ISSN 2321-6522 JAGRAN JOURNAL OF COMMERCE AND ECONOMICS Published By : Jagran College of Arts, Science and Commerce A Self Financing P.G. College Affiliated to C.S.J.M. University, Kanpur Listed in UGC approved list of Journals Sl. No. 5878 Journal No. 43371
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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
lKoning, J., & Waistell, J. (2012). Identity Talk of Aspirational Ethical Leaders. Journal Of Business Ethics, 107(1), 65-77.
http://dx.doi.org/10.1007/s10551-012-1297-3
lLow, P., & Muniapan, B. The Essential Leadership Wisdom of the Bhagavad Gita. Business, Technology, And Knowledge
Management In Asia, 147-155. http://dx.doi.org/10.4018/978-1-4666-2652-2.ch011
lM a n t z a v i n o s , C . H e r m e n e u t i c s . P l a t o . s t a n f o r d . e d u . A c c e s s e d 1 7 M a r c h 2 0 1 7 , Av a i l a b l e f r o m
https://plato.stanford.edu/entries/hermeneutics/
lMahadevan, B. (2009). Srimad Bhagavad Gita Ideas for modern management. In Towards a New Paradigm of Business
management – Alternative Perspectives Retrieved from Ancient Indian Wisdom (pp. 1-11). Bangalore.
lOmprakash, M. (2016). Mind Management: Lessons Retrieved from Bhagvad Gita. International Journal Of Advance Research In
Computer Science And Management Studies, 4(3).
lRoka, P. Uncovering the leadership lessons of the Bhagavad Gita. Chief Executive magazine. Accessed 16 March 2017, Available
from http://chiefexecutive.net/uncovering-the-leadership-lessons-of-the-bhagavad-gita/
lSrimadbhagavadgitahindi.blogspot.in. Accessed 13 April 2017, Retrieved from http://srimadbhagavadgitahindi.blogspot.in
Doyle, A. Hargreaves and Fink: Sustainable Leadership. Crosscutting Conversations in Education. Accessed 19 March 2017,
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.
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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
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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
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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
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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.
· 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.
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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
Fully Slightly No idea
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
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Jagran Journal of Commerce and Economics, March 2018
Value df Asymp. Sig. (2-sided)
aPearson Chi-Square 6.719 4 .151
Likelihood Rati 7.027 4 .134
Linear-by-Linear .266 1 .606Association
N of Valid Cases 475
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
Fully Slightly No idea
Male 28 92 196 316
Female 23 43 93 159
Total 51 135 289 475
BEE awareness
Value df Asymp. Sig. (2-sided)
aPearson Chi-Square 3.471 2 .176
Likelihood Ratio 3.336 2 .189
Linear-by-Linear 1.897 1 .168Association
N of Valid Cases 475
Table 3B: Chi-Square Tests
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
Fully Slightly No idea
Male 140 114 62 316
Female 66 68 25 159
Total 206 182 87 475
BEE awareness
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Value df Asymp. Sig. (2-sided)
aPearson Chi-Square 2.304 2 .316
Likelihood Ratio 2.306 2 .316
Linear-by-Linear .023 1 .879Association
N of Valid Cases 475
Table 4B: Chi-Square Tests
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).
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
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Jagran Journal of Commerce and Economics, March 2018
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
Value df Asymp. Sig. (2-sided)
aPearson Chi-Square 5.844 4 .211
Likelihood Ratio 5.875 4 .209
Linear-by-Linear 1.255 1 .263AssociationN of Valid Cases 475
Table 7B: Chi-Square Tests
Value df Asymp. Sig. (2-sided)
aPearson Chi-Square 24.272 4 .000
Likelihood Ratio 23.721 4 .000
Linear-by-Linear 21.635 1 .000Association
N of Valid Cases 475
Table 6B: Chi-Square Tests
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
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Value df Asymp. Sig. (2-sided)
aPearson Chi-Square 17.830 4 .001
Likelihood Ratio 18.181 4 .001
Linear-by-Linear 11.612 1 .001Association
N of Valid Cases 475
Table 8B: Chi-Square Tests
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.
References
lAgyeman, J, Bullard R and Evans, B (2002) “Exploring the nexus: bringing together sustainability, environmental justice and
equity” Space and Polity Vol. 6 No. 1 pp 70-90.
lAnderson, T. Jr. and Cunningham, W.H. (1972), 'The socially conscious consumer', Journal of Marketing, 36, (7), pp. 23 – 31.
lBae, S., and Chun, H. J. (2010). Development of the green family's model. Seoul: Korean Consumer Agency.
lTucker, R. (2002). ''Environmentally Damaging Consumption: The Impact of American Markets on Tropical Ecosystems in the
Twentieth Century.'' In Confronting Consumption, ed. Thomas Princen, Michael Maniates, and Ken Conca. Cambridge, MA: MIT
Press.
lZarnikau, J. (2002). Consumer Demand for Green Power and Energy Efficiency. Energy Policy, 31(15), 1661-1672.
lZimmer, M.R., Stafford, T.F. and Stafford, M.R. (1994) “Green issues: dimensions of environmental concern”, Journalof Business
Research, 30(1), pp. 63–74.
