...Development in India The world’s second largest populated country, India, is the apple of the eye for the world now. The world economies are seeing it as their potential market. This has been going on since quite some time now, ever since 1991 reforms of liberalization, globalization and privatization. Indian markets in urban areas have grown appreciably and are on the verge of saturation, so corporates have started tapping rural markets, since more than 60 per cent of India’s population lives in rural areas. During this global meltdown and fall of exports, if the Fast Moving Consumer Goods (FMCG) sector has been able to show rising quarterly growths, it is because of the Rural Markets and their rising spending power, which have not been affected by this meltdown. If we look at the strategies followed by Rural Marketers in the FMCG sector, it is to sell many small sachets of Rs. 2 shampoo pouches, Rs. 5 Maggi packs and the Rs. 5 chota Pepsi, because here, the strength lies in volume sale, considering the large consumer base in these rural markets which won’t spend altogether at once on buying large family packs of 500ml shampoo or super saver packs of Maggi or a Pepsi pet bottle of 2 litres. Therefore, consumption trends followed by the rural Indian are considered to be the driver of future growth of companies. And this trend of tapping rural markets is visible across all sectors now, be it FMCG, IT, Banking, education etc. For example, today, India is in better state...
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...Role of education in rural development Abstract ‘The real India live in villages', this saying is as true today as it was when the country got independence 64 years back. As more than half of the population of the country lives in villages, rural development is an eminent factor for the development of our economy. The crucial motivating factor for the development of the economy in today's time is Education. Like in the body of human being liver is responsible for the proper functioning of the body, in the same way education acts a backbone for the economy. To explore this significant role of education in India especially in rural India, this paper tries to explain the failures and problems being faced by the rural education. It also addresses the various initiatives been taken by the government. The paper also highlights some of the suggestions for improving the education system in rural or remote areas. Introduction Rural development implies both the economic betterment of people as well as greater social transformation. The continuous growth of the Indian economy forces the Indian government to accelerate the process of developing all the branches of the Indian education system. As more than half of the population in India lives in villages, therefore the education system in rural area also plays a significant contribution in the growth of the economy. The present system of education in India was introduced by the British in the 20th century. The system so given...
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...AGRICULTURE IN INDIA Indian agriculture has been main source of income for the masses since decades. It is also referred to as India’s mother economy. In the current times as well it accounts for about two-thirds of the employment of the Indian labor force. An intense global food situation in present times signifies the importance of expanding the existent resources and food production in developing countries like India. The Five Year Plans by the Government of India are meant to achieve this goal. The northern states of Punjab, Haryana and Uttar Pradesh contribute over 80% of the production of food grains. “Among the southern states, Tamil Nadu shows the highest percentage of irrigated area and intensity of irrigation but not intensity of cropping.” (2) Growth of plantation crops such as coffee, cocoa, pepper and cardamom are dominated by the states of Kerala and hilly Karnataka. Indian agriculture has developed over the period of years, particularly after Independence in 1947. The stagnating growth which characterized the first of the twentieth century was significantly in contrast with the second half. However, it has been a slow and painful process. This does not come as a surprise since most of the developing countries experiencing transition in economy have encountered the same. They are striving to achieve multiple objectives at a time with limited resources at their disposal. While efficient use of available resources is of utmost importance, getting most advantageous...
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...construction contractor and has successfully executed various contracts of Roads, Bridges and Township etc. in West Bengal, Bihar and Uttar Pradesh. The best execution of civil work was in `RAM KI PAIRI’ on the Bank of `SARYU’ River in Ayodhya which was designed on the pattern of `HAR KI PAIRI’ Haridwar. And ITI Mankapur Township was also well appreciated. He also had been the largest manufacturer of Bricks for Entire Township of `Bharat Cocking Coal Limited'. In 1982 he was given a challenging and fully diversified job of manufacturing soft drinks viz: Thumsup, Limca, Gold Spot and Bislery Club Soda etc. as a franchisee of “PARLE EXPORT PRIVATE LIMITED”. He brought the production with a short span of time and achieved the highest growth in India in 1985. The franchisee co. is named as `Amrit Bottlers Private Limited’. Subsequently `PARLE’ brand was taken over by the `COCA COLA’ and Mr. Ladhani converted the mechanized plant into fully automatic and computerized plant and now is having a largest production capacity and highest sale in Eastern U.P. for the last several years. They have a `COLD STORAGE’ named as `Laxmi Cold Storage and Allied Industries’ adjacent to the `Amrit Bottlers Private Limited’, Faizabad now the same has become of the largest capacity to preserve to potatoes and fruits in Eastern U.P. The enterprising factor which can be termed as back bone of the Mr. Ladhani’s success is the joint efforts of the management, which brought all the ventures to highest level of...
