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VOLUME NO. 7 (2017), ISSUE NO.

09 (SEPTEMBER) ISSN 2231-5756

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756

CONTENTS
Sr. Page
TITLE & NAME OF THE AUTHOR (S)
No. No.
1. HEALTH INSURANCE SCHEME (AAWAZ) FOR DOMESTIC MIGRANT LABOURERS IN KERALA 1
OPPORTUNITIES AND CHALLENGES
UMA.K & Dr. E. K. SATHEESH
2. FINANCIAL LITERACY: A STEP FORWARD TOWARDS SUCCESS 4
Dr. V.MANICKAVASAGAM & V.VIJAYA
3. ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CHALLENGES: A CASE OF PUNJAB 8
Dr. JASDEEP KAUR DHAMI, Dr. MANISH GUPTA & SANGRAM SINGH
4. EQUIPPING EVERY LEARNER FOR 21ST CENTURY 13
Dr. AMARDEEP KAUR
5. A STUDY ON THE PROMOTION AND REWARD POLICY WITH REFERENCE TO RELIANCE DYEING 15
WORKS TIRUPUR
Dr. S. KALAIYARASI
6. A STATISTICAL STUDY ON CUSTOMERS LOYALTY OF MOBILE PHONE SERVICES 20
LENIN JOHN & Dr. D. RANJITHAM
7. A STUDY ON CONSUMER SATISFACTION TOWARDS ORGANIC FOOD PRODUCTS IN COIMBATORE 24
CITY
S. AMUDHA & Dr. M. KANAGARATHINAM
8. FACTORS INFLUENCING CUSTOMER LOYALTY: A STUDY ON ORGANISED FOOD & GROCERY 27
OUTLETS
Dr. D. PADMA & A. SHANTHI
9. DYNAMIC CONGESTION CONTROL IN NETWORK LAYER FOR ADVANCED CLOUD COMPUTING 33
G. RAMASUBBAREDDY, K. RANGASWAMY & Dr. C. RAJABHUSANAM
10. ENTREPRENEURSHIP SKILL DEVELOPMENT IN VARIOUS BUSINESS SECTORS IN TAMILNADU 36
Dr. G. YOGANANDAN & T. VIGNESH
11. GROWTH AND DEVELOPMENT OF TELECOM SECTOR IN INDIA: AN OVERVIEW 40
Dr. N. VIJAYAKUMAR
12. FUTURE CLOSING PRICE, TRADING VOLUME AND OPEN INTEREST: EVIDENCE FROM STOCK 45
FUTURES & INDEX FUTURES OF NIFTY 50 ON NSE IN INDIA
KERKAR PUJA PARESH & Dr. P. SRI RAM
13. FUTURE TRACK OF STRATEGIC GROWTH OF M-COMMERCE MARKET IN GLOBAL SCENARIO 55
Dr. VAIBHAV SHARMA
14. AN ANALYSIS OF CSR SPENDING IN INDIAN COMPANIES 58
NEHA PUSHPAK
15. REMITTANCES AND HOUSEHOLD SAVINGS AND INVESTMENT 62
SULTANA B. A. MAZUMDER
16. THE FUTURE OF BUSINESS IS DIGITAL MARKETING: A DESCRIPTIVE STUDY 67
BAJRANG LAL & Dr. AJMER SINGH
17. AN ANALYSIS OF THE USE OF STRATEGIC MANAGEMENT ACCOUNTING BY ZIMBABWEAN 74
MEDICAL LABORATORIES IN HARARE
CHEZA ALEXANDER, MATAMANDE WILSON & KAPESA TONDERAI
18. GROWTH AND PROGRESS OF HANDLOOM INDUSTRY IN INDIA - A STUDY 79
VINAY KUMAR BOLLOJU & A. SREENIVAS
19. GENDER INCLUSIVITY IN IT-BPM SECTOR 81
SUMI.KV
20. E-COMMERCE IN INDIAN CONTEXT: A SWOT ANALYSIS 85
SALIM
REQUEST FOR FEEDBACK & DISCLAIMER 88

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT ii

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INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT v

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Bowersox, Donald J., Closs, David J., (1996), "Logistical Management." Tata McGraw, Hill, New Delhi.
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JOURNAL AND OTHER ARTICLES
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nal of Urban Economics, Vol. 21, No. 1, pp. 83-104.
CONFERENCE PAPERS
Garg, Sambhav (2011): "Business Ethics" Paper presented at the Annual International Conference for the All India Management Asso-
ciation, New Delhi, India, 1923
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Kumar S. (2011): "Customer Value: A Comparative Study of Rural and Urban Customers," Thesis, Kurukshetra University, Kurukshetra.
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Garg, Bhavet (2011): Towards a New Gas Policy, Political Weekly, Viewed on January 01, 2012 http://epw.in/user/viewabstract.jsp

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT viii

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
HEALTH INSURANCE SCHEME (AAWAZ) FOR DOMESTIC MIGRANT LABOURERS IN KERALA
OPPORTUNITIES AND CHALLENGES

UMA.K
Ph. D. RESEARCH SCHOLAR
DEPARTMENT OF COMMERCE & MANAGEMENT STUDIES
UNIVERSITY OF CALICUT
KERALA

Dr. E. K. SATHEESH
PROFESSOR & DEAN
FACULTY OF COMMERCE & MANAGEMENT STUDIES
DEPARTMENT OF COMMERCE & MANAGEMENT STUDIES
UNIVERSITY OF CALICUT
KERALA

ABSTRACT
Aawaz is a health insurance scheme planned to implement in Kerala in the year 2017 for the 4000000 domestic migrant labourers who have been working in
different sectors in the State. It aims at providing health care assistance and free medical facilities to each registered worker. The initiative plans to collect infor-
mation about the domestic migrant workers. Under the scheme titled aawaz, an identity card shall be provided to each migrant worker who gets registered. This
paper is an effort towards studying the opportunities and challenges of the aawaz scheme and the aim, benefits, the way how it will be implemented. The study
uses both primary and secondary data. The language barrier makes the domestic migrant labourers vulnerable and prevents them from accessing health care and
protecting their rights. The Interstate Migrant Workers Welfare Scheme launched by the State government in the year 2010 has not made much of an impact. The
enrolment of the scheme is only 54350 as on 31st December 2016. In this context the study is being conducted.

KEYWORDS
aawaz health insurance scheme, challenges, domestic migrant labourers, opportunities.

INTRODUCTION

M igration is the livelihood and survival strategy of many persons through well targeted remittance (Justin Paul, 2005). There are nearly 400000 domestic
migrant labourers working in the Kerala state. They are mostly from West Bengal, Orissa, Bihar and Assam. The majorities only speaks their native lan-
guages and are unable to effectively communicate to the local people and the Government official. It is very difficult to them to make use of the various
welfare scheme launched by the state Government. The Kerala Government introduced a welfare scheme for the migrant workers on May 1st of 2010. Under the
scheme titled 'Inter State Migrant Workers Welfare Scheme', a membership card is issued to each migrant worker who gets enrolled. Each registered worker
would get up to Rs. 25,000 as healthcare assistance for in-patient care in empanelled hospitals in case of accidents or chronic diseases. However, the worker is
eligible to get only Rs. 100 per day and the maximum limit fixed per episode of disease is Rs. 2000. If the labourers become incapable of undertaking jobs for more
than six months due to accidents or chronic diseases, they are eligible to get a special assistance of up to Rs. 25000. The labourers who have registered in the
scheme continuously for three years are also eligible to enjoy a retirement benefit of Rs. 1000 per year subject to a minimum of Rs. 10,000 and a maximum of Rs.
25,000. Financial assistance to the tune of Rs. 50,000 in the event of death in accident at work site and Rs. 10,000 in the event of natural death is provided to the
dependents of the migrant labourers. An additional assistance of Rs. 5000 to Rs. 15000 (depending on the distance to the state of origin) is also given for trans-
porting the body to their native places. There is also a provision for assistance of Rs. 3000 per annum for the education of the children of migrant labourers who
are studying beyond Class X in Kerala. The scheme is implemented through the Kerala Construction Workers Welfare Fund Board which is also running a scheme
for the welfare of the construction workers. The migrant worker will be required to pay an annual contribution of just Rs. 30. The Welfare Board, which is financed
mainly from the cess on construction activities, will credit twice that amount in her/his account. The government will provide the rest of the money needed for
the welfare measures. The welfare fund package is in addition to the assistance available to inter-State migrant workers under the Inter State Workmen (Regulation
of Employment and Conditions of Service) Act, 1979 and the rules framed under it. The welfare fund scheme would be monitored by an advisory committee
chaired by the State Labour Commissioner and comprising representatives of various trade unions (Government of Kerala, 2010). Though the scheme aims to
enroll half of the migrant labourers, enrolment with the scheme is only below 2 percent of the estimated labour force.
In this context the Labour and Skills Department of Kerala have issued an order on 27th October 2016 regarding the objective and aim of the health insurance
scheme aawaz for the domestic migrant labourers who have been working the state in various sectors. This study is about opportunities and challenges of the
aawaz scheme in the circumstance of awareness towards Interstate Migrant Workers Welfare Scheme.

INTERSTATE MIGRANT LABOURERS/ DOMESTIC MIGRANT LABOURERS (DML)

For this study "Interstate Migrant Labourers/Domestic Migrant Labourers (DML)" means in-migrants from other states, flocking in Kerala for different types of
activities involving manual labour, particularly in construction sector. They are floating or circulating from one place to another.

REVIEW OF LITERATURE
Kumar (2011) studies the vulnerability of the migrants and the responsiveness of the state in case of the unskilled migrant workers in Kerala, India i.e. in a sub-
national context. The study is based on an in depth interview with migrant workers and various stake holders. It broadly speaks about the welfare scheme intro-
duced by the Kerala Government for the interstate migrant workmen who have been migrated to Kerala from various parts of India. The study points out that
there is a need to form a separate welfare board to the interstate migrant labourers for the effective functioning and implementation of welfare activities.
D Narayana (2013) has suggested in their study about the domestic migrant labourers in Kerala that Government of Kerala design a Kerala State Insurance Scheme
speciically targetig DML(Domestic Migrant Labourers) most of whom may be above poverty line.The study suggest that scheme may be on contributory basis and
with subsidies from Government of Kerala.It shall be contributed by both Government of Inida (and the Governments of state origin that are willing to do so also)
may also be encouraged to contribute to the scheme. The Health Schemes may be limited to those who register as per the recommendation.
Ravi Srivastava (2003) reports that labourers working in harsh circumstances and living in un hygienic conditions suffer from serious occupational health problem
and are vulnerable to disease. As the employer does not follow safety measures, accidents are quiet frequent.Migrants cannot access various health and family
care programme due to their temporary status. Free public health care facilities and programmes are not accessible to them.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 1

STATEMENT OF THE PROBLEM

The language barrier, educational backwardness, socio-cultural difference between state of origin and Kerala and the large distance to travel to reach Kerala make
the interstate migration similar to International migration (Kumar, 2011). The language barrier makes them more vulnerable and prevents them from accessing
health care and protecting their rights. In India social security and labour welfare listed in Directive Principles of state Policy and falls under Concurrent list.
Unorganized sector doesnt have labour law coverage; these are seasonal and temporary nature occupation. The casual nature of work and labour mobility is high
hence bargaining power is low. Kerala has several achievements to its credit in introducing social security measures to address economic and social distress. These
social security schemes are mainly implemented through various welfare fund boards. The Interstate migrant Workers Welfare Scheme introduced by Kerala
Government has not made much impact. The enrolment of the scheme is only 54350 as on 31st December 2016(Government of Kerala, 2016) and there are no
claimants till date. The state Government now plans to launch a health insurance scheme for the interstate migrant workers, it is necessary to study the oppor-
tunity, challenges, aims, benefits and the way of implementation of aawaz scheme for its effectiveness.

OBJECTIVES
1. To study the awareness of the domestic migrant labourers towards the Interstate Migrant Workers Welfare Scheme introduced in the year 2010
2. To understand the opportunities and challenges of aawaz health insurance scheme introduced for the interstate migrant labourers.

RESEARCH METHODOLOGY
The study follows descriptive research design. The data collected from both secondary and primary sources. A primary survey is being conducted on the month of
March 2017 with a sample of 100 migrant labourers from various construction sites in Kozhikode district using interview technique. Secondary data collected from
various books, journals, reports, websites and working papers.

RESULTS AND DISCUSSION

The study shows that among the 100 interstate migrant labourers none is aware about the Interstate Migrant Workers Welfare Scheme.
DEMOGRAPHIC PROFILE
TABLE 1: DEMOGRAPHIC FACTORS
Age of the respondent Age of migration to Kerala Age at which joined in the construction labour market Daily Wage
Mean 25.74 19.93 18.76 495
Std. Deviation 5.53 4.36 3.44 101.37
Source: Primary data
The table 1 shows the mean age of in-migrant labourers are 25 years. Their daily income after migration is Rs. 495 /- and mean age of migration to Kerala is 19.93
years and mean age at which the labourer joined in the construction labour market is 18.76. The study reveals that the in-migrant labourers get minimum wage
from the state of Kerala (according to Central Sphere: Minimum Wage w.e.f January 19, 2017 to June 30 2017 by Paycheck.in).
These labourers do not get social security measures from their employers. They are also unaware about their rights and privileges, especially in labour welfare
oriented state like Kerala. From the field study the researcher found out that among the 100 interstate migrant labourers none is aware about the Interstate
Migrant Workmen Welfare Scheme launched by the Government of Kerala during the year 2010.

TABLE 2: DISTRIBUTION OF DML (DOMESTIC MIGRANT LABOURERS) BY STATE OF ORIGIN

Name of the state Frequency
West Bengal 52
Orissa 16
Bihar 12
Assam 11
Others 9
Total 100
Source: Primary data
From the field study shows that most of the migrant labourers are from West Bengal, Orissa, Bihar, Assam and from certain other states (includes Jharkhand and
Tamil Nadu).
TABLE 3: DISTRIBUTION OF DML BY LANGUAGES KNOWN
Languages Known Frequency
Mother tongue only 24
Mother tongue and Hindi 72
Mother tongue, Hindi and one other regional language 2
Mother tongue, Hindi, other regional language and Malayalam 2
Total 100
Source: Primary Data
Among the 100 migrant labourers 24 persons speaks only mother tongue. 72 Persons knows mother tongue and a little Hindi language.

TABLE 4: DISTRIBUTION OF DML BY ACCOMMODATION TYPE

Accommodation Type Frequency
Shared rented 34
Temporary accommodation at construction site 46
Accommodation provided by employer 20
Total 100
Source: Primary Data
Among the 100 DML all have temporary living status. All of their accommodation is based on their present work. They are floating from one place to another in
the State of Kerala.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 2

CHALLENGES OF AAWAZ HEALTH INSURANCE SCHEME

The health insurance scheme aawaz is a great plan by Government of Kerala. But lack of effective implementation will lead to its failure. There are a few barriers
to the effective implementation of aawaz scheme they are as follows.
1. It is essential to collect information of the DML (Domestic Migrant Labourers) who have been spread across the state, for their registration to the scheme.
2. Implementing entities like agency, insurance company, software, the preparation of insurance linked identity card should be determined.
3. Beneficiaries may not have adequate knowledge about the scheme.
4. The cooperation of local self Government, internal affairs department, medical department should be ensured for the information collection and creating
awareness among the interstate migrant labourers.
5. No separate welfare board is there for the implementation of welfare scheme for the interstate migrant workers.

FINDINGS
1. Among the 100 labourers who have been taken as a sample for the study do not have any awareness regarding the Interstate Migrant Workmen Scheme
implemented by the Government of Kerala during the year 2010.
2. The Government of Kerala failed to enroll even 2 percent of the estimated migrant labour force.
3. The enrolment of the scheme is only 54350 as on 31st December 2016.
4. There is no claimants have been yet reported till the date.
5. The health insurance scheme aawaz is aimed to provide free health care and medical facilities to the interstate migrant labourers who have been registered
in the scheme. The scheme will provide an insurance benefit up to Rs 15000/- (in each year) to the workers who have been get registered in the scheme.
6. It is challenging to get registered the interstate migrant workmen who have been spread over the state.
7. The language barrier and illiteracy of the beneficiaries will be challenging to the effective utilisation of the scheme.
8. It is very difficult to reach out all the interstate migrant labourers because of their temporary status of living and floating nature of migration.

RECOMMENDATIONS
1. The social security schemes introduced by Government of Kerala must reach all the beneficiaries through compulsory registration.
2. In order to reach out the scheme to the beneficiaries the cooperation of local self government and various government departments must be ensured.
3. All necessary steps should be taken to make employer and DML (Domestic Migrant Labourers) aware about the scheme.
4. Advertisement of the scheme should be made in the regional language of the DML, particularly in Hindi, Bengali, Oriya and Assamese language.
5. It is suggested that a separate welfare board shall be formed for the interstate migrant workmen working in Kerala.
6. A separate project shall be implemented with the help of NGOs in order to provide welfare net to the migrant labourers.

CONCLUSION
This paper examines the opportunities and challenges of aawaz the ongoing health insurance scheme by Government of Kerala, for the DML (Domestic Migrant
Labourers) in the state. The paper studies it on the base of awareness of DML regarding The Interstate Migrant Workmen Scheme introduced by Government of
Kerala during the year 2010. Due to the language barrier and relative backwardness of the DML the benefits of the welfare schemes are not reaching to them. A
mass publicity programme should be initiated with the help of local self-government and trade unions for making the labourers aware about the ongoing welfare
schemes.

LIMITATION
1. The primary data has been collected only from one district as time and resources are limited.
2. The population is spread across the state and so the researcher conducted a sample survey.
3. For collecting data from interstate migrant labourers the researcher has considered only DML working in various construction sites.
4. Study can be conducted in other sectors, where migrant labourers are working, so there is scope for further research in this topic.

SCOPE FOR FURTHER RESEARCH

1. The awareness of the DML (Domestic Migrant Labourers), working in various sectors regarding welfare schemes and labour laws can be studied.
2. How the publicity of ongoing schemes for the DML can be made.
3. How to include the DML in welfare net.
These are some of the scope for further research in this topic and these are not exhaustive list.

REFERENCES
1. Narayana D, Venkiteshwaran C.S (2013): Domestic Migrant Labourers in Kerala Gulati Institute of Finance and Taxation, Labour and Rehabilitation Depart-
ment Government of Keala, Thiruvananthapuram, Kerala, India.
2. Government of Kerala (2010) Vol.55, No.770, pp.5-22.
3. Government of Kerala, (2016): Economic Review, Kerala State Planning Board Thiruvanathapuram.
4. Ajith Kumar N (2011), Vulnerability of Migrants and responsiveness of the State: The case of Unskilled Migrant Workers in Kerala, Working Paper No: 26.
Centre for Socio-economic and Environmental Studies, Kochi, Kerala, India, 28-31
5. Justin Paul, S. S. (2005), International Migration and its Impact: Some Perspectives, Management and Labour Studies, 38-50.
6. Ravi Srivastava, S. S. (2003). An Overview of Migration in India, its Impacts and Key issues. Migration Development Pro-Poor policy Choices in Asia.
7. Government of Kerala, Order No: 1325/2016, Dated: 27/10/2016.
8. http://www.paycheck.in

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 3

Dr. V.MANICKAVASAGAM
DEAN
FACULTY OF MANAGEMENT
ALAGAPPAUNIVERSITY
KARAIKUDI

V.VIJAYA
RESEARCH SCHOLAR, ALAGAPPA UNIVERSITY, KARAIKUDI; &
ASST. PROFESSOR
INSTITUTE FOR TECHNOLOGY & MANAGEMENT
BANGALORE

ABSTRACT
Indian economy is on growth trajectory, with a preponderate realization amongst all in the financial spectrum a corresponding deepening of financial sector must
precede. And, such deepening is possible, only when individuals and households are financially literate for sustainability. Economies around the world today felt
Financial Literacy is ubiquitous for the growth and development of a country. The financial education has grown immensely from liberalization, privatization and
globalisation time to the present time of post liberalization corporate era. Nevertheless to say, Government, Policy makers, Regulators and many organisations
have taken steps in promoting Financial Literacy through a number of Financial Education Program. Financial Literacy gained its noteworthiness not only with the
investors but also among all. A financially literate person must be proficient in the core competencies, having financial knowledge, ability, skill and experience
supported by positive attitudes towards money. Financial literacy is understood by the link from knowledge to skills, to attitudes, to behaviour. This link is important,
financial knowledge influences attitudes which in turn leads to action metrics. Financial Literacy is essential to judge, evaluate the complex saving and investment
option among the myriad of products available in the market, by identifying the best suitable one. Financial Education helps the consumer/investor to be more
realistic and practical in decision making. This paper show cases the importance of financial literacy of each and every individual and reiterates the need for financial
education to become more self-reliant in the future. It also takes into accounts the complex intermingling multitude dimensions of financial literacy, its relevance,
determinants and, role of regulatory authorities in India. The study concludes that the strategy for improving financial well-being of individuals in India focusing
the young investors.

KEYWORDS
financial literacy, financial literacy measurement, financial behaviour, saving literacy, spending literacy, investment literacy.

INTRODUCTION

S ay, the soil of India is my highest heaven; the good of India is my good. Forget not that the lower classes, the ignorant, the poor, the illiterate, the cobbler,
the sweeper, are thy flesh and blood, thy brother. The only service to be done is to give them education, to develop the lost individuality. - Swami
Vivekananda.
Just as it was not possible to live in an industrialized society without print literacythe ability to read and write, so it is not possible to live in todays world without
being financially literate.... Financial literacy is an essential tool for anyone who wants to be able to succeed in todays society, make sound financial decisions,
andultimatelybe a good citizen. Annamaria Lusardi (2011). This emphasises the importance of education, and to develop the individuality. Financial Education
which was lopsided all these years is the order of the day. Financial Market after globalised and integrated made a paradigm shift in individual financial responsi-
bility. With the growing complexities of financial products it becomes mandatory for every individual to develop or better understand in the world of finance to
make and take right decision in order to fulfil the financial goals. Financial literacy is the process of acquiring knowledge about financial products, understanding
the concept of trade-off between risk and return, utilizing the knowledge to make informed choices and appreciating the available professional knowledge. Re-
search from academia, business houses, corporate report that inadequate financial literacy raises serious concerns in financial well-being. India is one of the
fastest-emerging economies in the world. Over the last decade, both government and private industry have endeavoured to bring about an environment conducive
to growth. This is increasingly reflected in better earnings and higher disposable incomes for the working population. The savings invested in various options
available to the people, the money acts as the driver for growth of the country (India Wealth Report, 2011).
Singh (20081) commented that .we must not forget that growth is not the only measure of the development. Our ultimate objective is to achieve broad based
improvement in the living standards for all our people (p.iii). So from all the above remarks, It is observed that financial literacy skills enable individuals to navigate
the financial world, make informed decisions about their money and minimise their chances of being misled on financial matters.

