pattern of Investment and Their Preferences of Mutual Funds, Southern Economist,Vol.41, No.19, pp.13.

lKing, J.S., “Mutual Funds: Investment of Choice for Individual Investors?” Review of Business, Vol. 23, No. 3, pp. 35-39, 2002.

lRathnamani V, (2013), “Investor's Preferences towards Mutual Fund Industry in Trichy” Journal of Business and Management; 6(6): 48-55.

lRajarajan (2003), “Determinants of Portfolio choice of Individual Investors”, The Indian Economic Journal, Vol. 50(1), pp.81-84 [11]

lMishra KS, Kumar M, (2011), How Mutual Fund Investors ?Objective & Subjective knowledge Impacts their Information Search and Processing Behavior. Journal of Financial Services Marketing, 16(1): 27-41.

lSingh J, Chander S; “An Empirical Analysis of Perceptions of Investors towards Mutual Funds”, Finance India, 2004; 18 (4):1673-1692.

lParihar BB, Sharma R, Parihar DS; “Analyzing Investors' Attitude towards Mutual Funds as an Investment Option, the IUP Journal of Management Research, 2009; 8 (7): 56-64.

lPraba, and Suyam, R, (2011), Investors' Decision Making Process and Pattern of Investments: A Study of Individual Investors in Coimbatore, Vol.7, No.2, pp.1-12.

lSalam Abdus and Kulsum, Umma, (2003), “Savings Behaviour in India: An Empirical Study”, The Indian Economic Journal, Vol. 50(1), pp.77-80.

lSaini S, Anjum B, Saini R; “Investors awareness and perception about Mutual Funds”, Zenith- International Journal of Multidisciplinary Research, 2011; 1(1):14-29.

lSingh, B. K., Jha, A.K.,“An empirical study on awareness & acceptability of mutual fund”, Presented on Regional Student's Conference, ICWAI, pp. 49-55, 2009.

lSornaganesh, V. Karthikeyan, (2014), Investors Perception towards Investment, International Journal of Informative and Futuristic Research, An Enlightening Online Open Access, Refereed and Indexed Journal of Multidisciplinary Research ',Vol.1, no.9,pp.55-67.

lYogesh P and Charul, Y, (2012), A Study of Investment Perspective of Salaried People in Private Sector, Asia Pacific Journal of Marketing and Management Review, Vol.1, No.2, pp.127-146.

Websites:

lwww.amfiindia.com

lwww.indiainfoline.com

lwww.mutualfundindia.com

lwww.rbi.com

lwww.moneycontrol.com

Mutual fund companies should take initiative to educate investors about how to select a mutual fund

Agrawal, G.D., (1992), Mutual Fund and investors interest (Chartered Secretary), The Journal for Corporate. Professionals Vol. XXII

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58

This paper attempts to analyze the challenges faced by the women entrepreneurs in Kanpur nagar and how to

overcome from these problems. Nowadays empowerment of women has become one of the most important

concern but practically women empowerment is still an illusion of reality. We observe the life of women is

victimized by various social evils. Empowerment of women is essentially the process of upliftment of economic,

social, cultural and political status of women. We observe that large portion of such women do not take up

employment or start a business due to various reasons like family pressure, lack of confidence, lack of finance,

etc. Government of India has launched various schemes to improve the status of women but in reality

government efforts are not able to achieve the targets of women empowerment.

Introduction

The role of women empowerment as business entrepreneurs is generally increasing all over the world.

SHG' s , Bank, micro-finance organization, MSME etc. help the weaker section of the society , especially

women in many ways in order to create strong position in the society and providing them employment.

Women have proved themselves very successful entrepreneurs by engaging in one or two income generating

business. Empowerment of women is increasing day by day by acquiring the professional skills. However , the

large portion of such qualified women do not take up employment or start a business due to various reasons

like family pressures, lack of confidence, lack of finance etc. and thus it isvery important to remove aforesaid

problems of these women to start up entrepreneurship. Government of India has launched various schemes

to improve the status of women, but despite government efforts the substantial growth cannot be achieved.

Some entrepreneurs approach the government assistance which is the indication that there is need to

improve the entire system that government can achieve their goals.


The study area for the research is KANPUR NAGAR. The enterprises operate in the geographical proximity

the KANPUR NAGAR. The sample for this study focuses on women entrepreneurs. They were identified from

the data collected from the district KANPUR NAGAR. A questionnaire was developed for the study indicating

the specific problems faced by the women entrepreneurs. The questions were asked to be ranked from 1-5

depending on the intensity of the challenges in operating business. The demographic questions included –

location, marital status, level of education, experience in the business, nature of finance, level of training. The

questions pertaining to the challenges faced by women entrepreneurs were related to the different stages in

the life cycle of the business. Accordingly, the data was collected and an attempt was made to analyze hurdles

faced by the women entrepreneurs in running the business.

The questionnaire was filled by 100 women entrepreneurs in KANPUR DISTRICT. The first section of the

questionnaire was on the demographic details and second section was pertaining to the specific challenges in

running the business. The problems faced during the establishment of the enterprise, during day to day

operations and the critical success factors for the future growth of the business was collected and analyzed.