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...to achieve much as we have presently due to inaccessibility to credit, but with the on-going policy of the Federal Government through the Reserve Bank of India on micro-financing the macroeconomic objective of reduced unemployment, if not full employment will become a reality in India. The microfinance policy has empowered the many microfinance/ banking institutions to provide credit to the informal sector. Therefore the Government of India and all relevant stakeholders continue in their mission towards reducing unemployment while they give their whole support, in making sure that the informal sector continues to enjoy access to formal credit to finance its activities and accomplish its goal of unemployment reduction. Key words: Credit, Unemployment, Informal sector INTRODUCTION Unemployment is one of the developmental problems that face every developing economy in the 21st century. International statistics portray that industrial and service workers living in developing regions account for about two-thirds of the unemployed. The Indian economy since the attainment of political independence in 1960 has undergone fundamental structural changes. The domestic structural shifts have however not resulted in any significant and sustainable economic growth and development. Various sources show that the Indian economy grow relatively in the greater parts of...
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...Poverty, Rural Development and Inclusive Growth Group 07 Poverty, Rural Development & Inclusive Growth In this report we would be focusing on Sustainable Inclusive Growth Background Post independence a combination of protectionist, import substitution and Fabian social democratic – inspired policies governed India. Economy was characterized by extensive regulation and public ownership of large monopolies. Owing to economic liberalization in 1991, the country moved to a market based economy and slowly established itself as the world’s fastest growing economies when it reached its highest recorded GDP growth rate of 9%. However there has been significant debate, around liberalization as an inclusive economic growth strategy. Since 1992, income inequality has deepened in India with the wealthiest generating consumption growth and the consumption among the poorest remaining stable. With India’s Gross domestic product (GDP) growth rate touching a decade long low in 2012-13 , growing merely at 5%, more criticism of India's economic reforms surfaced, citing failure to address employment growth, nutritional values in terms of food intake in calories, and also exports growth - and thereby leading to a worsening level of current account deficit compared to the prior to the reform period. Growth that is not inclusive affects the society, the economy and the polity by resulting in real and perceived inequities Thus making growth more inclusive and addressing widespread poverty...
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...Rural Urban divide in India The sharp increase in rural-urban disparities in India after decades of planned development is alarming, for planning itself was conceived as an instrument to narrow down such disparities. RURAL-urban disparities, particularly in post-colonial countries, have for long been one of the causes of concern for the policymakers. The disparities are seen in all spheres of human life - economic and non-economic. The long colonial rule in India had created an urban-rural divide. What causes great concern now-a-days is the sharp increase in the level of disparities after a few decades of planning, especially because planning was conceived as an instrument to narrow down rural-urban disparities. The rural-urban disparities is found across the World, as is indicated with the fact that Cities take up less than two percent of the Earth’s land surface, but are home to almost half of the world’s population and utilize seventy-five percent of the Earth’s resources. In 1998 47 percent of the world’s population lived in cities as opposed to 29 percent in 1950. Globalization is leading to increased urbanization. According to the World Bank, urban areas in developing countries account for an estimated 60 - 80 percent of GDP. Urban populations mainly have greater access to water and sanitation services, but an estimated quarter to a half of those populations live in slums or squatter settlements. As regards India, the statistics are about 70% of the people live in more...
