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A Journal of Social SciencesNo. II/2014, Volume-V

July 2014

Shodh evam Shaikshnik Samiti (regd.)Gulaothi, (Bulandshahr), Uttar Pradesh, India

SUBSCRIPTION RATES:Three Years : 2500.00Two Years : 1800.00One Year : 1000.00

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ISSN-0975-5535

Advisory BoardProf. N.K. Teneja, Member-Public Service Commission, M.P. & Former VC, C.C.S. University, Meerut.Prof. Sushma Yadav, Pro-VC, IGNOU, New Delhi.Prof. H. S. Singh Pro-VC, C.C.S. University, Meerut.Prof. R.B. Singh, Delhi School of Economics, University of Delhi, Delhi.Prof. N. Nagabhushanam, S.V. University, Tirupati.Prof. K. V. Bhanumurthy, Delhi School of Economics, University of Delhi, Delhi.Prof. M.A. Khan, Jamia Millia Islamia University, New Delhi.Prof. S.K. Yadav, NCERT, New Delhi.Prof. Prahlad Kumar, Allahabad University, Allahabad.Prof. Anjali Bahuguna, H.N.B. Garhwal University, Srinagar, Garhwal, Uttrakhand.Prof. S.C. Rai, Delhi School of Economics, University of Delhi, Delhi.Prof. B.S. Mann, Panjabi University, Patiala.Prof. Saroj Yadav, NCERT, New Delhi.Prof. S. B. Dahiya, M.D. University, Rohtak.Prof. A. K. Mittal, Aligarh Muslim University, Aligarh.Prof. R. K. Mittal, IPGGS University, New Delhi.Prof. S. S. Chahar, M.D. University, Rohtak.Dr. K. D. Gaur, ICSSR, New DelhiDr. Atveer Singh, C.C.S. University, Meerut.Dr. Paramjit, Delhi School of Economics, University of Delhi, DelhiDr. M. S. Tomar, D.N.P.G. College, Gulaothi (Bulandshahr), U.P.Dr. P.K. Singla, Panjabi University, Patiala.Dr. D. Saharia, University of Guwahati, Assam.Dr. Manju Goyal, S.D. College, Ghaziabad.Dr. Kishor H. Nehete, A.D.P.M.'s Women College, Jalgaon, Maharashtra.Dr. Jitendra Kumar Sharma, GGDSD (PG) College, Palwal, HaryanaDr. K.K. Sharma, M.M.P.G. College, Modinagar (U.P.)Dr. Kamalvir Tyagi, M.M.H. College, GhaziabadDr. Shivkant Yadav, D.A.V. (PG) College, Bulandshahr.Dr. Dushyant Kumar, A.S.P.G. College, Lakhaoti, Bulandshahr.Dr. K.C. Arya, Hindu College, Moradabad. (U.P.).Dr. Vipin Jain, TMU, Moradabad (U.P.).Dr. Rakesh Yadav, I.F.T.M. University, Moradabad (U.P.).Dr. Sachi Rana, ITM, Meerut.Dr. Ajay Kumar Tyagi, IAMR, Ghaziabad (U.P.).Dr. U.C. Aggarwal, RIMT, Ghaziabad.Dr. Rosy Mishra, M.M.H. College, Ghaziabad (U.P.).Dr. Ompal Singh, S.D.I. College, Meerut.Dr. G.B. Kashyap, S.S. V. College, Hapur.Dr. Anjali Rajora, RIMT, Ghaziabad (U.P.)Ms. Pravanshi Yadav, RIMT, Ghaziabad (U.P.)Dr. Vineet Kumar Singhal, RIMT, Ghaziabad (U.P.)

Shodh Evam Shaikshanik Samiti (Regd.)Gulaothi - 245408 (Bulandshahr), Uttar Pradesh, India

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Contents

1. Micro, Small & Medium Enterprises M.M. Goel 1-27

in India: A Review of Research Om Parkash

Studies

2. Brand Preferences for Personal Care Kiran Mor 28-37

Products: A Comparative Study of Sulekha

Hul and ITC

3. Economics of Entrepreneurship Trisha Jolly 38-56

4. Formal VS Informal Recycling of Asheref Illiyan 57-61

E-Waste in India

5. Indian Planning Scenario - Priyank Gupta 62-76

A Study Umesh Agarwal

6. Development and Evaluation of Kiran Dabas 77-86

Water Scarcity Index for Delhi Inderjeet

7. A Study of Personality Needs of Seema Sharma 87-101

Female Teachers Working in Komal Yadav

Government and Private Primary

Level Schools

8. Copyright Protection in Present IPR Yogendra Singh 102-113

Regime: A Critical Analysis of Different R.S. Jha

Protection Standards

9. Indo-Asean Economic Prospects Vandana Tyagi 114-121

10. A Study of Marketing Strategies Vineet Kumar Singhal 122-129

in Global Perspective

11. Organic Cotton-Weaving a New Path Veenu Jain 130-137

to Eco Friendly Textiles

12. Socio-Economic Characteristics: A Sushil Dalal 138-148

Block Level Study in Haryana Kuldeep Malik

13. Role of Leather Industries in the Rosy Mishra 149-158

Development of Our Economy

S.No. Title Authors Page No.

The Horizon - A Journal of Social SciencesNo.II/2014, Volume-V, July 2014, pp. 1-27ISSN-0975-5535

1 2M.M. Goel & Om Parkash

1Professor of Economics & Dean,

Faculty of Social Sciences, Kurukshetra University, Kurukshetra. 2Research Scholar, Department of Economics,

Kurukshetra University, Kurukshetra.

According to Micro, Small and Medium Enterprises MSME Act 2006, a micro enterprise is an enterprise where investment in plant and machinery (original cost excluding land and building) does not exceed Rs. 25 lakh if engaged in the manufacture or production, processing or preservation of goods. It does not exceed Rs 10 lakh if it engaged in providing or rendering of services.

Small enterprise is an enterprise where investment in plant and machinery (original cost excluding land and building) is more than Rs 25 lakh but does not exceed five crore rupees ( manufacturing sector ) and is more than Rs 10 lakh rupees but does not exceed two crore rupees ( service sector ).

Medium enterprise is an enterprise where investment in plant and machinery (original cost excluding land and building) is more than Rs 05 crore but does not exceed Rs 10 crore ( manufacturing sector ) and is more than Rs 02 crore but does not exceed Rs 05 crore ( service sector ).

It hardly needs any justification that micro, small and medium enterprises contribute nearly 08 percent towards the Gross Domestic Product (GDP), 45 percent manufacturing output and 40 percent exports in India. They are the nurseries for self employment, entrepreneurship and innovation. They are widely dispersed across India consisting of the 28 States and 7 Union Territories (UTS) and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains. It is pertinent to mention that before 2006, there was no concept of micro enterprises and there were small and cottage industries.

There are various studies by various organizations & individual scholars in this area covering one or other aspect. These are categorized under four headings as follows:

I. VILLAGE OR COTTAGE AND SMALL SCALE INDUSTRY1W.A. Lewis (1954) has strongly advocated the application of labour intensive

techniques of production to have a steady and smooth economic growth. He opined

MICRO, SMALL & MEDIUM ENTERPRISES IN INDIA: A REVIEW OF RESEARCH STUDIES

2

that many important works can be done by human labour with very little capital. Efficient labour could be used to make even capital goods without using any scarce factors. In this sense, small scale and cottage industry should be developed and promoted especially in an economy where capital is scarce. He recommends the use of capital intensive techniques only when they are necessary.

2According to the Industries Committee Report (1955) , popularly known as Karve Committee Report, since a substantial number of employed and underemployed belongs to the village and small industries group, setting up of small scale and village industries will provide employment to them in occupations in which they have been traditionally trained and for which they possess equipments. The committee realizes the necessity of introducing better techniques in the village industry, so that they can keep pace with the progressively expanding economy and do not become unsuitable tomorrow.

3Khadi and Village Industries (1975) gave a gloomy picture of these industries as a source of employment in industrialization. The report shows that the "compounded rates of growth of employment in these industries, as compared to growth of output, are very meager."

4Dasgupta (1983) has recommended the establishment of small scale and cottage industries in the North-Eastern region of the country. He suggested that if labour intensive small scale industries are established, they will provide some alternative economic opportunities to the people in the hill areas of the region as the improved cultivation with multiple cropping is difficult proposition in this area.

5Lianzela's (1994) work is based on the economic development of Mizoram as a whole. He focused on various sectors of the economy and their development purely from the economic point of view. Although he put valuable suggestions and policy recommendations for the future development of the state, he did not give any specific strategy for the development of small scale and cottage industries in the state.

6According to Aruna Devi (1995) , industrial development is a pre-condition for the economic development of an underdeveloped region. She is of the opinion that industrial development in general and development of small scale and cottage industries in particular is bound to play an active role in connection with the economic development of an underdeveloped state, like Manipur.

7Rualkhuma (1997) focused on the industrial development of Mizoram, which is indeed a geographical interpretation of the existing bottlenecks and problems rather than economic analysis. He laid stress on the development of small scale and village industries to boost the over all economic development of the region. His work did not give any concrete solutions on the existing problems and drawbacks of industrial

M.M. Goel & Om Parkash

3

development from economic perspective.8Purkayastha (2001) in his study "Development Banking and Industrialisation"

examines how far industrialization has been taking place in Sikkim. The study is based mainly on the secondary data collected from the SIDICO, IDBI and SIDBI, and covers a period of eighteen years, i.e., from 1977-78 to 1994-95. The study reveals that SIDICO laid a solid foundation for village and small scale industries in this infant state. However, many small scale units are in morbid condition. The overall performance of the SIDICO is not satisfactory. The study recommends that the corporation must launch an efficient recovery drive, exerting all possible social and legal pressures.

II. SMALL SCALE INDUSTRY:9A study of UNIDO (1969) based on evidence from a number of developing

countries, indicates that''small enterprises with a lower level of investment per worker tend to achieve a higher productivity of capital than do the larger, more capital intensive enterprises".

10Pande (1983) explained few causes that attributes to the slow growth of small scale industries in hill areas. The small scale industrial units in the village area and suburban localities suffer from a considerable degree of technological obsolescence, inadequate raw materials, dearth of marketing channels, unawareness of market situation in urban centers, poor credit facilities and the shortage of skilled labour and power supplies.

According to Vepa (1983), the growth of small industries is interrelated with the growth of resources, which, in turn, leads to accelerating the economic growth of the country. The author suggests that the small sector should be developed from the grass root level. Proper development of smaller units strengthens the economy in a big way by facilitating the optimum use of raw material, infrastructural facilities and human resource, apart from being instrumental in the development of backward areas.

12Agarwal (1988) has emphasized that the importance of small scale and cottage industries is more in the absence of large and medium industries in the North-Eastern region. He mentioned some of the specific exogenous factors leading to bad industrial health in the region. These are absence of effective industrial policy and adhocism in Government decision at the state level as well as industrywise decisions, prolongation of gestation period due to the infrastructure deficiencies and weakness of supporting services, uncertainties and shortage of essential raw material and construction material supplies, defective sales tax regulations, high power tariffs and transportation costs etc, defective capital base and operational plans, shortage of working capital, non-availability of trained and experienced personnel and old techniques of production and lack of quality control.

Micro, Small & Medium Enterprises In India: A Review of Research Studies

4

13Ganguly (1988) studies the performance, policies, problems and prospects of the small scale industrial sector. Study reveals that the sector suffers from various problems such as inadequacy of raw materials and financial assistance, lack of effective marketing and encroachment on the areas reserved for SSIs by large and medium sectors, conscious efforts of the govt. to promote the small sector not with standing. But the author maintains the view that the faster growth of the medium and large scale sectors considerably.

14Balu (1991) examined the overall financing of small scale industries and also the contribution of the financial institutions and banks in financing small scale units. The study is mainly based on primary data and covering a sample of 150 small scale entrepreneurs spread over Madras city. It has been found that the entrepreneur with non business background relied heavily on external sources like banks and other financial institutions. They face problems like delay in sanction and disbursement, inadequacy of loan, insistence for collateral security, impersonal and non cooperative attitude of the officials. A single agency approach has been recommended as a solution to these problems in the study.

15Bhave (1991) has analysed the role of Maharastra State Financial Corporation (MSFC) in industrial development of the State. He observed that the assistance given to developing and backward areas accounts for 73 percent which goes to SSI.

16 Gibson (1992) describes the role of financial information in the Austrian model, as decision makers do not need financial information to help them determine if their capacity to generate future profit has been impaired. There is no assumption that financial information has any other role. It is not assumed that future oriented information will be used in evaluating the means by which desired ends can be achieved. Austrian economics offers no opportunity to prescribe a use for information in the decision making process.

17Nayak Committee (1992) deals with the question of adequacy and timeliness of credit made available to small scale sector. It further observed that small scale sector was getting working capital to the extent of 8.1 percent of its annual output which was less than the normative requirement of 20 percent.

18Sandesara (1993) studied the performance of SSIs producing reserved items collecting data from the second census conducted by the Ministry of SSIs. The study examined the null hypothesis that the SSI firms producing reserved category items should perform better than the SSIs producing non-reserved items. The study result revealed that capacity utilization in 1987-88 and aggregate change in production in 1987-88 were both lower for reserved than for unreserved items.

19Subramanian and Pillai (1994) in their article reported a survey of small industries in Kerela and compared their performance with the small industries in


5

other major states and with all India average. The poor performance of small industries in Kerala is attributable to low capacity utilization, low factor productivity, unfavourable usage-productivity relationship and industrial 'sickness' following severe financial and marketing problems. The performance of the small sector in Kerala could be improved by changing growth strategies which may enable them to reap economies of scale and lead to sectoral linkages and agglomeration.

20Sharma and Diwan (1994) provided a comprehensive insight into the small scale sector of India. Author found that over the years, this sector has exhibited a tremendous amount of resilience and ability to diversify and improve its performance and further, the process of liberalization and market reforms have provided tremendous opportunities for growth of small enterprises. Further in the study, to assess the response of SSI sector and its ability to reposition itself in the changed business environment, a SWOT (Strength, Weakness, Opportunity, Threat) analysis of small scale sector was carried out. The author argues that with the opening up of the economy, there is a big opportunity for SSIs to enter into profitable relationships with large and medium units.

21Rudramurty (1995) in his work entitled "Institutional Finance for the Development of small scale industries in Karnataka", applies both micro arid macro approaches. The major objective of this study is to evaluate the impact of institutional finance on industrial development. The study reveals that industrial development without the development of SSIs is incomplete as the employment of abundant man-power and the exploitation of abundant resources are not possible without the growth of SSIs. Financing of SSIs to the turn of 69% is done by Karnataka State Financial Corporations while the contribution of the commercial banks is restricted to 13% only.

22Chattopadhyay (1995) with the help of primary and secondary data discusses the causes and solutions of industrial sickness in India. By using various mathematical and statistical tools like financial ratios and multiple regression, it has been observed that sick industrial units have been suffering from managerial inefficiency, demand recession, obsolete plant and machinery and labour problems. Sufficient financial aid from financial institutions is not forthcoming. Policies framed by the govt. need to be implemented strictly to being about improvement in the situations.

23Jain (1996) observes that liberalisation has, compelled Indian firms to improve product quality, internal productivity and reduce costs through a combination of organisational restructuring, downsizing, process re-engineering and computerisation. But all this will not suffice. Much more needs to be done. Indian firms should use innovation, entrepreneurship and information technology in strategy and corporate philosophy to cope with growing challenges in the globalised


6

market. 24Nath (1996) performed inter-state comparison of relative efficiency in small scale

industry of India using the data culled out from the reports in second all India census of small scale industrial units conducted in 1988-89. The study comes up with the results that in Maharashtra and Madhya Pradesh, most of the small scale industries are relatively more efficient than in other states. However, in Andhra Pradesh, Bihar, Kerala, Tamil Nadu and West Bengal they were relatively less efficient.

25Bhatia (1997) in his study addresses to the impact of New Economic Policy on the industrial development of Punjab. In 1966, the share of manufacturing sector in state's income was barely 9 percent but after mid eighties it started increasing. The picture of industrial sector in respect of employment even in the post-liberalization period is very dismal. SSIs being labour intensive, could contribute significantly to tackling the problem of unemployment. Small sector being less capital intensive and more employment generating must be promoted to fight the ever swelling problem of unemployment.

26Sidhu (1997) in her study concentrates mainly on chemical industries in the states of Gujrat, Maharastra and Tamil Nadu and the study is divided into four parts. Part -I reveals the growth of chemical industries in the selected States vis-a-vis the whole of India, Part -II examines partial and total factor productivity, in Part III the output elasticity, marginal productivity of factor productivity and returns to scale are estimated and Part IV is devoted to estimation of elasticity of substitution. The trends of TFP are measured through four different methods viz (a) Direct method (b) Kendrick Method, (c) Solow Method and (d) Divisia Method. The analysis indicates that the chemical industry in Gujrat and Maharastra is experiencing increasing returns to scale while in Tamil Nadu, this industry is experiencing decreasing returns.

27Justus (1997) points out that small scale industry plays an important role in the economic development of a country. The promotion of small scale industry is of paramount importance in any industrially backward region or country. The small scale sector has certain inherent advantages like low capital intensity, high employment generation, more equitable distribution of income and wider dispersal of industries. So, small scale sector needs to be given more incentives and financial assistance to enable it to come out of 'red' or 'sickness'.

28Kumar (1997) brings out that the small scale sector has played a vital role in the overall economic development of a country like India where millions of people are unemployed or underemployed and most of the entrepreneurs are capable of making only small investment. The small scale enterprises are also considered an important instrument for promoting rapid industrial growth by providing greater employment opportunities, reducing regional disparities and removing economic backwardness


7

of the rural and underdeveloped areas of the country. The study concludes that the small scale sector performed extremely well in all spheres of industrial activities i.e. production, investment and export during the period from 1973-74 to 1993-94.

29Abid Hussain Committee (1997) reiterated the recommendations of Nayak Committee in general and recommended introduction of innovative finance and made a case for higher earmarking of credit for tiny sector units among small scale units.

30Gangopadhyay and Wadhwa (1998) analyse the changing pattern of labour productivity, labour costs and TFP in Indian industries over the period from 1973-74 to 1993-94 at the disagreed level. They divided the entire study period into two sub periods, 1973-84 and 1984-94. It was found that the increase in capital intensity was accompanied by gains in labour productivity. The rate of growth of labour productivity was consistently higher in the second sub-period in all industries. The rising labour productivity, capital deepening and falling labour costs were accompanied by a rise in the rate of growth of employment and wages. Total Factor Productivity Growth (TFPG) was estimated by two methods, the growth accounting approach and the production function approach. The analysis of estimates of TFPG obtained from Translog index showed that the front-runner in the TFPG performance was the export-driven industries. The results of panel estimation of the Translog production function with and without industry effects showed: (1) TFP grew at the rate negative two percent during the period 1973-74, and (2) technical change was not Hicks-neural, but capital augmenting. The author mentioned that their results are in contrast to the results of the Ahluwalia's (1991) in the following respects; (i) the present study confirmed a labour saving, bias in technical change while the Ahluwalia's study found a capital-saving bias (ii) Ahluwalia found a structural break in TFPG since 1982-83 while no such structural break in TFPG from 1980 to 1992 was noticed.

31Neogi and Ghosh (1998) tries to see the impact of liberalization on the performance of four selected industry groups, namely, (i) chemical, (ii) textile, (iii) non-metallic mineral products and (iv) electrical machinery, by using firm level data for the period between 1989-94. The performance indicators chosen to verify the impact of economic reform on the firms were growth of value-addition, capital intensity, labour productivity and total factor productivity. The results indicate that productivity growth and efficiency levels have not improved as per expectations, during the post reform period and the distribution of efficiency is skewed. The level of technical efficiency for all the industries was found to be very low and no significant improvement was observed in this level during the post reform period.

32Sidhu (1998) in her paper examines the applicability of Verdoorn's law vis-avis


8

SSIs in India. Verdoorn's law states that over a longer period there is a fairly constant relationship between the growth in output and the growth in labour productivity. The law concludes that average values of elasticity of production with respect to output is around 0.45 which may vary within a broad range of 0.41 to 0.57. For study, both time series and cross sectional techniques are used and the data have been arranged for the period between 1973-93. The study provides a mix response to the applicability of the law to SSIs. Time series analysis confirms the applicability of the law to SSIs. Time series analysis confirms the applicability of the law for the period between 1981 - 1993 but does not confirm it for the period between 1973 - 1981. On the other hand, cross sectional analysis confirms the applicability only after taking into account the growth in output and the growth in the productivity of labour.

33Narashimham Committee (1998) observes and suggests that State Financial Corporations, and State Industrial Development Corporations set up in different states have played a significant role in providing credit, finance and escort services to the small and medium industrial units. However, the financial health of most of the state level institutions leaves much to be desired. The recovery rate of SFC's averages nearly 37 percent of demand and the NPA's constituted 39 percent of the loan portfolio of the SFC's. This needs correction as a first step towards the eventual disinvestment by the state. There is also a need for restructuring of the all state level institutions into a single state level financial institution.

34Rao and Chandershekar (1998) in their paper try to identify the problems faced by handloom weavers and analyse the various schemes for the upliftment of the handloom sector. On reviewing the schemes, the authors maintain that the purpose of the schemes has not been achieved, as the economic condition of the weavers have remained abysmal as ever before. Competition from the organised mills and powerlooms have further worsened the situation of the industry. The percentage share of handlooms in the total cloth production declined from 35-40 percent 10 years ago, to around 20 percent. Globalisation too, has contributed to the miseries of handloom industry. Inspite of all this, the authors are of the opinion that the Indian handloom products, because of their natural fibre base, unique design, texture and aesthetic appeal have tremendous potential if their exports one boosted and incentivized.

35Khanka (1998) in his study observed that the development of small scale industries in Assam is at low level because of inadequate infrastructural facilities, problems of finance, marketing and insurgency. Therefore, for industrial development, Government should create infrastructural facilities like transport, communication, power, energy etc. Moreover, state level techno-economic survey should be carried out to explore possibilities for developing specific industries successfully. Local people should be motivated to promote entrepreneurial spirit in the region.


9

Government should take strong initiatives to curb insurgency in the region to make congenial climate for industrialization.

36Anbumani, V. and Ganesan, S. (1999) on the basis of census data of small scale food product industrial units of Coimbatore district, estimated CES production function with the objective to estimate substitution parameter, returns to scale and operational efficiency. Study reveals that out of 14 sub groups, most of the industrial units show increasing returns to scale and the result are statistically significant. Authors identify the reason for high capital output ratio as high capital intensity. Therefore, they have suggested the induction of more labour force to increase the capital productivity.

37Kaur (1999) in her "Operational Performance of State Financial Corporation (A case study of PFC)", carries out the study into two sections: growth of sanctions and disbursements, purpose-wise, organisation-wise and sector-wise analysis of assistance, has been made in section-I and operational performance of PFC has been evaluated from beneficiaries' view point in section-II of this study. It is observed from the study that the purposewise analysis of the assistance by the PFC reveals wide gaps. Rationalization, modernization and rehabilitation etc., have remained neglected inspite of the fact that these aspects of industrialization are very important in the changing economic scenario.

38Neelamegam and Inigo (1999) in their study discussed the financial aspects of the SSIs. Three districts of Tamil Nadu, SSIs are contributing in providing employment opportunities and increase in production. It has been found that managerial inefficiency is the most serious problem. The study made empirical analysis especially for textile & engineering goods industries and observed that mere recommendations and enactment of policies are not enough unless proper implementation is ensured. Therefore, Government should take necessary steps as it is highly desirable to tackle the problem.

39Agarwal (1999) mentioned that the entrepreneurs of small scale industries are generally lacking in knowledge of various aspects as how to set up an industry. Owing to the predominance of agricultural background of the region, the infrastructure for industrial development has not developed properly. Apart from lack of industrial tradition and managerial class, the state is handicapped by difficult terrain and disturbed socio-political conditions are also adversely affecting industrialization in the state.

40Rajendran (1999) made a study to examine the various kinds of assistance given to small scale industries with the prime objective of identifying institutional assistance for the development of small scale industries and the problems faced by these


10

industries in Tiruchirapalli district of Kerela. He concluded that the greatest problem faced by the small entrepreneurs was no availability of adequate financial assistance. Moreover, the small enterprises also face problems relating to the acquisition of raw material, marketing of products and technological and administrative problems. There were complicated procedures in availing loans from financial institutions and there is no coordination between the promotional institutions and government agencies.

41Ramesha (1999) discusses the state-wise variation in credit advancement to SSIs by Scheduled Commercial Banks (SCBs). Exponential Function has been used to estimate the compound growth rates while coefficient of variation for measuring disparity. The study reveals that credit advancement by commercial banks to the sector has increased over time. However, this growth does not match the needs of the sector. It further reveals that inter-state disparities would have been acceptable if these had been in accordance with the statewise contribution of SSI sector in the total output. But the study shows that major contributing states like Madhya Pradesh, Bihar and Orissa are credit strapped while Maharashtra, West Bengal, Karnatka and Punjab take away greater chunk of credit supply though their contribution in total output is comparatively low. These disparities need to be addressed.

42Dangwal and Negi (1999) in their paper examined the "institutional Finance and Industrialization (A case study of UPFC)". In this paper an attempt has been made to analyze critically the financial assistance sanctioned and disbursed by the Utter Pradesh Financial Corporation in its various financing schemes. The study reveals that the bulk of financial assistance has been sanction and disbursed by the UPFC to small scale in Industries. The study reveals that the total finance sanctioned showed an impressive rise but the magnitude of increase in disbursement was less pronounced.

43Kar (1999) discusses the problems faced by the SSIs and lending institutions, and make an attempt to find probable solutions in her empirical sample study of 106 small scale industries of Orissa. The study aims at assessing the repayment capacity of SSI units with the help of financial ratios, using a discriminant function, and on the basis of findings concludes that units with very high working capital-sales ratio are likely to fail. The author explains that overestimated sales and underestimated costs result in losses- and, therefore, many units fail to repay loans while some others have no intention to pay. The accumulation of expertise and experience in lending and further improved screening and effective supervision procedures can reduce the losses of the lending institutions to the SSIs.

44Mohanty and Kar (1999) in their paper try to analyse the impact of credit rationing undertaken by banks on the functioning of SSI units financed by them. The paper essentially confirms, on an empirical basis, that credit constraints from banks affect


11

the overall well being of the SSl units so financed. Investment in fixed assets without proportionate working capital provision adversely affects the functioning and profitability of the small units.

45Kumar, Sunil (2000) explore the effect of various variables in explaining the Inter-State differentials in total productivity growth of Indian Manufacturing sector. The industrially developed states experienced either a decline or a low growth in TFP during 1969-95. The deregulatory policy regime imparted a positive effect on the TFP growth at national and state levels during 1980s. The most recent phase of liberalisation since 1991 has failed to make any significant dent on TFP growth pattern of Indian manufacturing sector. Average Annual growth rate of TFP fell from 2.146 percent for pre-liberaiisation period to -.967 percent during liberalization period in the case of Haryana state while in the area of Punjab it has increased rapidly.

46Paul and Ramanathan (2000) in their paper examine the two main objectives, i.e., to trace out the sources of industrial finance in India and to analyse whether there is any structural shift in the industrial production as a result of economic reforms. The study is based on the secondary data, and to analyse the result,-a log-linear regression equation is estimated through Ordinary Least Square Method. From the estimated results of the regression equation, they conclude that the economic reforms have not brought spurt in industrial production. This calls for increased investment, which has to be focused for sustained growth in industrial sector. It also reveals that bank credit constitutes two thirds of the total credit to the industrial sector and still continues as an important source of finance for small scale industries.

47Prasad (2000) observed that the timely and adequate availability of credit is crucial input for all kinds of production including that by small scale enterprise. The right amount of financial assistance is a sine quo non for the growth of small scale enterprises.

48Kulkarni (2001) in his paper "Financial Structure for Backward Area Development" examines the credit flow of the financial institutions including the banking sectors. The study reveals that the three major financial development institutions viz, IDIBI, IFCI and ICICI are providing a major share of assistance for promotion and development of large and medium industries in specified backward areas, due to better infrastructural facilities available in the backward districts of the better developed states, viz Haryana, Punjab, Gujrat and Kerala etc. This study also reveals that during the last three decades or so, SFC's have contributed substantially to investment activity in the industrial sector especially the small scale sector.

49Kumar (2001) endeavours to analyse regional variations in technical efficiency of Indian manufacturing sector using the method of SFA. The results revealed wide variations in the technical efficiency of manufacturing sectors of different states. The


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highest level of technical efficiency has been observed in the manufacturing sector of Maharashtra. The states of Maharashtra, Karnataka, Gujarat and Haryana operate close to maximum technically feasible production levels since their manufacturing sectors have realised more than 90 percent of their technical potentials. In the remaining 11 states including the industrially developed states of West Bengal and Tamil Nadu, the level of technical efficiency has been observed to be less than 80 percent. It has been found that the mean technical efficiency for 15 states was 77 percent.

50Vasudeva (2001) discusses the role, challenges and opportunities for small scale sector under WTO regime. The small scale industry in India must brace itself for the challenges ahead or there will be dislocations in some of the highly protected sectors. The concern of the small sector enterprises development in India has generally been expressed in terms of parts rather than whole. Technology, credit, raw materials, etc. have often been highlighted as problem areas. It would not make any sense to continue with reservation of product lines alongside free imports. The government's continuous reluctance to do away with the reservation of items for SSI sector is unwarranted.

51 Eresi (2001) , in his empirical study through random sample survey of 70 SSIs in 14 categories of Bangalore tries to find out the causes of industrial sickness and industrial failure. Author discovers that personnel related problems constituted one of the important reasons for failure, while others being lack of managerial experience, financial inadequacy, marketing problems and so on. Survey reveals that 92 percent of the sample units did not have personnel departments.

52Choudhari (2002) with the help of two-digit and three digit level NIC fata for manufacturing sector, using deflation and estimation of fixed capital stock, focused on the impact of India's economic reforms on its industrial structure and productivity, the study reveals a disappointing overall performance of both growth of output and of employment. Author however, concludes that the situation is not the result of endogenous factors, but has arisen due to the framework of policies being followed under ongoing economic reforms. So the study suggests that efforts should be made to ensure that the demand is high enough for more output to be produced, more people to be employed and poverty to be reduced.

53Ganesan and Anbumani (2002) in their study examine growth, marginal productivities, marginal rate of substitution and factor substitution in small metal products industry in Coimbatore district. Estimation of Cobb-Douglas production function reveals that out of 17 categories of industries, 9 product groups were indicating increasing returns to scale and most of the industries were capital intensive in nature. But here it is to be noted that marginal productivity of labour was higher than capital and even then entrepreneurs were employing more capital.


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Authors find that labour is cheap but argue that its management is very costly. 54Kumar (2002) attempted to look into change in the growth patterns, levels of

efficiency and technological changes which textile industry observed overtime. The capital efficiency in the industry has been deteriorating overtime as is reflected by the rising capital output ratio. The textile industry continues to bear the pains encountered during the macro adjustment process which call for changes in product mix as well as organisation in the face of changing demand and supply factors in the domestic market in particular and international market in general.

55Rajesh and Duraisamy (2002) analyze the effect of economic reforms on Indian unorganized sector in general and on the manufacturing sector of Indian states in particular. The study identifies that one of the major problems confronting the Indian unorganized manufacturing sector is to increase the level of production through improvement in productivity, leaving the employment-generation capacity of the sector untouched. Further, in productivity growth and efficiency aspects, a wide gap is noticed across the Indian states. A subsequent regression shows that there is a tendency towards convergence in the productivity growth rate across the Indian states. It suggests that technological upgradation needs to be prioritized if the output of the unorganized sector has to be improved.

56Goel (2002) has diagnosed the problems of SSIs and talked about excellence models for management of SSIs in India. The products of the SSIs would be popular only if they satisfy the essential need of the customer (foreign as well as domestic) and is utilitarian. Glamour alone can not be a substitute for the basic requirements of Need, Affordability and Worth (NAW approach) of the product. To adopt and accept the normative approach to HRD in SSIs, it is essential to understand SIMPLE model of HRD consisting of six human development activities such as Spiritual development, Intuition development, Mental level development, Physical Development, Love-yourself attitude development and Emotional quotient (EQ) development.

57Jain (2004) analyses the growth of small scale sector, government policy towards small scale sector along with problems faced by them due to globalisation in the pre and postliberalisation periods. Since small scale industry constitutes a very important segment of Indian economy. New policy initiatives since 1991 by the government have caused a shift in focus from protection to promotion. In the post-reforms period the government has taken a number of steps including partial de-reservation, change in investment limits, and facilities for foreign participation, establishment of growth centers, marketing assistance and incentives for quality improvements. The study reveals that the problems of small scale sector are multi-dimensional especially in the liberalised environment.


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58Nikaido (2004) attempts to present some policy implications for the better development of small scale industrial sector which after the liberalisation of Indian economy in 1991, was recognised as a growth engine of the economy. The technical efficiency of this sector was measured by using a stochastic production frontier model. The industry state-wise data for industrial sector were drawn from the Second All India Census of small scale units. Variables such as production, employment, fixed investment, capacity utilisation and the number of units were utilised. It is observed that due to competition with large industries and foreign firms, small scale industry has not had the incentive to grow into larger units, and has therefore ignored the quality of its goods. Moreover, agglomeration of firms was found to be positively affecting the measure of technical efficiency, while the firm size had a negative effect on it. Thus, the supporting policy itself might have prevented the potential capacity and innovative nature of small scale industrial sector. It is suggested that for the promotion of clusters, the government needs to support infrastructure around clusters and technological upgrading.

59Bala Subrahmanya (2004) highlights the impact of globalization and domestic reforms on small-scale industries sector. The study states that small industry has suffered in terms of growth of units, employment, output and exports. The researcher highlights that the policy changes have also thrown open new opportunities and markets for the small-scale industries sector. He suggests that the focus must be turned to technology development and strengthening of financial infrastructure in order to make Indian small industry internationally competitive and contribute to national income and employment.

60Rajyalakshmi (2004) reviews the productivity awareness among small CL scale industrial units in Visakhapatnam district of Andhra Pradesh at micro level and explores how small scale entrepreneurs they measure productivity in their units. The study is based on primary data collected by using structured schedule through personal interviews. A sample of 200 small scale industrial units was selected for the study and found that chemical units were more capital intensive as compared to food and agro units. The study concludes that success in small industry will be best achieved if the productivity culture is clearly understood by all the employees.

61Latha (2005) highlights that small scale industrial sector has acquired a prominent place in the socio-economic development of the country during the last five decades. It has been assigned an important place commensurate with its potential for employment generation, dispersal of industry in rural areas and export promotion. To overcome the problems of small scale sector, government must provide additional facilities, schemes, incentives and encourage innovative activities of entrepreneurs for the development of this sector during the era of globalisation and competition.