NEED FOR FINANCIAL EDUCATION

The sense of public urgency over the level of financial literacy in the population is a reaction to a changing economic climate in which individuals now shoulder
greater personal financial responsibility in the face of increasingly complicated financial products. Hogarth J. M. (2006) has defined in his study that financial
education include: (1) being knowledgeable, educated, and informed on the issues of managing money and assets, banking, investments, credit, insurance, and
taxes; (2) understanding the basic concepts underlying the management of money and assets (e.g., the time value of money in investments and the pooling of
risks in insurance); and (3) using that knowledge and understanding to plan, implement, and evaluate financial decisions (p. 3).
The importance of Financial Literacy is felt with the advent of growing complexities in the Financial Space. Reducing the cost through Financial Engineering, Inno-
vation in Financial products & services, ever changing scenario in the domestic financial market, multifaceted feature of financial products, increase in an individual
responsibility, increase in life expectancy, change in pension scheme are some basic elements which reiterated time and again the importance of Financial Literacy.
Consumer financial decision making emphasises financial capacities of individual. The relationship between financial literacy and economic outcomes, including
wealth accumulation, savings decisions, investment choices, and credit outcomes evidence on the impact of financial education on financial literacy and on eco-
nomic outcomes. Indirectly Financial behaviour of Individual is encouraged through bargaining power, utility of funds, debt management, control of spending and
importance of savings so on and so forth.
The absence of financial literacy or low level of financial literacy may lead to unhealthy financial thinking, about financial products and services. This result to poor
financial judgments and hence poor personal financial management. Financially illiterate individual either voluntarily do financial exclusion or may prefer to get
the financial information from unreliable sources, the analysis of which may result into misallocation of private wealth, can mire the household into debt and lead
to much lower living standards. At a macro level, it can cause social decline and increase public expenditure in the form of social security. Absence of this knowledge
and skill thus may pose a variety of risk to individual, societal and economy as a whole.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 4

OBJECTIVES OF THE RESEARCH

1. Identifying the factors that determines of Financial Literacy and Education.
2. Role of Regulatory authorities in relevance to Financial Literacy in India.
3. To assess the level of awareness on investment & saving avenues

METHODOLOGY
The design of research study is exploratory. The data used is secondary. I.e. data is collected from various sources such as magazines, journals, research papers;
newspapers etc. different websites are also being studied to collect the required data.

ANALYSIS
FACTORS DETERMINING FINANCIAL LITERACY AND EDUCATION
The financial literacy level majorly depends upon the education and income of the individuals; the social factors such like family size, family background, age,
regions nature of employment have a little impact on this. The present study has focused on following demographic and socio economic factors of the investors.

FIG. 1: REPRESENTS THE LOGICAL RELATIONSHIPS AMONG OF FINANCIAL LITERACY COMPONENTS

Source: Angella A. Hung, Andrewn M. Parker and Joanne K. (2009). Defining and measuring financial literacy. Working Paper Series: WR 708. Department of
Labour and the National Institute on Aging via the RAND Royal Center for Financial Decision Making

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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
FIG. 2: AN INDIVIDUALS FINANCIAL LIFE CYCLE AND CORRESPONDING OBJECTIVES

Source: Life cycle of financial planning by Gail M. Gordon, University of Wyoming Cooperative Extension Service, 2001
1. Age: Financial literacy follows an inverted-U shape with respect the age. Financial literacy increases among the youths is high as soon as the age increases it
decline this is may be due to time as soon as time varies a lot of changes took place in the financial market and youth is make effort to update and accept
the changes.
2. Gender: Financial literacy is affected by gender as womens literacy in India is matter of debate since past, hear as womens are saving rate among womens
is high not in formal ways as there are several biasness only the matters of education among them.
3. Education & Monthly Income: Financial literacy is associated with higher educational attainment and income. As soon as the education levels of individuals
increases their understanding about the financial terms and clarity about their financial needs and goals in order to protect their finance they increases the
effort toward the accessing the information, which ultimately enhances their knowledge of present financial services and products.
4. Stages of Family Life Cycle: In the young age an individual is prepare to take more amount of risk and as he grows older, since he has to take care of his
family, risk tolerance diminishes.
5. Number of years of work experience: As one grow and becomes experienced, he stated tasting Investment experience also and for the purpose tax evasion
also the investment becomes more so as the financial literacy.
6. Geographical region &Employment: Financial literacy is associated with more sophisticated investment. While it is dependent upon the nature of employ-
ment the privet employees have better levels in comparison of government employees. As far as geographical region is concerned developed nations are
more financially literate than the emerging economies.
7. Financial Behaviour & Risk tolerance Level: The more one is financially literate the more one becomes risk appetite. So ones financial behaviour changes.
Because of this behaviour even one wishes to achieve success by going to top of pyramid. This study has also examined the relationship of these factors on
financial literacy level of investors and the impact of financial literacy level on their monthly spending to monthly income ratio, monthly saving to monthly
income ratio and investment decision.
ROLE OF REGULATORY AUTHORITIES IN RELEVANCE TO FINANCIAL LITERACY
Reserve Bank of India (RBI) has mandated the banks to enhance Financial Inclusion and Financial Education in the country which gives impetus to the economy.
Securities Exchange Board of India (SEBI) is conducting Financial Awareness Program from school level students and rewards them. On the top of it gives protection
to investors too. Insurance Regulatory Development Authoritys (IRDA) Initiatives on Financial Education. Awareness programs have been conducted on television
and radio and simple messages about the rights and duties of policyholders. Pension Fund Regulatory and Development Authority (PFRDA), Indias youngest
regulator has been engaged in spreading social security messages to the public. Commercial banks have initiated various measures for creating awareness about
products through Counselling, Centers and Rural Self Employment Training Institutes on financial literacy.
As the economies are integrated and globalised endeavour to improve the financial situation of their citizens by achieving higher economic growth rates. Financial
Education offers many employment opportunities to the people around the world. Enhancement of financial literacy would help improve the financial well-being
of their people even further through sound financial decision making.
Financial needs Hierarchy: The diagram show the financial Needs Hierarchy in detail:

FIG. 3

Survival Money

What if Money

Freedom Money

Gift Money

Dream Money

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 6

SUGGESTION & RECOMMENDATIONS

More emphasis on Financial Education is to be given to School, college and University students, as there is low level of financial literacy exist among 18-25 age
group and 26-35. The above 56 years old people are to be targeted for their retirement plan. Female group are to be targeted as they have to empower, educate
and enhance. Finance Education is to be given as information, instruction and not as an advice. It should be disseminated in fair and unbiased manner. Companies
should also emphasis on developing financial literacy of the community by providing financial education to various masses as a part of Corporate Social Responsi-
bility. Financial education complements the important aspects like greater transparency, policies on consumer protection and regulation of financial institutions.
Financial literacy should be on a common structure and a common approach so that it can be spread in a comprehensive manner. These efforts should aim at
empowering consumers to understand and select the financial products and services that best suit their needs, goals and personal circumstances. The overall
efforts by regulatory authorities, N.G.O.s and community groups should be structured in the direction to enable the individuals to develop the ability to make
informed judgments, to be able to identify financial products and services that address their needs, to take effective decisions regarding the use and management
of their money and to avoid to be a victim of bad selling.

CONCLUSION
After more emphasis is given about Financial Literacy and Financial Education, it is absolutely possible to walk to the road of success. When Economy upliftment
is taken care social upliftment will happen on its own which every country is striving for. India is also no exception to this.

REFERENCES
1. Anurag. P and H. Farhad, Arun. T, (2010) Financial Inclusion and Social Protection
2. http://www.hindustantimes.com/businessnews/financial-literacy-in-india-very-low- sayssurvey/article1-1102468.aspx
3. http://www.oecd.org
4. J. Tullio, Financial Literacy (2009) Discussion Paper 09/2010-06
5. NCAER Household Survey (2011), How Households Save and Invest, By SEBI.
6. Sahni (2010). Behavioural Finance: Testing Applicability on Indian Investors.
7. Taylor. M. (2010). Measuring Financial Capability and Its Determinants Using Survey Springer Science+Business Media B.V. 2010

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A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CHALLENGES: A CASE OF PUNJAB

Dr. JASDEEP KAUR DHAMI

PROFESSOR & DIRECTOR
CT INSTITUTE OF MANAGEMENT & INFORMATION TECHNOLOGY
MAQSUDAN CAMPUS, JALANDHAR

Dr. MANISH GUPTA

ASSOCIATE REGISTRAR
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA

SANGRAM SINGH
ASST. PROFESSOR
CT INSTITUTE OF MANAGEMENT & INFORMATION TECHNOLOGY
MAQSUDAN CAMPUS, JALANDHAR

ABSTRACT
The optimum use of the worlds resources in accordance with the objective of sustainable development and seeking to shield and preserve the environment is need
of the hour. The growing population and economic development leads to various environmental issues. After independence the state of Punjab was powered by
Green Revolution, which further generated the various opportunities for industrial and manufacturing sector. Green Revolution and Industrial Development are
leading the Punjab economy towards environmental issues. There are several problems in Punjab, particularly pollution of fresh water bodies, air pollution, and
lack of proper waste management, deforestation, loss of biodiversity, desertification, water logging, natural disasters and climate change. This paper throws light
on the economic development in Punjab and environmental challenges faced by the economy with the help of Environmental Kuznets Curve. The Curve suggests
that economic development at the initial stages degraded the environment, but after the certain level, an economy starts improving its relationship with the
environment. Externalities are other major factors that influence the environment.

KEYWORDS
environmental issues, environment kuznets curve, pollution.

INTRODUCTION

T he pros and cons of economic growth are ferociously debated by economists, environmentalists and other social activists. This paper emphasized some of
the environmental challenges faced by the economy from expanding levels of production and consumption. Rapid development leads to various environ-
mental problems also. There is always a tradeoff between economic growth and environmental. Environment is a luxury for developing nations. Sustainable
development is the need of the hour. Sustainable development requires the preservation of natural capital. Natural capital includes natural resources, land and
ecosystem. If any pattern of development continues to deplete natural capital, then that development is not sustainable. The optimum use of the worlds resources
in accordance with the objective of sustainable development and seeking to shield and preserve the environment is need of the hour.
This paper throws light on the economic development in Punjab and environmental challenges faced by the economy with the help of Environmental Kuznets
Curve. Punjab is the richest Indian state. Being the neighbor of the national capital Delhi, it has a high growth of economy for years. This north Indian state has
very affluent neighboring states and cities such as Haryana, Jammu & Kashmir, national capital Delhi, Rajasthan and Himachal Pradesh and Pakistani states of
Punjab which has been creating multiple trade opportunities for the people from all walks of life. Punjab occupies 1.5 per cent of the countrys geographical area
and accounts for more than two thirds of the countrys production of food and of hosiery. This unique piece of land covers an area of 50,362 squares kilometers.
Punjab stands 2nd on the basis of various socio-economic parameters viz. macro economy, investment environment, infrastructure, agriculture, primary education
and consumer markets. The state has been ranked 1st in agriculture, infrastructure, and consumer markets, 5th in macro economy, 7th in primary health services
and 10th in primary education and industrial investments. The state has been ranked 5th in term of size, 11th in legal system and 12th in overall economic freedom
and 18th in labour regulation. Among the 15 bigger states of India, Punjab stands 2nd in overall competitiveness ranking of the states. Punjab is highly advanced as
far as infrastructure is concerned. The high-end communication creates trades, business and employment opportunities for the exporters, industrialists, importers,
distributors and suppliers etc. this stats has also high level of manufacturing industries. Punjab is one of the most industrialized states in India. In Punjab industries
do play important role in economic development. Basic classifying industries of Punjab are as rural, cottage, medium, and major or large scale industries. (Economic
Survey of Punjab)

GROWTH OF INDUSTRIAL SECTOR IN PUNJAB

The state has done remarkably well in the field of agriculture and is now laying emphasis on promoting industrial growth. During 2015-2016, there were 1, 61,400
small scale and 500 large and medium scale industries. The industrial production has more than doubled in both, small scale industries (from Rs. 50963 crore in
2010-11 to Rs. 93000 crore in 2015-16) as well as medium and large scale industries (from Rs. 72284 crore in 2010-11 to Rs. 130500 crore in 2015-16). Various
industrial sectors like processed foods, rice, yarn & textile, hosiery, pulp & paper and sports goods depend upon biological resources which are being cultivated
and are normally traded. The share of industrial sector (Secondary Sector) to State Gross Domestic Product has increased from 14.78 per cent in 2011-2012 to
14.53 per cent in 2015-16. There are also 225 registered herbal units operating in the State, besides many unregistered units. These are extensively utilizing
medicinal plants and herbs which are obtained from various parts of Punjab and adjoining states. The number of large industries in state is going down, the state
economy is based on small scale industries mostly food processing industries. There is also clustering of the industrial units in some big cities like Fatehgarh Sahib,
Ludhiana, Jalandhar and Amritsar. Jalandhar is popular in making sports goods which is world famous for its quality. (Economic Survey of Punjab, 2016)

GROWTH OF AGRICULTURAL SECTOR IN PUNJAB

Agriculture is the mainstay of Punjabs economy, providing livelihood to over 60 per cent the population in the State. Punjab economy is basically an agrarian
economy. Punjab is widely acknowledged Granary of India. However, the hitherto vibrant agriculture sector of Punjab is now facing serious challenges posed by
deteriorating natural resource base due to monoculture of wheat and paddy crop rotation, stagnation in yields of principal crops, declining farm incomes and rural
indebtedness. As a concomitant of growth, the share of agriculture and allied sector in Gross State Domestic Product (GSDP) has been rapidly declining over the
years. The share of agriculture and allied sector in GSDP which was 30.81 per cent in 2011-12 has declined to 27.22 per cent 2015-16.

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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
TABLE NO. 1.1: DISTRICT WISE DISTRIBUTION AND TYPES OF INDUSTRIES IN PUNJAB
District Concentration of types of Agro-industries in Punjab
Amritsar Power Loom Weaving, Wood & Machine Screws, Radio & Transistors, Agricultural implements, Paints & Varnishes and Dyes, Electric fans,
Pharmaceuticals, Printing machinery, Textiles, Chemicals, Soap, Acids.
Ferozpur Cotton ginning and processing, flour mills, milkboard and agricultural implements
Bathinda Cotton ginning and processing, flour mills
Fatehgarh Sahib Steel re-rolling, Pump parts, Sewing machine parts, Truck body building
Gurdaspur Agricultural implements, Conduit pipes, Machine tools, Soap & chemical products, C.I. castings, Brassware
Hoshiarpur Rosin & Turpentine oil, Paints & Varnish, Sugar, Agricultural implements, Pressure cookers, Paper and Paper board
Jalandhar Surgical instruments, sports goods, Hand tools, Automobile parts, Cocks & valves, Pipe fittings, Bus body building, Leather tanneries, Ball
bearings, Publication, Switch & switch-gears and Rubber goods
Kapurthala Agricultural implements, Pressure cookers, Fans, Wood & Machine screws, Electrical goods, Rice Mills, Rubber goods, Bolts & Nuts and
Diesel engines.
Mansa Agricultural implements, cotton spinning
Moga Cotton yarn, rice bran oil, paper
Ludhiana Bicycles & bicycle parts, Automobile parts, Hosiery goods, Sewing machine & parts, Home appliances, Machine tools, Readymade gar-
ments, Hosiery needles, Rubber goods, Label s (Metal & Cotton), Chemical goods, Oil
engines, Agricultural implements, Electronic goods, Tractor parts, Cycle tyres/tubes, Plastic goods
Patiala Automobile parts, Sewing machine parts, Enamelled copper wire, Electrical goods, Bakery machinery, Cutting tools, Biscuits, shoes
Rupnagar Agricultural implements, Pharmaceuticals, Tractors & Parts, Electronic components, Electrical components
Sangrur Agricultural implements, Tractor parts, Cycle parts, Sewing machine parts, Milk products, Chilled Rolls
Nawanshahar Light Commercial Vehicles, Pharmaceutical, Yarn, and Sugar
Muktsar Cotton yarn, Rice Bran Oil, Paper
Source: Directorate of Industries, Punjab.
District-wise distribution and types of industries in Punjab has been discussed above. The main industrial districts in Punjab are Ludhiana, Jalandhar, Amritsar and
Bathinda. Ludhiana district is known for textile and hosiery products, Jalandhar and Bathinda districts for food products, paper and machinery and textiles. Besides
these medium and major industrial units, a large number of small scale and tiny units are also engaged in the manufacture of the same products. Since we have
mentioned all the industrial units, but our study is restricted to only six items, these are Yarn and Textiles, Hosiery and Ready Made Garments, Bicycle and Bicycle
parts, Leather Products, Sports Goods, and Hand Tools.

TABLE: 1.2 MAJOR POLLUTANTS AND THEIR SOURCES

S. No Major Pollutants Sources
1 Carbon monoxide Incomplete fuel combustion (e.g. two/four stroke engines)
2 Sulphur dioxide Burning of sulphur containing fuel like coal in Power Plants and emission by vehicles
3 Suspended particulate matter Smoke from domestic, industrial and vehicular sources.
4 Oxides of nitrogen Fuel combustion of motor vehicles, emission from power stations and industrial furnaces.
5 Oxidants and ozone Emissions from motor vehicles, photochemical reactions of nitrogen oxides and reactive hydrocarbons.
6 Lead Emissions from motor vehicles
Source: Environment Statistics of Punjab, 2012
Major pollutants & their sources have been discussed in above table. There is need of proper disposal of wastes of industries to protect the environment. To
promote environmental protection, conservation of natural resources and sustainable development, the state government set up the Punjab Pollution Control
Board (PPCB) in 1975 and a division of environment in the Punjab State Council for Science & Technology (PSCST) was established in 1988, which is providing
technical assistance to Department of Science, Technology & Environment, Government of Punjab.

TABLE 1.3: CATEGORY WISE AIR POLLUTING INDUSTRIES IN PUNJAB

Name of Industry Major Air Pollutants
Rice, Sugar, Food Products Particulates, CO2, SO2, NOx
Beverages Particulates, Odour
Cotton/Woolen/Synthetic/Textile/Dying etc. Particulates
Paper Products & Printing Particulates, mercaptans
Leather & Leather Products Particulates, Odour
Rubber & Plastic Products Particulates, Odour, VOCs
Chemical Products Cl2, HCl, Acid mist, Acid fumes, Hydrocarbons
Non-Metallic Mineral Products Particulates
Metal Products Metallic Particulates, CO, SO2, Acid Mist
Transport Equipment & Parts Particulates
Brick Kilns Particulates, SO2, CO
Pharmaceuticals Odour, Particulates
Rolling, forging & galanizing units Particulates
Fertilizer, Vanaspati, Thermal, Cement, etc. Odour, Particulates
Source: Status of Environment Report, Punjab
Table 1.3 explains the various air polluting industries in Punjab and major pollutants that effect the environment. Major frequent pollutant in all the cases was
Particulate Matter.

VEHICULAR POLLUTION
Vehicular emissions are of particular concern since these are ground level sources and thus have the maximum impact on the human population and other biotic
components. The major pollutants released as vehicle/fuel emissions are carbon monoxide, nitrogen oxides, photochemical oxidants, air toxics namely benzene,
aldehydes, 1-3 butadiene, lead, particulate matter, hydrocarbon, oxides of sulphur and polycyclic aromatic hydrocarbons. (Environment Report, Punjab)

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 9

Source: Environment Statistics of Punjab

GROWTH OF DIFFERENT TYPES OF VEHICLES IN PUNJAB
FIG. 1.2

Source: Environment Statistics of Punjab

Industrial towns with a high growth and, therefore, high pollution potential will come in for special attention from the Punjab Pollution Control Board, under a
new initiative to deal with pollution in the state. Amritsar, Batala, Gobindgarh Mandi, Jalandhar, Khanna, Ludhiana, Nangal and Phagwara have already been
earmarked by the board as the most polluted areas in the state. The board has also identified more than 6,200 water-polluting and 3,500 air-polluting industries.
It will file cases in court against 16 industrial units on grounds of water pollution. Also on the anvil are 24 monitoring stations to measure the level of noise in
heavily. (indiaenvironmentportal.org) According to report published in Times of India, "air quality in North Indian cities is 2-3 times worse than cities in South
India,which led to a sharp rise in cases of chest and throat disease in India and India has 10 cities in Top 20 most polluted cities in the world including Ludhiana
and Khanna.
TABLE 1.4 COMPARATIVE VALUES OF RSPM, SO2 & NOX G/M3 FROM 2013 TO 2016 (Annual Average)
Area RSPM g/m3 Nox g/m3 SO2 g/m3
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Dera Bassi 111 99 91 97 18 15 15 13 8 6 6 6
Mandi Gobindgarh 164 135 130 126 33 36 36 34 6 7 7 7
Nangal 87 85 83 91 16 12 12 12 5 4 4 5
Bathinda 131 123 111 117 21 17 15 13 8 6 6 5
Patiala 108 103 110 107 16 14 15 13 6 6 5 5
Jalandhar 131 145 150 159 27 26 27 26 13 14 14 12
Ludhiana 203 152 143 139 27 27 26 25 11 10 10 10
Khanna 183 163 123 114 23 23 22 20 12 10 10 10
Amritsar 177 187 185 232 40 40 38 38 13 13 13 14
Sangrur 93 90 98 92 15 13 13 13 5 4 4 4
Faridkot 93 73 90 106 15 11 13 12 6 4 5 5
Source: Environment Statistics of Punjab, Various Issues
Table 1.4 describes the annual average comparative values of RSPM, So2 and Nox in Major Cities of Punjab from 2013 to 2016. The values of RSPM, So2 and Nox
is average of the locations industrial areas and residential areas.

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A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
FIG 1.3: COMPARATIVE VALUES OF RSPM IN MAJOR CITIES OF PUNJAB FROM 2013 TO 2016

Comparative Values of RSPM From 2013 to 2016

250

200

Values 150
2013
100
2014

50 2015
2016
0

FIG 1.4: COMPARATIVE VALUES OF NOX IN MAJOR CITIES OF PUNJAB FROM 2013 TO 2016

Comparative Values of Nox From 2013 to 2016

45
40
35
30
Values

25
2013
20
15 2014
10 2015
5 2016
0

FIG 1.5: COMPARATIVE VALUES OF NOX IN MAJOR CITIES OF PUNJAB FROM 2013 TO 2016

Comparative Values of SO2 g/m3 from 2013 to 2016

16
14
12
10
Values

8 2013
6 2014
4 2015
2
2016
0

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 11

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
TABLE 1.5: COMPARATIVE VALUES OF RSPM, SO2,NOX, GSDP AND PER CAPITA IN PUNJAB FROM 2013 TO 2016 (Annual)
Year RSPM Nox SO2 Air Pollution GSDP Per Capita Income
2013 135 23 8 166 298581 105143
2014 123 21 8 152 313276 114561
2015 119 21 8 148 331940 126063
2016 125 20 8 153 454398 126606
Table 1.5 describes the comparative values of RSPM, SO2,NOx, GSDP and Per Capita in Punjab from 2013 to 2016.