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...and its impact on Rural market, Consumers and Farmers in India Notan Bhusan Kar* Abstract Globalization, liberalization and privatization have brought many changes in the Indian economy. Since 1991, the New Economic Policy has been implemented in India and that policy is clearly associated with Globalization. As a result, many multinational companies (MNCs) along with indigenous products have entered into Indian Market. The rural market is the biggest market in India because two third of the Indian consumers live in rural areas. Most consumers of these regions, which is around 70 percent, are engaged in agriculture and its allied works for their livelihood. Over 70 percent of sales are made to the middle class households today of which over 50 percent of the middle class belong to rural India. Thus the rural market has been growing to the Fast Moving Consumer Goods (FMCG) and is now bigger than the urban market. According to a study by Chennai-based Francis Kanoi Marketing Planning Services Pvt. Ltd. today the rural market in India is worth Rs.1,23,000 crores, among which Rs.45,000 crores are agri-inputs market. To capture this lucrative market, many producers including multinationals have been developing their marketing strategies. It is a fact that due to ignorance and low awareness, most of the rural consumers are helpless against the unethical marketing practices of these greedy marketers. This paper aims to examine whether the purchasing power of the rural people has really...
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...REGIONAL RURAL BANKS The Narasimham committee on rural credit recommended the establishment of Regional Rural Banks (RRBs) on the ground that they would be much better suited than the commercial banks or co-operative banks in meeting the needs of rural areas. Accepting the recommendations of the Narasimham committee, the government passed the Regional Rural Banks Act, 1976. A significant development in the field of banking during 1976 was the establishment of 19 Regional Rural Banks (RRBs) under the Regional Rural Banks Act‚1976. The RRBs were established “with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto” . * Objective * Functions * Regional Rural Banks in India * Regional Rural Banks in Tamil Nadu RRBs established with the explicit objective of Top * Bridging the credit gap in rural areas * Check the outflow of rural deposits to urban areas * Reduce regional imbalances and increase rural employment generation The main objectives of setting up the RRB is to provide credit and other facilities‚ especially to the small and marginal farmers‚ agricultural labourers artisans and small entrepreneurs in rural areas. Each RRB will...
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...------------------------------------------------- Poverty in India Poverty is widespread in India, with the nation estimated to have a third of the world's poor. According to a 2005 World Bank estimate, 26.1% of the total Indian population falls below the international poverty line of US$ 1.25 a day (PPP, in nominal terms 21.6 a day in urban areas and 14.3 in rural areas).[1] A recent report by the Oxford Poverty and Human Development Initiative states that 8 Indian states have more poor than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries.[2][3] According to a new UN Millennium Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, while India's poverty rate is projected to drop to 22% in 2015.[4] The report also indicates that in Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty in half by the 2015 target date.[4] The 2011 Global Hunger Index (GHI) Report ranked India 45th, amongst leading countries with hunger situation. It also places India amongst the three countries where the GHI between 1996 and 2011 went up from 22.9 to 23.7, while 78 out of the 81 developing countries studied, including Pakistan, Nepal, Bangladesh, Vietnam, Kenya, Nigeria, Myanmar, Uganda, Zimbabwe and Malawi, succeeded in improving hunger condition.[5] ...
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...an economy usually experiences a relatively high unemployment rate. According to International Labour Organization report, more than 197 million people globally or 6% of the world's workforce were without a job in 2012. Unemployment has been a very unnecessary evil in the society as India is struggling to employ its workable population. One of the biggest factors that contributes to this is ‘employability’. According to India Skills Report launched in the 3rd CII National Conference on Skill Development 34% were found employable Out of about 1, 00,000 candidates. The Report not only captured the skill levels of talent pool but also brought out the hiring estimates across major Industry sectors in the country. As per the report’s findings, the coming year would not see bullish hiring in any of the sectors. Out of about 10 sectors surveyed, majority of the sectors (like BFSI, BPO/ITES, Manufacturing etc.), are not expecting a major change in their hiring numbers. Engineering & Core, Hospitality and travel, came out as the only sectors where there will be a significant increase in the hiring numbers. The report also brings out a general trend amongst the employers to look for skills rather than qualifications in candidates. Apart from this, the report has in-depth analysis of the skill pool based on the gender, age-group, and domain along with the states where the most employable pool can be found. Unemployment rate increases in India, an article in the ‘Times of India’ throws...