Women Empowerment - The Path full of Hurdles

***Dr. Piyush Prakash Harsh Kumar Chawla

*Assistant Professor, Jagran College of Arts, Science and Commerce, Kanpur**Associate Professor, D.A.V.P.G College, Kanpur

Cross tabulation was done to compare the different demographic details and success of all women entrepreneurs. The success of the enterprises as per table is not dependent on the location of the firm. According to the table II married women (70%) were the largest percentage running the business with majority of women entrepreneurs ranging from high to medium level of success. Most of the women

The entrepreneurs were classified into four groups of success for detail analysis. Statistical data collected from

Kanpur district analyzed. Table I shows that the women entrepreneurs (88%) fall in very high to medium level

of success. Only 12% of women entrepreneurs were considered to be less successful.

Table II

Cross Tabulation of the Demographic Details and the Success Levels

SNo. Category Frequency Percentage Success levelVery High High Medium Low

1. Location:-

Centre of city 60 60 6 7 35 12

Outer of city 40 40 5 6 22 7

2. Marital Status

Unmarried 20 20 0 4 12 4

Married 70 70 10 12 38 10

Widow 10 10 0 2 4 4

3. Education:-

Uneducated 10 10 0 0 3 7

Up to High school 20 20 3 4 10 3

10+2 50 50 10 12 18 10

Graduate 20 20 6 2 2 0

4. Knowledge of Business:-

Skilled 60 60 10 12 28 10

Semi-Skilled 20 20 4 6 6 4

Unskilled 20 20 4 4 6 6

Research Analysis

S.No. Category Frequency (No. of Percentagewomen entrepreneurs)

1. Very High (301%-400%) 14 14

2 High (201%-300%) 26 26

3. Medium (101%-200%) 48 48

4. Low (up to 100%) 12 12

100

Table I

Classification and Distribution of Women Entrepreneurs based on the profit generated by the enterprise

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Table III shows the important challenges faced in establishing a new business by women entrepreneurs. The

most important problem for starting business was considered finance, increase competition and lack of

knowledge of business.

SNo. Category Frequency Percentage

1. Access to finance 60 60

2. Access to New Market 6 6

3. Access with Business Planning 12 12

4. Providing benefits to workers 10 10

5. Finding Skilled Workers 12 12

100

Table IV

Factors to Achieve Success in Future by Women Entrepreneurs

Table IV shows the factors to achieve success in future by women entrepreneurs. Access to finance 60%

was ranked as the most important factor for the expansion of the business and empowerment of women

entrepreneurs. This was followed by assistance in business planning 12%, access to new market 6%, providing

benefits to workers 10% and finding skilled workers 12%.

Main Problems faced by Women Entrepreneurs

Women entrepreneurs faced various problems/challenges in their efforts to start up a new enterprise.

The important problems faced by women entrepreneurs are given as below:-

Shortage of Finance: - Women and small entrepreneurs always suffer from shortage finance problems.

They are lacking access to external funds due to absence of tangible security. Since women do not have

tangible security in their own names which is main reason for taking loan from bank. Loan procedure from

bank is very complicated, so women entrepreneurs always facing this problem, primarily due to shortage of

documentation and lack of awareness.

Stiff Competition:- Many women enterprises have imperfect organizational setup. They have to face

various competitions from organized enterprises, especially from the big organizations.

SNo. Category Frequency Percentage1. Finance 58 582. Working Space 4 43. Lack of Knowledge 8 84. Skilled Labor 4 45. Access of Raw Material 6 66. Lack of Access to Market 7 77. Increased Competition 13 13

100

Table IIIChallenges faced during establishment of the firm

entrepreneurs (50%) had formal education. There were about (60%) women entrepreneurs who had training and had an impact on the success of the majority of the women entrepreneurs ranging from being high to the medium level of success.

60


Lack of Relevant Education and Experience:- In India literacy among women is very low. Due to low

literacy rate many women are unaware of market trends , technical knowledge, skills etc. Thus they always

face problems in setting up a successful business.

Inefficient arrangements for Marketing and Sales:- Women entrepreneurs do not know the

marketing techniques. They always depend on middle men. Hence middle men get more profit as compared

to women entrepreneurs.

Low ability to bear Risk:- Women have a comparatively a low ability to bear economic risk. Sometime

they also face gender discrimination in setting up a profitable business project.

Low Mobility:- One of the biggest problems for women entrepreneurs is mobility from place to place.

A successful business, businessman goes to outside city, district, and state to improve or extend his business.

Family Responsibilities:- In India women's duty is to look after children and other members of the

family. Her involvement in the family gives short time to business. Without the support of husband or the

family members women entrepreneurs cannot succeed.

Measures to Eradicate the Problems of Women Entrepreneurs

Today is age of entrepreneurship however entrepreneurial activities concern to women in India is also

crucial because the Indian women are not enjoying so many avenues to flourish their entrepreneurial skills.

Hence the government has taken the following steps to enhance the level of entrepreneurs in India:

lSwayam Sidha Program, taken for women empowerment at a complete cost of Rs 116.30 crore. The

ministry of women and children development have implemented this scheme. The main aim is to

improve the skill, knowledge and awareness. The benefits of his program go around 93000 women.

lSupport to Training and Employment Program for women (STEP) to ensure sustainable employment and

income generation.

lRashtriya Mahila Kosh(RMK) to provide micro-finance services to bring about the social economic

upliftment of poor women.

lNational Mission for Empowerment of women (NMEW) to strengthen the overall process that promotes

all round development of women.

lIn order to improve employability a separate ministry of Skill development and entrepreneurship has

been created.

lA few training programs started by the government for self-employment of women are:

lDevelopment of Women and Children in rural areas.

lSmall Industry Service Institute (SISI).

lState Financial Corporation.

lNational Small Industries Corporation.

lDistrict Industrial Sectors.