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62Mahambare and Balasubramanyam (2005) analyse the impact of trade liberalisation on Indian manufacturing sector. The study evaluates the firm level technical efficiency in India since 1991 reforms by estimating Cobb-Douglas production function for thirteen manufacturing sectors. The study reveals the mixed impact of 1991 reforms on the selected manufacturing sector. Average technical efficiency of firms has increased in eight out of thirteen sectors studied. Improved access to imported technology in the post-reform period seems to have had a positive impact on efficiency. Although foreign owned firms continue to be the most-efficient, yet their advantage in technical efficiency seems to have declined in the late 1990's. Technology acquisition, efficient utilization of resources and infrastructure development are considered some of the factors which possibly contribute to the increase in total factor productivity growth.

63Kumar (2006) estimates the trends in growth of total factor productivity of Indian chemical industries at the sub sectoral level. The study covers the period of 22 years from 1980-81 to 2001-02. The total factor productivity growth (TFPG) is estimated using Translog model with three inputs, viz. labour (L), capital (K) and the intermediate inputs (R) raw material consumed. The factor productivity growth rates are computed for the five major sub sectors of Indian chemical industries. The results show that the impact of economic reforms on the productivity levels of an industry at the aggregate and sub-sectors level do vary significantly. While the net impact of the reforms process on total factor productivity growth was found to be poor at the aggregate level, the sectors: drugs and pharmaceutical, paints and varnishes, basic chemical and dyes and dyes stuff industries greatly benefited from the liberalization process.

64Mishra (2006) in his study highlights the working of small scale industries in Orissa during the years 1996-97, 1998-99 and 2003-04. The period witnessed policy changes at different levels, which might have affected the working of manufacturing sector in general and manufacturing small scale industrial units in particular. The study is based on two benchmark studies conducted on the performance of the small scale industrial manufacturing units in five small industrial clusters in Orissa. The performance of small scale industrial units has been assessed by fitting the Cobb-Douglas production function for four financial years. Most of the units taken were raw material intensive and a few labour intensive, depending upon the type of product categories. Further, it was observed that no significant growth took place in the factor productivity in any of the product categories over the two periods of time. The incidence of closure of these units in Orissa was found to be very high and the main reasons for the sickness and closure of small scale industries in the state were lack of demand, tax problem, competition in local markets, financial problems and attitude of the entrepreneurs.


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65Rathod (2007) evaluates the impact of globalisation on small scale industrial sector and finds that this sector has exhibited a striking export performance and shows that export has grown up-to double digits for the last ten years. The study concludes that both opportunities and challenges were raised as a result of globalisation on Indian Industry as a whole and the small scale sector in particular. Author suggests that there is need for simplified legal and regulatory framework, good governance, sufficient and accessible finance, suitable infrastructure and competitive environment for the development of this sector.

66Lozi (2008) examines the role of small scale industry in the economic development of Jordan and finds that growth of small scale industry in terms of employment, production and sales has increased due to globalisation and domestic liberalisation, but not as planned. Therefore, small scale industry should be encouraged to make a sustainable contribution to national income, employment and exports. Further, author makes some recommendations for the development of this sector; establishment of government centers in all districts of Jordan to provide the needed services and facilities to small scale industry. The author identifies marketing as one of the major problems of the small scale industries in Jordan.

67Suresh and Shashidhar (2009) have conducted a study which highlights the importance of small scale industries and its role in economic development in the era of economic reforms and observe that significant contribution has been by this sector in employment generation as well as rural industrialisation. It has also been noted that under the changing economic scenario, the small scale sector has the opportunities to explore through cost effectiveness, improving quality of the product and diversifying the production process. However, the challenges can be confronted by enhancing competitiveness at both intra- and international levels.

68Bargal et al. (2009) examined the causal relationship among the three variables GDP, SSI output and SSI exports and also have compared the performance parameters of SSIs in the pre and post-liberalization era. The study found that the annual average growth rate of different parameters of SSIs have declined in the period of nineties vis-a-vis the pre-reform years. There is an absence of any lead-lag causal relationship between exports and production in small-scale sector and GDP of Indian economy.

69Gupta (2009) has studied the future prospects of small scale industrial sector of Punjab by using Auto Regressive Integrated Moving Average (ARIMA) model through Box-Jenkins to generate forecasts regarding variables of small scale industrial sector of Punjab. He expects that the number of units and employment would probably grow at a slower pace as compared to investment and production. The forecasts have depicted a bright picture ahead but with low scope for


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employment opportunities. These forecasts can provide Government and policy makers a direction to design policies accordingly to push up growth in this sector. Further, author suggests that drastic changes are required so far as industrial policy of Punjab is concerned and Punjab government should announce package of incentives not only for existing industrialists but also for new venturists.

70Kumar (2009) in his study examines the growth pattern and productivity trends of small scale electrical machinery and parts industry in Punjab and finds that despite the introduction of liberal policies, the number of units, fixed capital investment, direct employment and production have failed to show encouraging results. A massive decline in CAGR of the liberalisation period was observed for a number of units and employment. Clear deceleration was noticed in the growth of the other two variables, production and fixed capital. Partial productivities of labour and capital have increased significantly, capital output ratio has fallen drastically and capital intensity has registered insignificant growth during the overall period of the study. Author suggests that the state administration should put in place a healthy, congenial and investment friendly policy and regulatory framework so that the small-scale sector in general, and the electrical machinery and parts industry in particular, may flourish in this fast changing competitive and globalised business environment.

71Bhavani T.A. (2010) highlights the issue of quality employment generation by the SSIs and negates the short term attitude of increasing the volume of employment generation compromising with quality. The author argues that employment generation by the SSIs may be high in quantitative term but very low in quality. Technological upgradation would enable the small firms to create quality employment improving remuneration, duration and skill. This structural shift may reduce the rate of employment generation in the short run but would ensure high-income employment generation in the long run.

72Arora (2010) examined capacity utilization, technical efficiency and total factor productivity growth in Indian sugar industry using the data for 31 years spanning over the period 1974-75 to 2004-05. The major cause observed for such amount of technical inefficiency is managerial technical inefficiency. The analysis of TFP growth reflects that the technical progress is major source of output growth in Indian sugar industry during the post-reforms period. The analysis of impact of economic reforms delineates a precipitous decline in capacity utilization and technical efficiency during the post-reform period in comparison to the pre-reform period.

73Sanchita (2010) observed that management problems and constraints experienced by women entrepreneurs in Small Scale industry of Haryana including lack of confidence, problems of finance, working capital, socio-cultural barriers, production problems and inefficient marketing arrangements. To solve the management


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problems of for women entrepreneurs in Haryana specially in Small Scale sectors, there is a strong case for simple and systematic procedures at all administrative levels for ensuring the planned benefits to the needy women entrepreneurs for optimal utilization without underutilization and wastage of scarce financial resources.

74Subrahmanya Bala (2011) has probed the impact of globalization on the exports potentials of the small enterprises. The study shows that share of SSI export in total export has increased in protection period but remain more or less stagnated during the liberalization period. However, the correlation co-efficient in liberalization period is higher than that of protection period suggesting that the relationship between the total export and SSI export has become stronger in liberalization period. Thus, the current policy of increasing competitiveness through infusion of improved technology, finance, and marketing techniques should be emphasized.

75Singh et al, (2012) analyzed the performance of Small scale industry in India and focused on policy changes which have opened new opportunities for this sector. Their study concluded that SSI sector has made good progress in terms of number of SSI units, production & employment levels. The study recommended the emergence of technology development and strengthening of financial infrastructure to boost SSI and to achieve growth target.

III. SMALL AND MEDIUM ENTERPRISES: 76Gibson & Wallschutzky (1992) interviewed 12 Australian SMEs concerning the

role of accounting information in their strategic and operational decision making, indicate that'also necessary is a greater understanding of the role of accounting information has in managing small organizations and its association with performance.

77Gupta (1996) examined the operational performance of HFC. This study reveals the fact that HFC is playing a vital role in financing and nurturing small and medium scale industrial units in all of the districts of the state, to remove regional imbalance in the industrial growth.

78Singh (1998) highlighted that the small scale enterprise is the seed of industrial growth and while process germinates in the small enterprises. This sector is the next only to agriculture in providing opportunities for gainful employment. Study also revealed that the small scale industries often provide the soil and opportunities for innovation, research and increasing efficient ways of doing business. According to the author, the empirical evidence of research studies and over all trends has repeatedly shown that the small scale industry is competitive on its own.

79Mali (1998) in his study has observed that small and medium enterprises (SMEs) and micro enterprises have to face increasing competition in the present scenario of


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globalization, they have to specifically improve themselves in the fields of management, marketing, product diversification, infrastructural development, technological up gradation. Moreover, new small and medium enterprises may have to move from slow growth area to the high growth area and they have to form strategic alliance with entrepreneurs of neighboring countries.

80Sengupta (1998) suggested that technology management be recognized and calls for its upgradation in the dynamic environment of global competition. The paper throws light on the technological developments taking place in different sectors like banking, information and telecommunications, manufacturing, etc. and reserves scope for further innovations. The author called for improving the price and quality management, especially among the Small and Medium Enterprises (SMEs) and further recommends that the importance of environmental sustainability in relation to the new technological innovations be not ignored.

81Ismail R. and Jajri (2001) study growth, total productivity and production function aspects of small and medium enterprises (SMEs) in the Malaysian manufacturing sector. Authors assert that SMEs play an important role in generating employment and supporting the large scale enterprises. In general, the results from the analysis in this paper reveal that SMEs have been benefited from technological progress by looking at their TFP except for some groups, where TFP is low. Further, among SMEs growth rate of output was found maximum in metal product industries and Cobb-Douglas production function estimates show that in most of the categories of SMEs, return to scale shows an increasing trend.

82Dasanayaka (2011) conducts a study pertaining to global challenges for SMEs in Sri Lanka and Pakistan in comparative perspectives and found that small and medium scale enterprises/industries (SMEs) function as a lifeline in informal sectors of Pakistan and Sri Lanka due to their immense contribution in areas such as employment generation, exports, equitable income distribution, social stability, efficient domestic resource usage and regional development. However, a large number of SMEs in both countries are struggling to survive in today's global competitive market. In spite of the various policy reforms, establishment of SME related apex bodies, incentives and assistance offered by the national governments in both the countries, SME sector has suffered on many fronts. Author suggests coherent policies and strategies to develop SME to their full potentials both in Sri Lanka and Pakistan under intense globalization move.

83Dixit and Pandey (2011) applied cointegration analysis to examine the causal relationship between SMEs output, exports, employment, number of SMEs and their fixed investment and India's GDP, total exports and employment (public and private) for the period 1973-74 to 2006-07. Their study revealed the positive


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causality between SMEs output and India's GDP. 84Venkatesh and Muthiah (2012) found that the role of small & medium enterprises

(SMEs) in the industrial sector is growing rapidly and they have become a thrust area for future growth. They emphasized that nurturing SME sector is essential for the economic well-being of the nation.

IV. MICRO, SMALL AND MEDIUM ENTERPRISES: 85Dinesha (2008) describes the importance of MSMEs and its contribution to social

and economic development objectives like labour absorption, income distribution, rural development, poverty eradication, regional balance and promotion of entrepreneurship. The main finding of the study is that industry and government agencies can play a significant role in educating small units about the changes in the business environment and the necessity of going in for technological upgradation to succeed in the era of globalization, liberalization, WTO regime, when the United States and European Union economies are slowing down. The Chinese economy is posing ever increasing competition.

86Sivalingam (2008) analyses the performance of micro and small enterprises in Tamilnadu for the period of 1991-92 to 2007-08 by applying regression model. The results based on the trend line show an annual average increase in MSME units, investment, employment and production. However, changes are visible in textile, leather and automobile sectors due to pressure of competition from domestic and international market. Further, analysis shows micro and small enterprises have recorded good performance, and are likely to meet the expectations of the planner in future as far as employment generation is concerned. Hence, the policy interventions should be based on support of infrastructure, direct catalytic subsidy, technical, information and marketing.

87Sonia and Kansai Rajeev (2009) studied the effects of globalization on Micro, Small and Medium Enterprises (MSMEs) during pre and post liberalization from 1973-74 to 2008-09. They used four economic parameters namely number of units, production, employment and export and interpreted study results based on Annual Average Growth Rate (AAGR) calculation. AAGR in pre liberalization period (1973-74 to 1989-90) was higher in all selected parameters than that of post liberalization period (1991-92 to 2007-08). They concluded that MSMEs failed to put up an impressive performance in post reform era.

Singh (2010)88 conducts a study of rail coach factory, Kapurthala and its micro, small and medium ancillary units in Punjab, and computes annual compound growth rate, using primary and secondary data and finds that Punjab's industrial scene is mainly dominated by MSME's working as ancillary units for various parent firms. RCF and its ancillary units have encouraged employment generation in Punjab.


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Further there is no significant wage difference between small and medium units but significant wage difference was between micro and small units on the one hand and between micro and medium units on the other. However, these entrepreneurs are not fully aware of the various forms of IPRS. Punjab government has taken various measures for the development of these units for multiple reasons like employment generation and promotion of entrepreneurship. The government of India is also contributing a great deal by dedicating it the rail coach factory to boost the economy of Punjab.

There is a strong case for continuous research on small scale sector including micro enterprises which is necessary for the implementation, monitoring and evaluation and calls for motivation to the researchers in India.

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INTRODUCTION

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. These products are purchased by the customers in small quantity as per the need of individual or family. These items are purchased repeatedly as these are daily use products. The price or value of the products is not very high. These products are having short life also. It may include perishable and non-perishable products, durable and non-durable goods. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between2004 and 2005. The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion.

Top Ten Companies of India in FMCG Sector

Personal care products encompasses personal hygiene products (deodorants, bath and shower products), hair care and skin care product segments. Besides, colour cosmetics and fragrances are also included in the personal care products category.


1Kiran Mor & Professor, Humanities & Social Sciences, NIT Kurukshetra

Research Scholar, NIT Kururkshetra

2Sulekha1

2

BRAND PREFERENCES FOR PERSONAL CARE PRODUCTS: A COMPARATIVE STUDY OF HUL AND ITC

Sr.No. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

29

The Indian economy, Asia's third-largest, has been growing briskly at above 8 percent for last couple of years. Indian cities dominate a new catalog of the world's fastest-growing 100 cities in terms of urbanization, with three cities in the top 10. In the context of the global scenario, despite the worldwide economic slump, the personal care market in India is one of the fastest-growing with a growth rate of 13 percent per annum and valued at USD 8.6 billion in 2010; personal care product market at USD 5.7 billion and wellness service market valued USD 2.9 billion in 2010. The sector is expected to reach USD 20.23 billion by 2017.The personal care industry is directly aligned with the population base. With the median age at 25 years, India is among the world’s youngest nations, as compared to 43 years in Japan and 36 years in the US. In addition, the country’s population base of 1.2 billion people is estimated to rise to 1.5 billion people by the end of 2030.It is clearly extracted from the discussion that India is a very potential market for personal care products. HUL and ITC both are trying to provide new and fresh brands to the market to attract consumers. ITC is steadily but slowly is entering in every segment of FMCG. Market analyst predicted that in the coming future ITC will surpass HUL.

Segment Wise Break – up of Indian FMCG Market

In the purchase of personal care products preferences of consumers plays an important role. Preferences are affected by psychographics, demographics and market mix for the brands. The preferences of personal care products are changing day by day due to availability of a number of brands in the market. Which brand is more preferred that will make more sale. The present study tries to compare the competing brands of HUL and ITC for their preferences among consumers. In order to compare the brand preferences for the competing brands or the brands of same segment eight brands are selected from hair care, skin care and body wash segments.

OBJECTIVES

1. To compare the brand preferences for brands of different segments in personal care sector offered by HUL and ITC.

2. To analyze gender discrimination for the preferences of personal care products

HYPOTHESES

H01: There is no significant difference between brand preferences for competing brands of HUL and ITC in hair care segment of personal care sector.

Hair Care

Skin Care

Bath & Shower

Colour Cosmetics

Fragrances

Brand Preferences For Personal Care Products: A Comparative Study of Hul And Itc

30

H02: There is no significant difference between brand preferences for competing brands of HUL and ITC in skin care segment of personal care sector.

H03: There is no significant difference between brand preferences for competing brands of HUL and ITC in body wash segment of personal care sector.

H04: There no significant difference between male and female for brand preferences for personal care products by HUL and ITC.

RESEARCH METHODOLOGY

The present study focus on the eight brands of different segments of personal care sector offered by HUL and ITC.

Brands in Hair Care Segments:

Brand of HUL: Dove Shampoo

Brand of ITC: Fiamma Di wills shampoo

Brands in Skin Care Segment:

HUL: Fair & Lovely

ITC: Vivel Active Fair

Brands in Body Wash Segment:

HUL: Lux, Dove Soap

ITC: Vivel, Fiamma Di Wills Gel Bar

Sampling Design:

The present study has been conducted in Haryana and for the purpose of the study the state of Haryana is divided into four zones which are represented by four destricts namely Panipat, Jind, Kurukshetra and Gurgaon. 400 consumers are selected to give their preferences for above stated brands with the help of multistage random sampling technique.

Tools and Techniques:

Z-test for independent proportion is used to find the differences in the different brands.

RESULTS AND FINDINGS

These hypotheses are tested using z-test for proportions and the results are presented as follows:

Kiran Mor & Sulekha

Fiamma di willsDove Shampoo Shampoo pc

0.3925 0.53 0.4613 p (as decimal)157/400 212/400 369/800 p (as fraction)

157. 212. 369. X400 400 800 N

Table 1.1: Z-Test for Two Independent Proportions of Dove Shampoo and Fiamma Di Wills Shampoo

31

Table 1.1 indicates that Z-statistics of 3.9 (p-value 0.0001) indicates that the two proportions differ significantly. Preference for fiamma di wills (0.53) was found to be significantly higher than that of dove shampoo (0.3925). It means that the brand of ITC is preferred more than that of HUL’s brand in hair care segment.

The table 1.2 depicts the results of z-test (0.14), p=0.8874 indicates that two proportions do no differ significantly. Preference for fair & lovely (0.522) is not significantly different from the preference of vivel active fair (0.517). Further analysis shows that the preferences of ITC’s brand are competing HUL’s Brand preference in the skin care segment.


-0.1375 difference0. hypothesized difference

0.0352 std. error-3.90 Z.0001 p-value (two-tailed)

Vivel ActiveFair & Lovely Fair pc


400 207. 416 X400 400 800 N


0.0353 std. error0.14 Z

.8874 p-value (two-tailed)

Table 1.2: Z-Test for Two Independent Proportions of Fair & Lovelyand Vivel Active Fair

Lux Vivel pc


138. 175. 313. X400 400 800 N

Table 1.3: Z-Test for Two Independent Proportions of Lux andVivel Soap

32

Table 1.3 discusses the difference of the proportions of the preferences of lux and vivel through z-test. It is observed from the above table that Z statistic (2.68) (p value =0.0074) means that the two proportions are significantly different as p value is less than 0.05. Preferences of viel (0.43) are significantly more than the preferences of lux (0.345). It means that vivel is beating lux in the body wash segment of personal care industry.

Table 1.4 analyzes the difference of the proportions of preference of dove soap and fiamma di wills soap. Z statistics of 6.73 (p <0.000) indicates that there is significant difference in the preference proportion of dove soap and fiamma di wills gel bar. It is clearly depicted from the above table that proportion of preference of fiamma di wills (0.64) is much more than the preferences proportion of dove soap (0.41). It means that ITC is doing well in the body wash segment also.

Gender Comparison of Each Brand:

Dove Fimma di wills pc


164. 259. 423 X400 400 800 N


0.0353 std. error-6.73 Z

1.71E-11 p-value (two-tailed)

Table 1.4: Z-Test for Two Independent Proportions of Dove Soap andFiammaDdi Wills Soap

Male Female pc


82. 75. 157. X217 183 400 N

Table 1.5: Z-Test for Two Independent Proportions of Male and Female Preferences for Dove Shampoo

Kiran Mor & Sulekha



33

Table 1.5 depicted that there is no difference between male and female for the preferences for dove shampoo. Z statistic of 0.65 (p= 0.5144) indicates that men and women are equally preferring dove shampoo.

The above table is showing that there is no significant difference in the preferences of male and female for the brand Fiamma di wills which is offered by ITC. Z test is not found significant as p value is not below 0.05.

The table 1.7 indicates that gender is not a base of formation of preferences for fair

Male Female pc


113. 99. 212. X217 183 400 N



Table 1.6: Z-Test for Two Independent Proportions of Male andPreferences for Fiamma Di Wills




Male Female pc


106. 103. 209 X217 183 400 N



Table 1.7: Z-Test for two Independent Proportions Of Male andPreferences for Fair * Lovely

34

and lovely which is skin care bran of HUL. Z test is not significant for the preferences proportions of male and female.

The above table is showing that male and female prefer in the same way as p value is not significant. It means gender differences are not there in brand preferences for vivel active fair offered by ITC.

The above table is showing that there is no significant difference of male and female in the preferences for Lux. Male and female both prefer the product as p value is not below 0.05.

Male Female pc


111 96. 207 X217 183 400 N



Table 1.8: Z-Test for Two Independent Proportions of Male andFemale Preferences for Vivel Active Fair

Male Female pc


67. 71. 138 X

Table 1.9: Z-Test for Two Independent Proportions of Male andFemale Preferences for Lux

217 183 400 N



Kiran Mor & Sulekha

35

The table 1.10 shows that dove is also not found significantly different in the preferences of male and female as p value is not below 0.05.

The table 1.11 depicts that vivel , a brand of ITC is also not preferred differently by male and females as z-test is not found significant. Vivel is not gender specific and this is clearly shown in the above table.

Male Female pc


93. 71. 164. X217 183 400 N

0.0406 difference0. hypothesized difference

0.0494 std. error0.82 Z


Table 1.10: Z-Test for Two Independent Proportions of Male and FemalePreferences for Dove

Male Female pc


98. 77 175 X217 183 400 N


0.0498 std. error0.62 Z


Table 1.11: Z-Test for Two Independent Proportions of Male and FemalePreferences for Vival


36

Above tables of Z-test for two independent proportions for different brands are showing that male and female are not significantly different from each other in the preferences. As p value is more than 0.05 in each of the brands offered by HUL and ITC.

CONCLUSION

The above analysis has clearly indicated that HUL and ITC are performing in the personal care sector and ITC is preferred more than the HUL. In the hair care segment and body wash segment, HUL is facing a heavy competition as consumers are always willing to try something new and fresh. No doubt, HUL is still a leader in the market but the state like Haryana is showing drastic change in the preferences of consumers. Gender is one of the favorite basis of differentiation in FMCG companies and female are more focused by such companies. But this study wipe out this misconception because male and female are found to prefer personal care brands equally or they are significantly different from each other. It is clear now that HUL has to listen the alarming bell given by ITC. If strict marketing techniques are not done, then HUL can lose its leadership in the coming future. Gender is also found a very weak base of discrimination of consumers for personal care products

REFERENCES

Subhash Lonial, Dennis Menezes, and Selim Zaim (2000), “Identifying the Purchase Driving Attributes and Market Segments for PCs Using Conjoint and Cluster Analysis”, Journal of Economic and Social Research, Vol.2, No.2, Pages: 19-37.

Dolnicar S, Freitag R. and Randle M.(2005), “To Segment or Not to Segment? An

Male Female pc


142 117. 259 X21217 183 400 N


0.0479 std. error0.31 Z


Table 1.12: Z-Test for Two Independent Proportions of Male and FemalePreferences for Fiamma Di Wills Gel Bar

Kiran Mor & Sulekha

37

Investigation of Segmentation Strategy Success Under Varying Market Conditions”, Australasian Marketing Journal, Vol. 13, No. 1, Pages: 20-35.

Eva K. Foedermayra and Adamantios Diamantopoulos (2007), “Exploring the Construct of Segmentation Effectiveness: Insights from International Companies and Experts”, Journal of Strategic Marketing, Vol. 16, No. 2, Pages: 129–156.

D.M. Sezhiyan (2010), “Assessing the Stability of Market Segment – A Fuzzy Clustering Approach, IIMS Journal of Management Science, Vol. 1, No. 2, Pages:129-137.

Amandeep singh (2010), “Market Segmentation in FMCG: Time to Drive New Basis for Market Segmentation”, International Journal of Research in Commerce and Management, Vol.1, no. 8. Pages: 140-145.

Dr. Bernadette D’silva, Dr. Stephen D’silva and Roshni Subodhkumar Bhuptani (2010), “Positioning Strategies in Indian Supermarkets: An Empirical Study”, Far East Journal of Psychology and Business, Vol. 1, No. 1, Pages: 32-49.

Anupam Jain and Meenakshi Sharma (2012), “Brand Awareness and Customer Preferences for FMCG Products in Rural Market: An Empirical Study on the Rural Market of Garhwal Region”, VSRD International Journal of Business and Management, Vol. 2, No. 8, Pages: 434-443.



ECONOMICS OF ENTREPRENEURSHIP

Trisha Jolly Assistant Professor, Janki Devi Memorial College, University of Delhi, Delhi

1. INTRODUCTION

1.1 CONCEPT OF AN ENTREPRENEUR

An entrepreneur may be identified as “the one who undertakes a venture, organizes it, raises capital to finance it and assumes all or a major portion of the risk”. An entrepreneur is the one to conceive an idea of a product in order to supply it to the market place. He may either innovate to give birth to new business venture or work to improve the existing ones. Thus, an entrepreneur may be considered as a risk-taker, a resource assembler, an innovator and an organisation-builder all combined into one.

An American expert on Management, Gifford Pinchot III, wrote his famous book Intrapreneuring in 1985. In this book, he refers an ‘Intrapreneur’ to the person who actually works as the senior manager functions like an entrepreneur within his company. For instance, USA’s IBM (International Business Machines) has created Independent Business Units (IBUs) each headed and operated by a top ranking executive.

Hence, we may now identify an intrapreneur or internal corporate intrapreneur or corporateur as a person in an existing company who looks out for potential new markets, mobilize resources to capture attractive opportunities and undertake production and sales. He may also be called as “intrapreneur starting a new business venture within the existing company.”

An intrapreneur is different from an entrepreneur in two ways. First, an entrepreneur starts a new business unit while an intrapreneur operates within the existing unit. Second, an entrepreneur has to identify and arrange for all the resources to undertake production while an intrapreneur may just supervise or direct the acquisition of resources.

1.2 ELEMENTS OF ENTREPRENEURSHIP

The word Entrepreneurship derives its origin from a French term ‘entrepreneur’ meaning ‘to undertake’, ‘to pursue opportunities’, and ‘to fulfil needs and wants’ of people through innovation and setting up a business. An entrepreneur is the one to undertake all these activities. He assumes the responsibility to organize it, raise the capital to finance it and to undertake all the risks attached to it. Hence, entrepreneurship may be summarized as a process of giving birth to new business

39

through innovation and creativity.

1.3 FEATURES OF ENTREPRENEURSHIP

The main features of Entrepreneurship may be outlined as below:

¤Economic Activity: Considering all entrepreneurs engage themselves in creation and operation of a business enterprise, the nature of the activity becomes necessarily economic. The primary task performed by every entrepreneur includes production and distribution of goods and services. Hence, entrepreneurial activities results in creation of value or wealth.

¤Purposeful Activity: In order to earn profits, every entrepreneur charter himself or the group of individuals involved in production and distribution of goods and services in a systematic, step-by-step way. Hence, each entrepreneur undertakes a goal-oriented, purposeful activity.

¤Creative Activity: As we already understood by now that each entrepreneur provides a creative or innovative solution to available business opportunity. Hence, we may also characterize an entrepreneur as an agent to bring about a change in the market.

¤Risk Taking: There is an element of uncertainty involved in entrepreneurship. Therefore, risk is an inherent and inseparable aspect of entrepreneurship. Each enterprise is established to earn profits, but there are equal chances of incurring losses as well.

¤Dynamic Function: Entrepreneurs thrive on the changing environment which brings in new opportunities for business. Flexibility is the hallmark of a successful entrepreneur.

¤Organizing Function: Each entrepreneur not only conceives a business idea but also arranges for all the factors of production and distribution required i.e. land, labour and capital. Other facets of entrepreneurship are managerial skills and leadership.

¤Gap-Filling Function: Entrepreneur takes up the job of meeting human needs with that of products and services required to satisfy them. He is the one responsible to understand and identify this gap or business opportunity and bridge them by taking requisite steps. He introduces new products and services, new methods of production or distribution, new sources of inputs and new markets. Hence, entrepreneurship can be regarded as a multi-dimensional concept and may be understood as both science as well as art. There are very few principles that apply to the creation and running of business enterprises. The environment in which entrepreneurs operate is very heterogeneous and dynamic.

Economics of Entrepreneurship

40

Success of an entrepreneur depends upon his ability to visualize the future correctly to take effective measures to exploit the environmental changes.

1.4 ROLE OF SMALL ENTERPRISES IN AN ECONOMY

Developing countries may witness rapid pace of industrialisation by focusing on the small-scale sector. Countries with scarce capital and large number of labours, like India may derive special benefits from less capital intensive and high employment generating potential of the sector. Besides, the sector leads to widespread dispersal of industries because of the inbuilt location flexibility. Also, the sector mobilizes the indigenous entrepreneurship and savings lying dormant, particularly in semi-urban and rural areas.

The sector rests high potential for employment generation, dispersal of industries, promoting entrepreneurship and earning foreign exchange for the country. The following points will bring out the importance of small business units in any country.

(i) Small is Beautiful: E.F. Schumpeter said, “Small is Beautiful”. He maintains that man’s current pursuit of profit and progress, which promotes giant organisations and increased specialization, has in fact resulted in gross inefficiency, environment pollution and inhuman working conditions. Schumacher emphasis on small working units, communal ownership, and religious workplaces utilizing local labour and resources. For him, emphasis should be on person and not on product.

(ii) Innovative and Productive: Even though small units do not maintain their own research and development department, they are to the ones to introduce high level of innovative elements in the markets “….a disproportionate share of innovation success in business seems to come from ‘skunk works’, tiny groups that tend to outperform the much larger labs that often have a cast of hundreds.”

(iii) Individual Tastes, Fashions and Personalized Service: Small firms quickly alter their production process and production in line with changing tastes and fashions of consumers.

Small firms are found to have an upper hand in industries that calls for personalized service, attention to details and flexible structure which is adaptive to changing business and technological environment. For instance, garments and television industry have seen large number of small units which deliver better results than those of having large organisational set up which becomes rigid to modify with changing patterns. A garment exporter says, “…the garment business is personalized, oriented to changing fashions and has to be tightly controlled. Professional management does not have motivation for all this. And most people in the electronic business agree that big firms have so far has limited success because of their lack of flexibility”.

Trisha Jolly

41

(iv) Symbols of National Identity: Small business, in general are found to have a local ownership and control. In a way, they work to strengthen extended family and other social systems and cultural traditions which are seized to be valuable in their own right as well as symbols of national identity.

(v) Happier in Work: Small enterprises introduce an element of belongingness to the workers. This makes them happier to associate themselves with the unit inspite of lower wages and poor standards of safety, comfort and welfare activities.

(vi) Always Winners of the Game: Last decade of business boom in India has witnessed small businessmen and new entrepreneurs as fore runners in every field including computers, television sets, consumer electronics, garments, diamond exports and advertising. Large industrial houses have also faced strenuous conditions due to the aggressive nature displayed by these units in seizing business opportunities and catering markets.

(vii) Wide Dispersal: Small scale units have shown tendencies to disperse over wide areas. According to Second All-India census of small scale units, 62.19 per cent of the units are located in backward areas.

Small scale industrial units are of special importance in developing countries because of their ability to provide immediate large scale employment with higher labour-capital ratio. Also, these units offer a series of additional advantages which make them more economic in countries with scarce capital and operating at lower level of growth and development. These include shorter gestation period, smaller reach to markets, lower level of investment, and others. Since these units are small in size and dispersed over a larger geographical area, they offer an equitable distribution of national income and more effective mobilization of resources like capital and skills which would have left untapped without operation of these decentralized business units.

2. ECONOMICS OF ENTREPRENEURSHIP

Economics of entrepreneurship is a study of the entrepreneurs and entrepreneurship within an economy. A country rich in natural resources and other factors of production is not guaranteed growth and development. It is the human effort, creativity and innovation that is essential to put these inputs to a productive use. Hence, an institutional environment that encourages free entrepreneurship becomes the ultimate determinant of economic growth. Earlier economists did not consider the contribution of entrepreneurs while explaining development of a country. However, modern economists have realised the true worth and has made it a cynosure while analysing economic development.

Entrepreneurship is a multi-disciplinary concept. Each entrepreneur has its unique

Economics of Entrepreneurship

42

way of carrying out his business. Hence, all the researchers in the discipline believe that there is no monopoly of acumen of what entrepreneurship is, or how the moguls behave.

2.1 QUESTIONS ASKED IN ECONOMICS OF ENTREPRENEURSHIP

¤What is role of innovation and creativity in an enterprise?

¤Are small entrepreneurial units more innovative than that of larger counterparts?

¤What is the employment generation capacity of the entrepreneurs?

¤Are small units more efficient than the large ones?

¤What role does Government play in assisting the small scale units in a country?

¤Why are women and people from rural and semi-urban areas more engaged in the sector?

¤What are the kinds of entrepreneurial ventures likely to grow in India?

¤What role does culture play in entrepreneurial activities?

¤Are enterprises good or bad for an economy?

These are some of the questions addressed in the course of this article based on my understanding of economics and data available at my disposal to support them.

2.2 R E C O G N I Z E D M O D E L S I N T H E E C O N O M I C S O F

ENTREPRENEURSHIP

Some of the authorized models used to carry out research work in economics of entrepreneurship have been briefly explained below. These models are indispensible for our understanding of economics behind entrepreneurial sector as they lay theoretical foundations for the questions posed in the previous section.

¤OCCUPATIONAL CHOICE UNDER UNCERTAINTY

The model describes the pattern of occupation in a society. Each individual in a society is born with varied characteristics. Everyone cannot set up its own business unit. Those who possess distinct capabilities than the others land up establishing a unit for them. Others choose alternative occupation, generally a paid employment or safe investment. Entrepreneurship as an occupational choice has its roots in two classical occupational choice models: Lucas (1978) and Kihlstrom and Laffont (1979). Lucas is of the view that individuals in the society are born with congenital capabilities which are continuously distributed among workforce. All the agents maximize their utility and form a hierarchical structure. The most able become entrepreneurs coming down to a ‘marginal entrepreneurs’ who is just indifferent between becoming an entrepreneur or taking up paid employment. Lucas also elaborated that the people with highest abilities run largest business units and the ones with lower capabilities own small ones. These entrepreneurs hire labor to clear

Trisha Jolly

43

labor markets and borrow from the capital markets to regulate rate of interest. This mechanism brings simultaneous equilibrium in product and factor markets. The model proposed by Lucas is a foundation stone for various other occupational models. (See Parker, 2004, Ch-2 for an overview)

Besides, Lucas model also explains the mechanism of capital formation, accumulation and mobilisation in order to bring economic development in a country.