TABLE 1.6: CORRELATION BETWEEN GSDP AND AIR POLLUTION

GSDP Air Pollution
1 -0.32
-0.32 1
Table 1.6 depicts the correlation between GSDP and air pollution in various major cities in Punjab. The correlation coefficient -0.322 represents inverse relationship
between GSDP and air pollution.
TABLE 1.7: CORRELATION BETWEEN PER CAPITA INCOME AND AIR POLLUTION
Per Capita Income Air Pollution
1 -0.85
-0.85 1
Table 1.7 depicts the correlation between GSDP and air pollution in various major cities in Punjab. The correlation coefficient -0.322 represents inverse relationship
between GSDP and air pollution.

CONCLUSION
From the above analysis this has been found that there was an inverse association between GSDP, Per Capita Income and Air Pollution. The correlation coefficient
in both cases was negative. As the Environmental Kuznet Curve suggests that economic development at the initial stages degraded the environment, but after the
certain level, an economy starts improving its relationship with the environment. (Stern, 2003) Externalities are other major factors that influence the environment.
The correlation coefficients supported the Environmental Kuznet Curve hypothesis. According to Stern, in sluggish economies, emissions-reducing technological
change can overcome the scale effect of rising income per capita on emissions. Due to this, considerable diminutions in sulfur emissions per capita have been
witnessed in many OECD countries in the last few decades. Punjab economy witnessed major changes after the green revolution and industrialization. During the
initial stages of the growth, there was a lack of awareness about environmental issues. In this regard, under Article 48A of the, 42nd Amendment Act under the
Indian Constitution, the government of India provided for the protection of environment and forests. As per the Act, The state shall endeavour to protect and
improve the environment and to safeguard the forests and wildlife of the country. In addition to the above act, under the article 51A of the same amendment,
under the fundamental duties of the citizens of India the act states that it would be the fundamental duty of every citizen to protect and improve the natural
environment including forests, lakes, rivers and wildlife and to have a natural compassion for living creatures. The Punjab Pollution Control Board has been
monitoring the pollution levels at 20 locations out of which nine are in the residential cum commercial areas and 11 are in the industrial areas. The Punjab Pollution
Control Board has laid down guidelines with regard to pollution control for any entrepreneur wanting to set up an industrial unit in the state of Punjab. The Ministry
of Forest and Environment has divided the industries in three different categories as per the pollutants being emitted by them. The three categories are: (i) Green
Category (ii) Orange Category (iii) Red Category. Joshi et al (2015).
In addition to this Government of India/Punjab spreading information among general public through various national and state level programmes for the protection
of environment for the sustainable development of the economy.

REFERENCES
1. Kumar, P., Kumar, S., & Joshi, L. (2015). Environmental Legislations: India and Punjab. In Socioeconomic and Environmental Implications of Agricultural Residue
Burning (pp. 91-116). Springer India.
2. Stern, D. I. (2003). International society for ecological economics internet encyclopaedia of ecological economics the environmental Kuznets curve. Depart-
ment of Economics, Rensselaer Polytechnic Institute.
WEBSITES
3. http://timesofindia.indiatimes.com/city/ludhiana/ludhiana-khanna-in-top-20-polluted-cities-of-world-cii-papers/articleshow/58945798.cms, accessed on
5th June 2017
4. http://www.esopb.gov.in/Static/PerCapitaIncome.html
5. http://www.indiaenvironmentportal.org.in/content/28277/pollution-in-punjab/, accessed on 10th May 2017
6. http://www.punenvis.nic.in/index2.aspx?slid=5971&sublinkid=1140&langid=1&mid=1

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 12

Dr. AMARDEEP KAUR

PRINCIPAL
ASRA COLLEGE OF EDUCATION
SANGRUR

ABSTRACT
Education has been a fundamental component of human well-being and national productivity. Only high quality education helps for wellbeing and national
development. There is need to transform the education system so as to achieve the target of universalization of elementary education along with the quality in
education. With a great deal of investment being put into outfitting schools with technology, the question of whether or not it is worth the investment is a valid
one. However, this paper strives to address the holistic transformation of education systems and to offer a foundation on which quality education and system
leadership can be achieved. We believe the core of an excellent education system is based on talented teachers, strong system leadership, solid curriculum, and
accountability for outcomes. However, another key component is the integration of technologies that can fuel new forms of teaching and learning, nurture 21st
century skills and prepare learners for participation in the global economy of this century.

KEYWORDS
leadership, curriculum, integration of technologies, global economy.

INTRODUCTION

W e know that education has been the passport to opportunity and prosperity. It has enabled individuals, whether in developing or developed countries,
to become academics, entrepreneurs, and business and government leaders. We recognize the challenges facing education systems have a direct
impact on our future as a corporation. Sustainability for us depends on the innovation and expertise of our employees. Our priority will always be the
recruitment and retention of top talent. It depends on the solid foundation taught during primary, secondary, and tertiary education. We know that although
todays global, Internet-based economy provides numerous opportunities not available before, there is still a critical need for universal access to quality education
and visionary leadership. Significant barriers remain to achieve this, from gender inequality to a lack of basic capacity, and we are involved in many initiatives to
counter precisely these problems. However, this paper strives to address the holistic transformation of education systems and to offer a foundation on which
quality education and system leadership can be achieved. We believe the core of an excellent education system is based on talented teachers, strong system
leadership, solid curriculum, and accountability for outcomes. However, another key component is the integration of technologies that can fuel new forms of
teaching and learning, nurture 21st century skills, and prepare learners for participation in the global economy of this century. Technology had the potential to
increase access to education as well as improve teacher training and student learning; Sustainability of quality education and access to it needed a multi-stake-
holder approach that included government officials, education leaders, teachers, private sector investments, and non-governmental organizations (NGOs) to ad-
dress many of the basic needs and barriers to education.

SYSTEM REFORM MOVEMENT

There is now an emerging consensus on the resources needed to build a well-functioning education system. These are exceptional teachers and teaching methods,
relevant and stretching curricular content, accountability for outcomes, and outstanding system leadership.
1. Attract and develop very high quality teachers.
2. Develop well defined and holistic curricula.
3. Develop high quality system leadership.
4. Create practices and regimes that can improve processes and outcomes.

CHANGING LEARNERS
How can traditional modes of classroom instruction engage and inspire students when life outside the classroom has changed so dramatically? For many learners,
class is the only time in their day when they completely disconnect. Now everyone can be a creatora film maker on YouTube, a recording artist on Second Life,
or an opinion leader on blogs and a multitude of gossip and comment sites. The new paradigm requires a broader reform agenda; one that responds to socioeco-
nomic realities and enhances learning opportunities through collaborative technologies. It presents a global destination with many different local paths.

PATH TO 21ST CENTURY

HOLISTIC TRANSFORMATION
The paradigm shift to a world of 21st century learning is rooted in a set of goals for all learners:
Acquire a range of skills needed to succeed in a modern, globalized world
Receive tailored instruction that enables them to reach their full potential
Connect to their communities in person and digitally, and interact with people from different cultures
Continue learning throughout their lives.
Achieving this vision requires transformation in four interconnected core area.
1. 21st century skills that complement the core curriculum.
2. 21st century pedagogy to teach these skills effectively alongside basic literacy and numeracy skills.
3. Crucial enabler of both the new pedagogy and skills, is technology, harnessed in a much more fundamental and effective way than traditional applications in
education.
4. 21st century system reform that integrates and adapts the pillars of high performing systems outlined earliergreat teachers, curricular excellence, account-
ability for outcomes, and outstanding System leadership.
Progress will only occur when all four areas are leveraged and deployed to work together in an integrated way. Leading technologies, for instance, cannot replace
teachers, but can support them in accomplishing much higher levels of student engagement and achievement. Similarly, great teachers cannot effectively reach
young learners without adopting new pedagogies and few education systems can prepare their learners for prosperity without supporting the development of
21st century skills.

SKILLS IN 21ST CENTURY

Problem solving and decision making
Creative and critical thinking
Collaboration, communication, and negotiation

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 13

PEDAGOGY
THE LEARNER AT THE CENTER: This approach caters to multiple learning styles and adapts education to reflect the learning needs of each individual.
THE TEACHER DRAWS FROM A REPERTOIRE OF STRATEGIES AND SKILLS: Education must nurture creative and collaborative skills. Knowledge is available at
the click of a mouse, but learning to apply it requires a teacher who can instruct, facilitate, guide, and support as needed.
INTERDISCIPLINARY AND PROJECT-BASED WORK: Interdisciplinary and project-based teaching is also particularly conducive to working in teams, and hence
provides another example of the link between 21st century skills and the pedagogy used to impart them.
AUTHENTICITY: Delivering learning that is authentic is another way to engage students by appealing to their existing passions and interests. It is equally
important to integrate real-life experiences into lessons.

CONCLUSION
Education has been a fundamental component of human well-being and national productivity. Only high quality education helps for wellbeing and national
development. There is need to transform the education system so as to achieve the target of universalization of elementary education along with the quality in
education. With a great deal of investment being put into outfitting schools with technology, the question of whether or not it is worth the investment is a valid
one. However, this paper strives to address the holistic transformation of education systems and to offer a foundation on which quality education and system
leadership can be achieved. We believe the core of an excellent education system is based on talented teachers, strong system leadership, solid curriculum, and
accountability for outcomes. However, another key component is the integration of technologies that can fuel new forms of teaching and learning, nurture 21st
century skills and prepare learners for participation in the global economy of this century.

REFERENCES
1. Bannon, N. (2001), Classroom Technology: The Shaping of our Future, Dissertation, Seton Hall University, New Jersey.
2. Dreze, J. and Sen, A. (1997), Indian Development: Selected Regional Perspectives, Oxford University Press, New Delhi.
3. Dreze, J. and Sen, A. (2003), Basic Education as a Political Issue, in B.G. Tilak (ed.), Education, Society and Development: National and International Perspec-
tives, p. 3., APH: New Delhi.
4. Economist Intelligence Unit (2008), The Future of Higher Education: How Technology will shape Learning, The Economist.
5. http://www.cisco.com/go/offices.
6. Ram, A. and Sharma, K.D. (2005), National Policy on Education: An Overview, p.1., Vikas Publishing House, New Delhi.
7. Saba, A. (2009), Benefits of Technology Integration in Education, Boise State University.
8. Shukla, P.D. (1988),The New Education Policy, p.2., Sterling Publishers Private Ltd., New Delhi.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 14

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
A STUDY ON THE PROMOTION AND REWARD POLICY WITH REFERENCE TO RELIANCE DYEING WORKS
TIRUPUR

Dr. S. KALAIYARASI
HEAD
DEPARTMENT OF COMMERCE
NIFT TEA COLLEGE OF KNITWEAR FASHION
TIRUPUR

ABSTRACT
Each organization needs to maintain a balance between the internal sources of personnel promotion and external sources by means of recruitment. Hence, promo-
tion must be based on consistent, fair and clear cut policy. The National Institute of Personnel Management (NIPM) has suggested a promotion policy on the
following lines: Drawing up an organization chart to make clear to all the ladder of promotion. Where there is a job analysis and a planned wage policy, such chart
is quite easy to prepare. Making the promotion system clear to all concerned who may initiate and handle cases of promotion. Though departmental heads may
initiate promotion, the final approval must lie with the top management, after the personnel department has been asked to check from its knowledge whether any
repercussion is likely to result from the proposed promotion. All promotions should be for a trial period to ascertain whether the promoted person is found capable
of handling the job or not. Normally, during this trial period, he draws the pay of the higher post, but it should be clearly understood that if he does not make the
grade he will be reverted to his former post and former pay scale. This study is conducted in a conceptual way. As we have intended to study about the influence
of rewards and satisfactions on employees performance, information that we have used were gathered from distinct areas such as text books, company reports
and journals and the Internet sources were resourceful in the process of gathering the information.

KEYWORDS
Reliance dyeing works, Tirupur, promotion & reward policy.

INTRODUCTION

E very year, employees in an organization eagerly wait for the day when their efforts and achievements during the previous year would be evaluated and
appreciated. Incentives, rise in salary, employee benefits etc given to employees gives them a tremendous sense of satisfaction. But the most important
motivating factor, which rejuvenates an employee with more enthusiasm and responsibility, is Promotion.
Promotion is an emotional and explosive issue with far-reaching implications. It means that one has journeyed steadily and has arrived somewhere in an organi-
zation and the process of his making a growth has begun. Some organizations give impressive designations to please their employees as a part of succession
planning at the top management. Many employers state clearly in advance the criteria for granting promotions while others take into consideration the amount
of hard work put in as well as ones desire to improve his performance. People strive to get absorbed in companies at higher level posts or try to maintain proper
contact with top level management to get promotions. But some companies strictly keep senior level positions for personnel with professional employee atti-
tude or management qualifications, especially to limit the number of aspirants. Due to an increase in automation and rationalization, many intermediate jobs too
are fast disappearing and promotional avenues are getting considerably narrow.
Rewards are positive outcomes that are earned as a result of an employee's performance. These rewards are aligned with organizational goals. When an employee
helps an organization in the achievement of one of its goals. Employees are motivated by both intrinsic and extrinsic rewards. To be effective, the reward sys-
tem must recognize both sources of motivation. All reward systems are based on the assumptions of attracting, retaining and motivating people. Financial rewards
are an important component of the reward system, but there are other factors that motivate employees and influence the level of performance. Today's emphasis
on quality-improvement teams and commitment-building programs is creating a renaissance for financial incentive of pay-for-performance plans. Organizations
adopt alternative reward systems to increase domestic and international competition.
A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good per-
formance, i.e., positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added respon-
sibilities by screening the employee with interviews and tests and giving them training or on-the-job experience.
A promotion can involve advancement in terms of designation, salary and benefits, and in some organizations the type of job activities may change a great deal.
The amount of salary increase associated with a promotion varies a great deal between industries and sectors, and depending on the parts of the hierarchical
ladder an employee is moving between. In some industries or sectors, there may be only a modest increase in salary for promotions; in other fields, a promotion
may substantially increase an employee's salary.
MEANING
Promotion refers to upward movement in present job leading to greater responsibilities, higher status and better salary. Promotion may be temporary or perma-
nent depending upon the organizational requirement. According to Clothier and Spriegel, promotion is the transfer of an employee to a job which pays more
money or one that carries some preferred status.
PURPOSE AND ADVANTAGES OF PROMOTION
Promotion stimulates self-development and creates interest in the job. According to Yoder, promotion provides incentive to initiative, enterprise and ambition;
minimizes discontent and unrest; attracts capable individuals; necessitates logical training for advancement and forms an effective reward for loyalty and cooper-
ation, long service etc. The purposes and advantages of promotions are to:
Recognize employees performance and commitment and motivate him towards better performance;
Develop competitive spirit among employees for acquiring knowledge and skills for higher level jobs;
Retain skilled and talented employees;
Reduce discontent and unrest;
To fill up job's vacant position that is created due to retirement, resignation or demise of an employee. In this case next senior employee will be promoted
to the vacant job.
Utilize more effectively the knowledge and skills of employees; and
Attract suitable and competent employees.
EMPLOYEE REWARD AND RECOGNITION SYSTEMS
In a competitive business climate, more business owners are looking at improvements in quality while reducing costs. Meanwhile, a strong economy has resulted
in a tight job market. So while small businesses need to get more from their employees, their employees are looking for more out of them. Employee reward and
recognition programs are one method of motivating employees to change work habits and key behaviors to benefit a small business.
REWARD Vs. RECOGNITION
Although these terms are often used interchangeably, reward and recognition systems should be considered separately. Employee reward systems refer to pro-
grams set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered separate from salary

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 15

OBJECTIVES OF THE STUDY

1. To understand the concept of promotion and reward policy in general.
2. To recognize an employees skill, knowledge and utilize them to improve the organizational effectiveness and in turn to attract, trained, competent and
hardworking people
3. To reward and motivate employees to higher productivity
4. To increase employees satisfaction and boost their moral
5. To comply with legal regulation and give valuable suggestions for determining sound promotion and reward policy.

STATEMENT OF THE PROBLEM

In todays competitive business environment companies are facing many challenges and among those challenges acquiring right workforce and retaining it, is of
utmost importance. Nowadays, human asset is considered to be the most important asset of any organization. In order to get the efficient and effective result
from human resource, employee motivation is necessary. Employee will give their maximum when they have a feeling or trust that their efforts will be rewarded
by the management. There are many factors that effect employee performance like working conditions, worker and employer relationship, training and develop-
ment opportunities, job security, and companys overall policies and procedure for promoting and rewarding employees, etc. among all those factor which affect
employee performance, promotion and reward is of utmost importance.
This study investigates the relationship between rewards, promotion and employee motivation which affects employee performance more specifically on the
Reliance dyeing works, Tirupur.

SCOPE OF THE STUDY

It is necessary for any management to ensure that employees are satisfied with their job for the benefits of the organization. Promotion and reward policy will
helps to employee growth and rise up the professional ladder. Growth gives hope of a better future which sustains a person to perform efficiently and enthusias-
tically it scientifically contributes towards employees productivity and morale.
The present study has made an attempt to measure the employees promotion and reward policy in reliance dyeing works this study has been conducted with 100
employees in the organization. This study mainly concentrates on studying promotion and reward policy measures provided by the company. For development
and better satisfaction of the employees the company must concentrate on the dissatisfied area.

LITERATURE REVIEW
Jane (1873) though the promotion indicates that the employee is ready for more responsibility in the company and is mature enough to play a larger role in the
business; a promotion may not be the result of any positive employee performance review, As the employer may not have that option each time.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 16

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve a research problem it may be understood as a science of studying how research is scientifically. It may be
understood as a science of studying how research is done scientifically.
DATA COLLECTION
In dealing with any real life problem, it becomes the necessary to collect data that are appropriate. There are several ways of collecting the appropriate data which
differ considerably in the context of money, efforts, time and other resources. This research uses both.
- Primary data
- Secondary data
- Primary data is collected through questionnaire and discussions with respective official or person concerned.
- Secondary data collection is made through various records, websites, journals and books
RESEARCH DESIGN
Research design is a frame work or plan for a study that guides the collection and analysis of data it is a blue print that is followed in completing a study.
This study is based on descriptive research which includes a survey and fact finding enquires of different kinds. The major purpose of this research is description
of the state of affairs as it exists at present.
SAMPLE DESIGN
Sample design is definite plan determine before data are actually collected for obtaining a sample technique. In this study convenience sampling methods have
been adopted to select sample.
SAMPLE TECHNIQUE
All the items consideration in any field of inquiry constitutes a universe of population. In this research only a few items can be selected from the population for
the study purpose. The items selected constitute what is technically called a sample. Here, well formulated 100 questionnaires circulated among various employees
in the reliance dying works.
TOOLS FOR THE STUDY
The percentage analysis, ANOVA, correlation and regression test has been used for the analysis.
a) Simple percentage analysis: simple percentage analysis refers to a special kind of ratio with the help of absolute figures it will be difficult to interpret any
meaning. From the calculated data, when percentage are found out then it would be easy to find the relative difference between two or more attributes
Number of respondents
Percentage = __________________________ 100
Total respondents
b) two-way analysis: In statistic the two way analysis of variance (anova) is extension of on one way anova that examine the influence of two different categorical
independent variables one continuous dependent variable. The two way anova not only aims assessing the main effect of each independent variable but also if
there is any interaction between them.
c) Correlation: Pearson correlation was seen appropriate to analyze the relationship between the two variable which were interval-scaled and ratio scaled. Fur-
thermore, correlation coefficients reveal magnitude and direction of relationships which are suitable for hypothesis testing, Pearson correlation is to test seven
independence variables that influenced consumer brand loyalty and to test if a relationship existed between the independent and dependent variables.
d) Regression: In statistics, regression analysis is a statistical process for estimating the relationship among variables. It includes many techniques for modeling
and analyzing several variable, when the focus is on the relationship between a dependent variable and one or more independent variable
e) ANOVA: A statistical method for making simulations comparisons between two or more means. A statistical method that yields value that can be tested to
determine whether a significant relation exists between variables.

LIMITATIONS OF THE STUDY

Every study has certain limitation; some of these are inherent in the research design. The present study is subject to the following limitations:
1. The sample respondents of the study were restricted to 100.
2. The aims of study were restricted to tirupur city alone.
3. The data collected only on employees perspective
4. The study concentrates only the employees promotion and reward policy it ignores employees welfare, safety etc.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 17

CONCLUSION
This study made attempt to analyse the process of measuring promotion and reward policy of reliance dying works due to which has received great attention with
increasing productivity Financial compensation is an important component of the reward system, but there are other factors that prompt employees to be moti-
vated and influence their performance. In fact, several studies have reported that financial forms are not always the ones to be most recommended. In this context,
several strategies can be defined to increase productivity. One is through the use of the indicators in a measurement program as a way to define promotion and
reward system that may prompt the motivation of the employees. Promotion and Reward mechanisms aim to strengthen behaviors that should be implemented
in an effective manner. That is, the achievement of goals of productivity and quality may be rewarded with a bonus these systems are intended to attract, retain
and motivate people. But for a person to be motivated, he/she needs to give value to the result, needs to believe that additional effort will lead to better perfor-
mance and that the better performance, subsequently, will result in some form of recompense or better result.
Reward systems, when properly set up, have proven to be an important tool for achieving organizational goals. It is essential to keep the plans simple in terms of
following, measuring, understanding and managing them so as to increase the performance desired. In addition, the cost of measurement needs to be considered.
The activities of identification, collection, analysis and dissemination of indicators can represent a high cost to the organization so that relevant indicators are, in
fact, considered in the measurement system.

REFERENCES
BOOKS
1. Agarwala strategic human resource management 2007
2. Biswajeet pattanayak human resource management 3rd edition
3. Gary dessler human resource management 10th edition
4. R. wayne mondy human resource management 10th edition
5. S. yuvaraj human resource management 2003
6. Tapomog dep human resource and industrial relations 1st edition (2009)

APPENDIX
QUESTIONNAIRE
1. Name (optional)
2. Gender
Male
Female
3. Marital status
Married
Unmarried
4. Age group
Below 25 years
26 -35 years
36 - 45 years
above 45 years

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 18

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 19

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
A STATISTICAL STUDY ON CUSTOMERS LOYALTY OF MOBILE PHONE SERVICES

LENIN JOHN
ASST. PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
VINS CHRISTIAN COLLEGE OF ENGINEERING
CHUNKANKADAI

Dr. D. RANJITHAM
PROFESSOR & HEAD
DEPARTMENT OF MANAGEMENT STUDIES
LOYOLA INSTITUTE OF TECH & SCIENCE
THOVALAI

ABSTRACT
Mobile phone communication is a piece of equipment for the valuable use of people. Though the mobile operators have been rendering services to their customers
throughout India, it has become a goal of controversy due to various causes, such as, excess billing, disconnection while talking, cross talk while talking, high cost
handset and high operating cost, full talk time and network coverage. Their services are not only praiseworthy, but also satisfying to the consumers to some level.
Hence the service providers are facing challenges, not only from the competitors, but also from their customers. The customers expectations and facts of the mobile
phone service are also growing at the other hand. In this research article to assess the customers loyalty towards mobile phone services with appropriate statistical
techniques.

KEYWORDS
customers, loyalty, mobile phones.