Banerjee, B. and McKeage, K. (1994), How green is my value: exploring the relationship between environmentalism and
http://www.ficci.in/Massmerize-Report.pdf
https://www.ibef.org/industry/indian-consumer-market.aspx (accessed on 16Aug 2017 , 12:15 pm)
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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
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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
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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.
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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
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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.
References
l
lAnant, T. C. A., Hasan, R., Mohapatra, P., Nagaraj, R., & Sasikumar, S. K. (2006) “Labor markets in India: issues and perspectives in
Labor Markets in Asia” (pp. 205-300), Palgrave Macmillan UK.
lChakraborty, A. (2015), “Reforming Labour Markets in States”, Economic and Political Weekly, 50(20), 53-57.
lDeakin, S., & Haldar, A. (2015) “How should India reform its labour laws?” Economic and Political Weekly, Vol. L No.12,
lDeb, T. (2010), “Reforming labour legislation on working conditions for competitive advantage: an empirical study”, Indian Journal
of Industrial Relations, 201-219.
lDebroy, B. (2012), “India's segmented Labour Markets, Inter-State Differences, and the Scope for Labour Reforms, Economic
Freedom of the States of India”, Academic Foundation, New Delhi.
lDutt, P. (2003), “Labor market outcomes and trade reforms: The case of India, The impact of trade on labor: Issues, perspectives, and
experiences from developing Asia”, 1-45.
lJha, S. (2014), “Labour Reforms in India: Issues & Challenges”, Journal of Management & Public Policy, 5(2), 45-50.
lMitra, D. (2015), “India's labour laws: Protecting to hurt”, Retrieved from http://ideasforindia.in/Article.aspx?article_id=398
lMaira, A. (2014), “Rethinking labor law reforms”, Indian Journal of Industrial Relations, 50(1), 24-33.
lPoddar, T. (2014), “Reforming the industrial dispute & trade union acts”, Indian Journal of Industrial Relations, 50(1), 89-100.
lRajesh, S., &Manoj, P. K. (2015),”Politicization of trade unions and challenges to industrial relation in India: a study with a focus on
northern Kerala”, International Journal of Business Administration and Research Review, 1(2), 45-57.
lSaini, D. S. (2014), “Indian industrial relations law: case for reform” Indian Journal of Industrial Relations, 50(1), 118-133.
lSanyal, P., & Menon, N. (2005), “Labor disputes and the economics of firm geography: A study of domestic investment in India”,
Economic Development and Cultural Change, 53(4), 825-854.
lShyam Sundar, K. R. (2014), “Institutional framework of industrial relations in India: still and muddy waters”, Indian Journal of
Industrial Relations, 50(2), 195-204.
lS i n g h , J . ( 2 0 1 5 , A u g u s t 1 0 ) , “ L a b o u r R e f o r m i n I n d i a ( A n O v e r v i e w ) , R e t r i e v e d f r o m
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
Jagran Journal of Commerce and Economics, March 2018
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
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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
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
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.
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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.
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.
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Jagran Journal of Commerce and Economics, March 2018
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.
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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
ISSN 2321-6522 UGC Approved Sl. No. 5878 Journal No. 43371
Source: Researcher Survey
Valid CumulativeFrequency Percent Percent Percent
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.
Source: Researcher Survey
Valid CumulativeFrequency Percent Percent Percent
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.
Source: Researcher Survey
Valid CumulativeFrequency Percent Percent Percent
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.
Source: Researcher Survey
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
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Jagran Journal of Commerce and Economics, March 2018
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.
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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:
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Jagran Journal of Commerce and Economics, March 2018
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
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
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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.
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Jagran Journal of Commerce and Economics, March 2018
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.
Research Methodology
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.
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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
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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
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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.
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
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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.
Research Methodology
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,
Jagran Journal of Commerce and Economics, March 2018
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
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
*Chart-1 Pay structure of Different Pay Commissions in India
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Jagran Journal of Commerce and Economics, March 2018
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%
(2.80 million units)
11.37%
(1.5 million units)
11.74%
(3.64 million units)
16.45%
(9.7 million units)
31.22%
(12.7 million units)
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
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
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Jagran Journal of Commerce and Economics, March 2018
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
ISSN 2321-6522 UGC Approved Sl. No. 5878 Journal No. 43371
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
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