The next classical occupational model was given by Kilhstrom and Laffont (1979) based on Knight’s penentration (1921) which shows entrepreneurship as an occupational option of as a trade off between risk and return. According to his theory, people in society have difference in their behaviour towards risk. The risk lovers choose to become entrepreneurs and own large organisations and the ones who are reluctant to take risk land up taking secured jobs. Kilhstrom and Laffont also discuss about the loss in social welfare due to insufficient distribution of risk in society resulting in small number of entrepreneurs (risk lovers) and large number of employees (risk averse). Glossman (1984) advocated a solution to this problem in the form of risk- sharing mechanism.

Parker (1996) elaborated on the concept and devised a time sharing mechanism in order to analyse how income risk itself affects the decisions to become an entrepreneur. He stated that individuals can mix other occupations with that of entrepreneurial experience. Once the income is assured from alternative options, the focus may be shifted completely on entrepreneurial activity.

¤CREDIT RATIONING, EFFICIENT INVESTMENT, ENTRE-

PRENEURSHIP AND PUBLIC POLICY.

The three important models namely Stiglitz and Weiss (1981), de Meza and Webb (1987) and Evans and Jovanovic (1989) have laid institution for our understanding of credit rationing for a business unit.

The first two models viz. Stiglitz and Weiss (1981) and de Meza and Webb (1987) are based on credit offerings in case of asymmetric information. Here, the project manager has better knowledge about his product than that of the Bank. Hence, the bank offers the same pool of collective debts terms and conditions to all its applicants. However, the two models differ in their heterogeneity in asymmetry of information.

Sliglitz and Weiss observe the heterogeneity in terms of riskiness of the project which cannot be assured at the time of loan extension. Hence, the rate of interest is kept below the market clearing level in order to increase the pool of borrowers and ration the credit. This is famously known as ‘credit rationing’. As a result of this credit rationing, banks tend to under invest in entrepreneurial activity from social welfare point of view.

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In contrast to this, de Meza and Webb based the heterogeneity in loan seekers on the profit making ability. The banks can not differentiate between the entrepreneurs with better capabilities and the ones with lower and hence, offer a common rate of interest. This leads to over-investment by banks as opposed to credit rationing. The social welfare can be maximised if the entrepreneurs with least ability are discouraged from undertaking a project.

Evans and Jovanovic (1989) developed the third model for borrowing restrictions which limits the entrepreneur credit raising power by their wealth. The model lacks intellectual base and is hence not applauded much.

¤INNOVATION

The importance of the entrepreneurs was explicitly elaborated by Schumpeter in his theory of capital formation which kept innovation as a centre stage for economic development. He recognized entrepreneurs as the risk bearer, innovator and a coordinator cum manager. He stated that ‘whatever the type, everyone is entrepreneur only when he actually carries out a new combination and loses that character as soon as he has built up his business, when he settles to running it as other people run their business.’ The focus here is not category of persons but on a function.

The entrepreneur has been perceived as someone who disrupts an existing equilibrium. Innovation is chaotic, unpredictable economic progress, which cannot be modelled using the equilibrium based on analytical methods used in mainstream economic theory. Challenging ‘fundamental principles’ like equilibrium models, rational agent, maximising paradigm, the traditional production function, by applying insights from other disciplines like thermodynamics might be the way forward in the study of entrepreneurial economics.

There are also some econometric models which caters to the needs of the economics of entrepreneurship such as discrete choice models, sample selection (Heckman) models, Hazard Models, cointegration estimators for time series entrepreneurship data, decomposition techniques, earning functions, IV estimation and quantile regression.

2.3 QUESTIONS RELATED TO ECONOMICS OF ENTREPRENEURSHIP

¤WHAT IS THE ROLE OF INNOVATION AND CREATIVITY IN AN

ENTREPRENEURIAL UNIT?

The terms “creativity” and “innovation” traditionally referred to different spheres of social life: creativity was primarily associated with activities of arts, while innovation was linked to scientific discoveries or technological advances. Creativity, on one hand made them think of new products and technologies. The distinction

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between the two is further made clear by the link between technological innovation and economic productivity. Creative arts were considered socially valuable but nonetheless “non-productive labour”. As a result, creative arts were sustained by government welfare in the form of grants, subsidies or special funds, whereas science and technology received both public funding and private investment.

With changing marketing conditions, the situation in regard to creativity and innovation changed dramatically. “Creativity” is now increasingly twinned of the main reasons for the changed perspective on the linkage between innovation and creativity is the decline of industrial economy worldwide. This leads to creation of another nomenclature called “knowledge economy” or the “creative class” who became the drivers of growth in the economy. The creative sector in this regard may refer to “advertising, architecture, the arts and antique market design, design fashion, film, interactive leisure software, music, the performing arts, publishing, software and computer services, television and radio.”

With increased level of competition in the market, the key to competitiveness no longer lies in re-applying past successes. The business case for more creative and innovative strategic planning is now firmly accepted. It is only through careful management and evaluation that creative ideas get translated to innovative practice. A study reveals that firms engaging in innovation that are able to differentiate their products and services with that of its competitors are able to earn as large as twice the profits of its rivals. Furthermore, engaging employees in new ideas encourages commitment to business and higher levels of interest in successful implementation of the ideas.

The management of innovation is inherently risky and difficult as many technologies fail to be translated into products and services and may not become a commercial success. Innovation can enhance competitiveness but requires different sets of management knowledge and skills from those of everyday business administration.

Innovation is “the successful exploitation of new ideas”; the successful application of knowledge or techniques in new ways or for new purposes. It is also about organising a business to exploit new opportunities profitability. It is for all business: high technology or not. Innovation involves an attitude of mind that is always seeking to improve, responds to customer needs, aims to get ahead of competition and stay there. Innovation is the key business process that enables the businesses to compete effectively in the increasingly competitive global environment.

¤ARE SMALL ENTREPRENEURIAL UNITS MORE INNOVATIVE

THAN THAT OF LARGE COUNTERPARTS?

The classical economist Schumpeter elaborated the role of innovation for any business unit and hence developing the economy as a whole. Adding to this, the


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smaller units are observed to display higher degree of innovation than their large correlatives.

However, measuring the degree of creativity and innovation at a firm or industry level is not plain-seeking (Acs and Audretsch, 2003). Acs and Audretsch argued that peer-reviewed “important” technological changes and innovations are probably better measures of innovation than research & development and patents. Mark Hopkinson remarked that “most big companies…rely for their tech pipeline of new products on the innovation that comes from small business, acquiring companies, products or rights to market as their lifetime to continued survival”.

Relating these facts to India, a significant amount of foreign exchange inflow is observe from the handicrafts, textile, glass works, leather products, gems and jewellery which were originally started by petty artisans in the rural sector but later taken on a magnificent scale of production. Even now, about 80 per cent of the labor force in some areas of Gujarat, Rajasthan and Punjab earn their livelihood from their creativity in the related fields. If one goes on excursion to find such budding talents across the length and breadth of the country, the data revealed would surely be mesmerizing. This is an enough instance to show that creative talents of small units are much better than that of their large parallels. Rather, they lay foundation stones for some of them.

¤WHAT IS THE EMPLOYMENT GENERATION CAPACITY OF THE

SMALL ENTERPRISES?

One of the most applauded feature of existence of small enterprises in an economy is its immense employment generation capacity which is helpful is serving the unemployment problems in many countries.

Surprising figures may be witnessed on studying the data trends in the economic surveys published by Government of India on the production capacity and unemployment generation of the SSI.

There were about 109.5 lakh units in SSI sector in 2002-03. It comprised about 16 lakh registered and 93.5 lakh unregistered units. The number of units in the sector increased to 133.68 lakh by 2007-08. The output from the sector saw an increase to Rs 532979 crore from just Rs. 306771 crore during the same period. The output in the sector grew at a rate more than 12 per cent in 2005-06, 2006-07 and 2007-08. As per fourth census of SSI units conducted in 2006-07, which included the information on medium enterprises, “There were about 260 lakh Medium, Small and Micro Enterprises (MSMEs) in the country and contribute about 8 per cent of GDP and about 45 per cent of the manufactured output.”

There were about 263.7 lakh people employed in the SSI sector in 2002-03. This number shot up to 322.28 lakh in 2007-08. However, the number jumps to 600 lakh if

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people employed in MSME sector are also included in it. This means, about four-fifth of the total employment in the manufacturing sector is due to small scale industries. To shaft the chronic problem of unemployment in India, development of small scale and cottage industry is mandatory. This is clear from the fact that while employment in factory sector as a whole (large scale, medium scale and small scale) increased by only 2.21 per cent per annum over the period 1972 to 1987-88, employment in small sector grew at the rate of 5.45 per cent per annum. Focusing on the future prospects of the sector, about 22 per cent of rural non-farm employment can play a significant role in further expansion of employment opportunities in the country. An important constituent of this sector is the manufacturing activity consisting mainly of textile based and agro based products and units producing construction materials. In the urban areas, employment potential seems to be the largest in the non-household, tiny sector segment. Overall, it has been estimated that labor intensity in the micro and small enterprises sector is almost four times higher than the large enterprises.

¤ARE SMALL UNITS MORE EFFICIENT THAN THE LARGE ONES?

There has been an ongoing debate on the level of efficiency in small scale industries vis-à-vis large industries in India. While some of the studies point small scale industries to be more efficient, the others are in favour of large scale ones. Dhar and Lydall were one of the earliest researchers to study the relative trends in efficiency of small scale industries. They were of view that modern small scale industries in India were fairly capital intensive. Hence, these units do not generate more employment per unit of capital than large scale industry. Other researchers also concluded similar results wherein they observed that with a given level of investment, small scale units neither produced more output nor generated more employment when compared to the large units. Even some of the studies concluded that small industries operated at low level of labour productivity, high capital productivity, low capital intensity and low total factor productivity. Hence, it may be inferred that small scale units are inefficient relative to large sector in numerous industries.

However, there were some studies which rejected the proposition that large scale industrial units are more efficient than the small ones. For instance, Ramsinh K. Asher based his research on the data presented by Annual Survey of Industries for 1960, 1963, 1964 and 1965. The conclusion of his research showed small scale industrial units to be more efficient than that of large scale units. He depicted the small scale factory combined the largest number of workers with a rupee’s worth of fixed capital; that a rupee worth of fixed investment in small factories was at least three times as large as that for a large factory. Also, another study conducted by IDBI in 1999 revealed that the small scale sector contributed about 35-40 per cent of the total employment in industrial sector by investing only 15 to 20 per cent of the total


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manufacturing sector’s capital. However, in the period 1980-81 to 1994-95, labour productivity was revealed higher in larger sector and capital productivity was higher in the small scale. As per the study, “the estimated relative total factor productivity based on a trans-log production function of small scale industries during the period 1980-81 to 1994-95 is greater than one in all years excepting 1987-88 when it was 0.53 suggesting that All India level, the small scale sector is more efficient that the large scale sector.

Employment generation is another important aspect that needs attention in the labor abundant country like India. According to Fourth All India Census of Small Scale Industries, 2006-07, small scale sector is a better employment generating sector in the country. It generated about 23.43 lakh employments against 0.20 in large manufacturing sector on undertaking investment worth one lakh. In simple language, it means that the large sector requires an investment worth Rs. 5 lakh to employ an individual. However, the small sector will be able to accommodate about 7 people with the same level of investment.

• WHAT ROLE DOES THE GOVERNMENT PLAY IN ASSISTING THE

SMALL SCALE UNITS IN A COUNTRY?

Small enterprises often posses the vision to create wonders but, they lack resources to implement it. In such cases, governments of various countries extend help to these budding businesses to grow and expand in the markets.

Building upon the problems faced by units in the small scale sector, the Government of India undertook certain measures to assist these units. These measures may be understood in two broad heads, viz., Institutional structures and Assistance programmes.

A. Institutional Structures

It is the responsibility of the state to provide for development in small scale industries sector. The nodal agency for implementation of various assistance programmes for SSI sector is the State Director of Industries. It is the director who undertakes measures for development of the sector through his team of regional and district officers. Alongside, a range of central and state level institutions also work to look into different aspects of developmental programmes.

The central Ministry of Industry appoints the Development Commissioner (Small Scale Industries), who heads the Small Industries Development Organisation (SIDO) to formulate policies, coordinate and monitor the development of SSIs. It also seeks to provide technical, economic and management consultancy services to small entrepreneurs through a network of 27 small industries, service institutes (SISIs), 31 branch institutes, 37 extension centres, 18 field testing centres and a

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number of training and production centres. The National Small Industries Corporation (NSIC) is another central agency which basically works to provide machinery to small enterprises on a hire-purchase basis. It also promotes schemes to supply raw materials and components to small enterprises besides assisting them in marketing their products. State governments have also set up their own State Industries Corporations in order to provide for development of the sector. Various All India and State level institutions like All India Handloom Board, the Khadi and Village Industries Commission, the (Central) Handlooms and Handicrafts Board, the Central Sick Board and the Coir Board, etc. have been set up primarily to target cottage and traditional industries.

B. Assistance Programmes

There are various assistance programmes that have been initiated to develop SSI sector by Government both at Central and State levels. These programmes include both positive and negative measures.

Positive Measures

(i) Technical Assistance: There is a big room created for Government’s assistance in terms of technology and management for small scale sector on account of inadequate managerial and technical expertise inbuilt in them. Technical assistance to these units thus, involve identification of new lines of production, provision of operational schemes indicating therein the details of production techniques and equipment required, assistance to plant and machinery installation and timely solution for various production problems. Besides performing these extensive tasks, institutes set up especially for development of small scale sector also organise common workshops and prototype and production centres to undertake specific manufacturing processes and production of prototypes and machine tools, respectively for the small scale industries. Training programmes are also conducted for entrepreneurs, managers and workers. In 1993, a scheme covering three major areas was introduced in order to promote the adoption of clean technology by small firms. The areas covered under the scheme were: reduction of waste and pollution from manufacturing process; recycling; collection, shortage and processing of industrial and household wastes for re-use, and effluent treatment and disposal. Another project was undertaken by United Nations Industrial Development Organization on smaller lines. This primarily focused at reducing the colossal amount of waste generated by small scale industries. In order to improve upon the standards of quality of SSI products, a quality certification scheme was introduced in 1994. SSI units, under the scheme were granted assistance through financial support and awareness programmes on account of acquiring ISO 9000 or similar international certifications.


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Specialized institutions and commodity boards provided assistance in technology in terms of design development and improved production methods to traditional cottage industries. KVIC also conducted special training programmes for supervisor, manager, technicians and artisans in khadi and village industries. Similarly, artisans in handicraft, sericulture and coir sector also attended such training workshops. The Council for Development of Rural Technology (CART)-now renamed as CAPART (Council for People’s Action and Development of Rural Technology)- acts as a nodal point for coordination of all efforts for dissemination of technology relevant for rural areas.

(ii) Physical Facilities: Small scale entrepreneurs receive developed basic infrastructure facilities such as power, water, transport, etc. through the Industrial Estate Programme which initiated its operation in 1955. The main objective of the programme is to promote industrialization in backward areas and to provide the benefits of economics of scale to industries in production process. A scheme to provide assistance for developing industrial areas has also been introduced by SIDBI. The scheme works for extending assistance to bodies working to develop SSI sector such as State Small Industries Developing Corporations, State Infrastructure Development Corporations, etc. Schemes to develop backward areas will be accorded priority in the programme. NABARD also launched a District Rural Industries Project in Mid 1993. The Project envisaged creating an environment and infrastructure conducive to increased production and opportunities for income generation by establishing commercially viable units in the rural sector. Alongside, about 1000 rural technology parks were developed to provide for infrastructure development in village through a mega plan.

(iii) Financial Assistance: It is difficult for firms operating on small scale to raise loans from markets. Also, these units are generally constrained with limited capital. Understanding the difficulties faced by the sector, Government has accorded priority to the sector in extending credit by financial institutions.

Learning from the experience of reluctant attitude of commercial banks to provide credit to small entrepreneurs, the loans provided by banks to State Industrial financial corporations is also included in priority credit. The financial corporations use these funds to extend credit to unit in SSI sector. Also, commercial banks have been motivated to provide for medium term loans to these units in order to meet their working capital needs. The loans to the sector through commercial banks are provided at concessional rates. Hence, a polity of differential rates of interest has been adopted by commercial banks.

Most of the financial needs of cottage and village industrial sector are fulfilled through budgetary resource from the government. These resources from the

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government are channelized through the specialized institutions developed to promote specific industries. The Reserve Bank, through its cooperative banking system also provides credit to handlooms and other traditional industries.

Small Industries Development Bank of India, SIDBI was set up in 1990 in order to promote, finance development of industries in small sector, and coordinate the functions of institutions engaged in promoting small units. It is an apex All India financial institution with its 25 offices in different states. The equity worth of the institution at the time of its introduction was about Rs. 250 crore.

(iv) Supply of Raw Material: Units in the SSI sector are constrained with unavailability of raw materials to undertake productive activities. To help the sector on this front, the State Small Scale Industries Corporations have been delegated the responsibility to distribute the scarce raw materials in different parts in each state. However, the system brought with itself the inbuilt limitation to accord priority to relatively efficient firms. In order to provide for uninterrupted supply of raw materials to small scale sector so as to have a break free production process, the government has recently launched a scheme to create buffer stock of these key raw materials. This buffer stock will act as an insurance agent against their sudden supply disruption and consequent loss of industrial production.

(v) Marketing Assistance: Since small units are capital deficient, no attention is paid to market the produced goods. Government assists the units in marketing their products in the following ways:

ØExclusive purchase of their products by the government.

ØDifferential pricing policy followed which provides preference to small scale enterprises in public sector purchases.

ØProvision of quality control and testing facilities with a view to increase the competitiveness of the products through small units.

ØState owned cooperatives and other assisted cooperative societies have opened sales emporia in order to assist products from the sector.

In order to gather information on the areas where both large and small sector units work in partnership, a sub-contract exchange for SSIs has been set up recently. A consortium for small scale units has been set up which is entrusted with a responsibility to channelize and identify markets for SSI’s products in India and abroad. Also, it is the responsibility of consortium to ensure the quality of products as per international standards. They also proved for proper infrastructure and distribution system along with timely payment to the sector against the supply of goods.

Also, government has undertaken high expenditure to provide for obtaining ISO and


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ISO 9000 Certification to meet international standards of quality.

(vi) Direct Industries Centres (DICS): The scheme for DICs was introduced in May, 1978 to provide a “focal point” for development of small industries. The main object to set up these centres was to develop modern small scale units and provide institutional set up for traditional cottage industries. The DICs were responsible to provide for all the services and support at pre-investment and post-investment stages including assistance on raw materials, credit, marketing, training, etc. These centres work as an intermediate party between the developmental blocs and specialized institutions and small scale enterprises.

(vii) Fiscal Incentives: Numerous fiscal incentives have been provided to small scale industries by governments both at centre and state level. Some of them may be mentioned as:

ØTax holidays for new industrial undertakings.

ØCapital subsidy to industries in backward ares.

ØInvestment allowances.

ØPrince preference of 15 per cent over medium and large scale enterprises.

ØExcise duty exemption, etc.

(viii) Other Schemes: Some special programmes have also been introduced by government along with the above mentioned programmes of general nature. For example, Rural Industries Projects (RIP) and Rural Artisan Programme (RAP) have been implemented to disperse small scale enterprises in backward areas in order to ignite the developmental process in these areas. The programmes provide subsidiary occupation to small and marginal farmers by upgrading their skills and use of improved tools and equipments. Another scheme introduced by Government for development of backward areas was development of ancillary units around large scale industries in order to produce raw material for them. However, arguments have been placed both in favour and against the scheme. While some argue that development of such units would make artisans highly dependent on the parent company. Others have considered development of such ancillary units nodal agents to bring about industrialisation in backward areas.

NEGATIVE MEASURES

(i) The most important of the negative measures adopted by Indian government is the policy of reservations of product lines. The number of reserved product brought down to 21 from about 873. However, the reservation policy of the government could not deliver the projected results. It could not improve upon the quality and technology of the products in SSI sector. Hence, with introduction of New Policy for

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Small Sector in August, 191, big industries were allowed to float small firms by holding about 24 per cent share and manufacture reserved products. Likewise, the government has allowed enhancement of capacities through investments in plants and machinery in all the reserved areas, provided the additional investments generate incremental exports of 50 per cent of the total turnover w.e.f. February 7, 1997 as against the requirement of 75 per cent stipulated earlier. This will formally do away with the policy of reservation.

(ii) The capacity in a few large industries has been pegged at the existing level, so as to augment labour-intensive development in the small sector.

(iii) Another negative measure is the Government’s decision not to give industrial licenses to new industrial units within the limits of large metropolitan cities having population of more than 1 million so as to promote dispersal of industries to the less congested areas.

(iv) Likewise, the Government has decided to reserve purchase of a number of items by the public sector exclusively from Khadi and Village industries and small scale units. The goods of KVI would be given preference over the private sector goods in buying and selling of goods from public sector.

¤Why do people from rural and semi-urban areas more engaged in entrepreneurial activities especially at a small scale?

Large scale industries in the country are generally found to be concentrated in few cities of some states. Consequent upon that, labour migration in large numbers is witnessed from villages to these cities for industrial development. This, in turn swells the size of slum dwellers in these areas thereby creating numerous social and personal problems. Contrariwise, small units are established to address the needs and desires of local areas. Hence, they play a vital role in making these semi-urban and rural areas self sufficient in industrial demands to a large extent. These units may be very useful in providing a source of income and employment in rural and semi-urban areas.

Besides, providing a prime source of income generation, it also generates confidence in people residing in these areas to be self-sufficient even in the absence of townships and corporate cultures and consequently lower job occupational alternatives.

¤WHAT ARE THE KINDS OF ENTREPRENEURIAL VENTURES

LIKELY TO GROW IN INDIA?

Even though India has seen a long period economic development, it has still not earned the label of being a ‘developed’ nation. It is still categorised as the developing one with higher proportion of labour than that of capital. Hence, business units which make lesser use of capital resources and maximum use of labour are the best. Indian small scale industrial sector already has a large base. It has some perennial areas


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where a unit may be started for a decent source of income. The top ten of the variant are clothing industry, poultry industry, ceramics business, sports products manufacturing business, leather products, glass products, wooden products and related items, paper products, handicrafts and food products. Some of the business ventures which may be started with very low level of initial investment in the current business scenario are recruitment firms; man power resources; book stores or cafes; mobile food courts and restaurants; blogs, websites or shopping portals; gift article Shoppe; ice cream parlours, game parlours; handmade chocolates; interior designer; event management; wedding planner; jewellery designer; yoga instructor; fashion choreographer; SEO consultant; insurance agent; finance adviser; counsellor; grocery delivery centre and the other alike businesses.

¤WHAT ROLE DOES CULTURE PLAY IN ENTREPRENEURIAL

ACTIVITY?

Entrepreneurship, measured in terms of firm creations or business ownership and self-employment rates, varies over time. These variations may be observed by entrepreneurship measurements for a given country, industry or region. Variations have also been observed in different countries or regions at a particular point of time. While different levels of economic development is one of the factors underlying these variations, institutional and cultural factors also play a vital role in explaining these diversities across countries and regions.

Several scholars across globe have studied the impact of cultural activities on entrepreneurship. There are three important approaches which have provided an insight to the effect of culture on entrepreneurial activities and development. They have been discussed in brief below.

ØTHE AGGREGATE PSYCHOLOGICAL TRAITS APPROACH

Research studies conducted at individual level reveal a link or a connection between individual values and beliefs to that of individual behaviour. Hence, it may be ascertained that different culture across countries determine disparities in human behaviour, including one’s decision to choose between being an employee or self-employed. An aggregative logic of this type is used in the aggregate psychological traits approach. This approach explains the influence of high entrepreneurial behaviour. Hence, it may be concluded that ‘a society where the culture directs its residents with highly individualistic approach rather than being a socialistic one, observes large number of self-employed people.’

ØTHE SOCIAL LEGITIMATION OR MORAL APPROVAL APPROACH

This approach revolves around the impact of social norms and institutions on individual’s behaviour. According to this view, a higher entrepreneurial activity is found in societies where the entrepreneur is considered to have high social status, the

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education system recognizes and supports entrepreneurship, and tax incentives encourage business start ups. While this approach explains high entrepreneurial activities as a result of social set up whereas the aggregate psychological traits approach focuses on individual’s behaviour to explain his entrepreneurial activities.

Both the explained approaches talk about “pull” explanation of entrepreneurial behaviour. “Pull” factor takes into account an entrepreneur’s desires to have a better position in society against “push” factors which relates to a conflict between an individual’s current and desired state as a result of some level of discontentment.

ØTHE DISSATISFACTION APPROACH

This approach derives its premises from dissatisfaction level of an individual from the current working environment in which he is living. It focuses on “push” point of view. Basically the approach says, it is the conflict in values and beliefs of potential entrepreneurs and general population which creates an urge for them to become self-employed gradually. The expected relationship between cultural indicators and entrepreneurship described in dissatisfaction approach may be opposite to the expected relationship referred to in the social legitimation or moral approval approach.

3. ENTREPRENEURIAL MANAGEMENT CHALLENGES IN 21ST

CENTURY

Twenty first century managers are confronted with additional challenges to which their counterparts faced in the previous century. The two buzz words confronted by managers today on a regular basis are “change” and “challenge”. Although ‘change’ is not a new phenomenon for business managers, but the one experienced today is ‘hyper change’. ‘Hyper change’ may be defined as one which is quicker in action, occurs on frequent basis, and is more dynamic, complex and unpredictable. These hyper changes are expected to bring about significant alterations in the management methods followed in the past. The managers today are expected to be competent enough to live up and respond efficiently to these hyper changes. This is their test for success. The rapid pace of entities becoming sick and obsolete has its roots in its ability of not keeping up with this dynamic business world. However, on the other edge we may easily find organisations and corporate executives who earn fat amounts by capitalizing on economic, social, political and technological changes. A lot of companies in recent business world have also achieved by being proactive and interactive to the changing market conditions. The managerial fraternity should keep itself prepared for greater challenged posed by increased pace of developing business world. Competition is expected to increase and become more intense with global firms venturing in every nook and corner of the world with the developed network of transportation, communication and information technology. The winning


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edge defining success of any enterprise would be its ability to provide high quality product/service at the least cost. Individual as well as organisational success would depend upon versatile key input methods of value-based management. Emerging business environment has made it tougher for organisation to achieve excellence.

Managers today are expected to outperform others by their extraordinary preparedness to cope with change in an excellent manner. It is in this perspective that different and also long lasting practices and philosophies of management would need to be experimented upon by the managers of tomorrow.

REFERENCES:

Schumpeter, The Theory of Economics Development, Page- 78

Gauri Shankar & Trisha Jolly, Business, Entrepreneurship and Management

Acs, Z.J. and D.B. Audretsch (1988), Innovation in Large and Small Firms, American Economic Review, 78, 678-90

Banerjee, A.V. and A.F. Newman (1993), Occupational Choice and Process of Development, Journal of Political Economy, 101, 274-98

Stiglitz and Weiss, Credit Rationing, 1981

Government of India, Economic Survey 2010-11, New Delhi, 2010, p-225

Bishwanathan Goldar, Employment Growth in Modern Small Scale Industries in India, Journal of Indian School of Political Economy, Vol. V., No. 4, 1993, Table 5, p. 658

K.V. Ramaswamy, Small Scale Manufacturing Industries, Economic and Political Weekly, Feb 26, 1994

Trisha Jolly

FORMAL VS INFORMAL RECYCLING OF E- WASTE IN INDIA


Asheref IlliyanSenior Assistant Professor,Department of Economics,

Jamia Millia Islamia University(A Central University), New Delhi

1.Introduction

“Over the last decades the electronics industry has revolutionized the world: electrical and electronic products have become ubiquitous of today's life around the planet. Without these products, modern life would not be possible in (post-) industrialized and industrializing countries. These products serve in such areas as medicine, mobility, education, health, food supply, communication, security, environmental protection and culture. Such appliances include many domestic devices like refrigerators, washing machines, mobile phones, personal computers, printers, toys and TVs. The amount of appliances put on market every year” ( UNEP 2009). The exponential use of these electronics products also come with a cost. This cost is in the form of e- waste or electronic waste which is emerging as a major environmental and health hazard. The focus of this paper is to give a brief overview of e-waste problem and how recycling of e-waste can be used as a effective strategy for management of the growing menace of this problem.

II. Definition of E- Waste

There is no generally accepted definition of E- waste. According to the Ministry of Environment and Forests Guidelines (2008): “E-waste comprises of wastes generated from used electronic devices and household appliances which are not fit for their original intended use and are destined for recovery, recycling or disposal. Such wastes encompasses wide range of electrical and electronic devises such as computers, hand held cellular phones, personal stereos, including large household appliances such as refrigerators, air conditioners etc. E-wastes contain over 1000 different substances, many of which are toxic and potentially hazardous to environment and human health”

III. Environment and Health Impacts of E-Waste

The table 1 highlights and summarizes the health impact of e-waste.

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4Table 1: Various E-waste Sources, Their Constituents, and Health Impacts

Health EffectsE-waste Sources Constituents

Solder in printed circuit boards, glass panels, and gaskets in computer monitors

Lead ¤Damage to central and peripheral nervous systems, blood systems, and kidney damage

¤Adverse effects on brain development of children; causes damage to the circulatory system and kidney

Chip resis tors and semi-conductors

Cadmium ¤Toxic irreversible effects on human health

¤Accumulates in kidney and liver¤Causes neural damage

Relays and switches, and printed circuit boards

Mercury ¤Chronic damage to the brain¤Respiratory and skin disorders

due to bioaccumulation in fishes

Galvanized steel plates and decorator or hardener for steel housing

Chromium ¤Causes bronchitis

Cabling and computer housing Plastics and PVC

¤Burning produces dioxin that causes reproductive and developmental problems

Electronic equipment and circuit boards

Brominated flame-retardants

¤Disrupt endocrine system functions

Front panels of CRTs Barium, phosphorus, and heavy metals

¤Cause muscle weakness and damage to heart, liver, and spleen

Copper wires, Printed circuit board tracks.

Copper ¤Stomach cramps, nausea, liver damage, or Wilson’s disease

Nickel–cadmium rechargeable batteries

Nickel ¤Allergy of the skin to nickel results in dermatitis while allergy of the lung to nickel results in asthma

Lithium-ion battery Lithium ¤Lithium can pass into breast milk and may harm a nursing baby

¤Inhalation of the substance may cause lung edema

Motherboard Beryllium ¤Carcinogenic (lung cancer)¤Inhalation of fumes and dust

causes chronic beryllium disease or beryllicosis

Source: Ministry of Environment and Forests, Government of India, New Delhi. 2010

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Potential Environmental Hazards

The improper disposal, land filling and open burning of e-waste leads to the following environmental damage.

¤“Lead, barium and other heavy metals leaching into ground water, leads to release of toxic phosphor;

¤Surface and ground water pollution and air pollution;

¤Hydrocarbons, heavy metals discharged to river and bank, acidifies river will lead to destroying aquatic life;

¤Air emission of brominated dioxins and heavy metals and hydrocarbons;

¤Aromatic hydrocarbon discharged to air, water and soil;

¤Cyan, tallow and magenta toners unknown toxicity;

¤Air emission of dioxins and heavy metals;

¤Disposal leads to water pollution;

¤Disposal causes water pollution and disturbs aquatic environment;

¤Disposal in land fill causes water pollution;

¤Leaching in soil and water causes pollution;

¤Disposal leads to environmental damage;

¤Acute and chronic toxic effects on plants, animals, and microorganisms”. ( www.nswai.com)

IV. Quantity of E- Waste Generated

Huge quantity of e waste generated worldwide every year. According to UNEP (2009) 40 million tones of e-waste are generated per year world-wide. According to another estimate the global volume of e waste generated is expected to reach 93.5 million tones in 2016 from 41.5 million tones in 2011 at a compound annual growth of 17.6% from 2011 to 2016 (Market stand markets, www.marketsstands markets.com). As far as India is concerned the e- waste inventory for the year 2005 was estimated to 1.46 lakh tones which is expected to exceed 8 lakh tones by 2012 (Central Pollution Control Board) Guidelines for Environmentally Sound Management of E waste 2008, www.cpcb.nic.in)

V. Management of E- Waste-Recycling Option

The most scientific way to deal with the problem of e- waste is to follow 3R principle-Reduce, Reuse and Recycle, out of them the most important is recycling. Recycling is a process of recovering valuable materials such as copper, Gold, silver etc. from e- waste. Recycling help us not only to save energy but also recover valuable natural resources and hence waste is converted into wealth. It also creates employment

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opportunities for the people depending on this industry. Unfortunately in India recycling sector is predominated by informal recyclers who do not follow any scientific methods of recycling which again creates environmental and health problems. Delhi is the hub of informal recycling sector. It employs about 25000 workers in this business.

Formal recycling is a late starter in India. According to CPCB (Central Pollution Control Board) website there are around 97 registered dismantlers/recyclers in the country which are registered at CPCB. South zone has maximum number of registered recyclers i.e 41( Karnataka- 27( highest in the country), Tamilnadu- 11 and Andra Pradesh- 2) followed by North Zone ie 33(Uttar Pradehs 15, Haryana 7, Rajasthan 6 , Uttarakand 3, Chattisgarh 1, Madhya Pradesh 1), followed by West 23( Maharastra 18 Gujarat 5) followed by East 1 (least number of registered recyclers). There is positive correlation between registered units and e waste produced in a zone. Reliable estimate shows that south and west produces maximum e-waste in the country and hence maximum number of registered units is located there. These units have environmentally sound management facilities. The formal recycling units perform the tasks of “collection, segregation, shredding and resource recovery employing automated, semi-automated or manual operations for the recycling of e-waste. Some of the well known names and viable recycling facilities in the formal sector are the Attero Recycling Plant in Roorkee, Uttarakhand, E-Wardd and E-Parisara in Bengaluru and Earth Sense in Hyderabad. The successful working of ‘Harit Recyclers union’ a Bengaluru-based successful conglomeration of 70 informal recyclers” (www.rajyasabha.nic.in) shows the need for integrating informal recycling units into the formal system so the lively hood of many thousands people will not be affected.

VI. Conclusion

Thus, Recycling is the best option to deal with the growing menace of e-waste in the country. The government should promote formal recycling sector and incentives must be given for integrating informal recycling sector into formal recycling sector which will go a long way in solving the negative environmental and health impact e-waste in the country.

REFERENCES

Bhatt M.S., Ashraf Shahid and Illiyan Ashref (2008), “Problems and Prospects of Environmental Policy-Indian Perspective”, Aakar Books, New Delhi

Greenpeace (2007a), “A Guide to Greener Electronics” The Hindu, Wednesday, August 15, 2007 p. 4.