1. INTRODUCTION

T he telecommunications sector in India was liberalized in the early 1990s. Attack of private as well as foreign direct investment in the sector started after-
wards. The mobile telecommunication service providers need to make customer satisfaction a strategic priority. The impact of service quality attributes on
customer value, satisfaction, and loyalty. The object of the current research is the mobile telecommunication services in Kanyakumari District, Tamilnadu,
India, in which the mobile telecommunication service customers will serve as unit analysis. In this paper mainly focused on customers loyalty towards service
rendered by mobile phone telecommunication.
The literature indicates that quality is a major determinant of satisfaction and has a positive relationship with satisfaction in both the short and long run (Oliver,
1997). Quality judgments should be based on consumer feedback and not on manufacturers beliefs about product quality (Ozment & Morash, 1994; Gummeson,
1992). Quality is not a single-stimulus factor but a multi-stimulus factor (Devlin, Dong, & Brown, 1993). In addition to quality, non-quality dimensions (e.g., color
of a car, shape of a mobile phone) may also play a role in forming consumers satisfaction.

2. OBJECTIVES OF THE STUDY

1. To categorize the service quality dimensions in the mobile telecommunications services sector.
2. To study whether the attributes can correlate relationships among service quality attributes, customer value, customer satisfaction, and customer loyalty.
3. To observe whether customer satisfaction plays mediating role in the relationships between customer value and customer loyalty.
4. To examine whether customer value/customer satisfaction play mediating role in the relationships between service quality attributes and customer loyalty.

3. METHODS AND MATERIALS

It was an empirical study done undertaken at Kanyakumari District, Tamilnadu, India, in June 2016-December 2016. This study carried out under unknown popu-
lation comprised of seven hundred and sixty three people have taken as respondents by using simple random sampling technique of the above mentioned area.
A pre-designed questionnaire was used to collect the data. The questionnaire had various segments comprising; socio-demographic factors (gender, age, marital
status, etc.), Purpose of using Mobile phone service, Media Exposure, Source of information about service provider, Variables influencing to choose service pro-
vider, Consumer expectations, Service Quality of Service Provider, Overall attitude towards service provider and Loyalty towards service provider.
Reliability analysis allows us to study the properties of measurement scales and the items that make them up. The Alpha (Cronbach) model is based on the average
inter-item correlation. The results are presented in suitable hypothesis with relevant interpretations. It is found that the hypothesis is rejected (Significant) because
p value less than 0.05. It is concluded that there exists significant differences between the individual items in the scale. The number of cases are 50, Number of
items are 75 and the coefficient of Alpha is 0.80 (i.e. 80%).

4. STATISTICAL TOOLS FOR THE STUDY

a. Chi-square Analysis
The Chi square test is used in any study on social science and management for testing the independence of two attributes.
b. Factor Analysis
Factor analysis is a multivariate statistical technique used to condense and simplify the set of large number of variables to smaller number of variables called
factors. This technique is helpful to identify the underlying factors that determine the relationship between the observed variables and provides an empirical
classification scheme of clustering of variables into groups called factors.
c. Correlation Analysis
The correlation is the study of finding the relationship between the variables. If there are only 2 variables in the study of correlations there it is called simple
correlation otherwise the study in either partial or multiple correlation.

5. RESULTS OF THE STUDY

5.a Chi-square analysis
From the results of chi-square analysis is presented by the attitude variables considered in the study. The Table 1.1 and Table 1.2 describe overall scores and the
results of chi-square analysis in terms of personal variables, chi-square values, p values and their significance on utility of mobile phone service.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 20

TABLE 1.1: OVERALL SCORES PERSONAL VARIABLES ON UTILITY OF MOBILE PHONE SERVICE
Personal variables Overall Scores Perception on utility of mobile phone service
Low Medium High Total
Gender Male 76 276 49 401
Female 65 234 63 362
Total 141 510 112 763
Age Below 20 30 102 28 160
20-25 32 124 29 185
25-30 30 125 23 178
30-35 20 61 12 93
35-40 21 72 14 107
Above 40 8 26 6 40
Total 141 510 112 763
Education Illiterate 40 143 46 229
Upto HSC 43 145 32 220
UG 15 73 12 100
PG 32 101 16 149
Professional 11 46 6 63
Others 0 2 0 2
Total 141 510 112 763
Occupation Self-Employment 12 38 4 54
Salaried 41 164 33 238
Business 47 147 45 239
Student 31 150 28 209
Others 10 11 2 23
Total 141 510 112 763
Personal Income Nil 13 48 12 73
Below Rs.10,000 34 132 24 190
Rs.10,001-Rs.15,000 50 234 56 340
Rs.15,001-Rs.20,000 33 77 18 128
Above Rs.20,000 11 19 2 32
Total 141 510 112 763
Marital Status Single 82 337 68 487
Married 59 173 44 276
Total 141 510 112 763
Size of family 1-2 36 123 25 184
3-4 62 259 60 381
5-6 34 102 23 159
Above 6 9 26 4 39
Total 141 510 112 763
Number of family members (earning) 1 47 197 51 295
2 39 150 34 223
3 51 118 21 190
Above 3 4 45 6 55
Total 141 510 112 763
Monthly family income Below Rs.10,000 12 49 11 72
Rs.10,001-Rs.20,000 59 246 58 363
Rs.20,001-Rs.30,000 54 171 34 259
Above Rs.30,000 16 44 9 69
Total 141 510 112 763
Source: primary data

TABLE 1.2: CHI SQUARE VALUES PERSONAL VARIABLES ON UTILITY OF MOBILE PHONE SERVICE
S.No Personal variables Chi-square Value p values Significant/ Not Significant
1 Gender 4.08 0.130 NS
2 Age 3.32 0.973 NS
3 Education 12.08 0.280 NS
4 Occupation 19.00 0.015 S
5 Personal Income 15.30 0.054 NS
6 Marital status 3.55 0.169 NS
7 Size of family 3.51 0.743 NS
8 Number of family members (earning) 18.22 0.006 S
9 Monthly family income 3.89 0.692 NS
S Significant at 5% level (p value<= 0.05); NS Not Significant at 5% level (p value>0.05)
It is found from the Table 1.2 that the hypothesis is rejected (Significant) in two cases and other cases are accepted (Not significant). It is concluded that the
personal factors Occupation and Number of family members (earning) have significant influence on the utility of mobile phone service in the study of customer
loyalty towards mobile phone services among people in Kanyakumari District.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 21

TABLE 1.3: ROTATED FACTOR LOADINGS FOR LEVEL OF UTILITY OF MOBILE PHONE SERVICE
Variables of utility of mobile phone service F1 F2 F3 F4 Communality
Security (A1) -0.26 0.48 0.34 0.22 0.47
SMS (A2) 0.08 -0.09 0.78 0.02 0.62
Official (A3) -0.07 -0.09 -0.05 0.76 0.60
Touch with friends and Relatives (A4) 0.07 0.14 0.72 -0.06 0.55
Symbol of Status (A5) 0.24 0.30 0.02 0.51 0.40
Convenience (A6) 0.04 0.73 0.00 -0.18 0.56
Low cost (A7) 0.23 0.64 -0.01 0.15 0.48
Passion (A8) 0.65 -0.12 0.06 0.26 0.51
STD Calls (A9) 0.67 0.16 -0.13 -0.08 0.50
Dissatisfaction with land line (A10) 0.59 -0.03 0.17 0.30 0.47
Multipurpose (A11) 0.70 0.08 0.03 -0.15 0.52
Easy to contact (A12) 0.58 0.11 0.09 0.01 0.36
Eigen value 2.41 1.41 1.15 1.07
% of var. explained 20.05 11.73 9.56 8.87 50.21
Cum. % explained 20.05 31.78 41.34 50.21
Table 1.3 gives the rotated factor loadings, communalities, Eigen values and the percentage of variance explained by the factors. Out of the 12 variables associated
with the utility of mobile phone service, 4 factors have been extracted and these 4 factors put together explain the total variance of these variables to the extent
of 50.21%. In order to reduce the number of factors and enhance the interpretability, the factors are rotated. The rotation increases the quality of interpretation
of the factors. There are several methods of the initial factor matrix to attain simple structure of the data. The varimax rotation is one such method to obtain
better result for interpretation is employed and the results are given in Table 1.4.

TABLE 1.4: CLUSTERING OF UTILITY OF MOBILE PHONE SERVICE

Factors Utility of mobile phone service Rotated factor loadings
A8 0.65
A9 0.67
Factor I (20.05%) A10 0.59
A11 0.70
A12 0.58
A1 0.48
Factor II (11.73%) A6 0.73
A7 0.64
A2 0.78
Factor III (9.56%)
A4 0.72
A3 0.76
Factor IV (8.87%)
A5 0.51
Five factors were identified as being maximum percentage variance accounted. The five variables A8, A9, A10, A11 and A12 were grouped together as factor I and
accounts 20.05% of the total variance. The three variables A1, A6 and A7 constituted the factor II and accounts 11.73% of the total variance. The two variables A2
and A4 constituted the factor III and accounts 9.56% of the total variance. The two variables A3 and A5 constituted the factor IV and accounts 8.87% of the total
variance.
The five variables of utility of mobile phone service such as Passion (A8), STD Calls (A9), Dissatisfaction with land line (A10), Multipurpose (A11) and Easy to contact
(A12) were grouped together as factor I and accounts 24.2% of the total variance.
ii. Correlation Analysis
The correlation is the study of finding the relationship between the variables. If there are only 2 variables in the study of correlations there it is called simple
correlation otherwise the study in either partial or multiple correlation. In this study the simple inter-correlations analysis is performed between the selected
variables and the results are presented in the form of correlation matrix. Further the significance of correlation was tested at the 1% level of significance.
In this section the results of inter-correlation analysis between the variables of utility of mobile phone service as factor I are presented through correlation matrix.
The results of the inter-correlation analysis with its significance are presented in the form of correlation matrix.
It is found that the entire variables of utility of mobile phone service on the basis of factor I considered have significant inter-correlation.
It is concluded that the variables of utility of mobile phone service such as Passion (A8), STD Calls (A9), Dissatisfaction with land line (A10), Multipurpose (A11) and
Easy to contact (A12) have significant interrelationship between them.

6. CONCLUSION
The results obtained in this study accept the model and hypotheses proposed therein. The results of the study showed that the personal factors Occupation and
Number of family members (earning) have significant influence on the utility of mobile phone service. Furthermore, the research contributes to the five variables
of utility of mobile phone service such as Passion, STD Calls, Dissatisfaction with land line, Multipurpose and Easy to contact were grouped together as factor I and
accounts 24.2% of the total variance. This research, however, evaluated the variables influencing customer loyalty of phone services in the context of Kanyakumari
District. The findings of the correlation analysis showed that the above variables also have significant interrelationship between them. The service quality had the
strongest total effect on customer loyalty. These results suggest that customer loyalty is most significantly affected by the high quality service. Finally, the results
of this study can assist researchers and academicians to understand the impact these variables have on the customers intention to change service provider and
the correlation between these factors.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 22

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 23

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
A STUDY ON CONSUMER SATISFACTION TOWARDS ORGANIC FOOD PRODUCTS IN COIMBATORE CITY

S. AMUDHA
ASST. PROFESSOR
DEPARTMENT OF COMMERCE
KONGUNADU ARTS & SCIENCE COLLEGE
COIMBATORE

Dr. M. KANAGARATHINAM
HEAD
DEPARTMENT OF COMMERCE & RESEARCH
NEHRU ARTS & SCIENCE COLLEGE
COIMBATORE

ABSTRACT
Organic farming system in India is not new and is being followed from ancient time. The demand for organic foods is increasing day by day. Worldwide consumers
are becoming health conscious and are concerned about nutrition and the quality of food consumed. Consumers are also increasingly concerned with the food
safety and the consumers are getting health conscious and are paying more attention to quality of food consumed. The present study aims at analysing the factors
affecting satisfaction of consumers on organic food products. Using a well- structured survey of 550 respondents covering the Coimbatore city, Tamil Nadu. Suitable
statistical tools have followed for analysis on consumer satisfaction.

KEYWORDS
organic farming, consumer satisfaction, health conscious, quality of food.

INTRODUCTION
rganic farming system in India is not new and is being followed from ancient time. It is a method of farming system which primarily aimed at cultivating

O the land and raising crops in such a way, as to keep the soil alive and in good health by use of organic wastes (crop, animal and farm wastes, aquatic
wastes) and other biological materials along with beneficial microbes (bio fertilizers) to release nutrients to crops for increased sustainable production in
an eco-friendly pollution free environment. As these food products are fresh, hygienic and healthy. Over the past decades, organic farming has experienced a
considerable rise in most of the industrialized countries. The demand for organic foods is increasing day by day. Organic farming system in India is not new and is
being followed from ancient time. The demand for organic foods is increasing day by day. Worldwide consumers are becoming health conscious and are concerned
about nutrition and the quality of food consumed. Consumers are also increasingly concerned with the food safety and the consumers are getting health conscious
and are paying more attention to quality of food consumed.

REVIEW OF LITERATURE
1. Rupesh Mervin and R.Velmurugan (2013) in their study ascertained that consumers attitude towards organic foods depends on gender, monthly income,
area of residence and state of health.
2. Rupesh Mervin and R.Velmurugan (2013) in their study ascertained that consumers preference towards organic foods depends on gender, age, occupation,
monthly income, family status and level of awareness towards organic foods.
3. Hasnelly, Eddy Yusuf, (2012) in their study captioned, that the result of the review obtained from the research objectives above are expected to make an
approach which is applicable in solving the problems faced by companies, especially the organic products companies, and other similar companies in general,
especially those dealing with the market based consumers value and satisfaction, also the consumers loyalty.
4. Eva Sternfeld (2009) in her study at present organically grown food made in China is still a small - though fast growing - sector. The article takes a look at
the development and current status of organic agriculture and organic food industry in China and discusses the prospects and limitations of the sector.
5. Frederike Llfs-Baden, Achim Spiller, Anke Zhlsdorf and Matthias Mellin, (2008) in their study have indicated the importance of direct marketing for high
quality farm products has increased during the past few years. The results emphasize the role of store atmosphere, consumer service and product quality as
the main factors which influence consumer satisfaction.
6. Ramu Govindasamy, Marc DeCongelio, John Italia, Barbour, Karen Anderson (2001) in their research work Empirically Evaluating Consumer Characteristics
and Satisfaction with organic products have stated that the consumers are willing to pay a premium of 20% or more for organic produce than conventional
produce. They prefer to buy from the super markets.

NEED/IMPORTANCE OF THE STUDY

1. This study will point out the consumer satisfaction towards organic products.
2. This study will try to answer, how the consumer are satisfying with the organic products in Coimbatore?

STATEMENT OF THE PROBLEM

Though the price is high, consumers are satisfied with the organic products because of the quality and increasing health concerns in the last few years, consumers
start preferring organic products has attracted growing research attention. The consumers satisfaction is one of the curial factors to predict the consumers pur-
chase tendency. So, the researcher is trying to describe the consumers satisfaction towards organic food products in Coimbatore city.

OBJECTIVES
1. To measure the Consumer Satisfaction towards the organic products.
2. To suggest suitable measures thereof.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 24

RESULTS & DISCUSSION

In order to find out the variables that determine consumer satisfaction, all the variables included for correlation analysis have been regressed on consumer satis-
faction index. The following regression equation has been framed to ascertain the impact of the variables on consumer satisfaction.
CS = a + b1 AOR + b2 G + b3 AG + b4 EQ + b5 OCC + b6 TOF + b7 SIF
+ b8 NEM + b9 MI + b10 FI + b11 FE + b12 POU + b13 KT+ b14 CME + b15 BA +
b16 FA + b17 CB + e
where,
CS = Consumer Satisfaction
a = Intercept Term
b1.b17 = Regression Coefficients
AOR = Area of Residence
G = Gender
AG = Age
EQ = Educational Qualification
OCC = Occupation
TOF = Type of Family
SIF = Status in Family
NEM = Number of Earning Members
MI = Monthly Income
FI = Family Income
FE = Family Expenditure
POU = Period of Usage
KT = Kilometers Traveled
CME = Car Maintenance Expenditure
BA = Brand Awareness
FA = Feature Awareness
CB = Car Brand
e = Error Term
Determinants of Consumer Satisfaction -Multiple Regression Analysis.
TABLE 1
Variables Regression coefficient Standard error t
Gender -2.873** 0.835 -3.440
Age 0.023 0.037 0.622
Marital Status -0.336 0.898 -0.374
Educational Qualification 0.147 0.307 0.479
Occupation 0.679** 0.202 3.369
Monthly Income 0.000 0.000 -0.395
Family Income 0.000* 0.000 2.418
Family Expenditure 0.000 0.000 -1.828
Type of Family 0.332 0.760 0.437
Status in Family 0.148 0.886 0.167
Look after Food Labels -0.505 0.817 -0.619
Period of Consumption 0.855 0.450 1.899
Organic Foods Consumed 0.062 0.263 0.237
Frequency of Consumption -0.785* 0.382 -2.052
Level of Awareness 0.189** 0.026 7.357
Level of Perception 0.437** 0.033 13.393
* Significant at five per cent level ** Significant at one per cent level
Constant : 33.131
Std. Error of Estimate : 4.093
R2 : 0.513
R2 : 0.527**
GENDER
The regression coefficient indicates that gender negatively influences consumers satisfaction. Male consumers have high level of satisfaction.
OCCUPATION
The regression coefficient indicates that occupation positively influences consumers satisfaction. Agriculturists have high level of satisfaction.
FAMILY INCOME
The regression coefficient indicates that family income positively influences consumers satisfaction. Consumers whose family income ranges above Rs. 60000
have high level of satisfaction.
FREQUENCY OF CONSUMPTION
The regression coefficient indicates that frequency of consumption negatively influences consumers satisfaction. Consumers who consume organic foods several
times in a week have high level of satisfaction.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 25

RECOMMENDATIONS/ SUGGESTIONS
If price organic food product will reduce consumer will more satisfied.
The Government can give subsidy for the organic food production.
Consumers will increase if they get the organic products at subsidized rates.

CONCLUSION
The organic food industry, that organic food is safer, more nutritious, and tastes better than conventional food. These beliefs have fueled increased demand for
organic food despite higher prices. The consumers will get more satisfaction if the products will get in a concessional price with the same quality.

LIMITATIONS
1. The time was very limit to conduct the research on the selected topic.
2. With respect to actual population the sample size was small.

SCOPE FOR FURTHER RESEARCH

The food product consumption which forms the healthy side of life through Organic food products, that replaces the artificial maturing which causes innumerable
diseases to the immune system of the children to the grown-up. Thus, considerable research support will be necessary in the future to develop production tech-
niques that will allow for the successful production of organic crops on a wider scale than is possible today.

REFERENCES
1. Rupesh Mervin and R.Velmurugan (2013), Consumers Preference towards Organic Food Products, Journal of Management and Science, Vol.3, No.1, pp.19-
23
2. Rupesh Mervin and R.Velmurugan (2013), Consumers Attitude towards organic food products, Discovery, Vol.3, No.7, pp.15-18
3. Hasnelly, Eddy Yusuf, Analysis of Market-Based Approach on the Consumer Value and Consumer Satisfaction and Its Implication on Consumer Loyalty of
Organic Products in Indonesia, Procedia - Social and Behavioral Sciences, 2012,Vol 40, pp 86 93.
4. Eva Sternfeld, Organic Food, Made in China, Hintergrundinformationen 10/2009 11. August 2009.
5. Frederike Llfs-Baden, Achim Spiller, Anke Zhlsdorf and Matthias Mellin, Consumer satisfaction in farmer-to-consumer direct marketing, International Food
and Agribusiness Management Review, 2008, Volume 11, Issue 2, pp 49 72.
6. Ramu Govindasamy, Marc DeCongelio, John Italia, Barbour, Karen Anderson, Empirically Evaluating Consumer Characteristics and Satisfaction with organic
products, New jersey Agricultural Experiment Station, p-02139-1-01,2001, pp 1 70.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 26

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
FACTORS INFLUENCING CUSTOMER LOYALTY: A STUDY ON ORGANISED FOOD & GROCERY OUTLETS

Dr. D. PADMA
HEAD
DEPARTMENT OF B. COM. (ABA)
SREE SARASWATHI THYAGARAJA COLLEGE
THIPPAMPATTI

A. SHANTHI
Ph. D. RESEARCH SCHOLAR
SREE SARASWATHI THYAGARAJA COLLEGE
THIPPAMPATTI

ABSTRACT
Indian retail industry is witnessing a tremendous change with a growing middle class and rapidly increasing consumer spending, India overtakes China for the
number one spot in this years Global Retail Development Index (GRDI). The conditions for retailers in India are favourable and will continue to provide strong
fundamentals. The Gross Domestic Product (GDP) is to grow by 7.4 percent in 2017 and 7.6 percent in 2018, which will help to boost the middle class and increase
consumer spending beyond the essentials. These trends are expected to help organised retail double in size by 2020. Food & Grocery holds a major portion of Indian
household consumption that is dominated by unorganised retailers. Despite stiff competition, customers are influenced by many factors, which drive them towards
organised retail stores. A sample of 260 customers was selected from Coimbatore District by using convenience-sampling technique. Hence, this study set out to
find the factors by applying factor analysis that influences customer loyalty towards organised food and grocery stores. Finding revealed that four factors, namely,
personalised service and location, Price and quality policy, store atmosphere and facilities and attractive offers influenced customer loyalty towards organised Food
and Grocery stores.

KEYWORDS
customer loyalty, food and grocery, organised retail, factors analysis.

INTRODUCTION

I ndian retail industry is large among all the industries, and it has emerged as one of the most dynamic and fast paced industries due to the entry of several
new players. With a growing middle class and rapidly increasing consumer spending, India overtakes China for the number one spot in this years Global
Retail Development Index (GRDI). The conditions for retailers in India are favourable and will continue to provide strong fundamentals. The GDP is forecast
to grow 7.4 per cent in 2017 and 7.6 per cent in 2018, which is helping boost the middle class and increase consumer spending beyond the essentials. These trends
are expected to help organised retail double in size by 2020 (GRD Index, 2017).
Retail industry can be broadly classified into two categories namely- organised and unorganised retail. Organised retailers are licensed for trading activities and
registered to pay taxes to the government. Unorganised retail consists of unauthorised small shops - conventional Kirana shops, general stores, corner shops
among various other small retail outlets - but remain as the radiating force of Indian retail industry (Anasua, 2013).

FIGURE 1: FORMS OF RETAIL MARKET IN INDIA

Series1, Organised, 9%,

Series1, Online , 1%, 1% 9%

Organised Unorganised

Online

Series1, Unorganised,
90%, 90%

Source: IBEF.org
The retail industry in India is dominated by unorganised retail, accounting for more than (85%) of the total retail value, out of which (60-65%) comprises of Food
and grocery business. Traditional retailers will continue to dominate the market even in 2025. Whereas, (15%) accounted for organised retail includes Food and
Grocery retail business. Organised sector is growing at a faster rate, and penetrate the markets deeper, and by 2025, it is expected to capture at least 3.2 per cent
of the food and grocery market and be worth INR 340,000 crore, growing at a CAGR of 22.5 per cent from current levels to be competitive in the market.(Image
Retail, 2016).