Conclusion

Entrepreneurial movement among women started late in India. However the increase involvement of

women entrepreneurs in a business indicates entrepreneurial development among them. It is observed that

61


women entrepreneurs make significant contribution towards the development of India. Changes in Global

and National environment have contributed towards growth of women entrepreneurship in India. It is also

observed that women enterprises are concentrated in the micro-finance segment. Young women

entrepreneurs should share their experience with other women, who entered in the business. The challenges

faced by women entrepreneurs need to be addressed by the educational institutions especially in terms of

business planning and indication of managerial skills.

References

lUNDP-“The Rise of India-Human Progress Report-2016”

lUnited Nations Industrial Development Organization(UNIDO) “Women, Industry and Technology”

lMSME.gov.in

lWcd.nic.in-Scheme for empowerment of women.

lwww.shramikbharti.org.in

lwww.womenworldbanking.org

62


India is one of the fastest growing economies of the world. It is now Asia's third largest economy. Economic development is the primary objective of the majority of world nations. This truth is accepted almost without any controversy. India opened up the economy in the early nineties following a major crisis that led by a foreign exchange crunch that dragged the economy close to defaulting on loans.The country ran out of foreign exchange reserves. To face the crisis situation, the government decided to bring about major economic reforms to revive Indian economy. These reforms were popularly known as 'structural adjustments' or 'liberalization' or 'globalization'. The government announced a New Economic Policy on July 24, 1991. This new model of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model. Liberalisation refers to process of making policies less constraining of economic activity and also reduction of tariff or removal of non-tariff barriers. The term “Privatisation” refers to the transfer of ownership of property or business from a government to a private owned entity. Globalisation refers to the expansion of economic activities across political boundaries of nation states. More importantly perhaps it refers economic interdependence between countries in the world economy. Prime Minister of the country, PV Narasimha Rao initiated ground breaking economic reforms. Dr.Manmohan Singh was the Finance Minister at that time he assisted NarasimhaRao and played a key role in implementing these reform policies. The reforms did away with the License Raj, reduced tariffs and interest rates and ended many public monopolies, allowing automatic approval of foreign direct investment in many sectors. The primary objective of this model was to make the economy of India the fastest developing economy in the globe with capabilities that help it match up with the biggest economies of the world. Liberalization and deregulation seek to improve economic welfare by bringing more efficient allocation of resources in the long run. As a consequence, dozens of countries have deregulated and liberalized their insurance markets. Insurance sector in India is one of the booming sectors of the economy and is growing at a very speedy rate. This sector in India was liberalized in 2000. Insurance sector in India has also gone through the process of reforms following the recommendations of Malhotra Committee's report submitted in 1994. The insurance industry in India has passed through a period of structural changes under the combined impact of financial sector reforms in general and insurance sector in particular. With the liberalization of insurance sector, the paradigm for Indian insurance industry has witnessed a sea change during the last decade. In this paper an attempt has been made to analyze the overall performance of the insurance industry in India. The results show that there has been a tremendous improvement in the overall performance of the insurance sector in India, particularly in terms of insurance density and penetration.

Keywords: Economic Reforms, Insurance Industry, deregulation.

Introduction

Financial development promotes economic growth through channels of marginal productivity of capital, efficiency of channeling savings to investment, saving rate and technological innovation. Effective economic growth through these channels is realized by functions of financial intermediaries. Among financial intermediaries, the insurance companies play important role, as main risk management tool for companies and individuals by collecting funds and transferring them to deficit economic units for financing real investment. The importance of insurance is growing due to the increasing share of the insurance sector in the aggregate financial sector in almost every developing country. Insurance companies serve the needs of business units and private households in intermediation. The availability of insurance services is essential for the stability of the economy and can make the business participants accept aggravated risks. Insurance is a capital intensive industry and it generates long-term capital which is required to build infrastructure projects that have a long gestation period. In July 1999, the Indian economy had taken certain macro-economic reforms involving Stabilization and structural reforms and improves its Balance of Payments (BOP) position.

63

*Associate Professor, Department of Commerce, Feroze Gandhi College, Raebareli (U.P.)**Research Scholar (NET in Commerce & Education, M.Ed.), Department of Commerce, Firoze Gandhi College, Raebareli***Research Scholar

Economic Reforms and its Impact on the InsuranceIndustry in India

*Dr. Arun Kumar**Sandeep Kumar Sonkar

***Piyush Sharma

The new economic policy introduced changes in several areas, including insurance. The Salient features of the policy also known as “LPG” was:

(a) Liberalization (internal/external)

(b) Privatization

(c) Globalization.

The liberalization of the Indian insurance sector has resulted in a number of insurance companies (both - private as well as foreign) entering the market. This has led to an increase in the available choices not only in terms of service providers but also in terms of products for customers.

In the process of the insurance sector reforms, the legislation of IRDA Bill 1999 marked a definite point in the move towards privatization of the India's insurance sector. This comprehensive bill allowed the entry of private companies in the sector in both – life and non-life sector, but a single company cannot transact business in both.