Jain, A. (2006,). `Perspective of Electronic Waste Management in South Asia:

Asheref Illiyan

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Current Status, Issues and Application of 3Rs’. Synthesis Report of the 3R South Asia Expert Workshop, Kathmandu, Nepal, 30 August- 1 September.

Ministry of Environment & Forests and Central Pollution Control Board (2008) `Guidelines for Environmentally Sound Management of E-waste’ Delhi

Toxic Link (2003), “Scrapping the Hi Tech Myth-Computer Waste in India”,www.toxclink.org published on 01/01/2003.

United Nations Environment Programme (UNEP 2009), “Recycling- From E-Waste To Resources, July 2009.

Formal Vs Informal Recycling of E- Waste In India


1 Priyank Gupta1Asstt. Professor, MIT College of Management, Moradabad (U.P.)

2 Umesh Agarwal

2HOD – B.Ed, RIMT, Ghaziabad. (U.P.)

INDIAN PLANNING SCENARIO – A STUDY

Planning refers to that process, where in, central planning authority keeping in view the resources of the country, makes an attempt to control economic factors with a view to achieving pre-determined objectives within a specified period of time. Our country has adopted it from the year 1950-51 by way of formulating and implementing five year plans for the purpose of rapid development in the country. In this regard, it is also a fact that among all developing democratic countries of the world, India was the first country that had chosen the path of economic planning for its faster development soon after achieving independence. Efforts were also made in this direction by some social activists and thinkers in our country even before the independence. Sir M. Vishveshwarya, an eminent engineer and statesman, in his book, "Planned Economy for India" (1934), had for the first time laid stress on scientific planning for the economic re-construction of the country. In his proposed model of planning, he had given top-priority to industrialization in the country. In the year 1938, All India Congress appointed National Planning Committee under the chairmanship of late Pt. Jawaharlal Nehru. With the establishment of this committee, the idea of planning in India acquired special importance. National Planning Committee, in its report, attempted a compromise between private sector and socialism. In the year 1940, eight prominent industrialists of India prepared their own plan, called Bombay Plan. The plan aimed at doubling per capital income in 15 years by making an outlay of Rs. 10,000 crore. Almost at the same time, late Shri M.N. Roy, a great social activist presented a plan, called- "People’s Plan". It envisaged total expenditure of Rs. 15,000 crore in 10 years to double the per capital income. This Plan laid emphasis on the development of agriculture.

In the year 1944, Shrimana Narayan Aggarwal, a social reformer, presented an another plan called "Gandhian Plan". It aimed at establishing decentralised economy. so that Indian villages may become self- sufficient. In the year 1944, Government of India set up a ‘Department of Planning and Development’ for the economic reconstruction of the country in the post war period. After independence, in January, 1950, a great Sarvodya leader, Late Shri Jai Prakash Narayan prepared a plan known as "Sarvodaya Plan" well before Indian Government took decision to follow five year plan strategy. It aimed at economic, social, and political development of the country. In this regard, we remember the words of then

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Prime Minister Pt. Jawahar Lal Nehru, he gave on the eve of Independence Day, i.e. 14 August 1947, “Long years ago we made a tryst with destiny, and now the time comes when we shall redeem our pledge. The achievements we celebrate today is a step, an opening of the opportunity, to the great triumph and achievements that await us.” On this occasion, he also reminded the country that the tasks ahead included the ending of poverty, ignorance, diseases and inequality of opportunity. These were the basic foundations on which India embarked upon its path of development after getting independence.

Since independence, Indian Economy has been promised on the concept of Planning. This has been carried out through the five year plans, formulated, executed, and monitored by the Planning Commission. Actually, the objective of India’s development strategy has been to establish a socialistic pattern of society through economic growth with self-reliance, social justice and alleviation of poverty. These objectives were to be achieved within a democratic political framework using the mechanism of a mixed economy, where both public and private sectors co-exist. Therefore, our country initiated planning process for national economic development with the establishment of the Planning Commission. The Planning Commission was set-up by a resolution of the Government of India in March, 1950 in pursuance of declared objectives of the government to promote a rapid upliftment in the standard of living of the people by efficient utilization of the resources of the country, increasing production and offering opportunities to all for employment in the service of the community. It is worth mentioning here that there is no mention regarding the establishment, orgnisation and responsibilities of Planning Commission in our constitution. Therefore, it is has no constitutional authority so far , while the Planning Commission has been practically charged with the key responsibilities like - making periodic assessment of all resources of the country, augmenting deficient resources, formulating plans for the most effective, efficient, judicious, and balanced utilization of resources and determining priorities.

The Prime Minister is the Ex- officio Chairperson of the Planning Commission, which works under the overall guidance of the National Development Council. Pt.Jawaharlal Nehru was the first Chairperson of the Planning Commission and currently Sh. Narendra Modi is its chairperson. The Deputy Chairperson and the full time members of the Commission, as a composite body, provide advice and guidance to the Subject Divisions for the formulation of Five Year Plans, Annual Plans, State Plans, Monitoring Plan Programmes, Projects and Schemes. The Commission has a nominated Deputy Chairperson, who holds the rank of the Union Cabinet Minister. Several noted Statesmen and Economist like- Mr. Gulzari Lal Nanda, V.T. Krishnam Chari, D.R. Gadgil, D.P. Dhar, P.N. Hakshar, N.D. Tiwari , Ram Kirshna Hegde, Pranab Mukherjee, K.C. Pant and Montek Singh Ahluwalia have been holding this

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prestigious portfolio. In a real sense, Deputy Chairperson practically holds the overall responsibilities of the commission. All the full time members of the Planning Commission hold the rank of union minister of state. Actually, Five Year Plans are centralized and integrated national economic development programmmes. Among all the nations in the world, Joseph Stalin of Soviet Union implemented the first Five Year Plan in the Soviet Union in the late 1920s. Most of the communist nations and several capitalist countries subsequently have adopted them.

Our country launched its First Five Year Plan in the year 1951, immediately after independence under the socialist influence of our first Prime Minister- Jawaharlal Nehru. From a highest centralised planning system, Indian economy is gradually moving towards indicative planning. Planning Commission concerns itself with building of a long-term strategic vision of the future and decides on priorities of the nation. It works out sectoral targets and provides promotional stimulus of the economy to grow in the desired direction. No doubt , Planning Commission plays an integrative role in the development of a holistic approach to the policy formulation in critical areas of human and economic development. In the social sector schemes, which require coordination and synthesis like rural health, drinking water, rural energy needs, literacy, and environment protection have yet to be subjected to the coordinated policy formulation as it has led to multiplicity of agencies. An integrated approach can lead to better result at much lower costs. The emphasis of the Commission is on maximising the output by using our limited resources optimally. Instead of looking for mere increase in the plan outlays, the efforts are to look for increases in the efficiency of utilisation of the allocations being made.

With the emergence of severe constraints on available budgetary resources, the resource allocation system between the states and ministries of the Central Government is under strain. This requires the Planning Commission to play a mediatory and facilitating role, keeping in view the best interests of all the concerned, it has to ensure smooth management of the change and help in creating a culture of high productivity and efficiency in the government. The key to efficient utilization of resources lies in the creation of appropriate and self-managed organisations at all the levels. In this area, Planning Commission attempts to play a systems change role and provide consultancy within the government for the development of better systems. In order to spread the gains of experience more widely, Planning Commission also plays an information dissemination role. The foremost responsibility of the Planning Commission is to formulate five year plan in advance for the coming five years, which is usually spread over a period of two to three years before the commencement of any five year plan. The first stage is the consideration of the general approach to the formulation, involving an assessment of the state of economy, an appraisal of past trends in production, and the rate of growth

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in relation to the long-term view of the economy. Preliminary conclusions on these and related matters are submitted by the Commission to the Central Cabinet and to the National Development Council.

National Development Council was established in Aug. 1952, by and executive resolution of Govt. of India on the recommendation of first five year plan. It is also neither a constitutional body nor a statutory body, even then, it is a highest political forum below the parliament, responsible for policy matters and formulation of a five year plan which consisted all the Chief Ministers of States, Administrators of all Union Territories, Chairperson, Deputy Chairperson and all members of the Planning Commission, various Central Cabinet Ministers, some of the advisors, experts and secretaries of Central Government. On their approval, these reports are published in the form of a document. The second stage consists of studies, which are intended to lead to a consideration of the physical content of the plan. While these studies proceed, the Planning Commission constitutes group for each sector, composed of its own specialists and those of ministries and non-official experts, which review the situation in their respective fields and make the assumptions to be made in the formulation of the plan, and indicate the targets of production to be achieved. While preliminary documents are debated throughout the country, the commission holds detailed discussions with the Union Ministers, State Governments and Union Territories at the highest level.

On the basis of the preliminary studies undertaken by the groups and discussions with the various interests, the commission presents the main features of the plan under formulation in the form of a Draft Plan, which is discussed in detail by the Central Cabinet and is placed again before the National Development Council. With the approval of the Council, the draft plan is published for public consideration and countrywide debate. The comments and suggestions on the draft plan offered by members of parliament and people from different walks of life are taken into consideration in the preparation of the final document of the plan. This document, prepared by the Planning Commission, outlines the objective, policies and programmes of the plan. Then, it is submitted to the National Development Council. With such modifications as the National Development Council might suggest, the document is presented to Parliament for final approval. Each plan is formulated to achieve the set objectives. In order to achieve these objectives, certain activities are undertaken. Actually, our Five Year Plans are very wide in scope. These plans not only takes into account the sectors like industry, agriculture, power, means of transport etc but also consider the social issues like- education, health, social welfare, drinking water and sanitation etc. Since inception, we have formulated and implemented eleven five year plans and six annual plans (See Table – 1). Twelfth Five Year Plan is under implementation since April Ist , 2012 and will continue upto 31st March, 2017.


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Our Ist Five- Year Plan (1951-56) emphasised on agriculture, including projects that combined irrigation and power generation as a highest priority area. This first plan had two-fold objectives. Firstly, it aimed at correcting the disequilibrium caused by the Second World War (1939-45) and the partition of the country as a result of independence. Secondly, it proposed to initiate simultaneously a process of all round balanced development which would ensure a rising national income and a steady improvement in living standards over a period. In this plan, the investment pattern was worked out with due regard to the immediate objectives and the resources immediately insight. The total planned budget of Rs. 1960 crores was allocated to seven broad areas like-Agriculture and irrigation, power, industry, transport and communication, social services and other sectors and services. This Plan was formulated on a growth model developed by English economist Roy F. Harrod and Russian – American economist – Evesy Domar, called as Harrod – Domar Model. According to this model, growth depends on the policy to increase investment by increasing saving and using that investment more efficiently through technological advances. Therefore, the most important feature of this plan was the active role of state by investing maximum amount in all the economic sectors. The target annual growth rate of 2.1% was fixed but achieved growth rate was 3.6%. During this plan period the monsson was good and there were relatively high crop yields, boosting exchange reserves and the per capita income. Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam. Community Development Programme was also launched in the year 1952 which yields very good results. At the end of the plan period, in the year 1956, five Indian Institutes of Technology were started as major technical institutions. The University Grant Commission was also set up to take care of funding and take measures to strengthen the higher education in the country. Contracts were also signed to start five heavy steel plants, which come into existence in the middle of the second five year plan. The plan was accepted by all the sections as a successful one.

The 2nd Five- Year Plan (1956-61) emphasised on industrialisation of basic and heavy industries in the public sector and improvement of the existing infrastructure. The plan also stressed on social goals, such as distribution of income and extension of the benefits of economic development to the large number of disadvantaged people. The plan followed the Mahalanobis model of Development, an economic development model, developed by the Indian statistician – Mr. Prasanta Chandra Mahalanobis which emphasized the adoption of large scale industrialsation programmes in the country and a strategy of planning aimed at relatively faster development of heavy capital goods and investment goods industries. To determine the optimal allocation of investment between productive sectors in order to maximize the long run economic growth. It used the prevalent state of art


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techniques of operational research and optimization as well as the novel applications of statistical models, developed at the Indian Statistical Institute. During this plan, several hydroelectric power projects and five steel plants at Bhilai, Durgapur and Rourkela etc. were also established. More railway lines were also added in the north eastern states. The Tata Institute of Fundamental Research was established as a premier research institute during this plan period. The total amount allocated under the second five- year plan in India was Rs. 4672 crores. The target growth rate for this plan period was fixed at 4.5% per annum and the growth rate achieved was 4.27%. In the year of 1956, Industrial Policy was also declared by the Govt. of India to boost the industrial sector.

The 3rd Five- Year Plan (1961-66) aimed at a substantial rise in per capital income while expanding the industrial base and rectifying the scope of agriculture in the previous plan. In this plan, growth rate was anticipated at 5.6% but achieved only 2.84% per annum. Actually, this plan was a failure one because of several reasons. In the year 1962, China attacked on us and war was fought. This Indo- China war exposed the weaknesses in our economy, therefore, our toes was shifted toward the defence industry and the Indian Army. In the 1965-66, India fought a war with Pakistan. There was also a severe drought in the year 1966-67. The war and drought situation throughout the country, led to high inflation. Therefore the priority of the plan was shifted to the price stabilization. But, even after miserable economic situation, the construction of our river dams was continued. Many cement and fertilizer plants were also established during this plan period & their production was also increased. In an effort to bring democracy to the grass –root level, Panchayat Elections were started during this plan period and the states were given more development responsibilities through Panchayats. The outlay of this Plan was approximately double the size of the earlier Plan, i.e. Rs. 8577 crores. But due to miserable failure of this plan, our Government was forced to declare “plan holidays” from the year 1967 to the year 1969. Three annual plans were formulated during this intervening period and very low growth rate could be achieved. Due to our low average growth rate during these first three five year plans and three annual plans, Western Economists termed this period as “Hindu Growth Rate period” as our criticism.

The 4th Five- Year Plan (1969-74) called for a 24% increase over the third plan in real terms of public development expenditures. The public investment accounted for 60% of plan expenditures and foreign aid contributed 13% of public outlay and financing. Agriculture, including irrigation, received 23% of public outlay, rest was mostly spent on electric power, industry and transportation. Although, the plan projected growth rate at 5.7% a year, and realized one was only 3.3%. The actual expenditure under the fourth plan was Rs. 15, 779 crore as against the plan outlay of


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Rs. 15,900 crores. The highest allocation as earlier was kept for the transport and communication sector with Rs. 3,080 crores, i.e. 19.5 percent of total expenditure. The second highest allocation under this plan went to power sector with its share of Rs. 9,293 crores, i.e. 18.6%. At this time, Mrs. Indira Gandhi was the Prime Minister of India. As a major step, her Government nationalised 14 major Indian banks in the year 1969. During this period, Green Revolution was initiated in India which advanced our agriculture sector in a broad way. In addition, the situation in East Pakistan, now Bangladesh, was becoming dire as the Indo-Pakistan War of 1971 and Bangladesh Liberation War took funds earmarked for industrial development. India also performed the nuclear test in the year 1974, partially in response to the United States deployment of the Seventh Fleet in the Bay of Bengal. The fleet was deployed to warn India against attacking then West Pakistan and extending the war. The Total Public investment of this plan was

Table – 1

Different Five Year Plans- Investment, Growth & PrioritiesS. No FIVE YEAR PLAN

& PLAN PERIOD

PUBLIC SECTOR

INVESTMENT

(IN CRORE RS)

TARGET OF

GROWTH RATE

(in % per annum )

ACHIEVEMENT

(in % per annum )HIEGHEST

PRIORITY

Area/ FOCUS

1 1st PLAN (1951-56) 1,960 2.1 3.61 BOSTING AGRICULTURE AND IRRIGATION

2 2nd PLAN (1956-61) 4,672 4.5 4.27 REPID INDUSTRIALIZATION

3 3rd PLAN ( 1961-66) 8,577 5.6 2.84 SELF RELIANT AND SELF GENERATING ECONOMY

4 4th PLAN (1969-74) 15,779 5.7 3.30 GROWTH WITH STABILITY

5 5th PLAN (1974-79) 39,426 4.4 4.80 REMOVAL OF POVERTY & GRWOTH WITH SOCIAL JUSTICE

6 6th PLAN (1980-85) 1,10,467 5.2 5.7 INCREASE IN NATIONAL INCOME

7 7th PLAN (1985-90) 2,18,730 5.0 6.0 RAPID GROWTH IN FOOD GRAIN PRODUCTION

8 8th PLAN (1992-97) 4,34,100 5.6 6.8 HUMAN RESOURCE DEVELOPMENT

9 9th PLAN ( 1997-02) 8,59,200 6.5 5.4 GROWTH WITH SOCIAL JUSTICE AND EQUALITY

10 10th PLAN (2002-07) 15,25,639 8.0 7.5 ENSURE EQUITY WITH SOCIAL JUSTICE

11 11th PLAN (2007-12) 36,44,718 9.0 8.3 REPID AND INCLUSIVE GROWTH

12 12th PLAN (2012-17) 76,69,807 8.0 Continued FASTER, SUSTAINABLE AND MORE INCLUSIVE GROWTH

Source: Economic Survey 2013-14 and Various Five Year Plans, Planning Commission, Govt. of India, New Delhi


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Rs. 15,779 crores while target growth rate for this plan was fixed at 5.7% but the growth rate of 3.3% per annum was achieved.

thThe 5 Five –Year Plan (1974-79) was drafted in late 1973 when commodities prices in India were rising rapidly. The plan was subsequently approved in the late 1976 but was terminated at the year 1978 instead of 1979 because the new Janata Party Government rose to power and had different priorities and programmes. The fifth five year plan proposed a public sector outlay of Rs. 37,250 crores whereas the actual expenditure was raised to Rs. 39,426 crores. The highest priority in this plan was accorded to the industry sector. As a result of the energy crisis that emerged in the country toward the end of the fourth plan, but due to a steep rise in petroleum prices effected by the Oil and Petroleum Exporting Countries, our government decided to pay more attention to the power sector in fifth five year plan period. The Electricity Supply Act was also amended in the year 1975, which enabled the Central Government to enter into power generation and transmission sector. The Indian National Highway System was also introduced during this plan and many roads were widened to accommodate the increasing traffic. The fifth Five Year Plan laid stress on the employment, poverty alleviation and social justice. The plan also focused on self reliance in agricultural production and defence production at high rate of growth, better distribution of income and significant growth in the domestic rate of savings were seen as key instruments. As mentioned earlier that the Janta Party Government rejected the fifth five year Plan and discontinued it in year 1978 instead of 1979. They also introduced a new sixth five year Plan (1978-1983) which was referred to as a Rolling Plan. This plan was again rejected by the Congress Government which again came to power in year 1979. In the year 1980, a new sixth plan (1980-85) was formulated as per the priorities of new government..

The 6th Five Year Plan (1980-85) marked the beginning of economic liberalization. Price controls were eliminated in a broadway. This led to an increase in the food prices and an increase in the cost of living. Actually, this was the end of Nehruvian socialism. Family planning programmes were also expanded in order to prevent the high growth rate of our population. In contrast to the China’s strict and binding one-child policy, Indian policy did not rely on the threat of force. More prosperous Indian families adopted family planning more rapidly than the less prosperous ones, which continued to have a high birth rate. In this plan, a total of Rs. 1,10,467 crore was spent to achieve the high economic growth rate. The sixth five year plan was a great success to the Indian economy, though, during the last year of the plan i.e. in 1984-85, many part of the country faced severs famine conditions and agricultural output was less than the record output of the previous year. However, this plan could be taken as a successful one. The target growth rate was fixed 5.2% per annum but the actual growth rate was achieved at 5.7% per annum. This plan sought to reconcile the


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objectives of higher production with those of greater employment so that the millions of people, living below the poverty line, could benefit. The focus of the plan was the enlargement of the employment potential in agriculture and allied activities, encouragement to house hold and small industries sector producing consumer goods for mass consumption and to raise the income of the lowest income groups through the implementing of a minimum needs programme.

The 7th Five Year Plan (1985-90) marked the comeback again of the Congress Party to the power. The plan laid stress on improving the productivity level of industries by upgrading of technology. The objectives of the seventh five-year plan were to establish growth by increasing economic productivity, production of food grains and generating employment at mass scale. As an outcome of the sixth five year plan, there had been a steady growth in agriculture, controls on the rate of inflation and favourable balance of payments which had provided a strong base for the seventh five year plan to build on the need for further economic growth. The seventh plan had strived towards socialism and energy production at large. The thrust areas of the this plan were the social justice, removal of oppression of the weaker groups using modern technology, agricultural development, anti-poverty programmes, vast supply of food, clothing and shelter, increasing productivity of small and large scale farmers and making India an independent economy. Based on a fifteen year period of striving towards steady growth, this plan was focused on achieving the prerequisites of self-sustaining growth by the year 2000. The plan expected the labour force to grow by 39 million people and employment was expected to grow at the rate of 4% per year. Under this plan period, India strove to bring about a self- sustained economy in the country with valuable contributions from voluntary agencies and the general populace. Total public sector investment of this plan was Rs. 2,18,730 crores. The target growth rate for this plan was 5.0% and the actual growth rate was achieved 6% per annum.

The 8th Five Year Plan was implemented in the country between 1992-97. Prior to this period, the years of 1989-91 were a period of economic instability in India and hence no five-year plan was formulated between 1990 and 1992. There were only two annual plans formulated and implemented during this period. Actually, in the year 1991, India faced a crisis of foreign exchange reserves, left with reserves of only about US$1 billion. Thus, under pressure, the country took the risk of reforming the socialist economy. Then Prime minister, P.V Narasimha Rao was also the Head of the Congress Party. He led one of the most efficient administrations in India’s modern history, overseeing a major economic transformation and several incidents affecting national security. At that time, Dr. Man Mohan Singh who led the country as Prime Minister for ten years (2004-2013), as Finance Minister launched India’s free market reforms that brought the nearly bankrupt nation back from the edge. It was the


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beginning of privatization, globalization and liberalization era in India. During the eighth plan period, modernization of industries was a major challenge. Under this plan, the gradual opening of the Indian economy was also undertaken to correct the burgeoning deficit and foreign debt. Meanwhile, India became a member of the World Trade Organization on 1st January 1995. This plan was said to be based on ‘Rao- Man Mohan Singh Model of Development. The major objectives of this plan were included the controlling of population growth, poverty reduction, employment generation, strengthening infrastructure, tourism management, and human resource development. Energy was given the top priority with 26.6% of the total outlay of the plan. An average annual growth rate of 6.8% was achieved against the target of 5.6%.

The 9th Five Year Plan (1997-2002) came after 50 years of India’s Independence. Atal Bihari Vajpayee, a leader of Non-Congress Government was the Prime Minister of India during this plan period. This plan tried primarily to use the latent and unexplored economic potential of the country to promote economic and social growth. It offered strong support to the social spheres of the country in an effort to achieve the complete elimination of poverty. The satisfactory implementation of the eighth five-year plan also ensured the country’s ability to proceed on the path of faster development. This plan also saw joint efforts from the public and the private sectors in ensuring the rapid economic development of the country. New implementation measures in the form of Special Action Plans were evolved during this five-year plan to fulfill the objectives within the stipulated time with adequate resources. The Special Action Plans covered the various areas related to the social infrastructure, agriculture, information technology and water resources. This Plan had a total public sector plan outlay of Rs 8,59,200 crores and saw a hike of 48% in terms of plan expenditure and 33% in terms of the plan outlay in comparison of the previous plan. The prime focus of this plan was to increase economic growth in the country with an emphasis on social justice and equity. This Plan placed considerable importance on combining growth oriented policies with the mission of achieving the desired objective of improving policies which would work towards the improvement of the poors in the country. The ninth five year plan achieved a growth rate of 5.4% against a target rate of 6.5% per annum.

The main aim of the 10th Five Year Plan (2002-07) was to make the Indian economy – a faster growing economy in a world, with a growth target of 8% per annum. It wanted to bring in investor-friendly market reforms and create a friendly environment for growth. It sought active participation by the private sector and increased foreign direct investment in the financial sector. In this plan, an emphasis was laid on corporate transparency and improving the infrastructure. It sought to reduce poverty ratio by 5 percentage points by the end of this plan. Providing gainful high quality employment to the labour force was targeted over the tenth plan period.


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Universal access to primary education by the year 2007 was also targeted in this plan. Reduction in decadal rate of population growth between 2001 and 2011 to 16.2% and Increase in literacy rate to 72% within the plan period was fixed. Actual public sector expenditure in this plan amounted to Rs. 15,25,639 crores. Largest expenditure of as much as 27.0 per cent was made in the social services sector followed by energy sector at 22.5%. Expenditure on transport and communication sector was fixed at 21.4% percent. The agricultural sector accounted for 13.3 percent of the total plan expenditure. Industry and minerals got only 4.0 per cent of plan resources. The growth rate achieved in the tenth plan period at 7.5 per cent per annum was close to the target of 8.0 percent.

The 11th Five Year Plan (2007-12) emphasized “Faster and more inclusive growth” while the target of economic growth was kept as high as 9 percent per annum which may yield broad based benefits and ensure equality of opportunity to all. This broad vision of the eleventh plan included several inter-related components, such as rapid growth that reduces poverty and creates employment opportunities, access to essential services in health and education especially for the poor, equality of opportunity, empowerment through education and skill development, employment opportunities underpinned by the National Rural Employment Guarantee Scheme, environmental sustainability, women’s empowerment and good governance. Its strategy for inclusive growth was not just a conventional strategy to which some elements aimed to inclusion had been added. On the contrary, it was a strategy which aimed at achieving a particular type of growth process which could meet the objectives of inclusiveness and sustainability. This strategy was based on sound macro-economic policies which establish the macroeconomic pre-condition for rapid growth and support the key drivers of this growth. To achieve its objectives, some sector specific policies were pronounced to ensure that the structure of growth is generated and the institutional environment in which it occurs, achieves the objective of inclusiveness in all its many dimensions. With its strategy of faster and inclusive growth, the eleventh plan identified 27 monitorable targets at the national level of which 13 can be disaggregated at the level of individual states. These 27 monitorable targets at the national level were divided into 6 main categories like Income and poverty, education, health, women and children, infrastructure and the environment. During this plan period, the growth rate was achieved at 8.3 percent per annum against the target of 9%.

The 12th Five Year Plan (2012-17) aims to achieve faster, sustainable and more inclusive growth. In the regard, the twelfth plan document states that inclusive growth should result in lower incidence of poverty, broad- based and significant improvement in health outcomes, universal access for children to school, increased access to higher education and improved standards of education, including skill


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development. It should also be reflected in better opportunities for both wage employment and livelihood, and improvement in the provision of basic amenities like water, electricity, roads, sanitation and housing. The growth rate for the entire plan period has been fixed at 8 percent per annum by the Planning Commission. In this regard, the Planning Commission has also indicated recently that due to the present global economic scenario, it may not be feasible to achieve 8 per cent growth during the current financial year. There is a need to plan for a gradual build up to high growth in the next years accelerating further. Thereafter to take the economy back towards 9 percent growth in the last three years of the plan as first two years of the 12th Plan, India’s economy grew by about 5 per cent, the slowest in a decade. The commission has also expected that the economy will bounce back to the higher

TABLE-2Progress In Various Development Indicators during 1st To 11th Plan Periods.

S. No INDICATORS At the Beginning of At the End of

Ist Plan 11th Plan

1 POPULATION ( IN CRORE) 3.61 121.0

2 BIRTH RATE (Per 1000) 39.9 21.8

3 DEATH RATE (Per 1000) 27.4 7.1

4 LIFE EXPECTANCY ( AT BIRTH IN YEARS) 32.1 66.1

i FOR MALE 32.5 64.6

ii FOR FEMALE 37.7 67.6

5 LITERACY RATE ( IN %) 18.3 74.1

i FOR MALE 27.2 82.1

ii FOR FEMAIL 8.9 65.5

6 DOCTORS (PER 10,000 POPULATION) 1.7 7.6

7 GROSS NATIONAL INCOME ( IN CRORE Rs) 9,995 82,76,665

8 ANNUAL GROWTH RATE OF INCOME (in % ) 5.7 15.2

9 GROSS DOMESTIC PRODUCT (IN CRORE Rs.) 2,79,618 52,43,582

10 FIVE YEAR PLAN OUTLAY ( IN CRORE Rs.) 1960 76,69,807

11 FOODGRAIN PRODUCTION (IN MILLION TONNES) 50.8 527.4

12 STEEL PRODUCATION ( IN CRORE Rs.) 01.0 82.8

13 ELECTRICILY GENERATED (IN BILLION KWH) 05.0 877

14 EXPORT ( IN CRORE Rs.) 606 14,65959

15 IMPORT ( IN CRORE Rs.) 608 23,45463

16 FORGIEN EXCHANGE RESERVES (IN CRORE Rs.) 911 13,39,954

17 PER CAPITA INCOME (IN CRORE Rs.)AT CURRENT PRICE 3,678 60,603

18 PER ANNUM GRWOTH RATE (IN %) 1.2 6.2

Source: Economic Survey 2012-13 and Various Five Year Plans, Planning Commission, Govt. of India, New Delhi


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growth trajectory and on the whole, the target of 8 per cent annual average growth rate during the 12th Plan period may be difficult but not impossible to achieve. To achieve this growth rate, public sector outlay is fixed as Rs. 76,69,807 crores, which is the highest till ever. Deputy Chairman of Planning Commission has announced recently that the Planning Commission will conduct the mid-term review of the twelfth Five Year Plan by the end of 2014, for which the preparatory work has started already. Actually, the objectives of twelfth plan are ambitious and achieving them will be difficult. Therefore, this is a national challenge that the entire political and intellectual leadership of our country must come to grips with. It is a challenge for newly elected Central Government & also for state governments to achieve the proposed growth during the twelfth plan period.

The above analytical discussion of various five year plans and their impact on Indian economy suggests that over the years, the Indian economy has gone through phases of remarkable transformation. After witnessing the Hindu rate of growth for the first three decades of post – independence, the Indian economy got its first “big push” with the first phase of economic reforms in 1980s, while the second major push come post 1991, following liberalisation of the economy, which helped it to move on to a sustainable higher growth trajectory. India made a radical break in 1991 from its post policies of inward orientation and started a process of opening up to trade and foreign investment. The growth response emerged a decade later as the cumulative impact of the gradual reforms began to be felt on the investment environment. India’s GDP growth has been nearly eight- percent per annum during 2001to 2011 (See Table – 2). In the aftermath of the crisis, there has been slowdown and a question in the minds of most observers is, whether this slowdown is temporary or our economy moving to a lower growth rate in the medium term. While Reserve Bank of India estimates that the potential growth rate of the Indian economy, which averaged around 8.5 per cent during 2005-06 to 2007-08, dipped gradually thereafter and presently stands at about 5.0-5.5 per cent, where as 12th Five Year Plan (2012-2017) document indicates that Indian’s full growth potential remains around 9 per cent per annum.

Like the other emerging market economies, the Indian economy is also facing certain challenges, such as inflation is high, growth is down, investment is showing down, current account deficit is above the sustainable levels, fiscal deficit is high, and the exchange rate is under pressure. While, global slowdown is an important factor, the domestic factors are no less important. At the macro level also, there are several, concerns. But we need to separate noise from signal. The fundamentals of the economy remain strong. An important point to note is that in the more recent period, growth has become more broad-based across the various states of India, poverty has declined but financial inclusion has emerged as major concern. There has been much more spending on inclusion and social protection. Going forward, there are


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several other old and new challenges. The major ongoing challenges are to provide world class infrastructure for a rapidly-growing economy, particularly in telecom and power sectors, and to follow the macro-economic management involving fiscal reform and monetary policy in and open economy context. The consistence challenges are to bridge the gap between growing demands for different skills as the economy resumes its journey on a high-growth path and their supply. The demographic opportunity needs to be turned into a dividend.

One of the most important facts to be kept in our minds is that presently, 50 per cent of India’s population is under 25 years of their age. Their aspirations are going on rising. The demographic opportunity is increasing in India because the percentage of population of working age will continue to increase for another 40 years. This needs to be harnessed with a greater focus on skill building, higher education, innovation, knowledge creation and knowledge sharing. The Government of India’s National Skill Development Initiative uses public – private partnership to address this challenge. India is uniquely placed for attracting investments in education because there is a hunger for education in the emerging economies and a strong commitment to education at the family level. Global educational institutions will have to look at building a presence in India as they will have to gravitate where human resources are available.

One another aspect which should not be forgotten is that in the coming years, millions of people in India are expected to move out of the agricultural sector and jobs will have to be provided for them. India, therefore, needs to increase its manufacturing capability in time to come. Though in the recent past, the growth of the manufacturing sector has generally outpaced the overall growth rate of the economy, at just over 16 percent of Gross Domestic Product, the contribution of the manufacturing sector in India is much below its potential. As we know that every job created in manufacturing sector has a multiplier effect of creating two to three additional jobs in the related activities. Therefore, a thrust on manufacturing is integral to the inclusive growth agenda of the Government. The National manufacturing Policy currently announced by the Government of India proposes to increase the sectoral share of manufacturing in GDP to 25% over the next decade. As we capitalize on these strengths, we see India delivering on the aspirations of a young and growing middle class and we will do so while increasing our integration with the world. India is now closely integrated with the rest of the world both by way of financial integration and the trade integration. Now, there should be an objective of our government to attract and promote foreign direct investment in order to supplement domestic capital, technology and skills for accelerated economic growth, so that we can look at higher growth rate in the following years so and also in the following five year plans.


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REFERENCES

1. Twelfth Five Year Plan (2012-17), Planning Commission, Govt. of India, New Delhi.

2. Economic Survey (2013-14), Planning commission, Govt. of India, New Delhi.

3. Human Development Report (2012), Ministry of HRD, Govt. of India, New Delhi.

4. Agarwal, P.N. (1983), The New International Economic Order-An Overview, New Delhi.

5. Chanery, H. and Bruno, M. (1962), Development Alternatives in an Open Economic Order, Oxford Universit Press, New Delhi.

6. Arya P.P. and Tandan, B.B.(2003) Economic Reforms in India, Deep and Deep publications, New Delhi.

7. Rajan, K.-Indian Economy (The Post Reform Scenario). 2006, Serials Publications, New Delhi.

8. Reserve Bank of India (2003), Report on Currency and Finance (2001-02) Mumbai.

9. Mishra & Puri (2011) Indian Economy, Himalaya Publishing House, New Delhi.

10. Dhar, P.K. (1997) Indian Economy-Its Growing Dimensions, Kalyani Publishers, New Delhi.



Kiran Dabas* and Inderjeet***Research Scholar, Department of Geography, M.D. University, Rohtak.