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 27

Series1, Beauty & Personal

Care, 8%, 8% Series1, Footwear , 2%, 2%

Series1, Home Decors &

Series1, Others, 3%, 3%
Furniture, 3%, 3%
Food & Grocery

Series1, Consumer Clothing & Textiles

durables & IT, 4%, 4%

Consumer durables & IT

Home Decors & Furniture

Beauty & Personal Care

Footwear

Series1, Food & Grocery, 69%, Others

Series1, Clothing & Textiles,
11%, 11% 69%

Source: IBEF.org
Food and Grocery (F&G) forms the backbone of the Indian retail sector. With present market size at estimated US$ 455 billion (Rs 30,464 billion), the category will
continue to grow at about 15 per cent per annum over the next decade. As a result, for the foreseeable future, food & grocery retail is expected to dominate the
market with more than (50%) share of the overall retail market.
Indias Food and Grocery retail market offers one of the largest opportunity areas for business. It will continue to grow at about 15 per cent per annum over the
next five years and will dominate the overall retail market. As per the findings of the 2016 edition of the India Food Report, the food and grocery retail market is
expected to reach Rs 109,00,000 crore by 2025, with a growth rate of 15 per cent per annum. (India Food Report, 2016).
The retailer today faces a knowledgeable and demanding consumer. The customer demands convenience and a certain level of comfort while shopping. The time
required to shop and to travel to a particular location, product variety, accessibility, offers and so on the important factors that lead to customer satisfaction and
loyalty. Hence, this study has been conducted to identify the key factors, which determines customer loyalty towards organised food and grocery retail stores.

REVIEW OF LITERATURE
Bharat and Bhusan (2011) in their research paper entitled Factors Affecting Consumer Preferences of Shopping at Organised Retail Stores in Punjab, focus on the
major attributes of the retail stores as perceived by the consumers of Punjab. 50 organised retail stores were selected in five selected cities for data collection.
One-hundred consumers were interviewed from sampled organised outlets adopting the systematic random sampling procedure in each selected urban city of
Punjab. Over 500 consumers were interviewed at the selected stores in five selected cities. Four-hundred and seventy-five usable questionnaires were analysed
using factor analysis. The study reveals that there are six major factors preferred by consumers are availability and variety, service, ambience, discount & price,
quality of product and promotion.
Shishma and Mohender (2011), in their research paper entitled Customer Perception in Indian Retail Industry (A Comparative Study of Organised and Unorganised
Retail Industry), aims at finding out the factors influencing customer perception in organised and unorganised retail industry in Delhi. Primary data were collected
from 300 customers using convenient sampling method and statistical tools such as factor analysis, One-sample t-test and correlation was applied to test the
hypothesis. The study concludes that customers perception on the organised retail sector was better when compared to the unorganised retail sector, but there
are certain factors which are not letting the organised retail sector to be catering the maximum share of unorganised retail stores in India.
Aniali (2013) in her research work entitled Customer Patronage towards Food and Grocery Retail- A Case Study, attempts to find out the decision variables which
influence the selection of a traditional outlet or a new store for the purchase of food and grocery items. 387 customers of organised and unorganised retail stores
were interviewed, and paired sample t-test was applied to test the hypothesis. This study concludes that an important factor which can lead to increased patronage
at the new retailers is customer relationship management activities such as loyalty bonus/discounts, special customer cards, free parking facility and so on.
Dharmesh (2013) in his study entitled An Empirical Study of Customer Expectation and Perception in Organised Retail Sector, attempts to identify the difference
between expectation and perception of customers of organised retail stores. The study was carried out with a sample of 120 respondents, and convenient sampling
method was used to select the sample size. Arithmetic means z-test and SERVQUAL model was applied to find out the gap between customers expectation and
perception. This study identifies the gap between customers expectation and perception was identified, which revealed dissatisfaction among customers.
Satendra, Rajeev and Jyoti (2011) in their article entitled Perception of Consumers towards Shopping Mall - A Case Study With Reference to Aligarh and Mathura
City, attempts to find customers perception towards shopping malls and to suggest the way by which the shopping mall can improve their market share. For the
study, data was collected from 50 customers of Aligarh and Mathura using non-probability sampling. This study concludes that by way of excellent customer
service a retailer can make their clients as regular customers and also refer their retailers to others.
Hemraj and Pankaj (2011) in an article entitled Factors Analysing the Store Attributes to Identify Key Attributes of Store Image. (A Study on some selected Apparel
Stores in India), tries to understand the key store attributes that affect perceived image of apparel stores and also to find how customers perception vary by type
of apparel stores. Systematic Sampling technique was used to select 345 respondents, 15 each from 23 apparel stores of three cities. Frequencies, Percentages,
Arithmetic Averages, Standard Deviations, Correlation, Regression, One-way ANOVA and Factor Analysis were used to analyse the data. This study finds that stores
product and operational quality was the most significant factor in creating high store image.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 28

STATEMENT OF THE PROBLEM

India is termed as a nation of shopkeepers with about 15 million retail outlets of all kinds, but it is dominated by small neighbourhood grocery stores termed as
Kirana stores (Aniali, 2013). The customers prefer traditional retailers such as Kirana stores regarding location, personalised service, the supply of goods on credit,
which results in stiff competition among organised and unorganised retailers. In this competitive world, with increasing number of retail stores, the retailers need
to be more customer oriented and need to be more updated about changing needs of the consumer. Understanding customer and knowing their preference is
not an easy task because consumer today is more conscious, confident and much more demanding (Aamir and Subash, 2015). In this context, organised retailers
should understand why customer prefers the particular store and what customers are expecting from the retailers. This will help the retailers to come out with
more innovative ideas and services, which in turn will wean away a customer from another store, and in the same way, it contributes to retail the customers.
Considering the above this study aimed to find the factors that influence the customers to shop at a particular retail store.

OBJECTIVES
1. To find out the socio-economic profile of the customers of organised food and grocery stores.
2. To analyse the factors influencing customer loyalty towards organised food and grocery stores.

RESEARCH METHODOLOGY
The study covers organised food and grocery stores in Coimbatore District. The respondents were customers of organised food and grocery stores. This study
includes both primary and secondary data. The primary data was collected from a sample of 260 customers by adopting convenience-sampling technique. Statis-
tical tools such as Simple percentage and factor analysis applied to analyse the data.

RESULTS AND DISCUSSION

FREQUENCY DISTRIBUTION
TABLE 1: DEMOGRAPHIC PROFILE OF THE CUSTOMERS
S. No. Demographics Group Frequency (N=260) Percentage
Male 138 53.1
I Gender
Female 122 46.9
Married 202 77.7
II Marital Status Unmarried 57 21.9
Others 1 .4
Below 25 48 18.5
26 - 35 71 27.3
III Age 36 - 45 71 27.3
46 -55 60 23.1
56 & Above 10 3.8
No formal education 27 10.4
School level 81 31.2
V Educational Qualification Under Graduation 85 32.7
Post-Graduation 53 20.4
Professional 14 5.4
Agriculture 45 17.3
Business 31 11.9
VI Occupational Status Employed 109 41.9
Professional 22 8.5
Home Makers 53 20.4
Below Rs 10,000 64 24.6
Rs 10,001 -20,000 83 31.9
VII Monthly Family Income Rs 20,001 - 30,000 47 18.1
Rs 30,001 - 40,000 35 13.5
Above Rs 40,001 31 11.9
Table 1 presents demographic characteristics of the customers. Of the 260 customers, 138 (53%) are male, and the rest 122 (47%) are female. Marital status of
the customers shows that 202 (78%) are married. Age distribution of the sample indicates that 71 (27%) majority of the customers falls under the age group
between 26-35 Years and 36-45 years respectively. About 85 (33%) of the customers are undergraduate. Occupational status of the customers reveals that 109
(42%) of the customers are employed, and majority 83 (32%) of the customers earns income ranging from Rs.10,001-20,000.
FACTOR ANALYSIS
Factor Analysis is applied to reduce the complexity of data. When there are more variables on a phenomenon under study, then identifying one, two or few
variables that influence the phenomenon under study is complex. There the variables are to be reduced into few factors (Latent Variables) which can be taken as
constructs (factors) that influence the phenomenon under study.
Using SPSS software, these factors can be obtained. The following tables explain the steps to get the factors.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 29

TABLE 2: KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .821
Bartlett's Test of Sphericity Approx. Chi-Square 694.230
df 78
Sig. .000
Extraction communalities are estimates of the variance in each variable accounted for by the components. The communalities in the following table are all high,
which indicates that the extracted components represent the variables as well.

TABLE 3: EXTRACTION COMMUNALITIES

Initial Extraction
Reasonable price 1.000 .358
Availability of all branded merchandise 1.000 .442
Extended parking area 1.000 .581
High quality of the Merchandise 1.000 .706
Convenient location of the store 1.000 .611
Customer loyalty program 1.000 .483
Personalised attention /friendliness of sales 1.000 .658
Frequent promotional offers 1.000 .677
Accessibility (Self Service) 1.000 .578
Store Ambiance & Cleanliness 1.000 .610
Availability of refreshments and entertainments facility 1.000 .583
Handling complaints /Queries 1.000 .632
Information about new arrivals 1.000 .661
The percentage of total variance contributed by the components is given in the following table. The percentage of total variance contributed by the first compo-
nents is 32.479%, by the second component is 10.246%, by the third component is 7.852% and by the fourth component is 7.718%. Thus there are four components
for the given set of variables.
TABLE 4: TOTAL VARIANCE EXPLAINED
Initial Eigen values Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Component
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.222 32.479 32.479 4.222 32.479 32.479 2.236 17.202 17.202
2 1.332 10.246 42.725 1.332 10.246 42.725 1.929 14.838 32.040
3 1.021 7.852 50.576 1.021 7.852 50.576 1.744 13.416 45.457
4 1.003 7.718 58.295 1.003 7.718 58.295 1.669 12.838 58.295
5 .917 7.055 65.350
6 .870 6.692 72.042
7 .758 5.830 77.872
8 .657 5.055 82.927
9 .530 4.080 87.007
10 .518 3.984 90.992
11 .422 3.249 94.241
12 .391 3.010 97.250
13 .357 2.750 100.000
The rotated component matrix gives the variables belonging to each component. The maximum of each row (ignoring ve sign) indicates that the respective
variable belongs to the respective component.
TABLE 5: ROTATED COMPONENT MATRIX
Component
1 2 3 4
Information about new arrivals .761 .016 .170 .229
Handling complaints /Queries .691 .165 .350 .062
Personalised attention /friendliness of sales .647 .043 -.042 .486
Convenient location of the store .553 .455 .065 -.307
Customer loyalty program .486 .413 .058 .269
High quality of the Merchandise .156 .808 .027 .167
Extended parking area .001 .689 .321 .058
Reasonable price .127 .450 .187 .323
Store Ambiance & Cleanliness .051 .077 .775 -.012
Availability of refreshment and entertainment facility .162 .127 .708 .200
Availability of all branded merchandise .224 .351 .514 .061
Accessibility (Self Service) .075 .157 .016 .740
Frequent promotional offers .307 .151 .278 .695
Based on the rotated component matrix four factors and its underlying items are summarised as follows:

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 30

SUGGESTIONS
The store should continue to provide personalised services to their customers such as informing about new arrivals, handling complaints and queries with
the help of well-trained sales personnel.
The store management should concentrate on in-store promotion such as contest, lucky draw and surprise discount to attract new customers and also to
retain the existing customer.
The store should offer customer loyalty program to their regular customer such as the point system, membership card and referral program to motivate the
existing customers.
Location of the store is one of the factors preferred by the customer. Therefore, the store should adopt some strategies like free home delivery, phone order
facility and so on to the customer who resides far away from stores.
The retailer should never compromise on their price and quality policy which in turn will make the customers shift to another store.
Retailers should focus on refreshment and entertainment facilities such as play area for kids, babysitting, a modern and hygienic food court to bring out
delight in customers.

CONCLUSION
This study attempts to identify the key factors influencing customer loyalty towards organised food and grocery retail stores. For the purpose, 260 respondents
were surveyed and factor analysis was applied, and it was helpful to identify the underlying factors that determine customer loyalty, and the result reveals four
factors which influence the customer to visit the particular store often and also continue to shop in future. This paper concludes that personalised service and
location, price and quality policy, store atmosphere and facilities and attractive offers are the four factors that influence customer loyalty. Therefore these are the
areas where the retailer needs to concentrate, and in addition to this, he has to come out with a lot of innovative ideas to meet out the changing requirements of
the customer.

LIMITATIONS
1. This study was conducted in Coimbatore District. Therefore, the results of the study may or may not be applied to other areas.
2. Survey method which was adopted for collecting the data has its limitations.

REFERENCES
1. Aamir Hasan and Subash Mishra (2015), Key Drivers Influencing Shopping Behaviour in Retail Store, The IUP Journal of Marketing Management, Vol. XIV,
No. 3, 2015, pp.7-35.
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3. Aniali Panda (2013), Customer Patronage towards Food and Grocery Retail- A Case Study, Global Journal of Management and Business Studies, Vol. 3,
Number 9, pp. 955-960.
4. AnneSophie Binninger, (2008) "Exploring the relationships between retail brands and consumer store loyalty", International Journal of Retail & Distribution
Management, Vol. 36, Issue 2, pp. 94-110.
5. Bharat Goel and Bhusan Dewan (2011), Factors affecting consumer preferences of shopping at organised retail stores in Punjab, Journal of Engineering,
science and Management Education, Vol. 4, pp. 44-49.
6. Dharmesh Motwani (2013), An empirical Study of Customer Expectation and perception in Organized Retail Sector, Abhinav National Monthly Refereed
Journal of Research in Commerce & management, Vol. 2, Issue 3, pp. 144-153.
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8. Hemraj Verma and Pankaj Madan (2011), Factors Analysing the Store Attributes to Identify Key Attributes of Store Image.(A Study on some selected Apparel
Stores in India), Sri Krishna International Research & Educational Consortium, Vol. 2, Issue 1, PP. 1-21.
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10. India Retail Sector Report 2016/2017, An EMIS Insights Industry Report, March 2017, https://www.emis.com, Pages: 73.
11. Mithilesh Pandey and Rajesh Verma (2015), Factors influencing the buying behaviour of consumers towards organised retail stores in Jalandhar, Punjab,
The IUP Journal of Marketing Management, Vol. XIV, No. 1, 2015, pp.51-61.
12. Phansawat Fongkam (2015), Factors Affecting Traditional Retail Stores Competitiveness in Chiang Mai, Thailand, Journal of Economics, Business and Man-
agement, Vol. 3, No. 2, pp. 297-301.
13. Retail Industry in India, http://www.ibef.org, June 2017.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 31

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 32

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
DYNAMIC CONGESTION CONTROL IN NETWORK LAYER FOR ADVANCED CLOUD COMPUTING

G. RAMASUBBAREDDY
Ph. D. RESEARCH SCHOLAR
DEPARTMENT OF CSE
SUNRISE UNIVERSITY
ALWAR

K. RANGASWAMY
ASST. PROFESSOR
DEPARTMENT OF CSE
CHAITANYA BHARATHI INSTITUTE OF TECHNOLOGY
VIDYA NAGAR

Dr. C. RAJABHUSANAM
PROFESSOR
BHARATH INSTITUTE OF HIGHER EDUCATION AND RESEARCH (DEEMED UNIVERSITY)
CHENNAI

ABSTRACT
Cloud computing becoming attractive tool for delivering web-based services. It can enable rapid development and dynamic scaling and it offers flexible powerful
but low cost distribution infrastructure. In paper we proposed new infrastructure capabilities to support dynamic networks. In the network layer Allocation of
resource at specific locations and those sites are connects by backbone supporting provisional virtual links. Each location constructs one data center for processing
of resource specified by function. Application controller updates the distribution information and multicast to access nodes for load balancing of flow of packets
and regulating the traffic flow within application cluster to avoid congestion. The processing elements create the virtual output queues to adjust to prevent output
congestion.

KEYWORDS
load balance, cluster, virtual output queues, resource allocation.

I. INTRODUCTION

C loud computing is being widely adapted across many industry sectors with adapted with security concern. Network layer in the clouding computing face a
congestion problem, not able balancing the load. In existing network layer resource allocation is biggest problem, due to that regulation of the traffic is
very difficult. In this proposed paper introduces application controller to act as centralized operator for the balancing the load, regulating the traffic over
the clusters. In these dynamic networks always updated information multicast to each region. The basic structure of network is through access node make a user
interface to application servers. In same layer application controller plays a major role to control the congestion by using suitable techniques. The backbone routers
are always communicating with data path services and forwarding multicast message and also subscription of the updates. The cloud will be divided in to multiple
clusters, every cluster have data centers switches. The application server receive the updated news, observe its server object locations and subscribe server
implicitly to required multicasts. Finally the subscription done by the observing the traffic.

II. DYNAMIC NETWORK IN CLOUD COMPUTING

The Dynamic networks are support new infrastructure capabilities. These networks easy to allocate the resource at specific region and share load equally that
means in which location have a less traffic allocate the path through that direction. Regulating the traffic by updated messages. Here consider portion of dynamic
network. The figure consists of Data center, Application node, provisional Virtual link and Virtual output queues.

FIG. 1

It support internet scale traffic volumes with router like latency, and flexible for high performance packet process. If require all sites are connected by backbone
supporting the provisional virtual link.
DATA CENTER
Each Data center processor having cluster process resource specified by function, Data center consists of multiple stages for scalability, each system with 1k-100k
servers.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 33

III. APPLICATION COMPONENTS

Overall Application Components are:
1. Access nodes
2. Application Controller
3. Application Server
4. Backbone Node
FIG. 2

ACCESS NODE
Access nodes are User interface functions to pass the request and get the responses from servers.
Each node has multiple user connections are directly connected with the respected servers.
Access node is part of the cluster and cluster is the portion of the data center.

FIG. 3

APPLICATION CONTROLLER
It is system session level control. It will be create the sessions, increment multicast tree routing and controlling the updated information it distribute multicast
message to all the regions in the cluster.
DATA CENTER SWITCHING ISSUES
Each switching center have multiple connection for scalability, switching center directly connected with other switching centers. It have multiple path to it neigh-
boring switching centers. Finally the performance is increases.
FIG. 4

CONTROLLING THE UPDATED DISTRIBUTION

For example divide the game in to multiple regions with multicast per region, and send object update on multicast for the region, receive state visible region. The
server subscribe the regions as needed or network node can observe implicitly to required multicast. The subscription done by observing the traffic. When the
server subscriber, starts for receiving updates: no coordination with sender required, send full updates periodically at lower rate.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 34

Regulating the traffic with cluster for avoid congesting outgoing interface to processing elements (PE) The PEs create virtual output queues. And dynamically VOQ
rate will be adjusted. VOQ rate is adjusted to prevent output congestion while optimizing the performance.
BACKBONE NODES
Backbone node provides data path services. To make a communication between any to data centers. And it can also multicast message forward and subscription.
The nodes are act as intermediate nodes just share the message and subscription for following notifications.

IV. CONCLUSION
Each location constructs data center for processing of resource specified by function. Application controller updates the distribution information and multicast to
access nodes for load balancing of flow of packets and regulating the traffic flow within application cluster to avoid congestion. The processing elements create
the virtual output queues to adjust to prevent output congestion. Finally reduce the congestion into minimal level in adaptive network layer in cloud computing

REFERENCES
1. C. Guo, G. Lu, D. Li, H. Wu, X. Zhang, Y. Shi, C. Tian, Y. Zhang, and S. Lu, BCube: A High Performance, Server-centric Network Architecture for Modular Data
Centers. In ACM SIGCOMM, 2009.
2. F. Hao, T.V. Lakshman, S. Mukherjee, and H. Song, Enhancing Dynamic Cloud-based Services using Network Virtualization, In VISA, 2009.
3. P. Mell and T. Grance, The NIST Definition of Cloud Computing, September 2011: http://csrc.nist.gov/publications/nistpubs/800-145/SP800-145.pdf, ac-
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4. R. Niranjan Mysore, A. Pamboris, N. Farrington, N. Huang, P. Miri, S. Radhakrishnan, V. Subramanya, A. Vahdat, PortLand: A Scalable Fault-Tolerant Layer 2
Data Center Network Fabric, ACM SIGCOMM Comput. Communi., vol. 39, no. 4, pp. 39-50, October 2009.
5. T. Koponen, M. Casado, N. Gude, J. Stribling, L. Poutievski, M. Zhu, R. Ramanathan, Y. Iwata, H. Inoue, T. Hama, S. Shenker, Onix: A Distributed Control
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2009.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 35

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
ENTREPRENEURSHIP SKILL DEVELOPMENT IN VARIOUS BUSINESS SECTORS IN TAMILNADU

Dr. G. YOGANANDAN
ASSOCIATE PROFESSOR
PERIYAR INSTITUTE OF MANAGEMENT STUDIES
PERIYAR UNIVERSITY
SALEM

T. VIGNESH
Ph. D. RESEARCH SCHOLAR
PERIYAR INSTITUTE OF MANAGEMENT STUDIES
PERIYAR UNIVERSITY
SALEM

ABSTRACT
Entrepreneur Skills, Training and Development are the driving forces of economic growth and social development for any country. An effective entrepreneur skill
development programme and training opportunities help to create self-employment at the Domestic as well as International level. The Indian government should
identify what kind of entrepreneur skill and training need to start an enterprise. These training must be based on their industry of commodity business sectors for
essential economic development. Hence the researcher discussed about the various entrepreneurs skill development and training programmes related to the busi-
ness sectors in Tamilnadu, India. We see in detail about the skill development of various sectors of the business.

KEYWORDS
business, development, entrepreneur, economic growth, skill development.

INTRODUCTION

E ntrepreneurship is an individuals ability to turn new ideas into action. Entrepreneur wants creativity, innovation and risk-taking, as well as the ability to
plan and manage projects in order to achieve objectives. It is seen as vital to promoting innovation, competitiveness and economic growth. Fostering
entrepreneurial spirit supports the creation of new firms and business growth. Entrepreneurship skill also provides benefits of whether a person interest
to starting a new business. They can be used across peoples personal and working lives for as they encompass creativity, initiative, tenacity, teamwork, under
standing of risk and a sense of responsibility (European, 2015).
Skill development is critical for economic growth and social development. Skill development is an important driver to address poverty reduction by improving
employability, productivity and helping sustainable enterprise development and inclusive growth (Konrad, 2015). It facilitates a cycle of high productivity, increased
employment opportunities, income growth and development. However, this is just one factor among many affecting the productivity whose measurement differs
for individuals, enterprise and economy. The increase in productivity could be due to availability of skilled & healthy manpower, technological up gradation and
innovative practices and macroeconomic strategies (Sunita & A, 2012).

OBJECTIVES OF THE STUDY

1. To Study the importance of entrepreneur skill development.
2. To Critically examine types of problems & issues in entrepreneurship.
3. To Study on support of youngster to develop entrepreneurship.
4. To Evaluate good skill development of the successful entrepreneur.