Globalization implies integration of the economy of the country with the rest of the world economy and opening up of the economy for FDI. Following the privatization of the insurance sector, the global enterprises soon entered the market with a FDI limit of 26%.

Review of Literature

Ranade Ajit and Rajeev Ahuja (1990) in their study identified the emerging strategies in the light of liberalization and private sector entry into insurance. They justified the need for private sector entry on the basis of enhancing the efficiency of operations, achieving a greater density and penetration of life insurance in the country; and for a greater mobilization of long term savings for long gestation infrastructure projects. They pointed out that LIC with its 40 years of experience and wide reach, was in an advantageous position. They also pointed out the need to handle strategic issues carefully. Accordingly, LIC should adopt a liberalized scenario such as changing demography and demand for pensions, demand for a wider variety of products, and having greater freedom in its investments.

Pant Niranjan (1999) addressed the need for a more cogent legislation than the Insurance Regulation Development Bill 1999. He viewed that the liberalization of the insurance sector in India will see the increasing involvement of the large and powerful insurance companies of the world in the Indian insurance industry. It was therefore essential to have the support of a stronger regulation to turn this involvement into a positive factor for the growth of the Indian insurance sector in particular and the Indian economy in general.

Rao Tripathi (2000) in his paper maintained that the issue of privatization and foreign participation must be approached cautiously with a 'step-by-step approach' and should be preceded by micro economic institutional and legal reforms. According to him, the macro economic implications of privatization and foreign participation in the insurance sector, specially the life insurance sector, are far-reaching. The life insurance industry was co-terminus with the LIFE INSURANCE CORPORTION OF INDIA (LIC) and was dominant in two respects: pooling and redistributing risks across millions of policyholders and performing financial intermediation.

Shrivastava and Shrivastava (2002) hold the view that there is dearth of material inter linkage between economic development on one hand and insurance services on the other, whereas role played by other services like banking, transport, communication, public administration, defense etc. in accelerating the national income of an economy has been properly highlighted.

Ahuja Rajeev (2004) appraised the development record of Indian insurance industry in the wake of first four years of liberalization. He however, pointed out four areas in which the insurance regulator needs to

64


quickly move forward namely pension and health insurance, phasing-off tariff, strengthening of self-regulation and reviewing of capital requirement. According to him, the success of the competition in the financial sector ultimately depends upon the efficiency of regulation. So, constant reviewing and fine tuning of the rules by the regulator was also suggested to keep pace with the development in the markets.

Objectives of the Study

The study is an attempt to examine the performance of Insurance industry in India in terms of insurance penetration and density, particularly after the liberalization of the insurance sector.


The study is analytical and descriptive in nature. The whole content is divided into two parts with respect to insurance density and insurance penetration, particularly after India's new economic policy of 1991. The period of the study pertains from 2001-2015. The study is based on secondary data, which have been collected from IRDA annual report. The data is related to insurance density and insurance penetration in India. The researchers have tried to show the trend and progress of the insurance industry, particularly in terms of insurance density and penetration.

Insurance Sector in India

The insurance industry till August 2000 had only two nationalized players – Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and its four subsidiaries. These two players had a sort of monopolistic control over the market. Though these companies did a commendable job in terms of high growth in volume of business and reach; however, they failed to be consumer-oriented, unwilling to upgrade technology and technical skills and adopt modern practices and therefore, were inefficient in operations. The growth in volume was mainly driven by income tax considerations and hence, a major section of the vast rural area was untapped. With a population of more than one billion and savings rate of around 24% India had a vast untapped market. And at the same time, the foreign insurance companies' pressure to open up the Indian insurance sector was high. Therefore, in 1993, a committee was set up under the chairmanship of R.N. Malhotra to evaluate the Indian Insurance Industry and recommend its further direction. The committee submitted its report in 1994 and its major recommendations included:

lGovernment to bring down its stake in insurance companies to 50%

lPrivate companies with a minimum paid-up capital of Rs.100 crore allowed entering the industry.

lNo single company should be allowed to transact business in both – life and general insurance.

lForeign companies may be allowed to enter the industry in collaboration with domestic companies, etc.

Recognizing the global trend of market driven and competitive industry and the recommendations of the Malhotra Committee, the insurance sector of India was opened up in August 2000. The Insurance Regulatory and Development Authority (IRDA) were constituted in April 2000 under the IRDA Act 1999 and it is vested with the power to carry out the reforms in this sector, regulate and develop the insurance and reinsurance business. The Reserve Bank of India had also given NBFCs permission to take up insurance agency business on a fee basis and without risk participation. The Insurance (Amendment) Act, 2002, had allowed cooperative societies to carry on insurance business with a view to enhancing coverage in rural areas.

The measure of insurance density and penetration reflects the level of development of insurance sector in a country. While insurance penetration is measured as a percentage of insurance premiums to GDP, the insurance density is calculated as the ratio of premium to total population (per capita premium). In India, in the pre reform period, the insurance density as well as the insurance penetration was too low which seemed to improve in the post reform period.