**Professor, Department of Geography, M.D. University, Rohtak.

DEVELOPMENT AND EVALUATION OF WATER SCARCITY INDEX FOR DELHI

INTRODUCTION:

Water scarcity is among the main problems to be faced by many societies and the World in the XXI century. Decades ago, water was viewed as a non-limited natural resource because it was renewed every year in the course of the seasons. Man progressively appropriated this resource and used it with few restrictions. Developments in controlling and diverting surface waters, exploring groundwater, and in using the resources for a variety of purposes have been undertaken without sufficient care being given to conserving the natural resource, avoiding wastes and misuse, and preserving the quality of the resource. Thus, nowadays, water is becoming scarce not only in arid and drought prone areas, but also in regions where rainfall is relatively abundant. Scarcity is now viewed under the perspective of the quantities available for economic and social uses, as well as in relation to water requirements for natural and man-made ecosystems. The concept of scarcity also embraces the quality of water because degraded water resources are unavailable or at best only marginally available for use in human and natural systems. The United Nations (2003) describes water scarcity as “The point at which the aggregate impact of all users impinges upon the supply or quality of water under prevailing institutional arrangements to the extent that the demand by all sectors, including the environment, cannot be satisfied fully.” This seemingly physical phenomenon is in fact normally a product of the interaction between complex social, economic and environmental systems. In practice, water scarcity, is more often caused by the nature of demand and the inappropriate allocation of water, rather than by total availability of the natural resource. According to Brown, water scarcity is a “governance crisis, not a [water] resource crisis.” Water scarcity in the proposed study is defined as a gap between available supply and expressed demand of water in a specified domain, under prevailing institutional arrangements and infrastructural conditions.

Water scarcity = an excess of water demand over available supply

AIMS AND OBJECTIVES:

The present attempt of the study has been done on the following objectives:

¤To develop a meaningful integrated index to assess water scarcity.

¤To identify areas facing water scarcity using Water Scarcity Index.

METHODOLOGY AND DATA SOURCES:

The present study has been done on the data generated from the field survey. Data for the study was collected from 5 study sites in Delhi. Five selected villages for survey were; Ochandi, Bajidpur Thakran, Karala, Mundela Khurd and Kharkhari Jatmal. 50 households from each selected area was surveyed randomly and thus total 250 households were surveyed. The primary data was generated with the help of structured questionnaire and field observation. The data collected on a whole range of issues including sources of water, institutional issues, demographic characteristic, time spend collecting water extra.

STUDY AREA:

The National Capital Territory of Delhi comprising of nine districts with an area of 1483 sq. kms., is situated between the Himalayas and Aravalis range in the heart of the Indian Subcontinent. It lies between 28º24’17” and 28º5’00” north latitude and 76º50’24” to 77º20’37” East longitude. The NCT has divided into nine districts. These are North, South, East, West, New Delhi, Central, North-west, South-west and North-east. All districts, except New Delhi and central Delhi, have rural areas in their administrative jurisdiction, Districts have been further subdivided into sub-divisions. Presently, there are 27 sub-divisions and an equal number of Tehsils. There are three statutory towns continuing in Delhi since 1961:-a) N e w D e l h i Municipal Council (NDMC), ( b)Delhi Cantonment Board (Delhi Cantt) and (c) Delhi Municipal Corporation (Urban). The area receives 99 mm3 of average annual rainfall, 80% of which falls between the end of June and September and partly contributes to the Yamuna river flow. Yet, the river does not always have enough water to meet the requirements of the region; hence, to meet the annual water requirement, Delhi heavily depends on neighbouring for its basic water supply. Delhi’s sources of water consist of surface and ground water. Over 86 percent of Delhi’s water supply comes from surface water through the Yamuna River, whose flows are largely diverted upstream in Punjab and Haryana for canal irrigation. Delhi got 829 MGD water from river Yamuna and other sources like river Ganga and sub-surface sources like Ranney wells and tube-wells. With the population of Delhi increasing from 0.4 million in 1911 to 13.8 million in 2001 and 16.7 million in 2011, there is an ever-increasing pressure on the water resource. Delhi faces an unparalleled water crisis. The water supply network of Government of Delhi has always been lagging behind in fulfilling the demands of the residents of the city.

WATER SCARCITY INDEX (WSI):

Determinants of water scarcity in an area will be determined by using index that is called Water Scarcity Index. The objective of such an index is to acquire a holistic policy tool which takes into account both physical and socio economic factors. The

78 Kiran Dabas and Inderjeet

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index offers a relative measure of poverty in relation to water and has universal application regardless of region or scale of the community. The development of Water Scarcity Index is extended to help this process of identifying those areas and communities where water is most needed, enabling a more equitable distribution of water to be achieved.

THEORETICAL BACKGROUND OF WSI:

An Index aims to provide compact and targeted information for management and policy development. Indices are widely used by policy maker as a tool for the evaluation of achievement of complex issues. There overriding advantages are that encapsulate more than one measure of progress in a single number, and allow quantitative and qualitative elements to be combined. Thus, aspects can be shown that would not otherwise be measurable. According to Streeten, “such indices are useful in focusing attention and simplifying the problem. They have considerable political appeal. They have a stronger impact on the mind and draw public attention more powerfully that a long list of many indicators, combined with a qualitative discussion. They are eye-catching.” In 1989, Falkenmark proposed his first water scarcity indices defined as the fraction of the total annual runoff available for human use. Based on three thresholds, the water conditions in any area can be categorized as: no stress, stress, scarcity, and absolute scarcity as noted in the following table.

Table 1: Falkenmark Water Stress Indictor

Falkenmark index can be used to characterize the water situation at smaller scale where the data is available. But, this indicator, as other unidimennsional indices, has enormous shortcomings. In Falkenmark water stress index, only physical water scarcity is considered and the water availability per person is assessed as an average with neglect of both temporal and spatial variability in certain regions within a country. Recognizing that water use is more important than water availability, Gleick (1996) have developed an improved water scarcity index by including specific and basic Human Water Requirements (BWR) such as drinking, cooking, bathing, sanitation and hygiene. But this indicator hasn’t been applied in regional scale; it has only used in country-level.

The concept of water poverty proposed by Lawrence et al. (2003), who state that

Development And Evaluation of Water Scarcity Index For Delhi

3Index (Per Capita Per Year m ) Category

>1 700 No Stress

1 000-1 700 Stress

500 – 1 000 Scarcity

<500 Absolute Scarcity

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people can be “water poor” because of two reasons: (1) in the sense of not having sufficient water for their basic needs because it is not available or (2) because they are “income poor”, and although water is available, they cannot afford to pay for it.

The WSI is a holistic tool, designed to capture the linkages between issues related to

water resources availability and human and ecological needs. Its theoretical

framework integrates a number of aspects which reflect major preoccupations in

developing countries related to the provision of safe water and improved sanitation;

physical availability of water resources (R), extent of access to water and sanitation

(A), people’s ability and capacity for sustaining access (C), use of water for different

purpose (U), and the environmental factors which impact on the water supply to

ecosystems (E). This indicator combines physical, social, economic and

environmental information and it can be used at the community or sub-basin scales.

Both water resource managers and policy makers can take advantage of this

composite index to analyze to links between poverty, social deprivation,

environmental integrity, water availability and health (Sullivan, 2003).

Combining the measures of water availability and the socio-economic capacity to

access to it, gives new insights in the fields of water resources management and

poverty alleviation. The WPI was created as an interdisciplinary indicator to assess

water stress and scarcity, linking physical estimates of water availability with the

socio economic drivers of poverty. This index has found great relevance in policy

making as an effective water management tool, particularly in resource allocation

and prioritization processes. The proposed WSI in the present study take inspiration

from the work of Sullivan. The Water Scarcity Index proposed in the present study

has a broadly similar structure, having aim to realize and integrated assessment at

resource availability, socio economics characteristics and ecological dimension of

Water Scarcity/poverty. The WSI is primarily designed to provide a tool by which

water managers can evaluate the water situation in different locations in a holistic

way. Such a tool will allow comparisons to be made between communities, and this

will enable decisions to be made in a transparent and consultative way. In addition, if

implemented in such a way as to generate time series data, the tool can be used to

monitor progress over time. To address the complexity of water management, a

composite index is preferred. The composite index approach draws on the structure

and methodologies used by the Human Development index, and it is based on the

idea that a combination of relevant variables can provide a more comprehensive

insight into a particular situation than can a single one. In this way, sub variables to

represent the 4 key components (Resource, Access, Capacity, and the Environment)

are collected and summed, to generate a holistic value of the WSI.

Kiran Dabas and Inderjeet

81

COMPONENTS OF THE WATER SCARCITY INDEX:

Key components of the proposed index have been identified as:-

1) Resource:- The resource component concerns the physical availability of

surface and ground water. It is most relevant in evaluating the WSI since it

relates to the water that people are actually able to use. A higher value of this

component reflects a better water situation, which is an abundant water resource

with less variability. A significant additional factor that affects availability is the

reliability or variability of the resource,; it should be included because the more

variable the resource, the smaller is the proportion of the total resource that can

actually be used. In the present study, duration of water availability in hours is

used for resource availability. It includes spatial and temporal variability of

water within the study area. It is an important indication of WSI.

2) Access:- People’s access to water, is another component of the WSI. However,

the distinction is that water resource availability relates to the natural

environment and water resource infrastructure while access relates to people’s

ability to obtain that water to satisfy their needs, taking into account factors

such as time and distance to collect water, right of access and costs. Regular

and adequate access to improved drinking water encourages necessarily for

better hygiene and sanitation conditions. Contrariwise, inadequate access to

safe water will eventually lead to loss of time spend collecting water that could

be used for productive activities. In the proposed Index, access to resource is

represented by ownership of water source (whether it is tap, handpumps of

tubewells) convert non-ownership or used of a common water source denotes

difficulty or less access to water.

3) Capacity:- The capacity component comprises a set of socio – economic

indicators which can exhibits the effectiveness of people’s ability to supply and

manage water. The first indicator of this component related to human welfare

and quality of life, measures the economic capacity through the average per

capita expenditure. Higher value of this indicator means higher economic

capacity to purchase of sufficient safe water, to access water resources and

technology to cope with water related stresses. Capacity is interpreted in the

sense of income to allow purchase of improved water. Therefore cost paid for

water in used as indicator for the capacity component.

4) Environment:- The environment component comprised a number of

environmental indicators which reflect on water provision and management.

These indicators not only cover water quality and stress, but also the degree to


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which water and the environment generally but also indicate the importance

that the environment is given in a country’s strategic and regulatory frame work.

In the proposed index water quality (water fitness for drinking) has been taken

as an indicator.

APPLYING WEIGHT TO THE WSI STRUCTURE:

Weights are used in an index to change the relative importance of various components. This is usually done to put emphasis on issue which is considered most important. In the proposed study the resource component measures availability of water resources, and it was assessed averaging three different variables (a) Water quality sufficiency, which considers if resource availability is enough to cover human or livestock demand and (b) reliability as supply and (c) seasonal resource variability . In the study resource availability component is divided into four categories: - almost all the time (good availability of water), 6-8 hours (acceptable availability), 4-6 hours ( poor availability) and less than 4 hours (very poor availability). More number of hours means more availability of water therefore a weight of four is given to the category of water supply all the time, 6-8 hours availability of water is given weight of three , 4-6 hours availability of water is given weightage of two and a weight of one is given to water supply less than 4 hours.

The access variable considers whether or not people have access to safe water. It is represented by ownership of water resource. If people owned their source of water, they have easy access to water whereas who used a common source of water, they have not easy access to water as they have to spend more time in water collection or one way distance of water source is more. Therefore a weight of 2 is given to private ownership of water source, while 1 is given to common source.

The capacity indicator tries to capture those socio-economic variables which can impact on abilities that people should have to properly manage water resource. This indicator considered whether the water available to them is costing them anything at all or not. A weightage of 2 is given where the water needs of the people are satisfied from one source only and they have to pay only for one source whereas a weight of 1 is given where people have to depend upon alternate source of water for satisfying their needs, thus they have to pay more which is not a desired situation.

The environment component combines a number of indicators which not only cover water quality and “stress” but also variable which are likely to impact on ecological integrity. Water quality is fourth indicator denoting environment. Weightage of this indicator is proportional to the difference between those who said water is of good quality and those who said quality is bad. A weight of 1 is given to poorest water quality(hard/saline water) whereas 2 indicates poor water quality, 3 denotes for acceptable water quality and a weight of 4 denotes for good quality of water.


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The weight of all four indicators range on a scale of 4 to 12. After addition of highest weights given to each indicator, the total will be 12, which is taken to be the best situation regarding water whereas lowest possible weightage of all the indicators is 4, which shows the possible level of water scarcity.

Water Scarcity Index value for a particular reason, is the weighted some of 4 components {Resource (R), Access (A), Capacity (C) and Environment (E)}. To standardize the result and produce a WSI (Water Scarcity Index) value of between 0 and 1, the sum of the indicator needs to be divided by the sum of weights (of all indicators) which is 12 in this study. Thus the WSI for each selected villages will show water scarcity levels ranging between 0 and 1. Higher value of WSI presents lower degree of water scarcity whereas the lower WSI value represents worst condition of water scarcity.

WSI VALUES FOR SAMPLE VILLAGES:

The water scarcity index scores for sample villages based on field survey are presented in table 2 in ranks score order with highest value appearing first.

Table 2: Water Scarcity Index for Sample Villages

Source: Primary Survey

Village wise description is given below:-

Karala is a large village in terms of size and population in Saraswati Vihar Tehsil of

North West district in Delhi. Karala village is at the top of the ranking by getting a

WSI score of 0.8. It scores maximum weight both in terms of availability and quality

of water. Its weighted score is 2 in terms of ownership that indicates that every

household has their private source of water and they don’t spend much time in

collecting water from anywhere else. For the cost indicator, Karala reports weighted

score of 2 showing that they are getting satisfactory supply from one source of water

and they are paying money only for one source of water on average consumption

basis. Taking the overall values of the indicators and its resultant WSI scores, Karala

village is fortunate enough not to have any water scarcity.

Rank Village Availability Ownership Cost Quality Total WSI

1 Karala 3 2 2 3 10 0.8

2 Ochandi 3 2 1 2 8 0.7

3 Bajidpur Thakaran 2 2 1 2 7 0.6

4 Mundela Khurd 2 2 1 1 6 0.5

5 Kharkhari Jatmal 1 2 1 1 5 0.4


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Ochandi village is situated in Narela Tehsil of North West district of Delhi. Ochandi,

with a WSI score of 0.7 , is ranked second in WSI order. This village weighted a

score of 3 for availability and 2 for both ownership and Quality indicator and 1 for

cost. The quality of water is well below desirable standards and also most people

surveyed are bearing the cost of water purification. This implies an added economic

burden on the inhabitants.

Bajidpur Thakran village is situated in Narela Tehsil of North west district of Delhi.

The WSI score for the village is 0.6 , which places it in the medium water scarcity

range. It scores value of 2 for availability indicator as it get water supply up-to 6

hours daily. All the households of the village are connected to Municipal water

network, thus it scores maximum 2 weighted points for, private ownership of water

resource. All the persons surveyed are not satisfied with the quality of water, thus the

water scarcity index score for quality indicator is 1. This village scores a weight of 1

for cost indicator as people have to spend more money for improving the quality of

water. The score of 0.6 does not indicate a happy water situation.

With a WSI score of 0.5, Mundela Khurd village does not indicate a good water

condition. It is located in the Najafgarh Tehsil of South West district of Delhi. The

water distribution system in this village is in a state of despair. The availability

indicator shows low water supply. This village get water supply for less than 6 hours

a day, thus weighted scores is 2 for availability of water. Nearly all the households

have private ownership of water resources; hence, the weighted score is 2 for

ownership indicator. Since this area gets its supply from groundwater, (Tubewell),

the poor ground water quality adversely affects its WSI score. Water from tubewells

is almost unfit for drinking purpose because of high contents of nitrates and calcium .

Thus it scores 1 for quality indicator. The weighted score is also 1 for cost indicator

as all the households have to bear the cost for water purification or upon alternate

source of drinking water thus they have to spend more money for meeting their water

requirements. The overall water situation in this village appears unsatisfactory.

Kharkhari Jatmal village is located in Najafgarh Tehsil of South West district. It has

WSI score of 0.4 It scores a weight for 1 for availability indicator, showing low water

supply in the village. Ownership of the water resource indicates good access to

water, thus scoring 2 for it. Water quality, too, in this village is quite bad as it is

getting water supply trough tube wells and the groundwater contains high nitrate

pollution and is also hard. So is score 1 both for quality and cost, this translates itself

into fewer water supplies, low access and poor quality and high cost for water

consumption. Its WSI value of 0.5 is a poor water situation.


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WSI MATRIX:

The variations between sample villages are illustrated through WSI Matrix in Figure 1.

Figure WSI Matrix for Sample Villages

The quadrate diagram shows the component scores which indicate the strengths and weaknesses in each location. For example, Karala and Ochandi village scores highest value for resource component, at the same time, the environmental impact of water use in Kharkhari Jatmal and Mundela Khurd samples seems to be quite severe, illustrated by the low scores on the environmental axis. The access component scores are almost similar in all locations, although mere access is not sufficient to consider as “no water poor”. The capacity component illustrates the use of income to meet the water demand. For example in Kharkhari Jatmal, Mundela, Khurd village due to hard water supply they have to spend more for coping strategies. Therefore households have to bear burden. The figure shows that taking the WSI scores overall, the situation is worst in Kharkhari Jatmal and Mundela Khurd villages and the most urgent attention should be given to these areas, where low scores are found on all the components.

CONCLUSION:

The development of Water Scarcity Index is extended to help this process of indentifying those areas and communities where water is most needed, enabling a more equitable distribution of water to be achieved. The WSI and its underlying components provided a true reflection of the situation in the communities. The WSI is not intended to provide unexpected or new results, but its purpose is to provide a systematic and transparent tool which allows the water situation at the community level to be expressed in a much more cogent way than previously. The calculation results of WSI in study area shows that only one Karala village is not experiencing


86

any water scarcity whereas Kharkhari Jatmal is in very high water stress condition. Other villages are in the low and medium water stress condition. The result of the WSI calculation can be utilized as basis for policy planning in the development of water supply provision in Delhi.

REFERENCES:

E. Salameh, 2000, Redefining the Water Poverty Index. Int. Water Resources Ass. Water Int.

Jemmali Hatem, Matoussi Salah Mohammed, 2011, A Multidimensional Analysis of Water Poverty at Local Scale; Application of Improved Water Poverty Index for Tunisia, Tunisia.

JR Meigh, AA McKenzie, and KJ Sene, 1999. A Grid Based Approach to Water Scarcity Estimates for Eastern and Southern Africa. Water Resources Management.

Lawrence.P. Meigh, J., and Sullivan, C, 2003. “The Water Poverty Index:An International Comparision.” Keel Economic Research Papers 2002/19, Keele University, Stafforshire, U.K.

Mathur Veenita, 2002, Political Ecology of Water Scarcity in Lucknow Disctric, Ph.d Thesis.

OhIsson , 2000, Water Conflicts and Social Resource Scarcity. Physics and Chemistry of the Earth, Part B.

P.H G, Gleick, 1996 Basic Water Requirements for Human Activities; Meeting Basic Needs. Water International

Savenije Hubert H.G., (2000), “Water Scarcity Indicators; the Deception of the Numbers”, Physics and Chemistry of the Earth, Part B, vol. 25, pp. 199-204.

Sullivan, C. 2002. ‘Calculating Water Poverty Index’. Centre for Ecology and Hydrology, Wallingford, U.K.

Sullivan, C.A., et al., 2003. “The Water Poverty Index; Development and Application at the Community Scale.” Nat. Resoure. Forum.


A STUDY OF PERSONALITY NEEDS OF FEMALE TEACHERS WORKING IN GOVERNMENT AND PRIVATE

PRIMARY LEVEL SCHOOLS


1 Seema Sharma and Komal Yadav

Associate Professor In Education, Meerut College, Meerut (U.P.)

Assitant Professor, Deptt. of Education, NREC College, Khurja (U.P.)

2

1

2

The success of an educational system largely depends upon the quality of teachers. It is the teacher who matters most as far as the quality of education is considered. The teacher is expected to identify the hidden potentials of the students and develop them to the maximum possible limits in propitious environment. If teachers are well educated, intellectually alive and take keen interest in their job, then only, success is ensured. The teacher is recognized not so much by what he is, as by what he does to his pupils. Teacher’s personality, interests and attitude affect the student’s behaviour patterns and thus ultimately shape their personality (NPE, 1986 and POA 1992).

PERSONALITY NEEDS

Murray says that, “The term personality has been reserved for the hypothetical structure of the mind, the consistent establishment and processes of which are manifest over and over again in the internal and external proceedings which constitute a person’s life.” He tries to understand the human personality in terms of “needs’ which determine the uniqueness of one’s personality.

According to Murray (1938), these personality needs are characteristics of personality and control and direct all behoviours. He summarized that these needs are hypothetical entities and prime movers of an individual’s behaviour and his activities. In the present investigation these 10 needs have been taken into consideration.

1. Achievement (n ach.)

2. Exhibition (n exh.)

3. Autonomy (n. aut.)

4. Affiliation (n affl.)

5. Succourance (n succ.)

6. Dominance (n dom.)

7. Abasement (n abs.)

8. Nurturance (n nur.)

9. Endurance (n end.)

10. Aggression (n agg.)

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OBJECTIVES OF THE STUDY:

Following are the objectives of the study:

1. To find out the level of personality needs of female teachers working in government and private primary level schools.

2. To find out the significance of difference in personality needs of female teachers working in government and private primary level schools.

HYPOTHESIS OF THE STUDY:

1. There is no difference in personality needs of female teachers working in government and private primary level schools.

METHODOLOGY

Population of the Study:

The population has been defined as all the primary female teachers belonging to government and private sector of Bulandshahr district.

Sample of the Study:

Cluster random sampling technique was adopted to draw the representative sample. Thus, 300 teachers were selected by cluster random sampling technique. The structure of sample has been shown in the following table:

TOOL USED AND DESCRIPTION:

1. Meenakshi Personality Inventory (MPI)

An Indian Adaptation

Author : Meenakshi Bhatnagar

Publisher : Kanoongoyan Moradabad (U.P.)

Language : Hindi

Table 1

Structure of the Sample of Primary School

Teachers of District Bulandshahr

S.No. Type of Schools No. of Schools No. of Teachers

1. Government Primary School 37 150

2. Private Primary School 27 150

Total 64 300

Seema Sharma and Komal Yadav

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Description

Prof. Edwards of Washington University of America prepared a questionnaire in 1954, which measures 15 main needs. In 1966, Dr. R.P. Bhatnagar prepared and adapted a Hindi version of this test. Meenakshi Personality Inventory (MPI) is a further refinement of that version. This inventory has the same theoretical base and also measures the main psychological personality needs. Although in this inventory also, the psychological needs are defined in the same way, as defined by Murray and subsequently by Edwards and Bhatnagar in the construction of their tests, but no statement is taken in MPI from the latters’ tests.

The Meenakshi Personality Inventory (MPI) tests the following ten psychological needs –

1. Need achievement

2. Need exhibition

3. Need autonomy

4. Need affiliation

5. Need succourance

6. Need dominance

7. Need abasement

8. Need nurturance

9. Need endurance

10. Need aggression

Every need mentioned above is measured with a scale of twenty statements. Every statement attempts to find out “what an individual prefers or what she likes”.

STATISTICAL TECHNIQUES USED:

To analyze the data, the statistics has been applied at two levels. At the first level, various descriptive measures ( mean, median, standard deviation, mode, skewness and kurtosis ) have been calculated.

At the second level, t-test has been applied to find out significance of difference.

ANALYSIS AND INTERPRETATION OF DATA

Objective No. 1 To find out the level of personality needs of female teachers working in government and private primary level schools.

A study of personality needs of female teachers working in government and private primary level schools

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Table 2

Descriptive Statistics of Female Teachers Working in Govt. and Private

Primary Level Schools

The mean score of personality need of achievement is 12.87 i.e. an average female teacher at the primary level is able to secure almost 71.5% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of achievement is concerned. The standard deviation is 1.89 for personality need of achievement, which shows that on an average the data can deviate 1.89 from the mean value. However, the variability is small. The standard error score of personality need of achievement .109 indicates that the population’s mean can deviate .109 from this mean value. The median of personality need of achievement is 13, which is quite higher score. The mode of personality need of achievement 13 is the highest score one can get on personality need of achievement. This is the most occurring value in the data. The value of skewness of personality need of achievement is - .360. It means that the sample is positively skewed. The

Personality Need ofAchievement

Veriables

300

N

12.87(71.50%)

Mean

1.891

S.D

.109

S.E

13.00

Median

13.00

Mode

-.360

Skewness

.641

Kurtosis

Personality Need ofExhibition

300 5.13(28.5%)

1.983 .114 5.00 5.00 .287 -.498

Personality Need ofAuthonomy

300 9.13(50.72%)

1.908 .110 9.00 9.00 .147 -.006

Personality Need ofAffiliation

300 9.69(53.83%)

1.930 .111 10.00 11.00 -.360 -.012

Personality Need ofSuccourance

300 6.57(36.5%)

2.156 .124 6.00 6.00 .721 1.521

Personality Need ofDominance

300 7.03(39.05%)

2.101 .121 7.00 6.00 .474 .168

Personality Need ofAbasement

300 9.47(52.61%)

2.172 .125 9.00 9.300 -.163 .584

Personality Need ofNurturance

300 14.05(78.05%)

2.0841 .120 14.00 14.00 -.761 .505

Personality Need ofEndurance

300 13.37(74.27%)

1.897 .110 14.00 14.00 -.532 .152

Personality Need ofAggression

300 2.69(14.94%)

1.851 .107 2.00 3.00 1.03 1.05


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value of kurtosis of personality need of achievement is .641. So, the distribution is platykurtic.

The mean score of Personality need of exhibition is 5.13 i.e. an average female teacher at the primary level is able to secure almost 28.5% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of exhibition is concerned. The standard deviation is 1.98 for personality need of exhibition, which shows that on an average the data can deviate 1.98 from the mean value. However, the variability is small. The standard error score of personality need of exhibition .114 indicates that the population’s mean can deviate .114 from this mean value. The median of personality need of exhibition is 5, which is lower score. The mode of personality need of exhibition 5 is the highest score one can get on personality need of exhibition. This is the most occurring value in the data. The value of skewness of personality need of exhibition is .287. It means that the sample is negatively skewed. The value of kurtosis of personality need of exhibition is -.498. So, the distribution is platykurtic.

The mean score of Personality need of autonomy is 9.13 i.e. an average female teacher at the primary level is able to secure almost 50.72% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of autonomy is concerned. The standard deviation is 1.90 for personality need of autonomy, which shows that on an average the data can deviate 1.90 from the mean value. However, the variability is small. The standard error score of personality need of autonomy .110 indicates that the population’s mean can deviate .110 from this mean value. The median of personality need of autonomy is 9, which is average score. The mode of personality need of autonomy 9 is the highest score one can get on personality need of autonomy. This is the most occurring value in the data. The value of skewness of personality need of autonomy is .147. It means that the sample is negatively skewed. The value of kurtosis of personality need of autonomy is -.006. So, the distribution is platykurtic.

The mean score of Personality need of affiliation is 9.69 i.e. an average female teacher at the primary level is able to secure almost 53.83% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of affiliation is concerned. The standard deviation is 1.93 for personality need of affiliation, which shows that on an average the data can deviate 1.93 from the mean value. However, the variability is small. The standard error score of personality need of affiliation .111 indicates that the population’s mean can deviate .111 from this mean value. The median of personality need of affiliation is 10, which is average score. The mode of personality need of affiliation 11 is the highest score one can get on personality need of affiliation. This is the most occurring value in the data. The value of skewness of personality need of affiliation is - .360. It means


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that the sample is positively skewed. The value of kurtosis of Personality need of affiliation is -.012. So, the distribution is platykurtic.

The mean score of Personality need of succourance is 6.57 i.e. an average female teacher at the primary level is able to secure almost 36.5% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of succourance is concerned. The standard deviation is 2.15 for personality need of succourance, which shows that on an average the data can deviate 2.15 from the mean value. However, the variability is small. The standard error score of personality need of succourance .124 indicates that the population’s mean can deviate .124 from this mean value. The median of personality need of succourance is 6, which is lower score. The mode of personality need of succourance 6 is the highest score one can get on personality need of succourance. This is the most occurring value in the data. The value of skewness of personality need of succourance is .721. It means that the sample is negatively skewed. The value of kurtosis of personality need of succourance is 1.521. So, the distribution is platykurtic.

The mean score of Personality need of dominance is 7.03 i.e. an average female teacher at the primary level is able to secure almost 39.05% scores on the Personality need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of dominance is concerned. The standard deviation is 2.10 for personality need of dominance, which shows that on an average the data can deviate 2.10 from the mean value. However, the variability is small. The standard error score of personality need of dominance .121 indicates that the population’s mean can deviate .121 from this mean value. The median of personality need of dominance is 7, which is lower score. The mode of personality need of dominance 6 is the highest score one can get on personality need of dominance. This is the most occurring value in the data. The value of skewness of personality need of dominance is .474. It means that the sample is negatively skewed. The value of kurtosis of personality need of dominance is .168. So, the distribution is platykurtic.

The mean score of Personality need of abasement is 9.47 i.e. an average female teacher at the primary level is able to secure almost 52.61% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of abasement is concerned. The standard deviation is 2.17 for personality need of abasement, which shows that on an average the data can deviate 2.17 from the mean value. However, the variability is small. The standard error score of personality need of abasement .125 indicates that the population’s mean can deviate .125 from this mean value. The median of personality need of abasement is 9, which is average score. The mode of personality need of abasement 9 is the highest score one can get on personality need of abasement. This is the most occurring value in the data. The value of skewness of personality need of abasement is -.163. It means


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that the sample is positively skewed. The value of kurtosis of personality need of abasement is .584. So, the distribution is platykurtic.

The mean score of Personality need of nurturance is 14.05 i.e. an average female teacher at the primary level is able to secure almost 78.05% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of nurturance is concerned. The standard deviation is 2.08 for personality need of nurturance, which shows that on an average the data can deviate 2.08 from the mean value. However, the variability is small. The standard error score of personality need of nurturance .120 indicates that the population’s mean can deviate .120 from this mean value. The median of personality need of nurturance is 14, which is quite higher score. The mode of personality need of nurturance 14 is the highest score one can get on personality need of nurturance. This is the most occurring value in the data. The value of skewness of personality need of nurturance is -.761. It means that the sample is positively skewed. The value of kurtosis of personality need of nurturance is .505. So, the distribution is platykurtic.

The mean score of Personality need of endurance is 13.37 i.e. an average female teacher at the primary level is able to secure almost 74.27% scores on the Personality Need Inventory i.e. an average teacher at the primary level is efficient as far as personality need of endurance is concerned. The standard deviation is 1.89 for personality need of endurance, which shows that on an average the data can deviate 1.89 from the mean value. However, the variability is small. The standard error score of personality need of endurance .110 indicates that the population’s mean can deviate .110 from this mean value. The median of personality need of endurance is 14, which is quite higher score. The mode of personality need of endurance 14 is the highest score one can get on personality need of endurance. This is the most occurring value in the data. The value of skewness of personality need of endurance is -.532. It means that the sample is positively skewed. The value of kurtosis of personality need of endurance is .152. So, the distribution is platykurtic.

The mean score of Personality need of aggression is 2.69 i.e. an average female teacher at the primary level is able to secure almost 14.94% scores on the Personality need Inventory i.e. an average teacher at the primary level is efficient as far as Personality need of aggression is concerned. The standard deviation is 1.85 for Personality need of aggression, which shows that on an average the data can deviate 1.85 from the mean value. However, the variability is small. The standard error score of Personality need of aggression .107 indicates that the population’s mean can deviate .107 from this mean value. The median of Personality need of aggression is 2, which is lower score. The mode of Personality need of aggression 3 is the highest score one can get on Personality need of aggression. This is the most occurring value in the data. The value of skewness of Personality need of aggression is 1.03. It means


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that the sample is negatively skewed. The value of kurtosis of Personality need of aggression is .115. So, the distribution is platykurtic.

Objective No. 2 To find out the significance of difference in personality needs of female teachers working in government and private primary level schools.

Hypothesis- There is no difference in personality needs of female teachers working in government and private primary level schools.

Interpretation

Personality Need of Achievement

In the table 3 shows that obtained t- value (C.R.) is .14, which is insignificant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is less than minimum required significant C.R. value, therefore, it may be concluded that government teachers and private teachers do not differ significantly on their need of achievement.

Table 3Personality Needs of Female Teachers Working in Govt. and Private Primary Level Schools

Variables Type ofTeachers

No. ofTeachers

Mean(X)

StandardDeviation

St. ErrorOf Mean

t-value

Level ofSignificance

Government

Private

Government

Private

Government

Private

Government

Private

Government

Private

Government

Private

Government

Private

Government

Private

Government

Private

Government

Private

150

150

150

150

150

150

150

150

150

150

150

150

150

150

150

150

150

150

150

150

12.86

12.89

4.82

5.44

9.10

9.16

10.09

9.30

6.45

6.69

6.50

7.55

9.81

9.13

14.06

14.03

13.48

13.27

2.83

2.54

1.935

1.852

1.832

2.084

1.976

1.843

1.935

1.849

2.103

2.208

1.864

2.197

2.260

2.032

2.064

2.106

1.881

1.913

1.880

1.816

.158

.151

.150

.170

.161

.150

.158

.151

.172

.180

.152

.179

.184

.166

.168

.172

.154

.156

.154

.148

.14

2.74

1.23

3.61

.96

18.98

11.15

.125

.96

1.38

Insignificant

Significant*

Insignificant

Significant*

Insignificant

Significant*

Significant*

Insignificant

Insignificant

Insignificant

P.N.ach.

P.N.exh.

P.N.aut.

P.N.aff.

P.N.succ.

P.N.dom.

P.N.abs.

P.N.nur.

P.N.end.

P.N.agg.

*significant at o.o1 level


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Personality Needs of Female Teachers Working in Government and Private Primary Level Schools

Figure 1

The difference in personality needs of female teachers working in government and private primary level schools can also be depicted through the figure 1.

Mean need achievement score of female government teachers is less than mean need achievement score of their counterpart female private teachers in primary schools, meaning thereby the need achievement of female government teachers are less than female private teachers in primary schools. This difference in need achievement of two groups, namely, female government teachers and female private teachers is not real and just due to chance factor. Since significant difference does not exist between need achievement scores of government teachers and private teachers, therefore, nothing definite can be said about the causes of insignificant result.

Personality Need of Exhibition

Obtained t- value (C.R.) is 2.74, which is significant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is greater than minimum required significant C.R. value, therefore, it may be concluded that government female teachers and private female teachers working in primary schools differ significantly on their need of exhibition.

Obtained C.R. value is significant at 0.01 level of significance, which shows that if 100 samples are taken from the same population in 99 cases result could be similar to the present one.

Mean need exhibition score of female private teachers is greater than mean need exhibition score of their counterpart female government teachers in primary schools,


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meaning thereby the need exhibition of female private teachers are more than female government teachers in primary level schools.

Personality Need of Autonomy

Obtained t- value (C.R.) is 1.23, which is insignificant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is less than minimum required significant C.R. values, therefore, it may be concluded that government teachers and private teachers do not differ significantly on their need of autonomy.