DEFINITION OF ENTREPRENEUR
Vignesh Tamilarasu defines, Entrepreneur is a person who led the organization, lead the society, to lead the economic development of the country.

ENTREPRENEURSHIP FOR SKILL DEVELOPMENT

Entrepreneur wants to update his knowledge in his business. The entrepreneur skills and knowledge are the engines of economic growth and social development
of any country. In the competitive world edge will be determined by the abilities of its people to create, share and use knowledge more effectively. On the Job
opportunities side, it is failing to create enough job opportunities (Juan, 2011). Professionals entering the job market are lacking in skill sets. This is resulting in a
scenario of rising unemployment rates along with low employability (Skill Development in Indiapresent status and recent developments, 2015 - 2016).

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 36

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
CONCEPTUAL FRAMEWORK OF FACTORS THAT CONTRIBUTE TO THE SUCCESS ENTREPRENEURS
FIG. 1

Competencies

Psychological Formal and Infor-

Characteris- mal Learning
tics

Early Childhood External Support

Experiences

Entrepreneurial Success

CHILDHOOD EXPERIENCES
In childhood experience was I found different kinds people and I get different kinds of experience. My dad started a new business of power loom. He works it for
his business work not successful, because of lack of man power. The handloom workers are available but the raw materials are not sufficient at the time he met
losses and business troubles to run business. These are problems may be he attend the problem faced by his business. I saw his trouble in each and every step of
his business. In the mean time I am seeing his business ideas and experience in his business. The impact of childhood experiences revealed common characteristics.
There was a relative predominance of being the younger child among the successful compared to the level of training they had received, responsibilities were
given and they were exposed to an environment which encouraged independence and creative exploration. This environment of independence laid the foundation
that enabled them to portray strong personalities able to handle problems and challenges through their journey to success. The independent environment enriched
their creative thoughts from an early age facilitating successful ventures later in life. All the participants had a very good relationship with their parents contrary
to the findings, and their father was voted as the most influential parent in their lives (Bhavna, 2015). They were brought up in an environment that was part
authoritarian and part permissive which fueled their creativity and independence. This experienced anxiety-laden stressful situations such as poverty, economic
hardships due to decisions of their parents, and death of a father, which influenced their decisions later in life. The training received during their childhood was
most useful to the company and produced goods or services of superior quality. Its gives a very good childhood experiences influenced their success. These early
childhood experiences were thus found to be a factor which contributed positively to their success (Chandrashekar & Bahal, 2012).

PSYCHOLOGICAL CHARACTERISTICS
Psychological characteristics which is the second factor identified was discussed in terms of need for achievement, locus of control, propensity to take risk, toler-
ance of ambiguity, self-confidence and innovativeness. The high degree of need for achievement entrepreneur is self- confidence. This was identified through their
high quality. Through their commitment and hard work in achieving the targets they have set for themselves. Considering the ability to tolerate ambiguities,
majority were identified to have moderate tolerance of ambiguity due to the different levels of uncertainty prevailing in the different chosen ventures. The entre-
preneur creativity required high degree of innovation to be successful (Yoganandan & Vignesh, 2016). It is further revealed that an alignment of these two factors
contributed to the success their respective industries. We observed that factors such as need for achievement, self confidence, risk taking ability and locus of
control were interrelated and worked as a force to result in their success. The ability of the entrepreneur to meet those requirements through their degree of
innovation and tolerance of ambiguities has resulted in achieving their success. Entrepreneurial Competencies exhibited traits of strong managerial capabilities,
hard work, sacrifices and dedication to the task. The elements relating to the competencies of the participants uncovered in the study is consistent with the
findings of the past research. Apart from these sacrifices, hard work and dedication to the task, the participants have advised their own unique way of managing
their employees and have cultivated unique abilities to be successful. Human relations were identified as an important aspect in their success and a unique style
of managing this resource surfaced from the study.

MANAGING EMPLOYEES AND DECISION MAKING

Entrepreneur wants to manage the each and every employee. He has to take a good decision maker at any time. Entrepreneur creates an environment of affection,
sense of belonging and commitment all around which are ingredients in his recipe for success. Affectionate qualities and the satisfaction he derives from helping
his employees. He stated that he had helped some of his members to build houses and also gives advice on how they must succeed in life. He acknowledged his
competent staff, which he considers as a part of himself and the reason for the success (Balamurugan & Kalai Rani, 2016).

UNIQUE COMPETITIVE ABILITIES

Their unique abilities in conducting their business competitively, differs with the different industry requirement venture. The inspiration of nature has enabled to
have own trademark of design, which was described as designs that flow through the garment and being very masculine. He has a competitive edge over his
competitors through his unique style and also through his high quality paints and dyes. The unique ability to be competitive was revealed through his ability in
combining his artistic talent with the exposure he has received from all over the world, seeing the art of living. So you uproot those things and you store it in your
mind. Then you play with whatever the resources here. They stated that their family was very important to them and they dont want to lose at any end. Their
unique abilities in conducting their business competitively were identified by the researcher as a reason behind their success. These abilities varied from creativity
which would be in design, products or in writing, quality in the products or service provided and a network of trained suppliers along with the expert knowledge
they had in operating their venture. The entrepreneurial competencies are various terms of business competitors and the exposure nature of the business. Thus
the term Entrepreneurial competencies encompass all the identified competencies and concluded as a contributory factor to their success (Surya Kumar &
Venkatesh, 2017).

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 37

CONCLUSION
Every person has a different skills and ideas. We are different thoughts and ideas are having by each and every person. But a successful entrepreneur has to be
getting their knowledge in the unique rules to follow. In this article we following to very simple and important of the business skills have to be growth of the
successive skill development of the entrepreneur. These are the above points to be showing the frame work of the successful entrepreneur to develop his skills
and making a good entrepreneur in this world.

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INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 38

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 39

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
GROWTH AND DEVELOPMENT OF TELECOM SECTOR IN INDIA: AN OVERVIEW

Dr. N. VIJAYAKUMAR
HEAD
PG & RESEARCH DEPARTMENT OF COMMERCE
SRIRAM COLLEGE OF ARTS & SCIENCE
PERUMALPATTU

ABSTRACT
After the implementation of the Federal Financial Integration Scheme on 1st April, 1950, the administration of the entire network of telegraphs and telephone
systems of the nation, including those that previously existed in the former princely state became a major adventure. India had around 84000 telephone lines for
its population of 350 million at the time of its independence in 1947. India is the fastest growing economy post its liberalization and globalization activism and
Asias third largest economy behind Japan and China. Indias telecom density is not so high as compared to the western market. These liberalization measures
introduced in the telecom sector were expected to boost the investors confidence, bring greater competition for the benefits of subscribers and develop modern
telecommunication network in the country at a faster pace. The rapid growth in Indian telecom industry has been contributing to Indias GDP at large. After
independence the growth in telecom sector in public sector was fair and well planned.

KEYWORDS
Indian telecom sector, growth & development, market share.

INTRODUCTION

T elecom is an essential infrastructure for economic development and hence for the improvement of the quality of human life. The use of telephone is in
different activities like social and economic, and gathering information and knowledge. From these the highest use goes to social activities. It is used for
saving time and expenditure in social and financial contexts. In India people are interested in owning mobile phones. The mobile telephone connection is
costly when compared with land phone connections, as the initial capital cost of handset purchase is more. Salaried and business people who are having compar-
atively high economic status were the most intensive users of mobiles. In the absence of cheaper fixed line services mostly in rural areas, there are increased use
of WLL phones and mobile phones. But in such cases there arise problems in the case of range also. As the desired inter locator is reached through telephony, and
the telephone is likely to be the quick way for communication, telephone has a considerable advantage over other communication channel in emergencies. Sim-
plicity in access makes telephony more particular in the case of priority requirement for all socio-economic groups.
The telecom services have been very much useful for promotion of employment. They create number of job opportunities in this new field. By the use of internet,
doctors are getting consultancy from all over the world. One can interact with another and can receive important tips about a particular case from the experience
of the other doctor. With the help of Telephone, producers and the middle men are able to gather information about the availability of raw material, market price
and finished products. Telephone is considered as the means for obtaining and sharing information. Public Telephone facilities are useful to the poor also. It can
replace the need to travel or postal costs. High level of use of telephone for Social networking implies that most of the rural areas are in need of subsidised access.
Wider access to internet service is possible through the expansion of telecommunications connectivity. Households in most contexts tend to spend, on average,
between 2 per cent and 4 per cent of house hold income on telecommunications. The use of telephone for the acquisition of information and knowledge was very
low till the introduction of availability of internet through phones.
Most of the developing countries are facing the growth phase of telecom sector, because of the technology changes in accordance with the local geography. At
the primary stage the numbers of mobile phone connections are lower than the number of land phone connections in developing countries. After 1995 most of
the developing countries are facing rapid growth in the cell phone penetration. While considering the technological development in the telecom sector, India is
late starter. India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian telecom network is the 8th largest in the world and
the second largest among the developing economies.

OBJECTIVES
The objectives of the research study are:-
1. To identify the present trends in the Indian Telecom Industry and its growth
2. To review the Government Telecom policies.
3. To study the future growth opportunities in the Indian Telecom Industry.

METHODOLOGY
It is based on secondary data collected from the Department of Telecommunication, Telecom Regulatory Authority of India, Ministry of Communication, the
reports from Government of India and other sources. In order to study the specified objectives, statistical tool like year-wise Percentage of market share of different
service provider, annual growth rate and percentage were calculated.

REVIEW OF LITERATURE
Dr.R.Srivastava, Dr. JatinBhangle, K.J.Somaiya, in their work on Role of Competition in Growing Markets: Telecom Sector. This paper studies the booming service
sector. The focus is on the cellular service providers in the country. In this topic suggests the role of competition in growing markets an industry, which is in the
growth stage, has been identified. The theory of product life cycle is explained with emphasis on the growth stage. It then studies the marketing strategies adopted
by the major players like Bharti, Reliance, Orange, Tatas etc. It also tries to show how in the product life cycle the various service providers are trying to fit in their
products and services.
Dr.S.K.Sinha, Ajay Wagh in his work on The Indian telecom sector has emerged as the fastest growing telecom market in the world. With more affordable services,
increased penetration and a supportive government along with regular fall in tariffs in the sector has brought significant changes in number of consumers and
usage of cellular telecom services. However, with galloping achievements, there are few challenges too, to be overcome by the Indian telecom industry to ride
high on the next growth wave
Shankar (2006) This article examines the emergence of innovation and value creation for enhancing customers' experience, as a result of increasing competition
in the Indian telecom industry during the late 1990s and early 2000s. The report provides a detailed account of the evolution of the Indian telecom industry. It
traces various developments in the industry before, during and after the liberalization of the Indian telecom sector. It also provides information about the increas-
ing popularity of cellular services, which led to the emergence of several private telecom operators like Bharati Tele Ventures, Hutchison Telecom, Idea Cellular
Ltd, Reliance Telecom Ltd, etc.
Gamie (2008), undertook a research to explore the challenges of reaching low-income customers in developing markets. The whole study is just one interview
based in which Anderson is asking question from Gurdeep Singh Operations Director with Hutchison Essar India. Now that discussion concludes that managers

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 40

DISCUSSION
This study has been conducted to depict the history and evolution, present trends and future opportunities in the Telecom Industry of India. Here, the researcher
has also discussed about the various Government Telecom Policies that govern this industry.
DEPARTMENT OF TELECOMMUNICATIONS (DOT)
In the year 1985, the DOT was set up to provide domestic and long distance telephone services. The telecom services have been recognized the world-over as an
important tool for socio-economic development of a nation and hence telecom infrastructure is treated as a crucial factor to realize the socio-economic objective
in India. Accordingly, the DOT has been formulating development policies and projects for the accelerated growth of the telecommunication services. The Depart-
ment is also responsible for frequency management in the field of radio connection in close co-ordination with the international bodies. It also enforces wireless
regulatory measures by monitoring wireless transmission of all uses in the country. The DOT has been the premier telecom service provider in India with its
presents through the length and breadth of the country. The Department in 1986 reorganized the Telecommunication circles with the SSAs as basic units. It was
implemented in a phased manner. With a view to deciding matters of policy, a separate telecom Board, named the Telecom Commission, was also setup. The
telecom commission was constituted in 1989. The Telecom commission was set up by the government of India with necessary executive, administrative and
financial powers to deal with various aspects of Telecommunications. The Commission has the DOT Secretary as its Chairman with Member (Services), Member
(Technology), and Member (Finance) as its fulltime members. The part time members are Secretary (IT), Secretary (Finance), secretary (Planning Commission),
Secretary (DOE), Secretary (Industries), and Secretary (IP & P). But this again composed mainly of the officers of the DOT. In 1999, modification was brought to the
policy. The DOT has a Public Grievances cell at Sanchar Bhavan, New Delhi, which receives various types of complaints related to telecom services and takes these
up with the concerned service provider for redressal.
TELECOM REGULATORY AUTHORITY OF INDIA (TRAI)
In the year 1997, the government setup the TRAI to provide a comprehensive telecom service in the country. With the entry of private sector in the provision of
telecommunication services a need was felt to have an independent regulatory body. This requirement was indicated in the guide lines issued for entry of private
sector in basic telecom service. Accordingly, TRAI was established in the year 1997 in pursuance of TRAI (ordinance) 1997, which was later replaced by an Act of
Parliament to regulate the telecommunication services. The desired objectives of bringing about functional clarity, strengthening the regulatory frame work and
the dispute settlement mechanism have been attained by bringing about a clear distinction between the regulatory and recommendatory functions of TRAI, by
making it mandatory for Government to seek recommendations of TRAI in respect of specified matters and by the setting up of separate dispute settlement
mechanism.
BHARATH SANCHAR NIGAM LIMITED (BSNL)
After finalization of various financial and HRD aspects, the business of running telecom operations throughout the country except in the metros of New Delhi and
Mumbai, the service providing functions of the Department of Telecom Services (DTS) and DTO were transferred to the newly created company BSNL. The two
newly carved out service providing Departments from the DOT, namely the Department of Telecom Services (DTS) and Department of Telecom Operations (DTO)
were corporatized ahead of schedule and a Public sector company Bharath Sanchar Nigam Ltd. (BSNL) was given all the service providing functions performed
by these two Departments w.e.f. October 1, 2000 and began its existence as a fresh entity. The creation of BSNL was expected to provide a level playing field, in
all areas of telecom services, between government operators and private operators.
With the corporatization of the two service providing Departments Viz. DTS and DTO in to a PSU BSNL, the role of Telecom commission has been changed. After
shedding the direct responsibility of service providing functions of the DOT, Telecom commission was responsible for policy formulation, licensing, wireless spec-
trum management, administrative monitoring of PSUs, research and development and standardization, validation of equipment etc.
Some of the other development activities of telecom sector are the following;
Opening up of National Long Distance Services
As per the new Telecom Policy (NTP), 1999, the Government has opened the National Long Distance Service beyond the service area to the private operators
without any restriction on the number of operators w.e.f 13th August, 2000. The government has also issued guidelines for providing Licenses to Infrastructure
Provider II (IPII) for the purpose of leasing/ renting out/ Selling end- toend band width. No formal license is required for providing assets such as Dark Fibres,
Right of way, Duct Space and Tower. They are only required to be registered as IPI.
Telecom Dispute Settlement and Appellate Tribunal (TDSAT)
A separate dispute settlement body known as Telecom Dispute Settlement and Appellate Tribunal to adjudicate any dispute between a licensor and licensee,
between two or more service providers, between a service provider and a group of subscribers, and to hear and dispose of appeals against any decision or order
to TRAI, has been formally constituted with the appointment of chairperson and two members. The tribunal has become operational and started hearing cases.
Strengthening of the Unit for Telecom- Economic Analysis
The Telecom Commission created a Policy planning cell in the Economic Research unit to prepare discussion papers, policy papers on national and international
issues relating to the telecom sector. The Economic Research Unit (ERU) in the Department of Telecommunications which is a multidisciplinary unit consisting of
economists, statisticians, engineers and financial experts, provides various inputs on technoeconomic issues relating to telecom policy formulation and planning.
The ERU compiles and disseminates various data on technoeconomic parameters relating to telecom sector. The unit provides telephone demand projections
for basic services to the Telecom commission and all the circle heads. The projections cover the demand at the all India level, each telecom circle and metro
telecom districts and all the stations with equipped capacity of 200 lines and above. It studies the trends in the investment by the private sector to provide various
telecom services. The ERU also carries out various techno-economic studies on specific issues relating to telecommunications, apart from sponsoring studies on
specific aspects. Accordingly, it has carried out technoeconomic studies on tariff related issues, call distribution pattern etc. and prepared a number of reports and
policy papers. It has prepared Indian Telecommunication statistics during the period under report. The material for the pre- Budget Economic Survey on Telecom-
munication was also prepared. The Annual Report of the Department of Telecommunication is also co-ordinated and brought out by the unit.
Manufacture of Telecom Equipments
India is a major manufacturer of a wide range of telecom equipments. The total production of telecom equipments and cables in terms of value has increased
from Rs. 3985 crores in 199293 to Rs. 8,300 crores in 1996-97 which further increased to Rs. 10760 crores during 1999- 2000. The Indian telecom equipment
industrys revenues fell marginally to Rs. 1,13,188 crores in 2011-2012 from 1,14,133 crores in 2010-2011.
Export of Telecom Equipments& Services
India has been recognized as a key supplier of products and technologies for rural telecom by international organization Viz and ITV. Vigorous efforts are being
made to increase the exports of telecom equipments and services.
Virtual Private Net work (VPN)
VPN is a private data network that provides connectivity within closed user groups Via public telecommunication infrastructure. Competition is likely to heat up in
the VPN segment as DOT has relaxed the norms for private players.
Public Telephones
The Opening up of Public Telephone (PTS) at various places like Bus station, Railway station, thickly populated areas and business areas were occurred so as to
satisfy the requirements of ordinary people. In the areas where the density of telephones was very low, PTS were opened. But the introduction of Mobile phones
has decreased the use of PTS. At the initial stage the PTS were only within the hands of DOT, as a monopoly. But the liberalization policies and the subsequent

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 41

INDIAN TELECOM SECTOR: AN OVERVIEW

Communications Sector has assumed the position of an essential infrastructure for socioeconomic development in an increasingly knowledge-intensive world. The
reach of telecom services to all regions of the country has become an integral part of an innovative and technologically-driven society. Studies have shown positive
correlation of the Internet and Mobile Services on growth of the GDP of a country. As a result of sustained efforts made by the Government over the years, the
Indian Telecom Sector has grown exponentially and has become the second largest network in the world, next only to China.
PRESENT STATUS
Present status of the Telecommunication sector (as on December 31, 2016)
Indian telecom network is the second largest in the world after china, in terms of the number of telephone connections
The country has 1124.41 million telephone connections, including 1099.97 million wireless telephone connections.
Overall tele-density in the country is 87.85%.
Urban tele-density is 164.13% whereas rural tele-density is 52.97%.
The share of wireless telephones in total telephones is 97.83%.
The share of private sector in total telephones is 89.58%.
Number of Broadband connections is 218.43 million at the end of December, 2016.
Wire line vs. Wireless
While wireless voice and data services has continued to grow, with some support from landline also, in facilitating high speed data services. Landline telephone
connections now stand at 24.44 million while the number of wireless telephone connections has grown to 1099.97 million at the end of November, 2016. As a
result, the share of wireless telephones increased to 97.83% of total services. The ever-expanding demand for wireless services has propelled the telecom sector
to mobilise considerable resources to create such ecosystem.
Public Vs. Private
Another noteworthy feature of the Indian Telecom Sector is the continuous rise in the number of subscribers in the private sector. At the end of November, 2016,
the total number of telephone connections provided by the private sector stood at 1007.27 million and number of telephone connections provided by the public
sector stood at 117.14 million. The share of private sector in the total number of connections was 89.58% at the end of November, 2016, as compared to public
sector share of 10.42% during the same period. In present scenario, the private sector has a dominant position in Telecom Sector.
FOREIGN DIRECT INVESTMENT POLICY IN TELECOM SECTOR
Telecom Sector is considered to be one of the most attractive sectors for Foreign Direct Investment (FDI) in the country. The Foreign Direct Investment (FDI) in all
telecom services is currently allowed up-to 100% (automatic route) as per the current FDI policy, subject to observance of licensing and security conditions by
licensee as well as investors as notified by the Department of Telecommunications (DoT) from time to time.

TABLE 1
Sr. sector/activity FDI Entry route
No cap/ Eq-
uity
1 Telecom services (including Telecom infrastructure Providers category-i) all telecom services including Telecom infrastruc- 100 % Automatic up
ture Providers category-i, viz. Basic, cellular, unified access services, unified license (access services), unified license, na- to 49%
tional/ international long Distance, commercial V-sat, Public mobile Radio Trunked services (PMRTS), global mobile Per- Beyond 49%
sonal communications services (GMPCS), all types of isP licences, Voice mail/ audiotex/ ums, Resale of iPlc, mobile number Through FIPB
Portability services, infrastructure Provider category i (providing dark fibre, right of way, duct space, tower) except other route
service Providers.
2 manufacture of Telecom Equipments 100% Automatic
Source: DIPP (Department of Industrial Policy and Promotion)

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 42

PROMOTION OF DOMESTIC MANUFACTURING OF TELECOM EQUIPMENTS

The government has taken key measures for the promotion of domestic manufacturing and export of telecom Equipments:
5% Basic Customs Duty (BCD) on perform of Silica has been imposed in budget 2016-17 to give a fillip to the domestic manufacturing of this telecom item
which is used in the manufacture of optical cable.
The Government has included the exporters of telecom products for availing the benefits under Interest Equalisation Scheme on Pre & Post Shipment Rupee
Export Credit, announced on November 18, 2015 (to be effective from 1st April 2015), subject to the compliance with minimum value addition criterion
issued by Department of Telecommunications vide notification dated 31.12.2016.
As per DGCIS data, the import of telecom equipments including mobile phones, parts and telecom cables during 2015-16 stands at `102,571 crores. Import during
the period April September, 2016 stands at `50,249 crores. The Export of Telecom equipments including mobile phones, parts and telecom cables during 2015-
16 is `8,490 crores and from Apr16 to Sept16 is `4,883 crores.
INTERNATIONAL COOPERATION (IC)
The IC Division deals with activities of prime importance relating to WTO negotiations, Bilateral and multilateral agreements relating to telecommunications,
Telecom Equipment and Services Export Promotion Council (TEPC), Telecommunications Standards Development Society of India (TSDSI), Telecom Centres of
Excellence (TCOE India), Exhibitions/ Conferences and seminars relating to telecom. The year 2016-17 (April-December) was marked by several important activities
in field of International Cooperation, which are broadly categorised as under:
i. India Telecom 2016
ii. Participation in RCEP (Regional Comprehensive Economic Partnership) on Telecom Services (SWG-TEL) meetings
iii. Telecom Equipment & Services Export Promotion Council (TEPC)
iv. Telecommunications Standards Development Society of India (TSDSI)
v. Telecom Centre of Excellence (TCOE), India (TCOE India).