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Year Life (USD) Non-Life (USD) Industry (USD)

2001 9.1 2.4 11.5

2002 11.7 3.0 14.7

2003 12.9 3.5 16.4

2004 15.7 4.0 19.7

2005 18.3 4.4 22.7

2006 33.2 5.2 38.4

2007 40.4 6.2 46.6

2008 41.2 6.2 47.4

2009 47.7 6.7 54.3

2010 55.7 8.7 64.4

2011 49.0 10.0 59.0

2012 42.7 10.5 53.2

2013 41.0 11.0 52.0

2014 44.0 11.0 55.0

2015 43.2 11.5 54.7

Source: IRDA Annual Report 2015-16

Table 2: Insurance Penetration in India (2001-2015)

Year Life

(Percentage) (Percentage) (Percentage)

2001 2.15 0.56 2.71

2002 2.59 0.67 3.26

2003 2.26 0.62 2.88

2004 2.53 0.64 3.17

2005 2.53 0.61 3.14

2006 4.1 0.6 4.8

2007 4.0 0.6 4.7

2008 4.0 0.6 4.6

2009 4.6 0.6 5.2

2010 4.4 0.71 5.1

2011 3.4 0.7 4.1

2012 3.17 0.78 3.96

2013 3.1 0.8 3.9

2014 2.6 0.7 3.3

2015 2.72 0.72 3.44

Non-Life Industry

Table 1: Insurance Density in India (2001-2015)

Source: IRDA Annual Report 2015-16

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As seen from the above table, the density of life insurance business had gone up from USD 9.1 in 2001 to

the peak at USD 55.7 in 2010. During 2015, the level of life insurance density was only USD 43.2. During the

first decade of insurance sector liberalization, the sector has reported a consistent increase in insurance

penetration from 2.71 percent in 2001 to 5.2 percent in 2009. However, since then the level of penetration has

been declining reaching a level of 3.44 percent in 2015. A similar type of an increasing trend was seen in the

level of insurance density which reached the maximum of USD64.4 in 2010 as against of USD 11.5 in 2001.

Overall the last 10 years of insurance sector liberalization, the penetration of non-life insurance sector in

the country remained steady in the range of 0.5 to 0.8 percent. However, its density has gone up from USD 2.4

in 2001 to USD 11.5 in 2015. The table clearly depicts that in the post reform period with the entry of private

and foreign players in the sector, the insurance penetration as well as insurance density has improved.

Conclusion

Economic reforms have an important impact on Indian economy. There are many changes in Indian

economy, after adaptation of the policy of LPG i.e. Liberalisation, Privatisation and Globalisation in 1991. The

insurance industry in India has passed through a period of structural changes under the combined impact of

financial sector reforms in general and insurance sector in particular. With the liberalization of insurance

sector, the paradigm for Indian insurance industry has witnessed a sea change during the last decade. FDI was

much needed in the Indian insurance industry as it brought the requisite growth capital from foreign

promoters, better insurance business practices not available in the country and of course the new type of

international exposure from foreign players and thus helped in deepening the penetration of insurance

products in the Indian rural markets, where the penetration level was too low. The privatization of the sector

has also contributed in a great way by increasing the insurance density and also penetration in both – life and

non-life segments. Concludingly, the study reveals that the economic reforms in the sector have led to the

overall improvement in the performance of the insurance industry as a whole.

References

lAhuja R. Insurance: Over the Transition, Economic and Political Weekly 2004; 39(32):3569-3571.

lDr. Babita Thakur, Vinod Kumar Sharma, Som Raj (2012), “Had Economic Reforms had an Impact on India's Industrial Sector?” IOSR

Journal Of Humanities And Social Science (JHSS), Volume 4, Issue 2, PP 01-07.

lDr.Meenu (2013), “Impact of Globalisation and Liberalisation on Indian Administration” International Journal of Marketing,

Financial Services & Management Research, Vol.2, No. 9, PP 120-125.

lJain, A.K. (2004),”Indian Life insurance industry: After LPG,” The Journal of Insurance Institute of India, Vol.XXX, July- Dec.2004, Page

No.53.

lMukesh kumar (2014), “Impact of Economic reforms on India” IJIFR Volume1 Issue-7.

lPant N. The Insurance Regulation and Development Bill: An Appraisal Economic and Political Weekly 1999; XXXIV (45):3166-3169.

lRanade A, Rajeev A. Life Insurance in India: Emerging issues, Economic and Political Weekly 1990; 34(34):16-23.

lRao T. Privatization and Foreign Participation in (Life) Insurance Sector, Economic and Political Weekly 2000; 25:1107-1120.

lShrivastava DC, Shashank Srivastava. Indian Insurance Industry, Transition and Prospects, New Century Publications Delhi, 2002.

lVaghela Dharini Ishvarsinh (2014), “New Economic Policies: Liberalization, Privatization, Globalization” Journal of Social Sciences

Year-2, Issue-5.

lIRDA Annual Report, 2015-16

lwww.google.com

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68

The Entrepreneur's Perceptive With Regard to Basic Amenities Provided In Special Economic Zone

*Prof. Fr. Johnson SV**Dr. Pallavi Shrivastava

*Principal Chirst College of Education, Bhopal**Assistant Professor, B.S.S.S. Bhopal

Special Economic Zone is a commercial area where the economic laws are liberal when compared to other

economic laws for the purpose of industrial, service and trade and trade operations. Indore, being the only

operational Special Economic Zone in Madhya Pradesh provides the industries with complete civic and industrial

infrastructure and this study intends to find whether the Entrepreneurs are provided basic amenities in

processing zone of special economic zone. Primary data was gathered for the study with the help of elaborated

and structured questionnaire.

Key Words: Special Economic Zone, Entrepreneur's Perceptive and Basic Amenities.