Mean need autonomy score of female government teachers is less than mean need autonomy score of their counterpart female private teachers in primary schools, meaning thereby the need autonomy of female government teachers are less than female private teachers in primary level schools. This difference in need autonomy of two groups, namely, female government teachers and female private teachers is not real and just due to chance factor. Since significant difference does not exist between need autonomy scores of government teachers and private teachers, therefore nothing definite can be said about the causes of insignificant result.

Personality Need of Affiliation

Obtained t- value (C.R.) is 3.61, which is significant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is greater than minimum required significant C.R. value, therefore, it may be concluded that government female teachers and private female teachers working in primary schools differ significantly on their need of affiliation.

Obtained C.R. value is significant at .01 level of significance, which shows that if 100 samples are taken from the same population in 99 cases result could be similar to the present one.

Mean need affiliation score of female government teachers is greater than mean need affiliation score of their counterpart female private teachers in primary level schools, meaning thereby the need affiliation of female government teachers are more than female private teachers in primary level schools.

Personality Need of Succourance

Obtained t- value (C.R.) is .96, which is insignificant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is less than minimum required significant C.R. value, therefore, it may be concluded that government teachers and private teachers do not differ significantly on their need of succourance.

Mean need succourance score of female government teachers is less than mean need succourance score of their counterpart female private teachers in primary level


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schools, meaning thereby the need succourance of female government teachers are less than female private teachers in primary level schools. This difference in need succourance of two groups, namely, female government teachers and female private teachers is not real and just due to chance factor. Since significant difference does not exist between need succourance scores of government teachers and private teachers, therefore, nothing definite can be said about the causes of insignificant result.

Personality Need of Dominance

Obtained t- value (C.R.) is 18.98, which is significant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is greater than minimum required significant C.R. value, therefore, it may be concluded that government female teachers and private female teachers working in primary level schools differ significantly on their need of dominance.


Mean need dominance score of female government teachers is less than mean need dominance score of their counterpart female private teachers in primary level schools, meaning thereby the need dominance of female government teachers is less than female private teachers in primary level schools.

Personality Need of Abasement

Obtained t- value (C.R.) is 11.15, which is significant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is greater than minimum required significant C.R. value, therefore, it may be concluded that government female teachers and private female teachers working in primary level schools differ significantly on their need of abasement.


Mean need abasement score of female government teachers is greater than mean need abasement score of their counterpart female private teachers in primary level schools, meaning thereby the need abasement of female government teachers is greater than female private teachers in primary level schools.

Personality Need of Nurturance

Obtained t- value (C.R.) is .125, which is insignificant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298.


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Obtained C.R. value is less than minimum required significant C.R. value, therefore, it may be concluded that government teachers and private teachers do not differ significantly on their need of nurturance.

Mean need nurturance score of female government teachers is greater than mean need nurturance score of their counterpart female private teachers in primary level schools, meaning thereby the need nurturance of female government teachers are greater than female private teachers in primary level schools. This difference in need nurturance of two groups, namely, female government teachers and female private teachers is not real and just due to chance factor. Since significant difference does not exist between need nurturance scores of government teachers and private teachers, therefore, nothing definite can be said about the causes of insignificant result.

Personality Need of Endurance

Obtained t- value (C.R.) is .96, which is insignificant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is less than minimum required significant C.R. value, therefore, it may be concluded that government teachers and private teachers do not differ significantly on their need of endurance.

Mean need endurance score of female government teachers is greater than mean need endurance score of their counterpart female private teachers in primary level schools, meaning thereby the need endurance of female government teachers are greater than female private teachers in primary level schools. This difference in need endurance of two groups, namely, female government teachers and female private teachers is not real and just due to chance factor. Since significant difference does not exist between need endurance scores of government teachers and private teachers, therefore, nothing definite can be said about the causes of insignificant result.

Personality Need of Aggression

Obtained t- value (C.R.) is 1.38, which is insignificant at .01 level of significance for df of 298. Minimum required significant C.R. value should be 2.60 for df of 298. Obtained C.R. value is less than minimum required significant C.R. value, therefore, it may be concluded that government teachers and private teachers do not differ significantly on their need of aggression.

Mean need aggression of score of female government teachers is greater than mean need aggression score of their counterpart female private teachers in primary schools, meaning thereby the need aggression of female government teachers are greater than female private teachers in primary schools. This difference in need aggression of two groups, namely, female government teachers and female private teachers is not real and just due to chance factor. Since significant difference does not exist between need aggression scores of government teachers and private teachers,


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therefore, nothing definite can be said about the causes of insignificant result.

Discussion

Out of 10 personality needs, on four needs, namely exhibition, affiliation, dominance and abasement of government female teachers were found significantly related with private female teachers. The need exhibition of female private teachers is more than female government teachers. This may be due to the fact that private teachers are fearful because of the continuous supervision of the management and they have to justify themselves daily, before the authorities. On the other hand, there is no continuous supervision for the female government teachers. The need dominance of female private teachers is more than female government teachers. This may be due to the fact that female private teachers suffer from inferiority complex and to counter this inferiority, they show their dominance. The need affiliation of female government teachers is more than female private teachers. This may be due to the reason that in government sector, the teachers are free from any stress and they work in a normal setting. So, they have an affiliation with the children in particular and with the school in general. The need abasement of female government teachers is more than female private teachers. This may be due to the reason that these teachers feel frustrated and guilty because they are generally over-burdened with the extra work like census, polio programme, mid-day meal, election duties, voter identification etc. Therefore, they don’t show sincerely to their work and when the guardians complain about the poor performance of their wards, and then they insult them to hide their weaknesses. The remaining personality needs, namely, achievement, autonomy, succourance, nurturance, endurance and aggression have no significant relation with private female teachers.

Therefore, it may be concluded that this hypothesis is rejected with regard to 4 personality needs namely exhibition, affiliation, dominance and abasement and is accepted with regard to 6 personality needs namely achievement, autonomy, succourance, nurturance, endurance and aggression.

Findings

1. Average personality needs found in female teachers working in primary level is 71.5% for need achievement, 28.5% for need exhibition, 50.72% for need autonomy, 53.83% for need affiliation, 36.5% for need succourance, 39.05% for need dominance, 52.61% for need abasement, 78.05% for need nurturance, 74.27% for need endurance and 14.94% for need aggression.

2. As far as personality needs are concerned female teachers working in government and private primary level schools differ significantly on some of the personality needs i.e. need exhibition, need affiliation, need dominance and need abasement.


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Implications for Teachers

This study measures personality needs in relation to working conditions and teaching effectiveness of primary level teachers. Personality needs play an important role as far as adjustment of a person is concerned. Personality needs determine the level of aspiration and subsequent level of achievement in the life of a person. This study would provide a helping hand for teachers to know that it is necessary to know the types of need a person has as it will affect her relationship with colleagues, administrator and also with children.

This study would provide guidelines for personality needs to facilitate successful teaching learning situations. As we know that quality of teaching is the single most critical factor contributing to performance of students. Such policies may be implemented, which measure effectiveness of individual teachers in relation to personality needs and working conditions. At the primary level this is the most important because foundation stone is laid down at this stage. If the teacher is effective she can perform in a better way. Personality needs of the teachers to a large extent determine the level of adjustment with her colleagues and administrators. If, educational practices are tuned keeping in mind the personality needs of individual teacher, the teaching learning process can be improved.

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Saxena, S.A. (1981), A Study of Need Achievement in Relation to Creativity, Values, Level of Aspiration and Anxiety. Agra University.

Shashikala, Y.S. and Thirtha L.(1977), “Needs and Teacher Behaviour”, Ph.D. Thesis, M.B. Buch, Third Survey of Research in Education, p. 777.

Zuberg, I.A. (1984), “A Study of Relationship Between Personal Values, Needs, Job Adjustment, Temperament and Academic Carriers of Secondary School Teachers with their Teaching Behoviour.” M.B. Buch Fourth Survey of Educational Research (1983-88), p. 1008.


COPYRIGHT PROTECTION IN PRESENT IPR REGIME: A CRITICAL ANALYSIS OF DIFFERENT

PROTECTION STANDARDS


Yogendra Singh , R. S. Jha1Assistant Professor, School of Law, IFTM University, Moradabad, (U.P.)

2Assistant. Professor, College of Law, TMU, Moradabad. (U.P.)

1 2

Introduction:-

Twenty first century will be the century of knowledge, indeed the century of mind.

Innovation is the key for the production as well as processing of knowledge. A

nation's ability to convert knowledge into wealth and social good through the

process of innovation will determine its future. In this context, issues of generation,

valuation, protection and exploitation of Intellectual Property (IP) are going to

become critically important all around the world. Exponential growth of scientific

knowledge, increasing demands for new forms of intellectual property protection as

well as access to IP related information, increasing dominance of the new knowledge

economy over the old ‘brick & mortar’ economy, complexities linked to IP in

traditional knowledge, community knowledge and animate objects, will pose a

challenge in setting the new 21st century IP agenda. Intellectual property will no

longer be seen as a distinct or self-contained domain, but rather as an important and

effective policy instrument that would be relevant to a wide range of socioeconomic,

technological and political concerns. The development of skills and competence to

manage IPR and leverage its influence will need increasing focus; in particular, in the

third world.

Copyright is the legally recognized exclusive rights of the creations of the mind

intellectual. Under intellectual property law, owners are granted certain exclusive

rights to a variety of intangible assets, such as musical, literary, and artistic works;

discoveries and inventions; and words, phrases, symbols, and designs. Intellectual

property is also a kind of property which is possessed by owner not by physical

control over the property.

Although many of the legal principles governing copyright property have evolved

over centuries, it was not until the 19th century that the term intellectual property

began to be used, and not until the late 20th century that it became common place in

the majority of the world. The British Statute of Anne (1710) and the Statute of

Monopolies (1624) are now seen as the origins of copyright and patent law

respectively.

Copyright very broadly, are rights granted to creators and owners of works that are

the result of human intellectual creativity. These works can be in the industrial,

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scientific, literary or artistic domains. They can be in the form of an invention, a

manuscript, a suite of software, or a business name, as examples.

In general, the objective of intellectual property law is to grant the creator of a work

certain controls over the exploitation of that work, as the unfettered ability of others

to copy the work or invention may deprive the creator of reward and incentive. For

some intellectual property rights, the grant of protection is also in return for the

creator making the work accessible to the general public. Intellectual property law

maintains a balance by (in most cases) granting the rights for a limited time. Some

rights require registration, for example, patent right, whilst other rights accrue

automatically upon the work’s creation as in copyright.

An ideal regime of intellectual property rights strikes a balance between private

incentives for innovators and the public interest of maximizing access to the fruits of

innovation. This balance is reflected in Universal Declaration of Human Rights,

which recognizes both that “Everyone has the right to the protection of the moral and

material interest resulting from any scientific, literacy or artistic production of which

he is the author” and that “Everyone has the right ...... to share in scientific

advancement and its benefits”. The burning question seems to be balancing the

interest of the inventor and that of the society in an optimum way.

The discussion includes the need for a fair play in technology transfer, creation of

‘favourable economics’ of essential medicines from the point of view of the third

world, protection of traditional knowledge, etc.

The Scope of Copyright Protection:-

The international copyright instruments have, over the years, progressively

expanded the scope of copyright protection, namely the works that are protected by

copyright and the rights that are granted to copyright owners. The scope of copyright

protection specified in Bern Convention, TRIPS Agreement and WIPO determined

the “minimum standard” and countries are therefore free to widen the scope beyond

1Consisting of 11 sections, the Statute of Anne is formally titled "An Act for the Encouragement of Learning, by Vesting the Copies of Printed Books in the Authors or Purchasers of Copies, during the Times therein mentioned".The preamble for the Statute indicates the purpose of the legislation - to bring order to the book trade - saying:

Whereas Printers, Booksellers, and other Persons, have of late frequently taken the Liberty of Printing, Reprinting, and Publishing, or causing to be Printed, Reprinted, and Published Books, and other Writings, without the Consent of the Authors or Proprietors of such Books and Writings, to their very great Detriment, and too often to the Ruin of them and their Families: For Preventing therefore such Practices for the future, and for the Encouragement of Learned Men to Compose and Write useful Books; May it please Your Majesty, that it may be Enacted ..

Copyright Protection In Present IPR Regime: A Critical Analysis of Different Protection Standards

104

their obligations under the instruments which they are parties to. Developing

countries are net importers of copyright materials and it is in their interest to maintain

the scope of copyright protection at its minimum. In addition, the international

copyright instruments specify the “bundle of rights” that should be granted to

copyright owners. Unfortunately, all 11 countries studied have either expanded the

scope beyond what they are required to do or given copyright owners more rights

than necessary under the relevant international instruments.

The flexibilities that exist in the three instruments appear in three forms: -

A. The scope of copyright protection.

B. The duration of copyright protection.

C. The limitations and exceptions.

The Duration of Copyright Protection:-

Copyright is given for only a fixed period of time. This feature in the copyright

system seeks to balance the interest of the copyright owner with the public right to

access. National lawmakers should ensure that they do not grant copyright protection

beyond the minimum duration required under the international copyright

instruments. Ten out of the 11 countries studied (Bhutan, Cambodia, China, India,

Indonesia, Kazakhstan, Malaysia, Mongolia, Papua New Guinea and Thailand) have

extended the duration of copyright protection for some or all work forms beyond the

minimum duration required by their treaty obligations.

The Limitations and Exceptions:-

National lawmakers should ensure that they use to the widest extent possible all

limitations and exceptions to copyright available to them under the relevant

international instruments for educational purposes.

1. Parallel Import:-

The issue of parallel import was deliberately excluded from the international

copyright instruments, and national lawmakers are free to frame the law so as to

allow parallel import of copyright materials from places where such materials are

available at lower prices. Regrettably, none of the 11 countries studied explicitly

permit parallel import of copyright works. Parallel import, insofar as copyright is

concerned, involves an “original” copyright product (i.e. produced by or with the

permission of the copyright owner in the manufacturing country) placed on the

Brad, Sherman; Lionel Bently (1999). The making of modern intellectual property law: the British experience, 1760–1911. Cambridge University Press. p. 207.ISBN 9780521563635. article 27 of the 1948

Yogendra Singh & R. S. Jha

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market of one country, which is subsequently imported into a second country without

the permission of the copyright owner in the second country. For instance, the

copyright owner of a book produced in India places the book on the market in India.

A trader buys 100 copies of the book from India and imports them to China without

the permission of the copyright owner of the book in China.

2. Compulsory Licensing for Translation, Reproduction and Publication:-

The Appendix to the Berne Convention expressly provides developing countries two

compulsory licensing options. A developing country that intends to avail itself of

either or both of the options under the Appendix has to make a declaration to that

effect. Each declaration is effective for a period of 10 years and can be renewed for

further periods of 10 years each. These two compulsory licensing options are

available to all developing countries, regardless of their status of accession to

international copyright instruments.

The first is a compulsory licensing regime that allows governments to grant a license

to make a translation of “works published in printed or analogous forms of

reproduction” and publish the translation in “printed and analogous forms of

reproduction”. Such license can only be granted for the purpose of teaching,

scholarship or research. The second type of compulsory licensing under the

Appendix to the Berne Convention enables governments to grant a license to

reproduce and publish “works published in printed or analogous form of

reproduction”. Such license can only be granted for use in connection with

systematic instructional activities.

1. Fixation in Material Form:-

The Berne Convention expressly allows national lawmakers to impose a requirement

for works to be “fixed in some material form” before they become qualified for

copyright protection. Such a requirement will permit countries to provide copyright

protection only to materials that appear in some physical form. Member states should

also give a narrow meaning to the term “material form” so as to, for example, exclude

digital materials from copyright protection. Unfortunately, 10 out of the 11 countries

studied have not specified “fixation in material form” as a condition for conferment

of copyright. Only Malaysia has done so.

The term “material form” is not defined in the Berne Convention. A member state is

therefore free to give it a narrow meaning so as to, for example, exclude digital

materials from copyright protection. This can be achieved by expressly excluding

4 Article I (2) (a) and (3) of the Appendix to the Berne Convention5 Article II (5) of the Appendix to the Berne Convention


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“digital storage” from the definition of “material form”. Such bold application of this

requirement could be particularly helpful to developing or least developed countries

that are eager to make use of information technology to narrow the knowledge gap.

However, none of the countries studied has as yet done so.

2. Idea-Expression Dichotomy:-

Copyright protects not the idea, but the expression of the idea. This principle is often

referred to as the “idea-expression dichotomy”. This principle serves the important

public policy of preserving and enriching the public domain and ensuring that new

expressions such as electronic databases do not “lock up” ideas. China, India and

Indonesia have not incorporated a provision excluding ideas from copyright

protection in their copyright legislation. However, eight of the 11 countries

examined (Bhutan, Cambodia, azakhstan, Malaysia, Mongolia, Papua New Guinea,

the Philippines and Thailand) have done so.

Although the Berne Convention does not contain any provision on the idea-

expression dichotomy, this principle has always been a well-established principle of

the copyright law. The international copyright instrument that first codified the

principle is the TRIPS Agreement. Article 9(2) of the TRIPS Agreement provides

that –“Copyright protection shall extend to expressions and not to ideas,

procedures, and methods of operation or mathematical concepts as such.”

Article 2 of the WCT states that –

“Copyright protection extends to expressions and not to ideas, procedures, and

methods of operation or mathematical concepts as such.”

5. Anti-Competitive Practices:-

Article 40 of the TRIPS Agreement provides that national legislation may adopt

measures to control licensing conditions that may constitute an abuse of intellectual

property rights and have an adverse impact on competition in the relevant market.

However, out of the 11 countries examined, only Indonesia and Thailand have

included provisions in their national copyright legislation to deal with possible anti-

competitive practices brought about by the exercise of copyright.

6. The Three-Step Test:-

The Berne Convention, the TRIPS Agreement and the WCT provide that limitations

or exceptions must be confined to certain special cases, must not conflict with a

6 Article III (2) and (7) of the Appendix to the Berne Convention7 Article III (2) of the Appendix to the Berne Convention8 Section 102 (a) of 17 U.S.C.


107

normal exploitation of the work and must not unreasonably prejudice the legitimate

interests of the right holder. This is commonly known as the “three-step test”. The

Berne Convention applied the three-step test to only the reproduction rights. The

TRIPS Agreement however widened the application of the test to all exclusive rights

granted by the Berne Convention and the TRIPS Agreement. Therefore, a country

that is not bound by the TRIPS Agreement should confine the application of the

three-step test to only the reproduction rights. Two out of the 11 countries studied

(Bhutan and Kazakhstan) are not parties to the TRIPS Agreement. Yet Kazakhstan

has applied the three-step test to all the rights instead of only the reproduction rights.

The Berne Convention, the TRIPS Agreement and the WCT provide that limitations

or exceptions to copyright shall:

1. Be confined to certain special cases;

2. Not conflict with a normal exploitation of the work; and

3. Not unreasonably prejudice the legitimate interests of the right holder.

7. Anti-Circumvention Provision:-

The WCT requires member states to “provide adequate legal protection and effective

legal remedies against the circumvention of effective technological protection

measures that are used by authors in connection with the exercise of their rights”.

However, there are times when certain limitations and exceptions would have

allowed users to access and make use of certain work but for the technological

protection measures. As such, national lawmakers must not incorporate such anti

circumvention provision without expressly linking the provision to copyright

infringement, or without the simultaneous inclusion of corresponding limitations or

exceptions. Six out of the 11 countries studied (Bhutan, Cambodia, China,

Indonesia, Malaysia and Papua New Guinea) have included an anti circumvention

provision in their national copyright legislation. Indeed, of these only Indonesia is a

party to the WCT.

8. Allow the Use of Copyright Works in Broadcasts:-

Broadcasting can play an important role in education, as it is an important tool for

transmission of knowledge. Generally, the copyright owner has the right to

determine the terms and conditions under which his work can be used in broadcasts.

However, the Berne Convention also gives national lawmakers the freedom to

determine the conditions under which the copyright owner can exercise his right of

broadcasting. The word “conditions” usually refers to the imposition of compulsory 12licences, but it can extend to free uses as well.


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13International Copyright Instruments:-

The copyright law of most modern states was enacted within an international

framework. The Berne Convention is the first international convention on copyright

protection and it was established as early as 1886. The Berne Convention has been

revised at least six times since 1886, the last of which took place in Paris in 1971. The

Berne Convention has 160 members as of 28 November 2005. It rests on three basic

principles, namely the principle of national treatment, the principle of automatic

protection and the principle of independence of protection. The Berne Convention

contains provisions that determine the minimum standards of copyright protection in

relation to the works and rights to be protected, and the duration of the protection. It

also provides certain limitations and exceptions to copyright. Additionally, pursuant

to the Appendix agreed upon in 1971, developing countries may, for certain works

and under certain conditions, depart It is the international standard as determined by

these instruments that has to be the minimum standard of national copyright law in

the countries that are party to the instrument.

The second international instrument that deals with copyright is the TRIPS

Agreement. The TRIPS Agreement is Multilateral Trade Negotiations” and it came

into effect on 1 January 1995. The WTO has 148 members as of 28 November 2005.

All members of the WTO are bound by the TRIPS Agreement, regardless of their

levels of development. Besides the principles of national treatment, automatic

protection and independence of protection, the TRIPS Agreement also imposes an

obligation of “most-favoured-nation treatment” on WTO members. Pursuant to the

TRIPS Agreement, WTO members must comply with the substantive law provisions

9 Article 9(2) of the Berne Convention; Article 13 of the TRIPS Agreement; Article 10 of the

10WCT Article 11bis(1) of the Berne Convention provides, inter alia, that “[a]uthors of literary and artistic works shall enjoy the exclusive right of authorizing…the broadcasting of

11their works…” Article 11bis(2) of the Berne Convention provides that “[i]t shall be a matter for legislation in the countries of the Union to determine the conditions under which the rights mentioned in the preceding paragraph may be exercised”.12MercelPlaisant, the rapporteur general of the Brussels Conference (where Article 11bis(2) was adopted) said (as quoted in WIPO (2003),WIPO Study on Limitations and Exceptions of Copyright and Related Rights in the Digital Environment, 31) – “Pursuant to an observation made by Mr Pilotti, President of the International Institute for the Unification of Private law, and according to sound legal interpretation, aragraph (1), with its three separate items, is inseparable from paragraph (2), which makes it a matter for

national legislation to determine the conditions under which the rights mentioned in paragraph (1) may be exercised. These conditions may, as the Nordic and Hungarian Delegations observed, relate to free-of-charge exceptions made for religious, patriotic or cultural purposes…” [emphasis added] The WTO Panel


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of the Berne Convention and the Appendix except for the moral rights provisions of

the Berne Convention, regardless of whether or not they are party to the Berne

Convention. The TRIPS Agreement also raises the minimum standard of copyright

protection by ensuring that computer programs and databases are added to the

categories of copyright works, and by expanding the bundle of rights to include the right

to control commercial rental of computer programs and cinematographic works.

The third international copyright instrument is the WCT. The WCT was concluded in 1996

and has 56 members as of 28 November 2005. The WCT entered into force on 6 March 2002.

It was introduced to adapt the global copyright regime to the challenges posed by the advent

of the digital world. The WCT mentions two categories of copyright works, namely

computer programs and compilations of data or other material. The WCT also deals with

three exclusive rights, namely the right of distribution, the right of rental and the right of

communication to the public. Further, the WCT widens the right of communication to the

public to cover on-demand, interactive communication through the Internet. More

controversially, the WCT requires its members to provide legal remedies against the

circumvention of technological measures in connection with the exercise of the rights of

copyright owners and against the removal or altering of information, such as certain data that

identify works or their authors, necessary for the management of their rights.

13http://www.consumersinternational.org/Shared_ASP_Files/UploadedFiles/23775AAE-

3EE7-4AE2-A730 281DCE859AD4_COPYRIGHT Final16.02.06. pdf9/11/08 at 2:30 pm14Developing countries and certain transition economies were given until 2000 to ensure that their laws and practices conform to the TRIPS Agreement. Least-developed countries have until 1 July 2013 to do that, except that insofar as pharmaceutical patents are concerned, it has been extended to 2016.


Minimum Duration of Copyright Protection Under the Berne Convention, the TRIPS Agreement and the WIPO Copyright Treaty:-

Work Berne Con. Trips Agreement WCT

Literary & Life of authore &50 yrs after his -- d0 -- -- do--Artistic death. Article 7 (1) Article 9 (1) Article 1

Cinematographic 50 Yrs after publishing / -- do -- -- do --Making Article 7 (2) Article (1) &(12) Article 1

Anonymous / 50 Yrs after publishing -- do -- -- do -- Pseudonymous Article 7 (3) Article 9 (1) & (12) Article 1

Works of applied At least 25 yrs from making -- do -- -- do --Art Article 7 (4) Article 9 (1) Article 1

Photographic At least 25 yrs from making -- do -- -- do -- Work Article 7 (4) Article 9 (1) Article 9

110

Developing Country Bound by the Berne Convention, the

TRIPS Agreement and the WIPO Copyright Treaty:-

A. Scope of Copyright Protection:-

1. Protect only the works required to be protected as copyright works

2. Grant copyright owners only the rights required to be granted

B. Duration of Copyright Protection:-

The Minimum Duration of Copyright Protection for the Following Works are –

- literary and artistic works: life of author and 50 years

- cinematographic works: 50 years

- anonymous or pseudonymous works: 50 years

- works of applied art insofar as they are protected as artistic works: 25 years

C. Limitations and Exceptions:-

1. Allow parallel import

2. Make use of the compulsory licensing options for translation, reproduction and publication of copyright works

3. Make “fixation in material form” a condition for conferment of copyright

4. Incorporate a provision on idea-expression dichotomy

5. Provide for power to deal with anti-competitive practices

6. Include a general fair use provision

7. Ensure that any anti-circumvention provision does not preclude users from relying upon limitations and exceptions to copyright that are otherwise available

8. Incorporate the maximum flexibilities available in the teaching exception

a. Allow the utilization of the whole of a work for teaching

b. Do not limit the types and forms of utilization for teaching

c. Extend the teaching exception to all classes of education, including distance education

d. Do not restrict the number of copies that may be made of illustrations for teaching

9. Incorporate the maximum flexibilities available in the quotations exception

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a. Do not restrict the ways quotations can be made

b. Do not limit the types of work that can be quoted

c. Liberally interpret the requirement that work quoted must have been “lawfully made available to the public”

d. Do not limit the length of quotation

e. Do not place limitation on the purposes of quotation

10. Exclude altogether official texts and their translations from copyright protection

11. Exclude altogether political speeches and speeches delivered in the course of legal proceedings from copyright protection

12. Allow the use of copyright works in broadcasts

13. Formulate “minor” reservations for educational purposes in respect of performing, recitation, broadcasting, recording and cinematographic rights

14. Ensure that protection given to compilations of data does not extend to the data itself

Article 3-1 - General Limitations and Exceptions to Copyrights:-

(a). Members agree that the exclusive economic rights of copyright holders (including but not limited to reproduce , distribution, display, performance, adaptation and communication to the public) , shall not apply to:-

i. The use of relevant excerpts, selections, and quotations for purposes of explanation and illustration in connection with not-for-profit teaching and scholarship;

ii. The use of relevant excerpts, selections and quotations for purposes of criticism and comment, including but not limited to parody:

iii. The use of works, by educational institutions, as secondary readings by enrolled students;

iv. The use of works, by educational institutions, as primary instructional materials, if those materials are not made readily available by right-holders at a reasonable price; provided that in ca case of such use the right-holder shall be entitled to equitable remuneration;

v. The use of works for purposes of library or archival preservation, or to migrate

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content to a new format;

vi. The use of works in connection with legitimate reverse-engineering;

vii. The use of works specifically to promote access by persons with impaired sight or hearing, learning disabilities, or other special needs;

viii. The use by libraries, archivists or educational institutions to make co copies of works that are protected by co copyright but which are not currently the subject of commercial exploitation, for purposes of preservation, education or research.

ix. The use of works in connection with Internet search engines, so long as the Owners of works do not make reasonably effective measures to prevent access by Internet search engines, and the Internet search engine service provides convenient and effective means to remove works from databases upon request of the right-owner.

(b) It shall be presumed that these uses constitute special ca cases that do not co conflict with a normal exploitation of the work and do not unreasonably prejudice the legitimate interests of the right-holder.

(c) In determining whether applying any limitation or exception to excl conclusive rights to a particular use of a work would co conflict ct with its normal exploitation or unreasonably prejudices the legitimate interests of the right holder, the extent to which the use benefits the larger public interest shall be take ken into account.

(d) In addition to implementing specific exceptions for the cases listed in subparagraph (a), parties to this treaty also shall implement a general exception to copyright law, applicable in special ca cases where the social, cultural, educational or other developmental benefit of a use outweigh the co costs imposed by it on private parties [and providing for equitable remuneration to the co copyright owner in appropriate circumstances.]"

Conclusion and Recommendations:-

The Berne Convention (1886) was the first international instrument that defined the scope and duration of copyright protection. It also specified limitations and exceptions to the rights it conferred. These limitations and exceptions were further expanded in the Appendix (1971) due to representations made by developing countries. The Berne Convention and the Appendix remained the sole international regime for copyright until 1994 and bound those countries which became party to it. The TRIPS Agreement (1995) altered the balance struck in the Berne Convention and its Appendix and extended copyright protection in terms of scope and varied the limitations and exceptions to the rights provided to copyright owners. Developed countries have used their influence at the WIPO and through bilateral and regional


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trade agreements to further enhance copyright protection. The space available to developing countries to adopt policy options suited to their development needs have consequently in each instrument been reduced. Each of the instruments served to further reduce the options that can be used to enhance access to knowledge and facilitate education.

The Berne Convention, the TRIPS Agreement and the WCT each provide a different set of flexibilities for developing countries. A country not a party to any international instrument is free to fashion its copyright law in any manner it chooses. The parties to this treaty, seeking to enhance participation in cultural, civic and educational affairs, and sharing of the benefits of scientific advance cement, recognizing the importance of knowledge resources in supporting innovation, development and social progress, and of the opportunities arising from technological progress, particularly the Internet, Mindful of the need to overcome disparities in wealth, development, and access to knowledge resources.

The report also examines the copyright laws of 11 countries in the Asia Pacific region to determine the extent to which each of these countries has adopted the flexibilities available to it, taking cognizance of their respective accession status. None of the countries has availed all the flexibilities available to it.

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INTRODUCTION

ASEAN-India relations have grown rapidly from a sectoral partnership in 1992 to a full partnership in December, 1995. The relationship was further elevated with the convening of the ASEAN-India Summit in 2002 in Phnom Penh. Since then the ASEAN-India Summit has been held annually. All these took place in a decade, which clearly signifies the importance of the partnership to ASEAN and India and the progress made in the cooperation.

ECONOMIC COOPERATION

1. Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$ 2.9 billion in 1993 to US$ 12.1 billion in 2003.

2. In 2008, the total volume of ASEAN-India trade was US$ 47.5 billion. ASEAN’s export to India was US$ 30.1 billion – a growth of 21.1 per cent in comparison with that of 2007. ASEAN’s imports from India were US$ 17.4 billion – a growth of 40.2 per cent in comparison to that of 2006. As for foreign direct investment (FDI), the inflow from India to ASEAN member states was US$ 476.8 million in 2008, accounting for 0.8 per cent of total FDI in the region. Total Indian FDI into ASEAN from 2000 to 2008 was US$ 1.3 billion.

3. Acknowledging this trend and recognising the economic potential of closer linkages, both sides recognised the opportunities for deepening trade and investment ties, and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN-India Free Trade Area (FTA).

4. At the Second ASEAN-India Summit in 2003, the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation was signed by the Leaders of ASEAN and India. The Framework Agreement laid a sound basis for the eventual establishment of an ASEAN-India Regional Trade and Investment Area (RTIA), which includes FTA in goods, services, and investment.

5. ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on 13 August 2009, after six years of negotiations. The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion. The ASEAN-India FTA will see tariff

INDO-ASEAN Economic Prospects

Vandana Tyagi Principal

G.D.C. Memorial College, Bahal (Bhiwani, Haryana)

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liberalisation of over 90 percent of products traded between the two dynamic regions, including the so-called “special products,” such as palm oil (crude and refined), coffee, black tea and pepper. Tariffs on over 4,000 product lines will be eliminated by 2016, at the earliest. The ASEAN-India TIG Agreement entered into force on 1 January 2010. The 7th ASEAN-India Summit in Cha-am Hua Hin, Thailand on 24 October 2009 agreed to revise the bilateral trade target to 70 billion USD to be achieved in the next two years, noting that the initial target of USD 50 billion set in 2007 may soon be surpassed.

6. ASEAN and India are currently working towards the early conclusion of the ASEAN-India Trade in Services and Investment Agreements.

7. ASEAN and India are also working on enhancing private sector engagement. Details on the re-activation of the ASEAN-India Business Council (AIBC), the holding of the ASEAN-India Business Summit (AIBS) and an ASEAN-India Business Fair (AIBF), are being worked out by officials. On 27 April 2010, India informed the ASEAN Secretariat that the Federation of Indian Chambers of Commerce and Industry (FICCI) would be organizing the ASEAN Trade and Industrial Exhibition at the Pragati Maidan in New Delhi on 8-11 January 2011, at the sidelines of the AIBF.

8. The Fourteenth ASEAN Transport Ministers (ATM) Meeting on 6 November 2008 in Makati, Metro Manila, Philippines adopted the ASEAN-India Aviation Cooperation Framework, which will lay the foundation for closer aviation cooperation between ASEAN and India. The ASEAN-India Air Transport Agreement (AI-ATA) is being negotiated with the implementation timeline of 2011.

9. In tourism, the number of visitor arrivals from ASEAN to India in 2006 was 277,000, while the number of visitor arrivals from India to ASEAN in 2008 was 1.985 million. At the Sixth ASEAN-India Summit held on 21 November 2007 in Singapore, India proposed to set a target of 1 million tourist arrivals from ASEAN to India by 2010. The 2nd Meeting of ASEAN and India Tourism Ministers (ATM +India) held on 25 January 2010 in Bandar Seri Begawan positively responded to India’s proposal to develop an ASEAN-India Tourism Cooperation Agreement and requested the ASEAN-India Tourism Working Group to further discuss and prepare the draft agreement. The Ministers also supported the establishment of the ASEAN Promotional Chapter for Tourism in Mumbai as an important collaborative platform for ASEAN National Tourism Organizations (NTOs) to market Southeast Asia to the Indian consumers and, at the same time, create mutual awareness between ASEAN Member States and India.