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...&Weaknesses of Unilever in Indian Market HLL has numerous advantages; well-established strong brands, sales and distribution system, local manufacturing and distribution. Another strong point of HLL is its first-mover advantage. HLL entered India much earlier than other multinational FMCG companies like Procter & Gamble and Colgate-Palmolive. HLL has the greatest market penetration and geographical coverage among other FMCG giants operating in India. HLL has also strong position against unorganized local competitors who do not work to build brand image. HLL offers a very large number of brands and SKU to serve Indian market. On weaknesses side of Unilever; unorganized local players can sell their products at lower prices than HLL brands. HLL might entered the India first but after economic liberalizations other major FMCG players whom Unilever is competing globally also entered India. So HLL’s vast product line and brands brought great number of competitor at each profit-center that HLL operates in high-price segment. The competition led to price-reduction and resulted profit-loss. Opportunities &Threats for Unilever in Indian Market One of the greatest opportunities in India for Unilever is the number actual and potential customers. India has the second largest population in the world with 1.2 Billion. Majority of this population is young people under 25 years-old and willing to consume. India’s rising GDP and purchasing power is bringing extra opportunities. Unilever is also...
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...Why Rural India is important (for policy makers, business country as a whole)? The word Rural has no specific definition and it depends upon the perceptions of the people. Different people differentiate or mark rural area in accordance to their priorities. It is measured by the parameters leading to underdevelopment or unawareness. It can deal with different sectors and is not specific to any area of work. The Rural area for a policy maker may be one but the same area from the point of view of a businessman might not be underdeveloped. This is the reason, the word ‘Rural’ cannot be defined and it doesn’t hold any concrete definition. When we talk about development it basically deals with the quality of life of the people. Development of a country is measured by the HDI index that takes into account parameters like life expectancy, literacy and the standard of living of its citizens. And in a country with such a large population living below this standard needs to concentrate more on the rural areas to bring about an inclusive growth & development. Rural has become a very important area to be focussed upon because of many reasons. It acts as major source of man power, resources, opportunities etc. There is a large force of underdeveloped people. There is a need to enlighten them and make them aware about different things and then they can be helpful to the country as a whole in many ways. Again, there is abundance of resources available in rural areas. But the proper...
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...Engineering MCKV Institute of Engineering Howrah, India Basab Bandyopadhyay Department of Civil Engineering Professional Engineering Services Pvt. Ltd. Kolkata, India Abstract The objective of this paper is to explain the meaning of Globalization and to explore the impact of globalization in Indian context. Our study has two major goals: To analyse the globalization process before and after independence and to describe the main features of the Indian software industry, especially its competence and weakness. The study also reveals the trade and investment policies of the Government of India and its effects on Foreign Direct Investment. We have also done comparative study between Indian and Chinese economy, their strength and challenges. Keywords—Globalization; FDI; India; IT; China; Economic Policy; Industry; Technology. Introduction Globalization is a natural phenomenon of today’s world economies. However in the Indian perspective the globalization of its economy in general and science and technology in particular has taken varied course on its way to modern times. The key feature of this paper is to trace its path through the different periods, with special emphasis on the evolution of science and technology during this course. Different government policies adopted to cope with the rough terrains of economy has been discussed in brief to draw a sketch for the mentioned period. Since globalization of technology in India is incomplete without the discussion of development...
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...INTRODUCTION Poverty in India is widespread, with the nation estimated to have a third of the world's poor. In 2010, the World Bank reported that 32.7% of the total Indian people fall below the international poverty line of US$ 1.25 per day (PPP) while 68.7% live on less than US$ 2 per day.[1] According to 2010 data from the United Nations Development Programme, an estimated 29.8% of Indians live below the country's national poverty line.[2] A 2010 report by the Oxford Poverty and Human Development Initiative (OPHI) states that 8 Indian states have more poor people than 26 poorest African nations combined which totals to more than 410 million poor in the poorest African countries.[3][4] A 2013 UN report stated that a third of the worlds poorest people live in India.[5] According to a 2011 poverty Development Goals Report, as many as 320 million people in India and China are expected to come out of extreme poverty in the next four years, while India's poverty rate is projected to drop to 22% in 2015.[6] The report also indicates that in Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty by half by the 2015 target date.[6] However, this decline in poverty is debatable given the fact that there are question marks on methodology of evaluating poverty. Indian journalist Ravi S Jha writes in the Guardian[7] on the need of measuring poverty by segregating India's poor in different groups...
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