CHALLENGES
Even though the Indian telecommunications sector has come a long way since the time of liberalization and promises growth, there are a number of issues which
still pose a challenge to its progress. Two critical issues are:
High capital investments
Well-established players who have a nationwide network
License fee
Continuously evolving technology
Declining Average Revenue Per User
Lack of Telecom Infrastructure
A wide variety of choices available to customers both in fixed as well as mobile telephony has resulted in increased bargaining power for the customers.

FUTURE GROWTH OPPORTUNITIES IN THE INDIAN TELECOM INDUSTRY

The Indian Telecom Industry has been considered as an essential tool for the socio- economic development and for growth of GDP in the country. The Indian
mobile economy is growing rapidly. The Government had raised the FDI limit from 74% to 100% during August 2013 which has made the telecom industry one of
the fastest growing and a top five employment opportunity generator in the country. The increase in FDI has been done to ensure continuous flow of investments
in the industry to expand the reach of mobile operators.
The Indian Telecom industry has undergone a progressive shift from voice services to data services, thereby creating a new direction for the future of this industry.
The Ministry of Communication and IT is planning to extend basic mobile coverage, including voice calling, in far flung areas of eight north eastern states, creating
a more inclusive telecom network across the country. This industry is expected to provide more than 4.1 million jobs in the coming five years. Therefore, this will
be favourable to professionals who aspire to pursue their career in this industry. The Indian Government has also decided to expand the basic telecom services in
the rural areas for increasing rural tele-density in future.
The Indian Telecom industry has been growing at an average of 35% a year for close to two decades which is beneficial to the country. The industry has touched
the lives of millions of Indians and will continue to remain a significant growth driver in the future also.

CONCLUSION
It can be concluded that the growth and development of Telecom sector of India has made it a key contributor in Indias economic and social up gradation. Every
functional division and service provider of Telecom Sector of the country is trying to provide world class telecom infrastructure in its area of operation to give
services to its customers and so, helping the country to progress in the global scenario.

REFERENCES
1. Anjana Prachi,etal: Telecom Industry-Business Environment Domain Study, 2009, http//www.scribd.com,5.08pm, 6th January, 2012.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 43

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 44

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
FUTURE CLOSING PRICE, TRADING VOLUME AND OPEN INTEREST: EVIDENCE FROM STOCK FUTURES &
INDEX FUTURES OF NIFTY 50 ON NSE IN INDIA

KERKAR PUJA PARESH

ASST. PROFESSOR
DEPARTMENT OF COMMERCE
M.E.S COLLEGE OF ARTS & COMMERCE
ZUARINAGAR- GOA

Dr. P. SRI RAM

ASST. PROFESSOR
FACULTY OF COMMERCE & MANAGEMENT
GOA UNIVERSITY
GOA

ABSTRACT
Futures are standardized contract between two parties to buy or sell an asset at a certain time in the future at a certain price. Open Interest is the total number of
outstanding contracts that are held by market participants at the end of the day. Open interest applies primarily to the futures market. Open interest, or the total
number of open contracts on a security, is often used to confirm trends and trend reversals for futures and options contracts. Open interest measures the flow of
money into the futures market. For each seller of a futures contract there must be a buyer of that contract. Thus a seller and a buyer combine to create only one
contract. Increasing open interest means that new money is flowing into the marketplace. The result will be that the present trend (up, down or sideways) will
continue. Technical analysis can easily see that the volume represents a measure of intensity or pressure behind a price trend. The greater the volume, the more
we can expect the existing trend to continue rather than reverse. This paper makes an attempt to study the relationship between future closing prices, trading
volume and open interest for Nifty Index and select 25 Stocks on Nifty 50 Index for near month contracts. Open interest is often used to know the trends and flow
of money, the relationship between these three often indicates the change of trend in the futures market.

KEYWORDS
futures closing price, trading volume, open interest, granger causality, co-integration.

INTRODUCTION
erivatives trading in India commenced in June 2000. NSE started operations in the derivatives segment on June 12, 2000. Initially, NSE introduced futures

D contracts on S&P CNX Nifty Index. However, the basket of instruments has widened considerably. Futures markets were designed to solve the problems
that exist in forward markets. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain
price. But unlike forward contracts, the futures contracts are standardized and exchange traded. To facilitate liquidity in the futures contracts, the exchange
specifies certain standard features of the contract. A futures contract may be offset prior to maturity by entering into an equal and opposite transaction. More
than 99% of futures transactions are offset this way. The effective use of futures contract in hedging decisions has become focus and centre of debate on finding
out an optimal hedge ratio and hedging effectiveness in empirical financial research. Financial media regularly reports daily trading activities to the stock markets.
The information content of this data in terms of volatilities of price, trading volume and market depth has long attracted the attention of many researchers, policy
makers and investors, to examine if there is any relationship between these variables and the types of relationship that exist between these variables. Trading
volume offers useful information for practitioners and investors in investment decisions, as well as for researchers and policy makers in testing the theories of
financial economics. The contemporaneous relation between price movements, trading volume and open interest on financial markets keeps attracting the atten-
tion of many financial economists (K. Srinivasana, 2010).

LITERATURE REVIEW
TarkDoru, mitBulut International (2012),The Price-Volume Relation in the Turkish Derivatives Exchange the paper examined the relation between closing
prices and trading volume of US Dollar (USD) futures contracts in the Turkish Derivatives Exchange (TURKDEX).The data set comprised of daily closing prices &
volume from 2009 to 2011.The results indicated that there is no relation between prices and volume in the short run, there is a relation from volume to prices in
the long run.
Christos Floros (2001) The Relationship between Trading Volume, Returns and Volatility: Evidence from the Greek Futures Markets this paper investigated
the contemporaneous and dynamic relationships between trading volume, returns and volatility for Greek index futures(FTSE/ASE-20 and FTSE/ASE Mid 40) taking
data of Daily closing prices and volume for FTSE/ASE-20 index Sept. 1997-August 2001. For FTSE/ASE Mid 40 index, the daily closing prices and trading volume Dec.
1999- August 2000 and used OLS, GARCH, Granger Causality, GMM models. The conclusions drawn were for FTSE/ASE-20, price volatility does not significantly
impact volumes volatility, and also, we conclude that a contemporaneous relationship does not hold. The dynamic models show a bi-directional Granger causality
(feedback) between volume and actual returns. However, for FTSE/ASE Mid 40, the results indicate that returns do notGranger cause volume and vice versa.
Jonathan M. Karpoff (1987) The Relation between Price Changes & Trading Volume: A Survey this paper reviewed previous & current research on the relation
between price changes & trading volume in financial markets and drawn various conclusions regarding each studies and a general conclusion drawn was that
volume is positively related to the magnitude of the price change.
K. Srinivasana, (2010), An Analysis of Price Volatility, Trading Volume and Market depth in Futures Market in India, this paper studied the conceptual frame-
work of derivatives market in India and assessed the dynamic relationship between price volatility, trading volume and market depth for selected stock futures
contracts and also to identify a suitable model to forecast volatility for stock futures contracts in India. The study was done for a period from Jan 2003 to Dec 2008
comprising of 25 stock futures contracts on NSE using ARCH and GARCH models. The study concluded that volatility is a part and parcel of capital market and have
a major effect in derivatives market fluctuations and is due to the other key determining factors like inflow of foreign capital into the country, Exchange Rate,
Balance of Payment and Interest Rates. It further draws out stating that there is a significant positive relationship between return volatility, expected trading
volume and expected open interest. Unexpected volume and open interest have a greater impact on volatility from the expected trading volume and open interest
whereas the Market depth does not have any effect on volatility.
Gulati Deepti (2012), Relationship between Price and Open Interest in Indian Futures Market: An Empirical Study this paper examined the relationship be
tween closing price and open interest in Indian stock index futures market considering a sample of Indices BANKNIFTY, MINIFTY, CNXIT, NIFTY and NIFTYMIDCAP50
for a period 2009-10 & 2010-11 using statistical tool Granger Causality and concluded that one can use the information of open interest to predict future prices in
the long run.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 45

RESEARCH METHODOLOGY
The analysis is conducted for Nifty 50 Index & 25 select stocks on NIFTY 50 Index traded on NSE India for a period from April 2005 to December 2015 considering
the inclusions and exclusions from the Nifty 50 Index constituents during the study period, using various tools to achieve the objective. In order to help in compar-
ative analysis the period of study is kept uniform from 1st April 2005 to 31st December 2015. The sample used in this study includes daily future close prices, trading
volume & open interest as major components or determinants in futures market for Nifty Index & 25 select stocks traded on NSE (www.nseindia.com). Since most
of the trading activity takes place in near month contracts, only near month contracts are examined. All the values are converted to natural logarithm, calculated
as Rt= LN(Pt / Pt-1) where Pt and Pt-1 are natural logarithms on day t and t-1 respectively to prevent non-stationarity, to achieve accurate results for the test incor-
porated.
TABLE 1: DESCRIPTION OF SAMPLE
INDEX & STOCKS NIFTY 50
Company Name Industry Symbol
ACC Ltd. CEMENT & CEMENT PRODUCTS ACC
Ambuja Cements Ltd. CEMENT & CEMENT PRODUCTS AMBUJACEM
Bank of Baroda FINANCIAL SERVICES BANKBARODA
Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING BHEL
Bharat Petroleum Corporation Ltd. ENERGY BPCL
Cipla Ltd. PHARMA CIPLA
GAIL (India) Ltd. ENERGY GAIL
HCL Technologies Ltd. IT HCLTECH
Housing Development Finance Corporation Ltd. FINANCIAL SERVICES HDFC
HDFC Bank Ltd. FINANCIAL SERVICES HDFCBANK
Hero MotoCorp Ltd. AUTOMOBILE HEROMOTOCO
Hindalco Industries Ltd. METALS HINDALCO
Hindustan Unilever Ltd. CONSUMER GOODS HINDUNILVR
ICICI Bank Ltd. FINANCIAL SERVICES ICICIBANK
Infosys Ltd. IT INFY
I T C Ltd. CONSUMER GOODS ITC
Mahindra & Mahindra Ltd. AUTOMOBILE M&M
Maruti Suzuki India Ltd. AUTOMOBILE MARUTI
Oil & Natural Gas Corporation Ltd. ENERGY ONGC
Reliance Industries Ltd. ENERGY RELIANCE
State Bank of India FINANCIAL SERVICES SBIN
Tata Motors Ltd. AUTOMOBILE TATAMOTORS
Tata Power Co. Ltd. ENERGY TATAPOWER
Tata Steel Ltd. METALS TATASTEEL
Tata Consultancy Services Ltd. IT TCS
DATA VARIABLES FUTURES CLOSE PRICES
TRADING VOLUME
OPEN INTEREST
PERIOD APRIL, 2005 TO DECEMBER 2015
TOOLS DESCRIPTIVE STATISTICS
UNIT ROOT TEST
GRANGER CAUSALITY
CO-INTEGRATION
VECTOR ERROR CORRECTION

OBJECTIVE
To assess the relationship between Future Close Price, Trading Volume and Open Interest for select Stock Index Futures & Stock Futures in India.

HYPOTHESIS
H0: There is no significant relationship between future close price, trading volume and open interest.
H1: There is significant relationship between future close price, trading volume and open interest.

DATA ANALYSIS & INTERPRETATION

DESCRIPTIVE STATISTICS
To assess the relationship between future close price, trading volume and open interest we calculate daily log-returns of the NIFTY stock Index and the select 25
stocks based on its daily future close price, trading volume and open interest during 1st April 2005 to 31st Dec. 2015. To know the distribution pattern and also the

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 46

TABLE 2: DESCRIPTIVE STATISTICS OF LOG FUTURE CLOSE PRICE (LNFCL)

Mean Std. Dev. Skewness Kurtosis Jarque-Bera Prob. Obs
ACC 0.000495 0.021327 -0.37702 8.171455 3037.38 0 2669
AMBUJACEM -0.00027 0.045586 -33.6615 1509.123 2.53E+08 0 2669
BANKBARODA -0.00013 0.040924 -23.1398 920.5788 93870142 0 2669
BHEL -0.00058 0.042624 -22.3122 819.2022 74306883 0 2669
BPCL 0.000332 0.027364 -5.85755 157.921 2684320 0 2669
CIPLA 0.000342 0.026352 -17.3538 622.7336 42845723 0 2669
GAIL 0.000199 0.023739 -2.63006 54.03742 292754.5 0 2669
HCLTECH 0.000302 0.032135 -7.39226 165.5796 2963780 0 2669
HDFC 0.00021 0.038564 -25.8802 1068.587 1.27E+08 0 2669
HDFCBANK 0.000255 0.037103 -30.4198 1321.784 1.94E+08 0 2669
HEROMOTOCO 0.0006 0.019482 0.43559 8.927979 3992.366 0 2669
HINDALCO -0.00104 0.053214 -29.6213 1271.6 1.79E+08 0 2669
HINDUNILVR 0.0007 0.018351 0.373241 7.438357 2252.663 0 2669
ICICIBANK -0.00017 0.041191 -22.1308 863.7654 82614012 0 2669
INFY -0.00026 0.030506 -13.4926 308.3661 10450990 0 2669
ITC -0.00053 0.056071 -40.0418 1862.726 3.85E+08 0 2669
MAHINDRA 0.000343 0.03037 -8.73226 201.7414 4426443 0 2669
MARUTI 0.000887 0.021347 -0.12623 6.341993 1249.164 0 2669
ONGC -0.00049 0.036324 -23.5156 920.9992 93963760 0 2669
RELIANCE 0.000217 0.02658 -8.12283 216.8377 5114523 0 2669
SBIN -0.00041 0.050314 -35.114 1596.692 2.83E+08 0 2669
TATAMOTORS -3.56E-05 0.042239 -22.8511 898.3168 89376019 0 2669
TATAPOWER -0.00063 0.051452 -34.5541 1562.17 2.71E+08 0 2669
TATASTEEL -0.00017 0.029492 -0.28732 6.2517 1212.589 0 2669
TCS 0.000195 0.028387 -11.5283 291.1232 9291074 0 2669
NIFTY50 0.000505 0.016255 -0.13364 11.26912 7612.185 0 2669
Source: Computed Value.
The following significant observations can be made from the Table 2:
The mean returns of the future close prices of the stocks namely ACC, BPCL, CIPLA, GAIL, HECLTECH, HDFC, HDFCBANK, HEROMOTOCORP, HINDULVR, MAHINDRA,
MARUTI, RELIANCE, TCS & NIFTY INDEX are positive which implies the price series had increased and that of AMBUJACEM, BANKBARODA, BHEL, HINDALCO,
ICICIBANK, INFOSYS, ITC, ONGC, SBI, TATAMOTORS, TATAPOWER & TATASTEEL are negative implies that the price series had decreased over the period from April
2005 to December 2015. The volatile nature of the stocks is evident from the statistics on standard deviation of daily future close price returns. The least volatile
stock is HINDULVR with standard deviation of 0.018351 & NIFTY50 Index with 0.016255. The highest standard deviation is observed in the ITC with 0.056071
indicating the most highly volatile stock in terms of the future close prices. Negatively skewed implies that the return distribution of stock futures have a heavier
tail of larger values and hence a higher probability of earning higher returns for all the stocks except for HEROMOTOCORP & HINDULVR having positive skewness
which means there are higher chances of generating lower returns. Kurtosis value exceeds 3, showing a leptokurtic curve indicates that the unconditional return
distributions are not normal. JB test confirms that the normality is rejected at p-value of almost 1% level of significance.

TABLE 3: DESCRIPTIVE STATISTICS OF LOG TRADING VOLUME (LNTV)

Mean Std. Dev. Skewness Kurtosis Jarque-Bera Prob. Obs
ACC -8.20E-06 0.535492 0.226724 8.528396 3421.744 0 2669
AMBUJACEM -0.00016 0.555662 0.241716 8.605629 3520.498 0 2669
BANKBARODA 0.000558 0.560997 0.397996 10.88676 6987.725 0 2669
BHEL 4.94E-05 0.519867 0.368069 10.37367 6106.781 0 2669
BPCL 0.000275 0.562395 0.229893 8.914608 3913.864 0 2669
CIPLA 0.000275 0.521118 0.405335 7.178353 2014.63 0 2669
GAIL 0.000305 0.54108 0.349572 8.594088 3534.492 0 2669
HCLTECH 9.85E-05 0.567062 0.169887 8.619884 3525.142 0 2669
HDFC 0.00099 0.499458 0.159323 11.85359 8728.47 0 2669
HDFCBANK 0.000842 0.479826 0.247424 15.82275 18312.44 0 2669
HEROMOTOCO 0.000415 0.581379 0.207617 9.358389 4515.229 0 2669
HINDALCO 0.000325 0.48984 0.305205 10.15415 5733.287 0 2669
HINDUNILVR 0.000425 0.567436 0.442967 9.778887 5197.676 0 2669
ICICIBANK 0.000328 0.45513 0.071896 12.29443 9609.186 0 2669
INFY -0.00016 0.491129 0.389083 9.248138 4408.829 0 2669
ITC 0.000315 0.514091 0.407017 10.00985 5538.248 0 2669
MAHINDRA 0.000132 0.507559 0.046215 11.701 8420.248 0 2669
MARUTI 0.000134 0.516561 0.331866 7.383649 2186.013 0 2669
ONGC -9.69E-05 0.493238 -0.04483 8.16748 2970.473 0 2669
RELIANCE 6.62E-05 0.427935 0.109813 11.35279 7764.273 0 2669
SBIN 6.65E-05 0.459578 0.207083 13.627 12578.19 0 2669
TATAMOTORS 3.26E-05 0.451079 0.160761 10.67715 6565.966 0 2669
TATAPOWER 2.06E-05 0.547282 0.352504 8.468149 3380.477 0 2669
TATASTEEL -0.00033 0.43702 0.216524 13.78314 12951.73 0 2669
TCS 1.89E-05 0.495936 0.117446 9.823744 5184.383 0 2669
NIFTY50 -4.57E-06 0.391216 0.191517 15.82388 18304.74 0 2669
Source: Computed Value.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 47

TABLE 4: DESCRIPTIVE STATISTICS OF LOG OPEN INTEREST (LNOI)

Mean Std. Dev. Skewness Kurtosis Jarque-Bera Prob. Obs
ACC -0.00081 0.350468 2.555326 15.75862 21007.4 0 2669
AMBUJACEM 5.72E-05 0.357414 2.779372 15.43037 20619.54 0 2669
BANKBARODA 0.000555 0.40432 3.102012 20.99252 40281.98 0 2669
BHEL 0.000476 0.363999 2.975188 16.25741 23483.39 0 2669
BPCL 0.000144 0.32788 2.491713 15.27158 19508.84 0 2669
CIPLA -0.00067 0.354197 2.655858 16.04404 22059.44 0 2669
GAIL -0.00057 0.272197 2.67606 17.17358 25526.26 0 2669
HCLTECH 0.0001 0.303415 2.799059 18.15802 29036.99 0 2669
HDFC 0.000527 0.298313 3.197138 18.96862 32904.73 0 2669
HDFCBANK 0.000755 0.316858 3.418695 20.7166 40104.8 0 2669
HEROMOTOCO 0.000223 0.319232 3.006789 17.93393 28823.58 0 2669
HINDALCO 0.001107 0.425079 2.987978 16.6811 24786.61 0 2669
HINDUNILVR -0.00095 0.324284 3.092947 16.76979 25341.31 0 2669
ICICIBANK 0.000248 0.305722 3.214101 18.2706 30528.13 0 2669
INFY 0.000254 0.301363 2.974793 16.85261 25276.82 0 2669
ITC 0.000867 0.28579 3.103127 19.50013 34560.42 0 2669
MAHINDRA -0.00023 0.330715 3.013795 18.82943 31905.98 0 2669
MARUTI -0.00053 0.376441 2.842501 15.82001 21871.54 0 2669
ONGC 0.000108 0.280175 3.082985 20.70021 39069.35 0 2669
RELIANCE -0.00054 0.365008 2.987704 16.96566 25660.78 0 2669
SBIN 0.000246 0.344187 2.900405 15.49684 21109.6 0 2669
TATAMOTORS 2.30E-05 0.356943 2.805331 14.92636 19318.85 0 2669
TATAPOWER 0.000257 0.324334 2.772501 17.41993 26543.38 0 2669
TATASTEEL -0.00053 0.396282 2.734421 14.45466 17917.61 0 2669
TCS -0.00012 0.303754 2.798602 15.68787 21386.55 0 2669
NIFTY50 -0.00029 0.218197 3.213629 17.49824 27969.84 0 2669
Source: Computed Value.
The following significant observations can be made from the Table 4:
The mean of the open interest series of the stocks have positive means except for stocks namely ACC, CIPLA, GAIL, HINDULVR, MAHINDRA, MARUTI, RELIANCE,
TATASTEEL, TCS & NIFTY50 Index having negative mean indicating that the stocks had lower open interest. The volatile nature of the stocks is evident from the
statistics on standard deviation of daily open interest series. The highest standard deviation is observed in HINDALCO with 0.425079 standard deviation in its daily
open interest and the lowest volatile open interest in GAIL with 0.272197 standard deviation and the least in NIFTY50 index with 0.218197 standard deviation. All
the stocks are having positive skewness. Kurtosis value exceeds 3, showing a leptokurtic curve indicates that the unconditional return distributions are not normal.
JB test confirms that the normality is rejected at p-value of almost 1% level of significance.
UNIT ROOT TEST:
AUGMENTED DICKEY FULLER TEST
This study uses the standard Augmented Dickey-Fuller test (ADF) to test whether the assumed time series is I (1) which is a necessary condition for the further
testing procedure. First, test for the unit roots in the cases when intercept is present in the regression, then when there is intercept and trend, and finally without
intercept and trend. If not able to reject the null Hypothesis about the unit root run the ADF on the first differences of the original time series. In this step, we can
reject the null Hypothesis about the unit root in order to be able to conclude that the original time series are I (1). The data used for are daily future close prices,
trading volume and open interest and covers for a period from 1 st April 2005 to 31st December 2015. All the daily values are converted to natural logarithm,
calculated as Rt= LN (Pt / Pt-1) where Pt and Pt-1 are natural logarithms on day t and t-1 respectively. The variables for the study after converting to natural logarithms
the series are found to be stationary at levels and hence we reject the null concluding that the series has a unit root. Thus, the series are stationary since the null
hypothesis is rejected that the data is non-stationary or has a unit root as represented in the table 5.
H0- Has a unit root (i.e. the data is non-stationary)
H1- Does not have a unit root (i.e. the data is stationary)