Indo-Asean Economic Prospects

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GENERAL ECONOMY AND POLICY INITIATIVES IN ASEAN & INDIA

Though the region boasts of centuries-old politico-economic and cultural ties, it is the period since the early 1990s that has witnessed a perceptible shift in positive direction in the relations between India and the Members of ASEAN2, which is rather different from the situation prevailing during the Cold War era; this has been aided to a large extent by India’s’ Look East’ Policy, enunciated in 1991. The economic and political interactions have increased manifold ever since, in particular after India was invited to be a full dialogue partner with ASEAN at the Fifth ASEAN Summit in Bangkok in December 1995 and India’s becoming a Member of the ASEAN Regional Forum (ARF), and the two parties have agreed to explore avenues of taking advantage of the emerging economic opportunities for mutual benefits. As a precursor to attaining the stated long-term objective of a India-ASEAN Regional Trade and Investment Area (RTIA), and recognizing the need to further promote and facilitate their cooperation and utilization of greater business opportunities provided by the India- ASEAN RTIA, India and the ten Member countries of ASEAN signed the India-ASEAN Framework Agreement on Comprehensive Economic Cooperation (CECA) in Bali, on 8thOctober, 2003. This forward-looking Agreement is aimed at forging a closer economic partnership in the 21st century between the ASEAN Member countries and the Republic of India by minimizing barriers and deepening economic linkages between the trading partners, lowering costs, increasing intra-regional trade, investment and productive efficiency, and carries forward the historical economic and commercial ties established between the peoples of the two regions since time immemorial. The CECA is expected to create a large market of over 1.5 billion people, with a combined current GDP of $1.2 trillion, and will cover agreements in investment and services, in addition to trade in goods. Accepting that the total size of the market is an important determinant of realisation of the potential gains from a RTA, the India-ASEAN CECA is a step forward in the attempt by the East Asian economies to carve out a trading block which can somewhat counter the distortions created by the existing trading blocks in the Western hemisphere, viz. NAFTA and the EU25.3.

AREAS OF ECONOMIC COOPERATION

1. Where appropriate, the Parties agree to strengthen their cooperation in the following areas, including, but not limited to:

a. TRADE FACILITATION:

i. Mutual Recognition Arrangements, conformity assessment, accreditation procedures, and standards and technical regulations;

ii. non-tariff measures;

iii. customs cooperation;

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iv. trade financing; and

v. Business visa and travel facilitation.

b. SECTORS OF COOPERATION:

i. agriculture, fisheries and forestry;

ii. services: media and entertainment, health, financial, tourism, construction, business process outsourcing, environmental;

iii. mining and energy: oil and natural gas, power generation and supply;

iv. science and technology: information and communications technology, electronic-commerce, biotechnology;

v. transport and infrastructure: transport and communication;

vi. manufacturing: automotive, drugs and pharmaceuticals, textiles, petrochemicals, garments, food processing, leather goods, light engineering goods, gems and jewellery processing;

vii. human resource development: capacity building, education, technology transfer; and

viii. Others: handicrafts, small and medium enterprises, competition policy, Mekong Basin Development, intellectual property rights, government procurement.

c. TRADE AND INVESTMENT PROMOTION:

i. fairs and exhibitions;

ii. ASEAN-India web links; and

iii. Business sector dialogues.

2. The Parties agree to implement capacity building programmes and technical assistance, particularly for the New ASEAN Member States, in order to adjust their economic structure and expand their trade and investment with India.

3. Parties may establish other bodies as may be necessary to coordinate and implement any economic cooperation activities undertaken pursuant to this Agreement.

INDIA AND ASEAN: AN FTA

India’s trade with ASEAN has not been spectacular. India has been running a deficit with ASEAN in the last decade, and the deficit has been growing. India’s trade deficit with ASEAN has increased from about US$2 billion in 1998 to around US$15 billion in 2007. The widening trade deficit is a reflection of India’s trade trends with ASEAN. In 2004-05, India’s total imports from ASEAN were worth roughly $9 billion, with exports amounting to $8 billion. In 2007-08, total imports ($22 billion) continued to exceed exports ($16 billion), with a trade deficit around $6 billion. But total trade between the two has been increasing rapidly.

India has been willing to extend tariff reduction commitments on 89 per cent of its


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tariff lines through the AIFTA. India has also signaled its intention to lower tariffs on highly sensitive items like palm oil, tea, coffee and pepper. The import duties on these commodities will be lowered to around 40-45 per cent by 2019. The stance that India has taken on these agricultural commodities, in the face of domestic resistance, indicates the store the government puts on the agreement. It is also an indication of India’s long-term economic interest in ASEAN and the synergy that it envisages it could develop with the region over time.

In the last decade, India has not had trade surpluses with most of the ASEAN member countries. Notable exceptions are Cambodia, Laos, Brunei, the Philippines and Vietnam. While India may want to expand its trade with these countries, there is little doubt that, as India opens its economy, and as its business interests expand, there is much scope for its companies to grow in this part of the world. If, at this point in time, India does not evince adequate interest in ASEAN, India may lose market share to China. India can ill afford to suffer a late-mover disadvantage.

India is keen to establish its commercial presence in ASEAN. India has an active interest in exporting chemicals, pharmaceuticals and refined petroleum products. These are areas where India may choose to explore possibilities in ASEAN. ASEAN countries are an important base for export-oriented manufacturing, particularly in electrical and electronic products, automobiles and related equipment, as well as other light manufacturing goods. Indian companies could compensate for their current lack of competitiveness in these areas by forging partnerships with ASEAN firms. The agreement will make access to ASEAN markets easier; it also provides a platform for Indian companies that want to engage with ASEAN companies by offering their expertise and technological capabilities in exporting to third country markets.

Significant outcomes can be expected, out of the AIFTA, via trade in services and investment. Indian business is coming of age, and there is evidence that the increasing maturity is accompanied by growing confidence in investing globally. The larger Indian multinational companies have already begun to spread their wings in the developed economies. ASEAN is likely to be a favored target for the less ambitious (and more cautious) companies. Aside from manufacturing, chemical and pharmaceutical products, ASEAN countries offer opportunities in the services sector. The horizons here are broad and deep. Obvious candidates are banking and financial services, with initial forays already being made into Singapore. But the list could easily extend to insurance, outsourcing, tourism and logistics. India could leverage on its massive Muslim population (160 million, and the third largest in the world) to connect with Islamic banking and finance and the food market.

Perhaps the most exciting aspect of India’s engagement with ASEAN is its importance to establishing a cooperative Asian economic community. Indian cooperation with ASEAN in science, technology, research and development, and

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capacity building can provide a foundation for broader cooperation in building an Asian economic community. As India joins the club of major players who have signed FTAs with ASEAN (Japan, China, Korea, Australia and New Zealand), it clears the path for a more integrated Asian economic community.

Imports-Exports Between ASEAN-IndiaDepartment of Commerce

Export Import Data Bank Import: Region-wise

S.N.

1 2000-2001 1,894,750.91 23,087,276.04 8.2069 10.43

2 2001-2002 2,092,348.88 24,519,971.86 8.5332 19.12

3 2002-2003 2,492,441.46 29,720,587.40 8.3862 37.04

4 2003-2004 3,415,632.18 35,910,766.37 9.5114 19.9

5 2004-2005 4,095,353.47 50,106,454.03 8.1733 17.66

6 2005-2006 4,818,583.66 66,040,890.33 7.2964 70.01

7 2006-2007 8,191,877.46 84,050,631.33 9.7464 11.38

8 2007-2008 9,124,477.50 101,231,169.93 9.0135 30.88

9 2008-2009 11,942,145.40 137,443,555.45 8.6888 2.34

10 2009-2010 12,221,977.80 136,373,554.76 8.9621

YEAR

Imports withASEAN

India's TotalImport

%NSHARE

%GROWTH

Department of CommerceExport-Import Data Bank Exports: Region-wise

S.N. YEAR

Imports withASEAN

India's TotalImport

%NSHARE

%GROWTH

1 2000-2001 969,569.78 15,956,177.56 6.0765 37.29

2 2001-2002 1,331,143.70 20,357,101.09 6.539 23.86

3 2002-2003 2,235,155.58 25,513,727.66 8.7606 19.69

4 2003-2004 2,675,167.42 29,336,674.75 9.1189 41.52

5 2004-2005 3,785,878.10 37,533,952.62 10.0865 21.75

6 2005-2006 4,609,447.17 45,641,786.15 10.0992 21.75

7 2006-2007 5,707,646.89 57,177,928.52 9.9823 23.82

8 2007-2008 4,609,447.17 45,641,786.15 10.0992 23.82

9 2008-2009 8,652,513.72 84,075,505.87 10.2914 -0.72

10 2009-2010 8,590,247.20 84,553,364.38 10.1596


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FUTURE PROSPECTS: ECONOMIC COOPERATION BETWEEN INDIA

AND ASEAN

The lack of state and economic structural reforms in India and ASEAN could also limit prospects for future cooperation. India’ s economy has grown at a blistering pace over the last few years, and the Indian government claims it could surpass China in 2010 as the world’s fastest growing economy (The Economist says it will do so by 2018).However, sustaining the robust economic growth needed for bilateral cooperation will require both major in situational fixes and bold policy changes to enhance Indian economic resilience e and boost export competitiveness, as well as improve the business environment for ASEAN investment. Infrastructure programs must be improved or revamped to boost foreign interest in investing (which is currently negligible) ,while cap son foreign investment in certain sectors like defense should be increased Reforms must also eventually tackle the deep-seated problems with in the Indian bureaucracy, which remains notoriously bloated, corrupt and in efficient. While enacting such reforms is challenging, due to the parliamentary nature of India’s politics and the political differences with in the United Progressive Alliance, they are critical to enhancing both the domestic economy and the prospects for further ASEAN-India economic cooperation.

CONCLUSION

The robust cultural and civilizational connections between ASEAN and India in the past and the common interests that both parties share to day means the re is significant potential for the development of a strong partnership for tomorrow. But an agenda for a future partnership is not forged by common interests alone. It will require bold decisions, innovative policies, and smart politics on the part of ASEAN and Indian leaders in order to both get past potential obstacles as well as push through initiatives that provide opportunities for enhancing the relationship. Only then can both parties get to a strong ASEAN-Indian partnership for the 21st century, an outcome that is beneficial not only to India and Southeast Asia, but the wider Asia-Pacific region as well.

REFERENCES

1. ASEAN WEB. “ASEAN-India Dialogue Relations.”March2010.

2. ASEAN Secretariat. “ASEAN and India Sign the Much Awaited Free Trade Area.”Bangkok, 13 August 2009.

3. Pranamita Baruah.“India-ASEAN Scale New Frontier Following FTA.”Global Politician, 20 August 2009.

4. Sridharan, K. The ASEAN Region in India’s Foreign Policy, Alders hot: Dartmouth (Publishing Co., 1996).

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5. Srivastava, S. “What is the True Level of FDI Flows to India?” Economic and Political Weekly, 38, February 15, 2003, (pp.608-611).

6. Suryanarayana, P.S. “India Enhances Connectivity with ASEAN”, the Hindu,

September 19, 2003.

7. World Trade Organization (WTO), International Trade Statistics 2003, Geneva: WTO, 2003.

8. Arrangements between India and Southeast Asia in the Context of Regional Construction and Globalization,” CSH Occasional Paper, 2007

9. Aekapol Chongvilaivan, “India’s Ties to ASEAN Must Look beyond Trade in Goods”, The Nation, 4 November 2008

10. Economic Briefing to the Penang State Government, ‘The India – ASEAN partnership,” no. 8 August 2004.

11. Rupa Chanda and Sasidaran G, “Understanding India’s Regional Initiatives

With in Asia,” ISAS Working Papers, 2008

12. Economic Briefing to the Penang State Government, ‘The India - ASEAN Partnership,” no. 8 August 2004.

13. Parashar Pradnya, “India-ASEAN Economic Relations,” IIMA Working Papers 2009.

14. India's Foreign Trade: 2008-09, Monthly Bulletin, 2008.



Marketing is so basic that it cannot be considered a separate function. It is the whole business scene from the point of view of the final result, that is, from the customer’s point of view. Business success is not determined by the product bought by the customer.

Marketing is indeed an ancient art; it has been practiced in one form or the other since the days of Adam and Eve. Its emergence as a management discipline, however, is of relatively recent origin. And with in this relatively short period, it has gained a great deal of importance and stature. In fact, today most management thinkers and practitioners the world over, regard marketing as the most important of all management functions in any business. Marketing as defined by experts is as follow:

¤Marketing is the performance of business activities that direct the flow of goods and services from the producer to consumer.

¤Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of the value with others.

¤Marketing is the economic process by which goods and services are exchanged between the producer and the consumer and their values determined in terms of money prices.

¤Marketing is a total system of interacting business activities designed to plan, promote and distribute need satisfying products and services to existing and potential consumers.

¤Marketing is a human activity directed at satisfying needs and wants through exchange process. The analysis of these definitions reveal the following points-

a) Marketing is an integrated system. It is not an activity but the sum total of several activities. It is the result of interaction of many activities.

b) The main aim of marketing is to satisfy human wants.

c) Marketing process begins with the recognition of consumer needs.

d) Marketing is successful only when it yields maximum profits in the long run.

FUNCTIONS OF MARKETING:

The scope of marketing is very wide. It may be analysed in terms of marketing

A STUDY OF MARKETING STRATEGIES IN GLOBAL PERSPECTIVE

Vineet Kumar SinghalAssistant Professor in Commerce & Business Administration

Reliable Institute of Management & Technology, Morta, Ghaziabad (U.P.)

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functions. Marketing functions are inherent in every marketing process and these functions may have to be performed many times in the marketing of a given product.

The most widely accepted classification of marketing functions is given by Clark and Clark which is given in fig. 1.1.

FIG 1.1, MARKETING FUNCTIONS

(i) Functions of Exchange:

These functions form the corner stone for any marketing activity. As seen earlier, goods are produced for satisfying human wants. This is achieved only when goods finally reach the hands of consumers. The process of passing goods in to the consumer’s hands is called function of exchange. For a clear understanding of the process this function is divided into Buying and Assembling and Selling.

Buying and Assembling: Buying is the first step in the process of marketing. A ?manufacturer is required to buy raw materials for production purpose. Similarly, a wholesaler has to buy goods to sell them to a retailer. A retailer who has a direct line with the consumer has also to buy goods to be sold to the latter. Thus, in all functions of exchange one aspect is buying.

Assembling starts after the goods have already been purchased. It is a function separate from buying. Buying involves transfer of ownership of the goods, whereas assembling involves creating and maintaining of stock of goods purchased from different sources. Usually goods are not purchased from one seller only. When they are purchased from different sellers, they have to be collected and assembled at one place under the control of buyer. Thus, buying and assembling are two distinct processes.

Selling: Selling creates possession utility by transferring the title of product ?from seller to customer. The prime objective of a business concern is successfully carried out through the sale of goods. Mass production has necessitated mass selling of goods. It is easy to produce goods but it is very different to sell them. In short, demand creation is one of the formidable jobs that a seller has to face. The process of selling is further complicated by the presence of various legal restraints, such as sale of Goods Act, Contract Act etc.

MARKETING FUNCTIONS

FUNCTIONS FUNCTIONS OF FACILITATING OF EXCHANGE PHYSICAL SUPPLY FUNCTIONS

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(ii) Functions of Physical Supply: Under this category two functions are included: Transportation and Storage and Warehousing.

Transportation: Transportation is the function of physical supply to carry ?commodities from where their utility is relatively low to places where it is higher. Concentration of natural resources at certain centre makes it necessary for the industries to concentrate there. This geographical division of labour and its advantages where made possible with the help of transportation.

Even in the case of simplest marketing, where the consumer buys directly from a local farm or a factory, transportation is involved and must be performed either by the buyer or the seller. Today, Transport is capable of creating time utilities also with increase in the speed of various modes of transportation. Improvement in transport service has inevitably resulted in a regular supply, lower price and improved services to the consumers.

Storage and Warehousing: Storage involves holding and preserving of goods ?between the time of their production and the time of their use. It facilitates a steady flow of commodities to market throughout the year.

The storage function is made effective through the establishment of warehouses. Warehouses also help in having a central place for keeping goods from where the distribution could be made easily and according to needs. Storage can be regarded as a function of equalization. Ultimately, it tends to adjust the supply to demand so as to equalize them in the interest of the manufactures, middleman and consumers. Moreover, it creates time and place utilities.

(iii) Facilitating Functions: These functions are in fact subsidiary in nature. But they have a direct relationship with the marketing process and hence cannot be treated as non-essential functions. The later improvements and additions to the marketing process are found in this group of functions.

Financing: Financing is the important function of marketing in the present ?economy and cannot be underestimated. It is difficult to perform various marketing functions without the availability of adequate and cheap finance. It has been correctly remarked, “Money or credit is the lubricant that facilitates the operation of marketing machine as modern marketing requires vast resources.”

There are various kinds of finance required; Short term finance, Medium term finance, Long term finance, etc. These are various sources of marketing finance too, for example, Banks, Cooperative societies, Government Agencies etc. The modern business is in fact, constricted or the foundation of trade credit.

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Risk-Taking: There are innumerable risks which a marketing enterprise has to ?bear in the process of marketing goods. They arise on account of unforeseen events which take place from time to time. Risk may be due to social hazards such as thefts burglary, bad-bebts, wars, etc. or they may arise during the courses of transportation. They may also be due to decay, deterioration and accidents, or due to fluctuations in the prices caused by changes in their supply and demand. The various risks are termed as place risk, time risk, physical risk etc. Some of these risks may be totally avoided by careful handling. Some others may be shifted to insurance companies or other parties. For examples, the risk due to accidents may be covered by insurance.

Standardization: Buyers and Sellers always prefer to have certain ?predetermined standards for products. This will relieve buyers from examining the product and wasting time. That is why standardization has now been accepted as an ethical basis of marketing.

Marketing Information: Modern marketing requires a lot of information ?accurately, adequately and promptly. This information becomes the basis of many decisions in marketing. In marketing, a merchant has to face several problems, and he can solve them only by careful interpretation of the available data. Marketing information makes a seller know when to sell, at what price to sell, who are the competitors, etc. Marketing information is the only sources through which a seller today could know the tastes and preferences of customers.

MARKETING STRATEGIES:

Marketing strategies are the complete and unbeatable plan designed specifically for attaining the marketing objectives of the firm. The marketing objectives indicate what the firm wants to achieve; the marketing strategy provides the design for achieving them.

It is the marketing strategy that decides the success at the business unit level which in turn decides the total corporation’s success. The linkage between marketing strategy and overall corporate success is indeed direct and vital and in this linkage lies the significance of marketing strategy.

It is the presence of competition that primarily renders the marketing task strategic in character. Only in competitive market, a firm has to necessarily move out, study its competitors, and move its policies, people and product in combat like action i.e., in a strategic manner. Strategy will help the firm acquire a competitive consciousness.

“Marketing strategies essentially represent the competitive posture of the firm in the market.”


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GLOBAL MARKETING STRATEGIES:

Companies must learn how to enter foreign markets and increase their global competitiveness. Firms that do venture abroad find the international marketplace far different from the domestic one. Market sizes, buyer behavior and marketing practices all vary, meaning that international marketers must carefully evaluate all market segments in which they expect to compete.

Reasons for global expansion are mentioned below: a) Opportunistic global market development (diversifying markets)

b) Following customers abroad (customer satisfaction)

c) Pursuing geographic diversification (climate, topography, space, etc.)

d) Exploiting different economic growth rates (gaining scale and scope)

e) Exploiting product life cycle differences (technology)

f) Pursuing potential abroad

g) Globalizing for defensive reasons

h) Pursuing a global logic or imperative (new markets and profits)

A global marketing strategy that totally globalizes all marketing activities is not always achievable or desirable (differentiated globalization). In the early phases of development, global marketing strategies were assumed to be of one type only, offering the same marketing strategy across the globe. As marketers gained more experience, many other types of global marketing strategies became apparent. Some of those were much less complicated and exposed a smaller aspect of a marketing strategy to globalization. A more common approach is for a company to globalize its product strategy (product lines, product designs and brand names) and localize distribution and marketing communication.

Integrated Global Marketing Strategy:

When a company pursues an integrated global marketing strategy, most elements of the marketing strategy have been globalized. Globalization includes not only the product but also the communications strategy, pricing and distribution as well as such strategic elements as segmentation and positioning. Such a strategy may be advisable for companies that face completely globalized customers along the lines. It also assumes that the way a given industry works is highly similar everywhere, thus allowing a company to unfold its strategy along similar paths in country by country. One company that fits the description of an integrated global marketing strategy to a large degree is CocaCola. That company has achieved a coherent, consistent and integrated global marketing strategy that covers almost all elements of its marketing program from segmentation to positioning, branding, distribution, bottling, advertising and more.


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Reality tells us that completely integrated global marketing strategies will continue to be the exception. However, there are many other types of partially globalized marketing strategies; each may be tailored to specific industry and competitive circumstances.

Global Product Category Strategy:

Possibly the least integrated type of global marketing strategy is the global product category strategy. Leverage is gained from competing in the same category country after country and may come in the form of product technology or development costs. Selecting the form of global product category implies that the company while staying within that category will consider targeting different segments in each category or varying the product, advertising and branding according to local market requirements. Companies competing in the multi-domestic mode are frequently applying the global category strategy and leveraging knowledge across markets without pursuing standardization. That strategy works best if there are significant differences across markets and when few segments are present in market after market. Several traditional multinational players who had for decades pursued a multi-domestic marketing approach tailoring marketing strategies to local market conditions and assigning management to local management teams- have been moving toward the global category strategy. Among them are Nestle, Unilever and Procter & Gamble, three large international consumer goods companies doing business in food and household goods.

Global Segment Strategy:

A company that decides to target the same segment in many countries is following a global segment strategy. The company may develop an understanding of its customer base and leverage that experience around the world. In both consumer and industrial industries significant knowledge is accumulated when a company gains in-depth understanding of a niche or segment. A pure global segment strategy will even allow for different products, brands or advertising although some standardization is expected. The choices may consist of competing always in the upper or middle segment of a given consumer market or for a particular technical application in an industrial segment. Segment strategies are relatively new to global marketing.

Global Marketing Mix Element Strategies:

These strategies pursue globalization along individual marketing mix elements such as pricing, distribution, place, promotion, communications or product. They are partially globalized strategies that allow a company that customize other aspects of its marketing strategy. Although various types of strategies may apply, the most important ones are global product strategies, global advertising strategies and global branding strategies. Typically companies globalize those marketing mix elements


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that are subject to particularly strong global logic forces. A company facing strong global purchasing logic may globalize its account management practices or its pricing strategy. Another firm facing strong global information logic will find it important to globalize its communications strategy.

Global Product Strategy:

Pursuing a global product strategy implies that a company has largely globalized its product offering. Although the product may not need to be completely standardized worldwide, key aspects or modules may in fact be globalized. Global product strategies require that product use conditions, expected features and required product functions be largely identical so that few variations or changes are needed. Companies pursuing a global product strategy are interested in leveraging the fact that all investments for producing and developing a given product have already been made. Global strategies will yield more volume, which will make the original investment easier to justify.

Global Branding Strategies:

Global branding strategies consist of using the same brand name or logo worldwide. Companies want to leverage the creation of such brand names across many markets, because the launching of new brands requires a considerable marketing investment. Global branding strategies tend to be advisable if the target customers travel across country borders and will be exposed to products elsewhere. Global branding strategies also become important if target customers are exposed to advertising worldwide. This is often the case for industrial marketing customers who may read industry and trade journals from other countries. Increasingly, global branding has become important also for consumer products where cross-border advertising through international TV channels has become common. Even in some markets such as Eastern Europe, many consumers had become aware of brands offered in Western Europe before the liberalization of the economies in the early 1990s. Global branding allows a company to take advantage of such existing goodwill. Companies pursuing global branding strategies may include luxury product marketers who typically face a large fixed investment for the worldwide promotion of a product.

Global Advertising Strategy:

Globalized advertising is generally associated with the use of the same brand name across the world. However, a company may want to use different brand names partly for historic purposes. Many global firms have made acquisitions in other countries resulting in a number of local brands. These local brands have their own distinctive market and a company may find it counterproductive to change those names.

Instead, the company may want to leverage a certain theme or advertising approach that may have been developed as a result of some global customer research. Global


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advertising themes are most advisable when a firm may market to customers seeking similar benefits across the world. Once the purchasing reason has been determined as similar, a common theme may be created to address it.

Composite Global Marketing Strategy:

The above descriptions of the various global marketing models give the distinct impression that companies might be using one or the other generic strategy exclusively. Reality shows, however, that few companies consistently adhere to only one single strategy. More often companies adopt several generic global strategies and run them in parallel. A company might for one part of its business follow a global brand strategy while at the same time running local brands in other parts. Many firms are a mixture of different approaches, thus the term composite.

Conclusion: Marketing is a total system of business activities designed to plan, price, promote and distribute want satisfying products to target markets to achieve organizational objectives. Marketing strategies spell the game plan for attaining a firm’s objectives or product/market objectives. It is the way ; the organization relates its resources to the opportunities. “Marketing strategies are the broad principles by which business unit expects to achieve its marketing objectives in a target market. it consists of the basic decision on total marketing expenditure, marketing mix and marketing allocation.”

REFERENCES:

?Ramaswamy, V.S. & Namakumary S: Marketing Management, Macmillan India

Ltd., New Delhi2005.

?Kotler, Philip: Marketing Management, Prentice Hall of India, New Delhi2005.

?Drucker, Peter: Marketing Management, Macmillan India Ltd., New Delhi.

?Gupta; C.B. & Nair; N. Rajan: Marketing Management, Sultan Chand & Sons,

New Delhi-2007.

?Business India

?The Economic Times

?The Hindustan Times

?www.businessindia.com

?www.businessworld.com



Cotton is often considered as the fabric of our life. It is not only the most popular and best selling fabric in the world; it is also a source of earning foreign exchange for more than fifty countries. But few people are aware that growing conventional cotton requires the use of enormous amounts of pesticides, which has a huge environmental impact and presents health risks for those working around it.

It is estimated that 25% of the world’s chemical pesticides are used for growing cotton by conventional method. It takes 165 grams of chemicals and pesticides to produce enough cotton to create just one T-shirt of conventional cotton. Pesticides, fertilizers and chemicals used to grow and process conventional cotton fabrics may go directly to the users blood stream, which consequently affect's the body's organs and tissues.

According to Doug Murray, a professor of sociology at Colorado State University “ the most hazardous available pesticides are used on cotton, of the available today.” Aldicarb, parathion, and methamidopho, three of the most acutely hazardous insecticides to human health as determined by the World Health Organization, rank in the top ten most commonly used in cotton production. Aldicarb, cotton's second best selling insecticide and most acutely poisonous to humans, can kill a man with just one drop absorbed through the skin, yet it is still being used in 25 countries. Farmers use pesticides and fertilizers just to maintain their production levels which in turn are destroying the environment also in terms of polluted waterways, poor quality soil, loss of natural wild life etc.

Textile production by conventional method is one of the most polluting industries on the earth. According to World Bank report the textile industry is responsible for as much as 20% of industrial pollution in our rivers and land. During the conversion of cotton into conventional clothing, many hazardous materials such as silicone waxes, harsh petroleum scours, softeners, heavy metals, flame and soil retardants, ammonia, and formaldehyde etc. are used and added to the product. Many processing stages result in large amounts of toxic wastewater that carry away residues from chemical cleaning, dyeing, and finishing. This waste depletes the oxygen out of the water, killing aquatic animals and disrupting aquatic ecosystems. Not only does the toxic residue from these pollute soil and water sources and kill wildlife, but the World Health Organization estimates that 20,000 cotton workers die every year from contamination.

Veenu jainAsst. Professor, Deptt. of Fashion Design

and Tech., Multani Mal Modi College, Patiala, Punjab

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So it has become the need of the hour to spread awareness among people to opt for better alternative that is Organic Cotton. A UK sustainable clothing report claims that if the textile industry switched to organic cotton it would reduce its usage of toxic chemicals by over 90%.

Organic Cotton, by definition, is the cotton grown without the use of any synthetic chemicals i.e. plant growth regulators, defoliants and fertilizers.

Why Organic Cotton?

Organic cotton is cotton which is produced according to the internationally recognized organic farming standards of the EU regulation 834/2007, of the USA National Organic Program (NOP), the Indian National Program for Organic Production (NPOP) or the Japanese Agricultural Standard (JAS).

The first organic cotton project started 1990 in Egypt. Today organic cotton is grown in over 22 countries. The two largest producers of organic cotton are Turkey and India. According to "Organic Exchange" China, Syria, Peru, Uganda, Tanzania, Israel, the United States and Pakistan are under the top ten organic cotton producing countries in the world.

Organic Cotton is grown using methods and materials that have low impact on the environment. Organic production systems replenish and maintain soil fertility, eliminate the use of toxic and persistent chemical pesticides and fertilizers, and build a biologically diverse agriculture. Because of its purity, organic cotton fabric is softer, hypoallergenic, comfortable, breathable, and warming or cooling to the human body.

Organic cotton costs about 30% more than conventional cotton as the processes involved are more labour intensive. Growing organically takes more time, requires more knowledge and skill, and, for now, costs more. But it’s worth it.

Need for Organic Cotton Production—

Organic Cotton production is also a consumer driven initiative. There are many harmful chemicals that people do not know about. Twelve of these chemicals are known as persistent organic pollutants (POPs), they are the most hazardous of all man-made products or that have potential significant impacts on human health and the environment. They are so dangerous that over 100 nations agreed at a United

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Nations Environment conference to outlaw them. There are many of those chemicals used in cotton manufacturing.

The following are the main factors responsible for organic cotton production:

Environmental Concern -- Fertilizers and pests applied to the soil, but all the ?chemicals are not taken up by the cotton plant. Some elements are released into the environment while others leach into the soil and also pollute water.

Family Health Concerns -- Danger of Insecticide inhalation by the spray men ?during back mounted manual spraying without any protective equipment.

Allergies - Some people were interested in insecticide free cotton apparel due to ?allergies.

To Reduce Input Prices -- Insecticide use changed the insect complex in many ?countries. Some minor insects became major and certain new insects were introduced. Consequently, there was an increase in the consumption of insecticides.

Globally, nearly 90 million acres of cotton are grown in more than 70 countries. It is estimated that little over 8,000 hectares of organic cotton are grown in various countries. Organic cotton is also said to be produced in Argentina, Australia, Brazil, Ecuador, Egypt, Greece, India, Nicaragua, Paraguay, Peru, Senegal, Tanzania, Turkey and Uganda.

Organic Cotton Market---

The certified production and consumption of organic cotton dates back to the early 1990s, when pioneers in the United States and Turkey started to create markets for cotton that was grown as a rotational crop on certified organic farms. The first organic cotton textiles brought to the market consisted of a limited range of 100% certified organic cotton products. They were primarily marketed for their ecological characteristics, rather than for their quality, design or fashionable appeal.

In late 1992, some environmentally motivated textile and clothing designers and companies launched the sale of more fashionable ecological textiles, later known as the ‘eco- look’ in fashion. Ecological textiles were now also for sale in fashionable shops such as Esprit and Hennes & Mauritz (H&M). Products on offer tended to be dyed with soft ‘natural’ colours. Environmental awareness about fiber, textile and clothing production was created among consumers and in the industry.

The eco-look lasted till late 1994, when fashion turned towards the use of bright colours and synthetic fibres.

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The design, quality and colour range of organic cotton items improved significantly in the second part of the 1990s. The range of yarns and fabrics available expanded, which widened the offer and the quality of the organic cotton textiles and clothing for sale.

Products Made by Using Organic Cotton-

As a result of consumer interest, organic cotton fiber is used in everything from personal care items (sanitary products, make-up removal pads, cotton puffs and ear swabs), to home furnishings (towels, bathrobes, sheets, blankets, bedding), children's products (toys, diapers), clothes of all kinds and styles (whether for lounging, sports or the workplace), and even stationery and note cards.

Benefits of Organic Cotton:

1. Lower Carbon Footprint-Manual farming and organic practices have a lower carbon footprint as the entire process consumes less fuel and energy and emits fewer greenhouse gases.

2. No GM - The cotton is not grown from genetically modified cottonseed. GM is banned in organic systems. It is estimated that 30% of all cotton grown worldwide is genetically modified. GM cotton poses a potential risk to wildlife and human health, as well as exposing farmers to unnecessary expense

3. Use of Natural Fertilizers and Pesticides- Organic cotton is grown with natural rather than synthetic pesticides and fertilizers, no chemical defoliants used.

4. Harmful Manufacturing Chemical are not Used-Eco-friendly processing techniques are employed that does not compromise workers' health and helps reduce water and electric use and toxic runoff, e.g. non-chlorine bleach, silicon-free softeners and low impact, azo-free dyes.

5. Strict Testing Measures- ensure the absence of contaminants like nickel, lead, formaldehyde, amines, pesticides and heavy metals.

6. The End Garments are Residue Free- By prohibiting and restricting harmful chemicals in organic textile production and processing, final products don’t contain allergenic, carcinogenic or toxic chemical residues from them. Tests on conventional clothing have revealed traces of pesticides, fire retardants, formaldehyde and toxic dyestuffs. These residues can be inhaled or absorbed through the skin and may cause allergies, skin rashes or respiratory problems. Babies are particularly vulnerable as their skin is much thinner than adults. People with allergies and chemical sensitivity especially benefit from organic cotton clothing, as conventional cotton may retain harmful toxic residues. Even if you don't have sensitive skin, organic cotton will just feel better against your skin.


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7. Social and Human Benefits of Organic Cotton Farming-- Conventional farming endangers farm workers and their families. There are innumerable cases of serious pesticide-related health problems, including birth defects, long-term memory loss, paralysis and death. Unprotected storage, improper application methods and lack of proper handling is not uncommon, and often leads to tragic accidents.

As pests develop resistance, farmers desperate to keep up yields often resort to more and more applications of expensive pesticides. The chemical treadmill leaves them heavily in debt, and caught in a vicious circle. Facing barren, devastated fields and contaminated water, many small farmers have been forced to abandon their livelihood altogether.

Organic farming, on the other hand, is not only safer and healthier for farmers, but also encourages just economic systems in the supply chain. It provides an economically viable and socially acceptable alternative to large-scale farming and dependence on subsidies.

Organic Cotton V/S Conventional Cotton—

Organic Conventional

Seeds1. GMO-free; untreated ?Treated with fungicides, insecticides.

?Possible genetic modification

Soil2. ?Crop rotation, better retention of moisture

?Higher concentration of organic matter

?Animal manure addition

?Synthetic fertilizers,?Loss of soil due to mono crop

culture?Intensive irrigation

Weed and Insect Control

3. ?Beneficial insects and trap crop used,

?Use of certain bio pesticides such as bacteria, virus and fungal insect pathogens

?Physical removal of weeds and bio-pesticides.

?Use of harmless mechanical and hand methods.

?Arial spraying of insecticides?Which affects- air, water and

also affects human life and nature.

?Heavy use of insecticides.?Use of highly toxic and

carcinogenic pesticides.

Harvesting4. ?Natural defoliation ?Defoliation induced with toxic chemicals.

Whitening5. ?Safe peroxide is used ?Use of Chlorine bleach resulting in toxic byproduct

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6. Finishing ?Soft scouring with warm water and soda.