Introduction

Entrepreneurs are the backbone of any country. Entrepreneur not only generates employment to huge

masses but also they are catalyst to research development and innovation. Even government also lends its

hand to this phenomenon with different novel and concrete ideas. In this context very lucrative and

prospective initiative is taken by the government by way of special economic zone. So the researcher choose

entrepreneurship to analyze and correlate the conceptual as well as realistic findings with Special Economic

zone

Entrepreneurship development is a witnessing phenomenon of any country's growth. Emergence and

growth of entrepreneurship not only make country self reliant but also socially developed. Whereas Special

Economic Zones are the special example of localized industrial development, where special efforts are been

initiated to promote and develop entrepreneurial activities so that sustained economic growth of country and

augmentation of foreign exchange reservoirs is ensured. In a boost to power firms with plans to set up

enterprises in Special Economic Zones (SEZ), the Government has exempted them not only from the positive

net foreign exchange (NFE) obligation applicable to units but also norms were made little easier to set up

special economic zones (SEZs) for selected sectors in smaller cities. (Business Standard, 2010)

Indore, being the only operational Special Economic Zone in Madhya Pradesh provides the industries

with complete civic and industrial infrastructure and this study intends to find whether the Entrepreneurs are

provided basic amenities in processing zone of special economic zone.

Research Design

Primary data was gathered for the study with the help of elaborated and structured questionnaire. This

questionnaire was created by Mrs. Roopam Agrawal for her study in development of entrepreneurship in

Special economic zones in 2011-12. A set of 32 questions with sub divisions which were then put up before 51

entrepreneurs, who established their units in Special Economic Zone.

Objective

To identify the Entrepreneurs perceptive for Special Economic zone establishment.

Hypothesis

H : Entrepreneur's are provided basic amenities in processing zone of special economic zone. 01

Testing of Hypothesis

Data Analysis and Interpretation

Entrepreneurs were asked about the availability of various basic amenities. Their responses are

discussed through the following table:

Table No.1: Provision For Basic Amenities

Question Particulars Yes No

1 Well developed roads 95% 5%

2 Water Supply lines 97% 3%

3 Electrical, C.N.G. / petroleum distribution center 100% 0%

4 Boundary walls 100% 0%

5 Sewage and garbage disposable system 97% 3%

6 Security arrangement 62% 38%

7 Car parking space 69% 31%

8 Telecom and intercom facility 8% 92%

9 Rain water harvesting plant 6% 94%

10 Fire protection system 35% 65%

11 Power backup facilities 20% 80 %

12 Basic Medical facilities 78% 22% Mode: calculation and validity percentage

Graph No. 1 : Provision for Basic Amenities

Researcher has divided all the responses of the unit into 'yes' and 'No' and no further clarification or

explanation is looked for. 12 points have been put to gather the actual and authenticated responses. They all

belong to complete amenities provision at processing zone of SEZ. The above table describes responses in %

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

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69


about the facilities availed in the Special Economic Zone by the entrepreneurs.

On the basis of Analysis done by the researcher of the study it had been revealed that individual units

have their individual perception with basic amenities provision at the processing Special Economic Zone.

Some of the facilities such as protecting wall for skirting the SEZ area is given 100% positive responses where

as rain water harvesting is not provided at the zone and responses are 6% only. Indore SEZ was established in

the year 2003 with the motto of promoting industrialization.

Initially main focus was to bring more and more companies in the peripheral of the Special Economic Zone

and to build Madhya Pradesh as export oriented state. No concentration was sought towards zone in respect

of facilities provision. But basic attraction for entrepreneurs to enter into SEZ was hassle free and non

botheration of infrastructure development such as road communication security and protection and as data

suggest that 78% units are happy with basic medical provision and 22% have shown disagreement for the

power back up arrangement within the zone

They strongly agreed that they were provided with basic facilities such as well constructed roads water

supply and petroleum distribution centre, sewage disposable system and medical provision in SEZ. But 94%

entrepreneurs do not satisfy with arrangement of rain water harvesting plant. Whereas data suggest that only

8% units are happy with Telecom and intercom provision and 80% have shown disagreement for the power

back up and 65% units are disappointed with Fire protection system arrangement within the zone.

Any way at least faith towards security and car parking space which researcher thinks that companies

have made their own arrangement, creates positivity towards SEZ. Sewage and garbage disposable provision,

water supply lines, electrical, C.N.G. / petroleum distribution center and boundary wall are the some

phenomenal basic amenities which have more than 90% nodding by the entrepreneurs concluding that some

aspects have given encouraging impact on enterprises in Special Economic Zone.

Conclusion

But over all percentage of amenities provided is appreciated by the respondents so the hypothesis has

been proved and it is found that Entrepreneurs are happy with basic amenities in special economic zone.

Referencesl Entrepreneurship and new venture creation, A. Sahay and V. Sharma, Excel Books, 2009

l Entrepreneurship successfully launching new venture, Bruce R. Barringer and R. Duance Ireland, Pearson education Inc. 2006y

l Dynamics of Entrepreneurial Development and Management, Vasant Desai, Himalaya Publication House, sixth edition 2010

l Farole, Thomas (2011). Special Economic Zones: What Have We Learned? Retr ieved on 31/07/13

http://siteresources.worldbank.org/INTPREMNET/Resources/EP64.pdf

l Neeraj Mishra (2008): Special Economic Zone–An Overview, Challenges and Future http://neerajmishra.wordpress.com/2008/07/

26/sez-special-economic-zone-an-overview-challenges-and-future

l Dr.N. Santhi and S. Rajesh Kumar (2004): Entrepreneurship Challenges and Opportunities in india http://www.journal.bonfring.org/

papers/iems/volume1/BIJIEMS-01-1004.pdf/ DOI:10.1080/08985620701631498

70


71

thIndia Inc. analysts gave thumbs up to the Union cabinet decision to clear the 7 Central pay Commission

recommendations stating that the move will "boost consumption in the economy" and lead higher GDP

growth. Previous experiences shows that revision of pay commissions have a snowball impact on the economy

viz-a-viz automobiles, real state, consumer durables, finance, saving scheme, etc. This is expected to give pent

up demand a boost.

This research work is an attempt to examine the influence of significant amount of money in the hands of public

sector employees on the Indian automobile industry. It also tries to find out the change in sales of two wheeler thand passenger cars after the recommendations of 7 central pay commission.

Introduction

Pay Commissions are set up to prepare the guidelines to determine the pay structure of government employees in India. And often it was witnessed that as the implementation of the recommendations of pay commissions enforce in the economy, it shows a favorable impact on almost all the industry.

According to A. Didar Singh, Secretary General, FICCI- The pay hike combined with continued public push to the capital expenditure will help steer the economy to higher growth upliftment of the economy.

According to Kanihya Singh- "the pay hike strengthens the Indian market. It is quite obvious that whenever there is an increase in salaries it leads to create demands, which leads to inflations.”

So the big question arises that, where does the money go? So it is quite sure that wherever the money goes it creates demand. As per the previous experiences it goes to three or four areas viz-a-viz consumer durables, real estate, saving schemes etc., but especially in the automobile sector.


Research Methodology is way to systematically solve the research problem. As, the aforesaid research is basically concerned with the subjective assessment of attitudes, perception and behaviour of the government employees, who used their increments and arrears after the recommendations of different pay commissions of the demand of durables specifically on automobile industry. Hence we used qualitative approach to discuss our problem and draw some inferences.

st thAs we study from 1 Pay commission recommendations to 7 pay commission recommendations, we used longitudinal research. But for the analysis of current situation one also adopt field enquiry using descriptive statistics.

Enumerations and Analysis of data

Till now, in total six pay commissions were set up, and seventh was proposed on 29 June 2016.

Recommendations of Pay Commissions: A Fuel to Indian Automobile Industry *Anshul Saxena

** Dr. Pankaj Pandey

*Assistant Professor, Dept. of Commerce, Jagran college of Arts, Science of commerce**Associate Professor, Dept. of Commerce, V.S.S.D. College, Kanpur

Central Pay Thin Salary Maximum Salary Compensation Ratiost1 (1946-47) 55 2000 1:36.1nd2 (1957-59) 80 3000 1:37.5rd3 (1972-73) 196 3500 1:17.9th4 (1983-86) 750 8000 1:10.70th5 (1994-97) 2550 2600 1:10.20th6 (2006-2008) 7000 8000 1:11.40th7 (2016-2017) 18000 22500 1:3.12

Commission

*Chart-1 Pay structure of Different Pay Commissions in India

72


The above data reflects the size of pay structure of different pay commissions' recommendation; however the

following chart shows the real increase in minimum wages during the aforesaid span of time.

*Chart-2 Pay commission and real wage income

Pay Commission % increase of wages

II

III

IV

V

VI

VII (Proposed)

14.2

20.6

27.6

31.0

54.0

14.3 *Official gazette of Different Pay Commissions

Chart-3Longitudinal Analysis of Past Pay Commissions' Recommendations and Sale of Passenger Cars

Pay Commission

Sale of Passenger Car

4th

5th

6th

% Change

Source SIAM report

Year Sale of Passenger Car

% Change

87-88

1997

2008-09

2009-10

12.38%

(219000 units)

33.19%

(689000 units)

19.45%

(2.20 million units)

21.18%


11.37%

(1.5 million units)

11.74%


16.45%

(9.7 million units)

31.22%


Remuneration AngleChart-4

th Total Remuneration Paid During 6 Pay Commission

Rs.45962.60 cr.

Rs.73717.80 cr.

Rs.96589.70 cr.

2007-08

2008-09

2009-10(Pay packages rose to an average of 35% with receiving of 30 month arrears)Source: Official gazette 6 CPC

It was observed that as the pay recommendations are announced in India, it directly affects the th th thautomobile sector. As after 4 , 5 , 6 CPC both sale of passenger cars and sale of two wheelers increased with

great percentage.thAs according to the remuneration side, it reflects that 6 CPC gives a lot of liquidity in the Indian

market, it shows almost 35% increase in pay packages, leads to an increase in automobile sector nearly by

21%. This indicates a great synergy between the recommendations of pay commissions and its impact on

the automobile sector in India.

2Pay Commission y x x xy

% growthth4 CPC 12.38 0 0 0th5 CPC 33.19 1 1 33.19th6 CPC 19.45 2 4 38.90

2X=3 ∑y=65.02 x=3 x =5 xy = 72.09∑ ∑ ∑


73


Application of Statistical tool

The role of statistics in research is to function as a tool in designing reasons, analyzing the data and

drawing conclusions therefrom. So here we used time series analysis in order to draw some initial references

regarding the research problems.