?Hot water, synthetic surfac-tants, additional chemicals such as formaldehyde

7. Dyeing ?Natural dyes with sulfur content and low metal

?High temperature with heavy metals and sulfur

8. Printing ?Low impact?Water based inks o r

pigments with no heavy metals.

?May use petroleum based pigments

?Pigments may contain Heavy metals

?Heavy metal pigments leach into water systems, causing environmental destruction

Sustainability9. ?Sustainable ?Non-Sustainable

How is the Textile Industry Involved in Organic Cotton?

Since textiles are to a high percentage made form cotton, the apparel industry plays a significant role for the cultivation of organic cotton. India exported 1417.82 metric tons of organic lint cotton from April 2011 through March 2012. In view of the growing demand for organic textiles and to support organic initiatives of the Indian textile industry, ISOT (Indian Standard for Organic Textiles) has been developed to provide a major boost to the textile industry as well to the producers.

But the key role plays the consumer, which has to demand more organic cotton textiles, to force apparel companies to use organic cotton as raw material. When the demand of organic cotton in the textile industry will increase, more and more developing programs for organic cotton can be set. But attention has to be paid to fake certificates of organic cotton which are used from some big companies for green washing reasons. When sourcing organic cotton it is crucial to pay attention to certificates to ensure real organic and fair production through controls of the farmers and manufacturing companies. Third-party certification organizations verify that organic cotton producers use only materials allowed in organic cotton production. Undoubtedly the certificate with the highest ecological and social standards is the "Eco Sustainable Textile" Certificate conferred by the Control Union. Only organic cotton textiles which are produced after the GOTS (Global Organic Textile Standard) can carry this certificate. It not only includes ecological and environmental standards, but also social standards. GOTS aims to define a universal standard for organic fabrics—from harvesting the raw materials, through environmentally and socially responsible manufacturing, to labeling—in order to provide credible assurance to consumers. Standards apply to fiber products, yarns, fabrics and clothes and cover the production, processing, manufacturing, packaging, labeling,


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exportation, importation and distribution of all natural fiber products. GOTS provides a continuous quality control and certification system from field to shelf. A GOTS certified fabric is therefore much more than just a textile which is made from organic fibers. GOTS certified organic cotton textiles ensures-

- Safety regulations and machines have to be according to international ISO-standards

- In organic cotton manufacturing no organic halogens, no azo-dyestuffs, no chlorine bleaching, no formaldehyde..., are allowed and integrated sewage plant are mandatory.

Organic cotton appears in more than just clothing. With the rise in consumer demand, organic cotton products now include diapers, toys, stationery, cotton swabs and cotton balls, home furnishings, wallpaper and yoga mats.

Organic Cotton Market-

Increasing awareness for social and environmental issues among consumers and companies has lead to strong growth of the organic cotton market over the past decade. The Organic cotton market which was nascent in 2001, with a global market of USD 240 million, is today one of the fastest growing sectors The bulk of the organic cotton fiber production is consumed by companies with large organic textile programmes such as C&A, Nike, Walmart/Sam's Club, Williams-Sonoma, Inc., H&M, Anvil Knitwear, Coop Switzerland, Greensource, Levi Strauss & Co., Target, adidas, Nordstrom. In addition, more than thousand smaller companies, as well as companies with smaller organic textile programmes, consume and sell organic cotton products.

The steady expansion of the global organic cotton market was driven by consumer interest in “green” products and by brands and retailers who wished to continue to show support to more sustainable ways of doing business. Having an enviable production capability for a wide spectrum of textiles contributes to making India a “one stop destination” for brands and buyers.

Challenges for the Organic Cotton Sector-

The last three years has seen tremendous growth, but the sector also faces significant challenges such as a need for tighter regulatory systems .The Govt of India has also recognized that a distinct policy for Organic Cotton could offer solutions and support and is attempting to achieve by introducing National Fibre Policy in the next five year plan. Initially there is an urgent need to address some of the critical issues faced by the Organic Cotton growers, which include –

?availability of non Bt seeds which are mandatory for organic systems,

?scientific support for selecting appropriate genotypes for organic production,

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?nutrient and pest management practices specific to regions,

?possible earmarking of organic cotton zones and

?Improved input availability preferably with subsidies.

Public Private Partnership models that can address these issues are sorely required. There is an urgent need to address these issues, if India is to keep her leadership role in the growing organic cotton industry.

REFERENCES:

1. http://www.aboutorganiccotton.org

2. http://downtoearth.danone.com/2014/02/26/the-latest-in-sustainable-textiles

3. Kadolph, S. J., & Langford, A. L. (2002). Textiles (9th ed.). Upper Saddle River, NJ: Prentice Hall.

4. EJF. (2007). The Deadly Chemicals in Cotton. Environmental Justice Foundation in Collaboration with Pesticide Action Network UK: London, UK. ISBN No. 1-904523-10-2

5. Organic Cotton Production- 4,The ICAC Recorder, June 1998

6. Limitations on Organic Cotton Production- ,The ICAC Recorder, March 2003

7. http://faceless39.hubpages.com

8. http://btillc.com/organic-cotton.html

9. www.csipl.net/templates/maral/innovation



Introduction:

The socio-economic and occupational structure of the rural peasant society is often dominated and determined by the caste system in north India and the quality of life depends on the social and economic characteristics of a family. Thus, the status of the family is mainly determined by economic, social and political conditions. The population in rural hinterland region around a town is less educated and mainly engaged in primary or related economic activities. The slum dwellers in urban area, too, have less economic opportunities and they are compelled to live uncomfortable and unhygienic conditions (Sharma & Kaushik; 2013). The less educated and peasant families do not give much attention on the housing environment due to lack of awareness and most of the families live in low level of sanitation facilities (Kumar & Dalal; 2012). Social factors in terms of security and provision of basic amenities are also important determinants (Karan et al; 2003).

Therefore, an effort has been made to find out the demographic, social and economic factors considering age structure, sex ratio, family size, male preference; caste composition, education level of head of household, occupation and income which affect the housing conditions and social set-up of a family in the rural area in Haryana. Thus, the present study is an effort to analyse the demographic, social and economic status of a small block i.e. Sampla in agriculturally developed state of Haryana by examining the quality of life. The study area is situated in National Capital Region (NCR) of Haryana. Sex ratio and education are also important indicators to assess the condition of females. The study tries to determine the occupational activities and income by caste. Further, the housing conditions in the study area are to be examined due to the higher availability of services in the national capital region.

Objectives:

Sampla Block has been taken into consideration for the present study. It is a small block consisting of mainly rural population which is mainly engaged in primary

1. Sushil DalalAssistant Professor in Geography

Pt. Neki Ram Sharma Government College, Rohtak (Haryana)

2. Kuldeep MalikAssistant Professor in Geography

Pt. Neki Ram Sharma Government College, Rohtak (Haryana)

SOCIO-ECONOMIC CHARACTERISTICS: A BLOCK LEVEL STUDY IN HARYANA

139

economic activity and small portion of population is engaged in secondary and tertiary activities. Hence, it is pertinent to analysis the demographic structure, economic status and social background of the families of Sampla Block in Rohtak district which lies in the National Capital Region of Haryana.

Data Base and Methodology:

The study is mainly based on primary sources of information. The relevant information was collected through structured questionnaire. The study is mainly based on primary data collected from 150 households through purposive random sampling with the help of a structured questionnaire. Secondary source of information has also been taken into consideration. The collected information has been analysed with the help of simple statistical techniques. The maps, tables, diagrams and graphs have been used in the present study.

Study Area:

Sampla block is located on the southeastern part of the Rohtak district in Haryana. The block consists of rural area having 25 villages and a town i.e. Sampla. Agriculture is the main occupation of the rural population. On the other hand, fabrication of agricultural implements is the main industry of the town. Service in the government and non-government / private sectors is also an important occupation of rural and urban people. 150 sample have been randomly selected to collect the relevant information from 25 rural and one urban settlement of Sampla Block.

Results and Discussion:

The socio-economic characteristics are the indirect measures to observe the growth of a region. Here, to get the meaningful and real results, the analysis is divided into two parts viz. (i) demographic, social and economic variables and (ii) the variables of household amenities.

Demographic and Socio-Economic Variables:

(i) Age Structure:

Age structure is an important indicator to present the social and economic situation of the society. The analysis of data indicates that the share of active population having age between 15 years to 59 years is 87.72 percent. The young population consists of 8.13 percent and the aged population is only 4.25 percent.

(ii) Sex Ratio:

Sex ratio is an important indicator of social set-up in the society. Table 1 shows the sex ratio of population by education level which indicates the inclining trend in favour of female which is more than 1150 females per 1000 males whereas it is 877 females after 1000 male for Haryana. It is pertinent to note that this ratio is low where

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the head of the family is illiterate. It implies that literacy is negatively correlated with sex ratio.

Table:1

Sex Ratio

Source: Compiled from Primary Data

(iii) Caste Composition:

There are three social groups viz general, backward and scheduled castes living in the study area. Table 2 shows that out of 150 sampled families, 71.33 percent belong to general category followed by 15.33 percent backward and 13.33 percent scheduled castes.

Table 2

Caste Composition


(iv) Education Level:

The education level indicates the progress and level of development of the society in general and family in particular. It is interesting to note that number of educated females is higher in comparison to males. Table 3 indicates that male prefer to take education upto secondary and senior secondary level while the females want to take education at higher level.

Education of the Head Male Female Total No of Families Sex Ratio

Illiterate 31 23 54 10 742

Primary 51 64 115 21 1255

Secondary 182 219 401 75 1203

Senior Secondary 63 76 139 27 1206

Higher 45 46 91 17 1022

Total 372 428 800 150 1151

Social Groups No of Families Total Population

General 107 (71.34) 559 (69.87)

Backward Caste 23 (15.33) 126 (15.75)

Scheduled Caste 20 (13.33) 115 (14.38)

Total 150 (100) 800 (100)

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Table: 3Education Level

Note: population 5 years and below is not included.


The level of education varies in different caste groups. Table 4 shows that the percentage share of higher education is highest among backward caste. The scheduled caste population prefers to take education up to matriculation level.

Table: 4Education Level by Caste


(v) Family Size:

The family size is directly related to education level of head of household and income. The present study exhibits that average family size in the study area is 5.33 per family. The highest family size is found among the scheduled caste category (5.75) followed by backward class (5.48) and the lowest is observed among general category (5.22).

Education Level Male Percent Female Percent Total

Illiterate* 14 3.79 48 11.21 62

Primary 22 5.96 19 4.44 41

Middle 39 10.57 53 12.38 92

Secondary 122 33.06 75 17.52 197

Senior Secondary 87 23.58 64 14.95 151

Higher 85 23.04 169 39.49 254

Total 369 100.00 428 100.00 797

General Caste Backward Caste Scheduled Caste Total

Illiterate 39 (6.98) 14 (11.11) 12 (10.43) 65 (8.13)

Primary 31 (5.55) 5 (3.97) 5 (4.35) 41 (5.13)

Secondary 200 (35.78) 42 (33.33) 47 (40.87) 289 (36.12)

Sr. Sec. 112 (20.04) 22 (17.46) 17 (14.78) 151 (18.87)

Higher 177 (20.93) 43 (43.13) 34 (29.57) 254 (31.75)

Total 559 (100.00) 126 (100.00) 115 (100.00) 800 (100.00)


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(vi) Number of Children in Family:

Caste is the dominant factor to affect the number of children in a family. The population under study indicates in Table 5 that it is comparatively high among the scheduled caste families. Among scheduled caste group, half of the total families have four children (10 families i.e. 50 %), followed by three (8 families i.e. 40 %) and rest 2 families (10 %) have 5 children. The number of children among backward families is more as compare to general category. Among

Table: 5Number of Children by Caste Groups


backward caste group, more than half of total backward families have 3 children whereas in general category it is about 45 percent of total families have three children (48 families i.e. 44.86 %), followed by two (33 families i.e. 30.84 %), four children (19 families i.e. 17.76 %) and 5 families (4.67 %) have 5 children. One family has six children.

(vii) Preference of Child:

It is observed in Table 6 that all the scheduled caste families have atleast three children whereas it is two among other two caste categories. It is pertinent to note that first three preferences are more in case of daughter while male child is more at last three preferences. Son is more preferable in the scheduled caste category whereas daughter is preferred in backward caste and general category. There are one fourth of surveyed families among the scheduled caste having first son after two daughters. It is about 30 percent in backward caste and in general category. 15 percent families in general caste have first three daughters and three families have

No of Children Scheduled Caste Backward Caste General Caste

Families Percent Families Percent Families Percent

0 0 0.00 0 0.00 1 0.93

1 0 0.00 0 0.00 0 0.00

2 0 0.00 4 17.39 33 30.84

3 8 40.00 13 56.52 48 44.86

4 10 50.00 6 26.09 19 17.76

5 2 10.00 0 0.00 5 4.67

6 0 0.00 0 0.00 1 0.93

Total 20 100.00 23 100.00 107 100.00


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son after four daughters. It can be inferred that choice of son child is more prevalent among all the caste groups in the study area.

Table: 6

Choice of Child by Caste Groups


(viii) Occupational Structure:

Occupation is an important variable to examine the socio-economic conditions of the population. In the present study, occupational structure has been examined by caste groups. Table 7 indicates that cultivation, service and business are the main occupations of the general category whereas scheduled and backward castes families are mainly engaged in labour activities.

Table: 7

Occupational Structure by Caste Groups


(ix) Income Level:

The income is directly related with the caste group. It is clear from the table 8 that one-fourth houses are having income between Rs. 25000 and Rs. 50000. The castewise distribution of income shows that the general category has maximum

Order of SC BC GEN Total

Birth Daughter Son Total Daughter Son Total Daughter Son Total Daughter Total

First 8 12 20 14 9 23 64 42 106 86 63149

Second 10 10 20 15 8 23 69 37 106 94 55149

Third 12 8 20 9 10 19 41 32 73 62 50112

Fourth 4 8 12 1 5 6 7 18 25 12 3143

Fifth 2 0 2 0 0 0 1 5 6 3 58

Sixth 0 0 0 0 0 0 0 1 1 0 11

Sr Occupation General Caste Backward Caste Scheduled Caste Total

1 Cultivation 78.66 14.67 6.67 100

2 Labour 15.00 35.00 50.00 100

3 Service 85.11 8.51 6.38 100

4 Business 62.50 12.50 25.00 100

Total 71.33 15.33 13.33 100


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percentage of houses having income between Rs. 75000 and one lakh. On the other hand, more than half of total scheduled caste families have income between 25000 and 50000.

Table: 8

Percentage of Families Income by Caste Groups


Table 9 exhibits that the average annual income per household in the sample population is more than 90,000. The lowest income is found among the scheduled caste category and highest in general category.

Table: 9

Average Annual Income of Families by Caste Groups


2. Household Amenities:

The household amenities are determined by housing conditions, number of rooms, source of drinking water, availability of lavatory, bathroom and separate kitchen

Income in Rs. General Caste Backward Caste Scheduled Caste Total

Less than 25000 11.21 17.39 30 14.67

25001-50000 17.76 34.78 55 25.33

50001-75000 14.95 21.74 5 14.67

75001-100000 28.04 21.74 5 24

100001-200000 19.63 4.35 5 15.33

Above 200000 8.41 0 0 6

Total 100 100 100 100

Income in Rs. General Caste Backward Caste Scheduled Caste Total

Less than 25000 18,917 16,250 21,667 19,182

25001-50000 44,211 41,875 44,182 43,711

50001-75000 65,125 64,000 60,000 64,636

75001-100000 90,000 84,000 1,00,000 89,444

100001-200000 1,69,905 2,00,000 2,00,000 1,72,522

Above 200000 3,74,444 - - 3,74,444

Total 1,09,785 58,261 48,800 93,753


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available in a house. The housing environment and facilities in the house provide space for progress and determine the social status of the family. Hence, these variables have been analyzed in the present study.

(i) Housing Conditions:

The quality of house is assessed by taking the responses about type of house such as pucca, semi-pucca and kutcha which is affected by income of the family. It is observed from Fig. I that more than 90 percent families live in pucca houses and only one percent, mainly scheduled caste families, live in kutcha houses.

Fig. 1Type of Houses

Table 10 exhibits that highest number of backward families live in pucca houses in comparision to other two caste groups. It is pertinent to note that ten percent scheduled caste families occupy semi-pucca and kutcha houses each.

Table: 10Type of House by Caste Groups


Type of House General Caste Backward Caste Scheduled Caste

Pucca 91.59 95.65 80.00

Semi-Pucca 8.41 4.35 10.00

Kutcha 0.00 0.00 10.00

Total 100.00 100.00 100.00


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(ii) Availability of Lavatory, Bathroom and Kitchen:

Availability of toilet and bathroom facilities in household premises are important variables to assess the quality of house. The government is also making an effort and has launched various program in this regard. The data shows that 98 percent families are having lavatory facility and 99 percent bathroom facility within the house compound. More than 95 percent houses have reported that a separate kitchen has been constructed in their house which is a good indicator of socio-economic development in the region. The use of traditional chullah has been replaced by Liquefied Petroleum Gas chullah in their separate kitchen.

(iii) Room Density:

Number of rooms explain the availability of separate space to an individual in the house. Table 11 reveals that 62 percent families are living in the houses having 3 to 4 rooms. The maximum number of rooms are observed in the families of general category whereas the lowest is found among scheduled caste families.

Table: 11

Percentage of Rooms in Household by Caste Groups


It is observed that the caste and income play an important role in determining the space to an individual in a family. Table 12 indicates that the room density per person in general caste is higher than backward and scheduled caste categories. An increasing trend of room density is observed as income increases in the family in all the caste categories.

Number of General Caste Backward Caste Scheduled Caste Total

Rooms

1 to 2 8.41 13.04 20.00 10.67

3 to 4 61.68 60.87 65.00 62.00

5 to 6 19.63 21.74 10.00 18.67

7 to 8 6.54 4.35 5.00 6.00

9 to 10 3.74 0.00 0.00 2.67

Total 100.00 100.00 100.00 100.00


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Table: 12Room Density by Income Groups


(iv) Source of Drinking Water:

Potable water for drinking purpose is essential for survival and better quality of life. Fig. 2 indicates that 70 percent of families use water supply for drinking water followed by handpump (28 percent). The water from handpump for drinking purpose is maximum used by the families having income between 25000 and 50000 whereas water supply as a source is used by the families having income between 75000 and one lakh.

Fig 2

Drinking Water by Source

General Caste Backward Caste Scheduled Caste Total

Less than 25000 0.72 0.57 0.440.61

25001-50000 0.76 0.69 0.600.70

50001-75000 0.69 0.92 1.400.78

75001-100000 0.73 0.60 0.500.70

100001-200000 0.93 1.00 0.600.92

Above 200000 1.36 - -1.36

Total 0.81 0.71 0.580.76


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Conclusion:

It can be concluded that the sex ratio and education level are in favour of female. The average family size is higher in scheduled caste as compared to backward and general categories. The choice of son is more dominant among all the caste groups. Cultivation and services are the main occupation in the region. Income level among the general category is more than other two categories. Housing conditions such as quality of house, room density, source of drinking water are better in the region.

REFERENCES:

Karan, S.K. et. al. (2003); “Living Environment and Health of Urban Poor”, Economic and Political Weekly, vol. 38 (34); pp. 3575-3586.

Kumar, S. and S. Dalal (2012); Housing Conditions: A Study of the Displaced from Sardar Sarovar Project” Geographical Aspects, Proceedings of 40th RGA National Seminar; pp. 76-85.

Mahmood, A- (1998, 3rd Edition); "Statistical Methods in geographical studies" , Rajesh Publications, New Delhi.

Sharma, M. and Kaushik, S.P. (2013); "Socio-Economic Characteristics of Slum Dwellers of Kurukshetra city", Eastern Geographer, Vol. 19(I); pp.35-42


ROLE OF LEATHER INDUSTRIES IN THE DEVELOPMENT OF OUR ECONOMY


INTRODUCTION

Leather sector occupies a very important place in the development of our economy on account of its substantial export earnings, potential for creation of employment opportunities and favorable conditions for its sustained growth. There is a large potential to increase the domestic production and exports. It is estimated that close to 2.5 million people are presently employed both directly and indirectly in the leather sector. About 1 million are estimated to be employed in the organized sector and the rest 1.5 million is in the un-organized productive sector.

The major leather products and exports from India are hides and skins such as cow and bull calf, sheep nappa, goat skin, kid leather, wet blue, etc. Footwear and footwear components like shoes, shoe uppers, soles, etc. Leather garments, leather gloves, leather saddlery, leather travel bags, leather purses, wallets, briefcases etc.

Tanning Sector -Annual production 2 billion Sq.ft. Accounts for 10% of world leather requirement.

Footwear Sector - Second largest footwear producer after China. Annual Production 2065 million pairs. Huge domestic retail market 1950 million pairs (95%) are sold in domestic market. Footwear export accounts for 45.05% share in India’s total leather & leather products export. The Footwear product mix Gents 52%, Ladies 39% and Children 9%.

Leather Garments Sector – Second largest producer with annual production capacity of 16 million pieces. Third largest global exporter. Accounts for 10.43% share of India’s total leather export.

Leather Goods & Accessories Sector Including Saddlery & Harness - Fifth largest global exporter. Annual production capacity - 63 million pieces of leather articles, 52 million pairs of Industrial gloves & 12.50 million pieces of Harness & Saddlery items. Accounts for 23.44% share of India’s total export.

The major production centers in India are Chennai, Ranipet, Ambur, Bombay, Kanpur, Jalandhar, Agra, Delhi, Karnal, Ludhiana, Sonepat, Faridabad, Pune,

Rosy Mishra Associate Professor

Department of EconomicsM.M.H. College, Ghaziabad(C.C.S. University, Meerut)

150

Kolkata (www.leatherindia.org), Calicut and Ernakulam.

Leather industry has not only create job opportunities at lower capital cost comparing to other sectors, but also require lower capital investment and play a vital role for proper utilization of local resources and talent. Leather industry has consistently registered a higher growth rate than the rest of the industrial sectors.

LITERATURE REVIEW

Leather industries play an important role in the development of our economy. While describing some basic issues pertaining to the leather industries in developing economies, some review of literature are given here.

Shetty (1963) pointed out that the technological base in the industry was extremely primitive and a unit was rarely interested to adopt technological modification in the process.

Usha (1985) based on Tamil Nadu Leather Tanning Industry in Year 1978-79.she focused attention on some selected issues related to the structure of work force, Mechanization and the prospect of the traditional skilled and unskilled workforce in the industry. Her Major findings were that the leather tanning sector in Tamil Nadu, about 90.0 per cent of the total entrepreneurs’ belonged to the Muslim Community and rest belong to the Hindu Community. As regards the Mechanization of Industry, most of the tanning and manufacturing units were using Labor-intensive technique, in which the skilled hand workers formed a majority of the workforce.

Qureshi (1990) discussed some issues of leather making artisans of Mewat region in the district of Gurgaon, Haryana. A large Majority of Leather Products makers were facing problems of inferior quality of goods, time consuming, less profitability, low prices for products, non availability of credit and payment delays.

Sahasranaman (1993) pointed out some basic problems of the leather product industry. According to this study, in the Leather product Industry, the dominance of traditional production system, confinement of production to a particular community, absence of modernization of technology, were the basic problems of the producers.

Chandramouli’s (1999) on “Leather and Social Development” focused on some characteristics of Leather Industry. The author stated that the production of leather and leather products involves various socio-economic activities. The economic activities were largely in the form of generation of income, creation of employment, etc. On the other hand, the production of leather and leather goods led to the social development in the form of understanding, awareness, social equity, better health, education and nutrition.

Bhavani (2010) highlights the issue of quality employment generation by the SSIs and negates the short term attitude of increasing the volume of employment

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generation compromising with quality. The author argues that employment generation by the SSIs may be high in quantitative term but very low in quality. Technological up gradation would enable the small firms to create quality employment improving, duration and skill. This structural shift may reduce the rate of employment generation in the short run but would ensure high-income employment generation in the long run.

OBJECTIVES OF THE STUDY

The proposed investigation has the following objectives:

¤To examine the role of leather industries in the growth of our economy.

¤To investigate how the economic performance of industry is determined.

RESEARCH METHODOLOGY

Data has been mostly collected through desk research of online resources, research papers, conference documents, and other publications. Data from Council for Leather Exports has been used. Annual Reports on MSMEs, Annual Reports of Ministry of Commerce and Industry, various annual reports of State Financial Corporation, and various financial institutions have been used.

The data has been compiled from three types of sources: published documents and reports, the World Wide Web and statistical agencies. All data sources are listed at the end of this note and Web links are provided wherever possible. Simple statistical tools have been used for analyzing data.

EXPORT PERFORMANCE OF LEATHER AND LEATHER PRODUCTS

DURING APRIL-JULY 2013

The export performance of Leather and Leather products for the financial year April-July 2013 touched US$ 1852.04 million as against the performance of US$ 1634.96 million in the corresponding period of last year, recording a positive growth of 13.28%. (Table-1 A statement showing product wise export performance during April-July 2013 vis-à-vis April-July 2012 is given below). In rupee terms, the export touched Rs. 105362.16 million in April-July 2013 as against the previous year’s performance of Rs. 89027.87 million registering a positive growth of 18.35%.

Table 1: Product-Wise Export Performance During April-July 2013

Category April-July (2012) April-July (2013 % Variation

Finished Leather 385.62 420.71 9.10%

Leather Footwear 559.72 617.23 10.27%

Value in US $ MILLION

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Footwear Components 84.44 109.84 30.07%

Leather Garments 173.41 178.15 2.73%

Leather Goods 363.48 421.08 15.85%

Saddlery And Harness 34.07 45.36 33.12%

Non-Leather Footwear 34.21 59.67 74.43%

Total 1634.96 1852.04 13.28%

Source: ITC, Geneva & DGCI &S, Kolkata (www.leatherindia.org)

Figure 1: Export Performance During April-July 2012-13

ource: ITC, Geneva & DGCI &S, Kolkata (www.leatherindia.org)

Finished Leather-

The Global import of Finished Leather declined from US$ 23120.97 million in 2007 to US$ 22151.29 million in 2011. India accounts for a share of 4.63% in the global finished leather imports. (In Table 2, a statement showing global import of finished leather viz-a-vis India’s export and share during 2007 to 2011).

India has amongst the largest livestock population in the world, providing a strong raw material base in goat, buffalo, cow and sheep leather. In terms of raw material availability in pieces, India is endowed with 12.55% of Bovine hides & skins, 12.29% of goat and kid skins, and 3.48% of Sheep and Lamb skins in the world.

The range of finished leathers includes classic finishes (polish, glazed, aniline, patent), matt surfaces (suedes, nubuck), nappa, burnished & oily leathers, crackled & distressed finishes etc.

Amongst the major producers of finished leather in the world, the Indian Leather Industry has a long tradition of supplying high quality leather for the global market.

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Indian tanning industry produces over 2 billion square feet of leather per annum.

Table 2: Global Import of Finished Leather viz-a-viz India’s Exports

(Value in Million US$)


Figure 3: Finished Leather Export Growth


Footwear –

The global import of Footwear (both leather footwear as well as non-leather footwear) has increased from US$ 81.47 billion in 2007 to US$ 103.38 billion in 2011, growing at compound annual growth rate (CAGR) of 6.13%. During 2011, the India’s share in the global import is 1.92%. (In table 3, a statement showing global import of Footwear viz-a-vis India’s export and share during 2007 to 2011.

Table 3: Global Import of Footwear viz-a-vis India’s Exports



Export of footwear from India increased manifold over the last four decades. During

2007 2008 2009 2010 2011

World Import 23120.97 21347.76 14907.56 19742.52 22151.29

India's Export 807.19 673.37 627.95 841.13 1024.69

% Share Of India 3.49% 3.15% 4.21% 4.26% 4.63%

2007 2008 2009 2010 2011

Global Import of Footwear 81477.88 88822.80 78453.08 91614.94 103385.24India's Export of Footwear 1489.35 1534.32 1507.59 1758.67 2079.14& Uppers

% Share of India 1.82% 1.72% 1.92% 1.91% 2.01%


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2012-13, India’s footwear export is valued at US$ 2055.93, constituting 41.14% share in total export of leather & leather products.

Figure 4: Footwear Export Growth


Leather Garments-

The global imports of leather garments had marginally declined from US$ 3986.73 mn in 2007 to US$ 3910.97 million in 2011. (In table 4, a statement showing global import of leather garments viz-a-vis India’s export and share during 2007 to 2011)

Leather garments form a significant segment of the Leather Industry in India. Leather garments production capacity is estimated to be 16 million pieces annually. India produces different types of leather garments i.e., jackets, long coats, waist coats/shirts, pant/shorts, motorbike jackets, industrial leather garments, leather aprons etc. India is the second largest producer of leather garments, next only to China, which produces 70 million pieces of the total global trade volume of about 120 million pieces.

It is a matter of great pride that Indian leather garments have been making giant strides in the world of fashion. National Institute of Fashion Technology and National Institute of Design lends design support to make continuous fashion statements. These Institutes provides well trained personnel and imaginative designers. India’s acknowledged strength is leather tanning and its ability to produce a wide variety of fashion leathers.

Table 4 : Global Import of Leather Garments viz-a-vis India’s exports



2007 2008 2009 2010 2011

World Import 3986.73 4144.04 3376.02 3601.72 3910.97

India's Export 345.34 426.17 428.62 425.04 572.45

% Share of India 8.66% 10.28% 12.69% 11.80% 14.64%

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Figure 5: Leather Garments Export Growth


Leather Goods & Accessories & Gloves

The global imports of leather goods & accessories had increased from US$ 16388.49 million in 2007 to US$ 22216.93 million in 2011, growing at a cumulative annual growth rate of 7.90%. (In table 5, a statement showing global import of leather goods & accs viz-a-vis India’s export and share during 2007 to 2011).

Leather Goods form an important segment of the leather industry in India. Leather goods production capacity is estimated to be 63 million pieces annually.

India is the fifth largest exporter of leather goods and accessories (inclusive of Gloves) in the world.

Table 5: Global Import of Leather Goods & Accs viz-a-vis India’s Exports



Figure 6 : Leather Good and Accessories Export Growth


2007 2008 2009 2010 2011

World import 16388.49 18117.82 14376.65 17059.43 22216.93

India's export 800.46 873.44 757.02 855.78 1089.71

% Share of India 4.88% 4.82% 5.26% 5.01% 4.90%


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Saddlery & Harness-

The global imports of saddlery & harness had increased from US$ 1100.50 mn in 2007 to US$ 1224.85 million in 2011, growing at a compound annual growth rate (CAGR) of 2.71%.

Harness & Saddlery goods are being manufactured in Kanpur for more than last 100 years. The Saddlery manufacturing started in the 19th century at the British Indian Corporation in its Copper Alan branch in Kanpur and simultaneously the British Government started the Ordinance Equipment Factory at Kanpur to cater to the needs of the Army. The craft of making saddlery was imparted to the local artisans by the master saddlers brought from the UK, whose generations now formed the workforce of the present industry.

By virtue of Kanpur’s specialization in vegetable tanned buffalo hides, and due to the presence of trained manpower, this has become the most important centre for manufacture of saddlery goods in India. In fact, Kanpur is the only centre in India which produces the harness & saddlery goods. Almost all the units operating in Kanpur are 100% export-oriented.

Indian Saddlery and Harness industry is now becoming globally competitive and brand dominated, awash with designs. India is positioned as the third largest exporter of Saddlery & Harness to the world, accounting for a share of 8.04% in the global saddlery import of US$ 1093.82 million.(In table 6, N statement showing global import of saddlery & harness viz-a-vis India’s export and share during 2007 to 201)

Table 6 : Global Import of Saddlery & Harness viz-a-vis India’s exports



Figure 7: Saddlery & Harness Export Growth


2007 2008 2009 2010 2011

World Import 1100.50 1141.57 990.99 1096.16 1224.85

India's Export 106.18 92.15 83.39 87.92 107.54

% Share of India 9.65% 8.07% 8.41% 8.02% 8.78%

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Indian Saddlery and Harness products are gaining an ever-increasing recognition in the highly competitive global saddlery & harness leather arena. Estimated production capacity of the Saddlery & Harness industry in India is 12.50 million pieces per annum. Technology, work craftsmanship, product quality are the hallmarks of the Indian Saddlery & Harness industry

CONCLUSION:

Continuous export growth in the various segments of leather industries shows that the leather industries play a vital role in the development of our economy. India can generate additional economic development growth by fostering leather industries activities within its borders, particularly within its burgeoning middle class. Not only has leather industries been found to yield significant economic benefits in a wide variety of nations, but India specifically has reached a point in its development where it can achieve similar results through other industries efforts. Among other things, India is poised to generate new business startups in the high technology area that can help it become a major competitor in the world economy.

REFERENCES

[1] Hussain, Abid, (1997), ‘Report of the Expert Committee of Small Enterprises’, National Council of Applied Economic Research, New Delhi.

[2] Desai, Vasanta (2000), “The Dynamics of Entrepreneurial Development and Management”, Himalaya Publishing House, New Delhi.

[3] Bhattacharyya, D.K (2004), “Research Methodology”, Excel Books, New Delhi.

[4] Mohd, Saud Ilahi (2007), “Non Monetary Support for Development of Entrepreneurship in Small Scale Industry of Delhi state”, Ph.d Thesis, Jamia Millia Isllamia New Delhi

[5] Mehta, Om Prakash (2009), Global Economic Crisis and Challenges to Micro, Small and Medium Enterprises, “Laughu Udyog Samachar” (Aug- 2009), New Delhi.

[6] Varma U. K (2011), New and Innovative Schemes for Technology Development of MEMEs, “Laughu Udyog Samachar” (Feb- 2011), New Delhi.

[7] Annual Report: Ministry of Micro, Small and Medium Enterprises

[8] www.leatherindia.org

[9] www.fddiindia.com

[10] www.vvgnli.com

[11] www.msme.gov.in


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[12] www.msme.org

[13] www.sidbi.com

[14] www.smallindustryindia.com

[15] www.ssi.nic.in

List of Tables:

Table No Particulars Page

1 Showing Product Wise Export Performance During April-July 2013 vis-à-vis April-July 2012 5

2 Global Import of Finished Leather viz-a-vis India’s Export 7

3 Global Import of Footwear viz-a-vis India’s Export 8

4 Global Import of Leather Garments viz-a-vis India’s Export 10

5 Global Import of Leather Goods & Accs viz-a-vis India’s Export 11

6 Global Import of Saddlery & Harness viz-a-vis India’s Export 12

List of Figures:

Fig No Particulars Page

1 Export Performance During April-July 2012-13 6

2 Percentage Share of Footwear in Export Performance 6

3 Finished Leather Export Growth 8

4 Footwear Export Growth 9

5 Leather Garments Export Growth 10

6 Leather Good and Accessories Export Growth 11

7 Saddlery & Harness Export Growth 12

Rosy Mishra

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