Under the time series analysis we used a basic trend equation to draw inferences, i.e. and to obtain the

value of 'a' and 'b', the following two equations were formed and solved.

Σ y = na + bΣx (i)2Σ xy = aΣx + bΣx (ii)

Chart-5thAnalysis of data to estimate the growth after 7 CPC

Let the trend equation Yc = a + bxSubstituting the value in normal equation

65.02 = 3a+3b (i)72.09 = 3a+5b (ii)

On Substituting of equation (i) and (ii)

65.02 = 3a + 3b 72.09 = 3a + 5b

b = 7.07 2 = 3.535

Substituting the value of b in equation (i)

7.07 = -2b

65.02 = 3a+3 (3.535)65.02 = 3a+10.60565.02 = 10.605 = 3a 54.415 = 3a

a =54.415 3 = 18.14

Now find the value (trend) of 7th CPC-We let x as 3 :-

Y = a+bxC

Y = 18.14+2.535(3)7CPC

= 28.74% (estimated)

7.07 = 2b

74


Interpretation of the results

A time series is a set of statistical observation arranged in chronological order (mon's Hamburg). It is a

sequence of values of the same variant corresponding to successive point in time (Warner Z. Hirshch.). Hence

time series analysis is one of the most adequate statistical tools to interpret our data, because our ongoing

analysis is primarily connected with longitudinal research.th th thWe have taken the estimates of growth in sale of passenger cars after the recommendations of 4 , 5 , 6

CPC. So as per the data given, it has been observed that there is growth of sale of passenger cars after the

recommendations of different pay commissions.

Hence, by applying the trend equation i.e. Yc= a+bx, it has been observed that after the threcommendations of 7 CPC, the economy will lead to higher inflow due to more allowances and arrears

received, it will escalate the sale of passenger car by nearly 28.74%.

Limitations and Difficulties of the study

lDemonetization hit the industry hard as total sales of vehicles declined by 18.66% in December 2017.

lMonthly automobile sale growth rate in India slipped to 16 years below.

lDemonetization affected the auto industry. There seems to be a mixed growth in 2017, which is as

follows:-

Hyundai motors 43% TATA 35%

Mahindra & Mahindra 1.54% Renault 9.2%

Ford, India 6.04% Nissan 21%

Maruti 4.4% Volkswagen 68.72%

Bajaj 22%

Declining Brands Climbing Brands

As we move in 2017 to 2018, the industry (auto) does face some shorter headwinds, given the

uncertainty regarding the impact of demonetization and GST, while the medium to long term

outlook continues to be positive.(Mr. Anurag Mehrotra, Ford Indian executive director)

lBusiness in Gujarat, Punjab and NCR has been most affected as the buyer in this region prefers to

make payment by cash. (Source: rushlane.com)

lCustomer opting free finance options also makes down payment in cash which has brought down

sales. Considerably this drastic dip in demand is even more prominent in luxury Car segment.

lIn Rural areas, sales of automobile have dipped by around 40% and are expected to go down to

60%. As the cash crunch continues and most farmers prefers to make payment by cash.th

lOne of the major limitations arise is that, the arrears received after the 6 CPC is for almost 2 years thbut tentatively after the 7 CPC arrears received only for 8 months.

To Overcome Difficulties

lFearing any eventual incident for surgical strike on black money in the country and in view of the

current scenario, the GOI has decided to delay the announcement of higher allowances…. the official

added.

l

Source : DNA India Jan 2017

75


l

(after the announcement) but the central government employees unions demanded for rdimplementation with retrospective from January 2016 as revealed, as the agitation started from 23

May 2017 as published.

Government Measures

GOI encourages foreign investment in the automobile sector and allows 100% FDI under the automatic

route. Some of the major initiative taken by the GOI are:-

lThe GOI aims to make automobile manufacturing the main drivers of, “Make in India” initiative as it

expects the P.V. market to triple to 9.4 million by 2026, as highlighted in the (AMP) 2016- 2026.

lUB of 2015-16, the GOI announced plans to provide credit of Rs. 85000 crore to farmers, which is

expected to boost sales in the tractor segment.

lThe GOI plans to promote eco-friendly cars in the country i.e. CNG based vehicle, hybrid vehicles and

electric vehicles and also to make mandatory 5% ethanol blending in petrol.

lThe AMP for the period 2006-2016 designed by the government is aimed at accelerating and

sustaining growth in this sector and also the well-established regularity framework under the

Ministry of Shipping, Road Transport and Highways plays a part in providing a boost to this sector.

(Source: Wikipedia)

Abbreviations

FICCI Federation of Indian Chambers of Commerce and Industry

SIAM Society of Indian Automobile Manufacturing

CPC Control Pay Commission

GST Goods and Service Tax

NCR National Capital Region

GOI Government of India

FDI Foreign Direct Taxes

AMP Auto Mission Plan

PV Private Vehicles

UB Union Budget

References

lKothari, C.R. Research methodology, New age publication, New Delhi - 2013

lShukla.S.M. ,Statistical Analysis, Sahitya Bhawan publication, Agra - 2016

lD.N.A. India

lRushlane.com

lWikipedia.org

lIndiatimes.com

lOfficial gazette of different pay commission.

th7 CPC recommendations are proposed to be instigated with retrospective effect from August 2016

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