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A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
TABLE 5: ADF TEST RESULTS FOR FUTURE CLOSE PRICE, TRADING VOLUME & OPEN INTEREST
COMPANY FUTURE CLOSE PRICE TRADING VOLUME OPEN INTEREST
/INDEX INTERCEPT TREND & INTERCEPT NONE INTERCEPT TREND & INTERCEPT NONE INTERCEPT TREND & INTERCEPT NONE
ACC -49.44427* -49.45073* -49.42802* -25.40015* -25.39709* -25.40495* -20.22992* -20.22561* -20.23093*
AMBUJACEM -53.17460* -53.18925* -53.18269* -20.22263* -20.21895* -20.22614* -18.44813* -18.46334* -18.44727*
BANKBARODA -50.92400* -50.94875* -50.93301* -25.32045* -25.31574* -25.32414* -19.54850* -19.59323* -19.52876*
BHEL -49.80415* -49.82187* -49.80461* -21.03406* -21.04092* -21.03686* -22.06313* -22.05723* -22.01805*
BPCL -51.00927* -51.00404* -51.01144* -26.22229* -26.21742* -26.22648* -19.38395* -19.38503* -19.38089*
CIPLA -50.54330* -50.53977* -50.54443* -25.87468* -25.86991* -25.87913* -11.92826* -11.92129* -11.93025*
GAIL -53.82910* -53.82450* -53.83524* -20.21917* -20.21627* -20.22238* -17.94130* -17.95523* -17.94488*
HCLTECH -51.26471* -51.25646* -51.26982* -20.23175* -20.22731* -20.23552* -17.67669* -17.67196* -17.67522*
HDFC -51.65956* -51.65341* -51.66772* -20.84416* -20.86079* -20.83095* -19.08543* -19.09197* -19.05194*
HDFCBANK -51.36043* -51.35435* -51.36765* -21.26849* -21.28470* -21.25261* -14.77491* -14.77996* -14.71983*
HEROMOTOCO -50.38299* -50.37687* -50.34587* -21.77134* -21.77245* -21.77331* -20.55861* -20.56055* -20.55939*
HINDALCO -51.39215* -51.40389* -51.38235* -25.93010* -20.96356* -25.93315* -19.67183* -19.76123* -14.85063*
HINDUNILVR -51.67432* -51.66463* -51.60887* -20.90741* -20.90820* -20.91112* -21.61472* -21.63116* -21.60956*
ICICIBANK -49.88977* -49.91406* -49.89833* -21.83274* -21.84288* -21.83295* -19.08163* -19.08127* -19.06223*
INFY -52.20194* -52.20519* -52.20778* -25.03938* -25.03444* -25.04377* -18.98747* -18.98362* -18.98140*
ITC -51.51800* -51.53465* -51.52308* -21.38062* -21.37958* -21.38377* -15.34213* -15.39047* -15.32804*
MAHINDRA -48.91175* -48.90294* -48.91500* -21.86845* -21.86506* -21.87179* -19.75003* -19.74644* -19.75336*
MARUTI -49.36379* -49.35789* -49.29166* -20.03533* -20.03608* -20.03909* -20.44012* -20.43487* -20.44387*
ONGC -51.32418* -51.31807* -51.32469* -22.17596* -22.17266* -22.18008* -17.25163* -17.24617* -17.24861*
RELIANCE -50.59414* -50.59995* -50.60032* -21.15472* -21.15890* -21.15870* -15.76358* -15.76468* -15.76676*
SBIN -51.17824* -51.22239* -51.18442* -25.36065* -25.36008* -25.36534* -12.58881* -12.63073* -12.57239*
TATAMOTORS -45.56743* -48.55966* -48.57650* -19.84336* -19.84069* -19.84701* -20.55966* -20.55492* -20.55666*
TATAPOWER -52.42049* -52.43148* -52.42237* -19.95400* -19.95161* -19.95764* -17.37814* -17.37764* -17.36776*
TATASTEEL -49.56544* -49.56415* -49.57308* -21.96474* -21.96053* -21.96777* -21.34337* -21.36506* -21.34762*
TCS -51.33602* -51.34425* -51.34323* -21.25762* -21.25354* -21.26159* -20.07205* -20.07661* -20.07542*
NIFTY50 -50.78146* -50.78380* -50.74270* -26.21663* -26.22492* -26.22160* -20.62173* -20.63365* -20.62618*
Source: Computed Value. Note: * denotes rejection of null hypothesis at 5% level of significance
GRANGER CAUSALITY TEST
The procedure for testing statistical causality between future close prices, trading volume and open interest a direct Granger-causality test proposed by C. J.
Granger in 1969 is used. Granger causality may have more to do with precedence, or prediction, than with causation in the usual sense. It suggests that while the
past can cause/predict the future, the future cannot cause/predict the past. According to Granger, X causes Y if the past values of X can be used to predict Y more
accurately than simply using the past values of Y. In other words, if past values of X statistically improve the prediction of Y, then we can conclude that X Granger-
causes Y. To determine whether a cause and effect relationship exists between future close prices, trading volume and open interest the 8 lagged values have
been used from the VAR Lag Order Selection Criteria. In case of Granger causality between the two variables, null hypothesis is rejected if the probability value is
less than alpha (0.05).
H01- Trading Volume does not granger cause Future Close Price
H02- Future Close Price does not granger cause Trading Volume
H03- Open Interest does not granger cause Future Close Price
H04- Future Close Price does not granger cause Open Interest
H05- Open Interest does not granger cause Trading Volume
H06- Trading Volume does not granger cause Open Interest
To select the lags VAR Lag Order Selection Criteria is used so that causality test is run using optimum lags of 8 for all stocks.

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A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
TABLE 6: GRANGER CAUSALITY TEST RESULTS
COMPANY LAGS LNTV -> LNFCL LNFCL -> LNTV LNOI -> LNFCL LNFCL -> LNOI LNOI -> LNTV LNTV -> LNOI
0.87600 0.96229 1.27730 1.193396 4.88061 2.25588
ACC 8
(0.5359) (0.4637) (0.2506) (0.2984) (5.E-06)* (0.0212)*
0.50221 1.07044 0.23488 1.96753 7.32736 2.76505
AMBUJACEM 8
(0.8554) (0.3808) (0.9845) (0.0467)* (1.E-09)* (0.0048)*
2.40102 1.31690 1.43122 2.69714 5.30968 3.13318
BANKBARODA 8
(0.0140)* (0.2300) (0.1781) (0.0059)* (1E-06)* (0.0016)*
0.27694 0.41900 0.92935 1.60358 5.66984 14.3556
BHEL 8
(0.9736) (0.9102) (0.4907 (0.1185) (4.E-07)* (1.E-20)*
1.07640 2.01943 2.49853 1.47506 2.10634 2.05129
BPCL 8
(0.3765) (0.0406)* (0.0106)* (0.1609) (0.0321)* (0.0373)*
1.97148 1.47851 1.83609 2.35204 4.75999 0.79238
CIPLA 8
(0.0462)* (0.1596) (0.0660) (0.0161)* (8.E-06)* (0.6094)
0.97848 0.39780 0.35387 0.31639 3.18222 2.94172
GAIL 8
(0.4507) (0.9223) (0.9444) (0.9602) (0.0013)* (0.0028)*
0.62998 0.39574 2.12824 2.22376 6.26226 0.76542
HCLTECH 8
(0.7532) (0.9234) (0.0302)* (0.0232)* (5.E-08)* (0.6334)
0.63315 1.37799 1.02976 2.38206 7.11389 3.29489
HDFC 8
(0.7505) (0.2009) (0.4109) (0.0148)* (2.E-09)* (0.0009)*
0.81879 0.91320 0.48059 0.45578 8.86705 7.72059
HDFCBANK 8
(0.5859) (0.5042) (0.8707) (0.8874) (5.E-12)* (3.E-10)*
1.85624 0.80576 0.76149 2.93770 2.81814 4.45168
HEROMOTOCO 8
(0.0626) (0.5975) (0.6370) (0.0029)* (0.0041)* (2.E-05)*
1.17936 1.02161 3.63050 1.45610 6.47234 1.99115
HINDALCO 8
(0.3074) (0.4171) (0.0003)* (0.1682) (2.E-08)* (0.0438)*
1.66319 1.45719 0.66046 0.47284 4.17845 6.62238
HINDUNILVR 8
(0.1023) (0.1678) (0.7268) (0.8760) (6.E-05)* (1.E-08)*
0.77736 0.35577 2.57175 1.20922 4.95258 2.51326
ICICIBANK 8
(0.6228) (0.9435) (0.0085)* (0.2892) (4.E-06)* (0.0101)*
1.43499 0.48501 2.74565 1.97641 8.32323 1.68752
INFY 8
(0.1766) (0.8676) (0.0051)* (0.0456)* (3.E-11)* (0.0963)
1.67823 0.83769 1.12320 4.36115 2.78304 1.24084
ITC 8
(0.0986) (0.5692) (0.3439) (3.E-05)* (0.0046)* (0.2707)
0.59680 0.60468 3.35103 0.97113 3.11027 2.43893
MAHINDRA 8
(0.7813) (0.7747) (0.0008)* (0.4566) (0.0017)* (0.0126)*
1.12695 0.36833 1.31380 1.43540 3.30797 6.21823
MARUTI 8
(0.3414) (0.9376) (0.2316) (0.1764) (0.0009)* (5.E-08)*
1.38749 0.56186 3.92663 0.82005 5.89598 1.51142
ONGC 8
(0.1967) (0.8098) (0.0001)* (0.5848) (2.E-07)* (0.1478)
0.23528 0.64271 0.54408 0.85111 8.47813 3.55988
RELIANCE 8
(0.9844) (0.7422) (0.8239) (0.5575) (2.E-11)* (0.0004)*
1.18914 0.84973 0.41133 2.42117 10.2656 2.64491
SBIN 8
(0.3014) (0.5587) 0.9147) (0.0132)* (3.E-14)* (0.0069)*
0.88336 1.05992 0.20330 0.59096 5.21307 3.02438
TATAMOTORS 8
(0.5296) (0.3885) (0.9904) (0.7861) (2.E-06)* (0.0022)*
0.45691 1.09727 0.38908 1.14243 2.90871 2.45096
TATAPOWER 8
(0.8867) (0.3618) (0.9270) (0.3311) (0.0031)* (0.0121)*
0.69792 1.28310 3.30496 0.43100 8.61865 2.09519
TATASTEEL 8
(0.6937) (0.2475) (0.0009)* (0.9031) (1.E-11)* (0.0331)*
1.44022 0.94181 0.51530 1.09507 12.6793 1.54028
TCS 8
(0.1745) (0.4804) (0.8458) (0.3633) (5.E-18) (0.1380)
0.63561 7.69739 1.57242 1.03338 13.0698 2.16599
NIFTY50 8
(0.7484) (3.E-10)* (0.1278) (0.4082) (1.E-18 (0.0272)*
Source: Computed Value. Note: * denotes rejection of null hypothesis at 5% level of significance
Table 6 represents the results from Granger Causality test for select 25 stocks and NIFTY50 Index. We reject the null hypothesis that there exists bidirectional
causality for all the stocks from Open Interest to Trading Volume and Trading Volume to Open Interest except in case of HCLTECH, INFOSYS & ITC there exist a
unidirectional causality from Open Interest to Trading Volume and for Nifty50 from Trading Volume to Open Interest. There is no causality for TCS stock from
Trading Volume to Open Interest. There exists a unidirectional causality from Open Interest to Future Close Price except for ACC, HDFCBANK, HINDULVR, RELIANCE,
TATAMOTORS, TATAPOWER, and TCS & NIFTY50. Bi-directional causality is being observed from Open Interest to Future Close Price for HCLTECH & INFOSYS. There
exists no causality from Trading Volume to Future Close Price except for BANKBARODA from trading volume to future close price and for CIPLA & BPCL from Future
Close Price to Trading Volume. Overall it can be concluded that there are high chances of predicting Open Interest from Trading Volume or vice-versa due to
significant results from the causality test for almost all the stocks is evident.
CO-INTEGRATION
With the previous results of unit root tests, we have two I (1) variables. We can test whether there is a long-run relationship between Future close prices, trading
volume and open interest. Co-integration test can be used to examine stable long-run relations between two or more variables. Co-integration means that one or
more combination of the variables is stationary even though each variable is not. If we can reject the null hypothesis about the unit root, we can conclude that
the variables are co-integrated of the orders CI (1). If there exists co-integration between variables, we can test short-run dynamics between two series within the
framework of an error correction model.
To investigate the existence of a long-term relationship between real and financial variables, we explore existence of any significant long-run relationships among
the variables in our model. If the real and financial variables are co-integrated with one another, then this will provide statistical evidence for the existence of a
long-run relationship. Though, a set of economic series are not stationary, there may exist some linear combination of the variables which exhibit a dynamic
equilibrium in the long run (Engle and Granger 1987).
Since the series of all the variables are integrated of same order, the Johansenss Co-integration test is used to examine the long run relationship and the results
are summarised in the table 7.
H0- there is no co-integration between Future Close Price, Trading Volume & Open Interest
H1- there is co-integration between Future Close Price, Trading Volume & Open Interest

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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
TABLE 7: JOHANSEN CO-INTEGRATION RESULTS
STOCK NO.OF CE(S) EIGENVALUE TRACE STATISTIC PROBABILITY
ACC NONE 0.075218 270.2254 0.0001*
AT MOST 1 0.021390 61.90758 0.0000*
AT MOST 2 0.001615 4.305711 0.0380*
AMBUJACEM NONE 0.093350 333.8491 0.0001*
AT MOST 1 0.019674 72.78044 0.0000*
AT MOST 2 0.007422 19.84588 0.0000*
BANKBARODA NONE 0.061583 191.9182 0.0001*
AT MOST 1 0.007150 22.59255 0.0036*
AT MOST 2 0.001304 3.475609 0.0623
BHEL NONE 0.043583 180.1766 0.0001*
AT MOST 1 0.022257 61.46569 0.0000*
AT MOST 2 0.000564 1.504216 0.2200
BPCL NONE 0.073203 250.5278 0.0001*
AT MOST 1 0.017101 48.00825 0.0000*
AT MOST 2 0.000771 2.055812 0.1516
CIPLA NONE 0.087576 304.6935 0.0001*
AT MOST 1 0.021406 60.53549 0.0000*
AT MOST 2 0.001085 2.891380 0.0891
GAIL NONE 0.110843 363.6489 0.0001*
AT MOST 1 0.016165 50.67891 0.0000*
AT MOST 2 0.002723 7.264793 0.0070*
HCLTECH NONE 0.080714 295.0346 0.0001*
AT MOST 1 0.025150 70.83714 0.0000*
AT MOST 2 0.001118 2.979565 0.0843
HDFC NONE 0.050774 169.4764 0.0001*
AT MOST 1 0.009677 30.66045 0.0001*
AT MOST 2 0.001783 4.754302 0.0292*
HDFCBANK NONE 0.116181 342.6026 0.0001*
AT MOST 1 0.003111 13.59150 0.0948
AT MOST 2 0.001984 5.291357 0.0214*
HEROMOTOCO NONE 0.111727 406.8214 0.0001*
AT MOST 1 0.033330 91.20161 0.0000*
AT MOST 2 0.000336 0.896278 0.3438
HINDALCO NONE 0.056257 282.7167 0.0001*
AT MOST 1 0.035974 128.4684 0.0001*
AT MOST 2 0.011520 30.86704 0.0000*
HINDULVR NONE 0.097707 404.8178 0.0001*
AT MOST 1 0.047955 130.9168 0.0001*
AT MOST 2 5.77E-08 0.000154 0.9917
ICICIBANK NONE 0.025149 103.9706 0.0000*
AT MOST 1 0.010718 36.11634 0.0000*
AT MOST 2 0.002778 7.410052 0.0065*
INFOSYS NONE 0.117687 394.1586 0.0001*
AT MOST 1 0.020173 60.60482 0.0000*
AT MOST 2 0.002367 6.313846 0.0120*
ITC NONE 0.108459 378.2975 0.0001*
AT MOST 1 0.020385 72.46049 0.0000*
AT MOST 2 0.006583 17.59405 0.0000*
M&M NONE 0.100254 338.1273 0.0001*
AT MOST 1 0.019675 56.69403 0.0000*
AT MOST 2 0.001410 3.757834 0.0526
MARUTI NONE 0.120288 461.8534 0.0001*
AT MOST 1 0.042533 120.4327 0.0001*
AT MOST 2 0.001742 4.643651 0.0312*
ONGC NONE 0.073979 237.8241 0.0001*
AT MOST 1 0.011445 33.07228 0.0001*
AT MOST 2 0.000903 2.406589 0.1208
RELIANCE NONE 0.031077 145.2358 0.0001*
AT MOST 1 0.021298 61.13175 0.0000*
AT MOST 2 0.001419 3.781998 0.0518
SBIN NONE 0.055732 185.5875 0.0001*
AT MOST 1 0.010814 32.81904 0.0001*
AT MOST 2 0.001445 3.852466 0.0497*
TATAMOTORS NONE 0.079052 256.2489 0.0001*
AT MOST 1 0.012623 36.86329 0.0000*
AT MOST 2 0.001133 3.021238 0.0822
TATAPOWER NONE 0.042181 146.2759 0.0001*
AT MOST 1 0.011220 31.46558 0.0001*
AT MOST 2 0.000528 1.405941 0.2357
TATASTEEL NONE 0.057867 273.1844 0.0001*
AT MOST 1 0.040346 114.3876 0.0001*
AT MOST 2 0.001754 4.677142 0.0306*
TCS NONE 0.100684 365.0457 0.0001*
AT MOST 1 0.030291 82.33842 0.0000*
AT MOST 2 0.000148 0.394928 0.5297
NIFTY50 NONE 0.078680 270.9873 0.0001*
AT MOST 1 0.018962 52.67701 0.0000*
AT MOST 2 0.000630 1.678458 0.1951
Source: Computed Value. Note: * denotes rejection of hypothesis at 5% level of significance

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 51

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A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
TABLE 8: VECTOR ERROR CORRECTION RESULTS
STOCKS C(1): LNF CL (-1) C(2): D LNF CL (-1) C(3): D LN F CL (-2) C(4): D LNTV (-1) C(5): D LNTV (-2) C(6): D LNOI (-1) C(7): D LNOI (-2) C(8): C
ACC 0.002658 -0.62906 -0.3218 0.006118 0.002735 -0.00155 0.000571 6.07E-06
3.440242 -33.9726 -17.3793 3.490901 2.754907 -1.45337 0.538897 0.012762
0.0006* 0* 0* 0.0005* 0.0059* 0.1462 0.59 0.9898
AMBUJACEM -0.00044 -0.69247 -0.34314 0.004604 0.001846 -0.001 -0.00068 5.92E-06
-1.27605 -37.7906 -18.7285 1.290793 0.904584 -0.44547 -0.30468 0.005794
0.2021 0* 0* 0.1969 0.3658 0.656 0.7606 0.9954
BANKBARODA 0.004484 -0.65598 -0.33077 0.004457 -0.00037 -0.0004 0.000248 2.36E-05
2.04573 -35.512 -18.0025 1.396495 -0.20397 -0.20092 0.139012 0.025799
0.0409* 0* 0* 0.1627 0.8384 0.8408 0.8895 0.9794
BHEL 7.18E-05 -0.62972 -0.31946 0.00182 0.000421 -0.00375 -0.0004 -4.53E-06
0.318537 -34.1693 -17.3511 0.530931 0.206798 -1.58102 -0.18832 -0.00474
0.7501 0* 0* 0.5955 0.8362 0.114 0.8506 0.9962
BPCL 0.014252 -0.67264 -0.32215 0.007435 0.004279 0.000728 0.000542 -1.45E-06
2.811966 -35.5764 -17.2147 3.463649 3.49451 0.506506 0.377275 -0.00238
0.005* 0* 0* 0.0005* 0.0005* 0.6125 0.706 0.9981
CIPLA -0.0035 -0.63762 -0.33415 -0.00068 -0.00156 -0.00123 -0.00203 1.02E-07
-0.89417 -34.387 -18.1661 -0.33325 -1.28355 -0.92893 -1.55264 0.000172
0.3713 0* 0* 0.739 0.1994 0.353 0.1206 0.9999
GAIL -0.00134 -0.69064 -0.36236 0.000343 0.000935 -0.00123 -0.00039 1.73E-05
-0.38855 -37.8432 -19.9158 0.18025 0.851148 -0.79463 -0.25819 0.032352
0.6976 0* 0* 0.857 0.3948 0.4269 0.7963 0.9742
HCLTECH 0.002115 -0.63669 -0.31494 0.005013 0.00256 -0.00094 0.00019 -9.45E-07
2.057605 -34.4533 -17.0485 2.009456 1.78903 -0.49874 0.10134 -0.0013
0.0397* 0* 0* 0.0446* 0.0737 0.618 0.9193 0.999
HDFC -0.00273 -0.65138 -0.33231 0.003294 0.001549 -0.00171 -0.00082 8.96E-06
-1.19883 -35.4113 -18.1162 0.941303 0.784692 -0.70994 -0.35654 0.010301
0.2307 0* 0* 0.3466 0.4327 0.4778 0.7215 0.9918
HDFCBANK -0.00259 -0.65408 -0.33508 0.004961 0.00266 -0.00041 -0.001 7.83E-06
-0.85683 -35.4942 -18.2606 1.436606 1.356414 -0.16362 -0.46447 0.0094
0.3916 0* 0* 0.1509 0.1751 0.87 0.6423 0.9925
HEROMOTOCO -0.00575 -0.60711 -0.31487 -0.00376 -0.00233 -0.00134 -0.0005 -1.58E-06
-2.3204 -32.8494 -17.0753 -2.58025 -2.75772 -1.14204 -0.45455 -0.00357
0.0204* 0* 0* 0.0099* 0.0059* 0.2535 0.6495 0.9972
HINDALCO -4.18E-06 -0.66018 -0.32067 0.002581 0.0016 -0.00127 -0.00904 -6.45E-07
-0.00172 -35.9405 -17.5135 0.556841 0.60102 -0.58653 -4.16754 -0.00054
0.9986 0* 0* 0.5777 0.5479 0.5576 0* 0.9996
HINDULVR -0.00055 -0.67036 -0.32897 0.0101103 0.000755 -1.18E-05 0.001049 9.05E-06
-0.14986 -36.1912 -17.8232 0.794556 0.934784 -0.01029 1.033595 0.022016
0.8809 0* 0* 0.4269 0.35 0.9918 0.3014 0.9824
ICICIBANK 0.00012 -0.63226 -0.32252 0.000741 -0.00193 -0.00136 -0.00029 -2.69E-06
0.173932 -34.382 -17.5596 0.185081 -0.85489 -0.57997 -0.12282 -0.00292
0.8619 0* 0* 0.8532 0.3927 0.562 0.9023 0.9977
INFOSYS -0.01253 -0.65364 -0.31809 0.010924 0.005264 -0.00482 -0.00566 2.85E-06
-4.8493 -35.6049 -17.3737 4.397443 3.544409 -2.62085 -3.14749 0.004156
0* 0* 0* 0* 0.0004* 0.0088* 0.0017* 0.9967
ITC -0.01178 -0.64854 -0.32945 0.01458 0.003729 0.000301 -0.0065 -1.60E-06
-3.25495 -34.9913 -17.8353 3.061387 1.365329 0.079093 -1.83586 -0.00127
0.0011* 0* 0* 0.0022* 0.1723 0.937 0.0665 0.999
M&M 0.002459 -0.62246 -0.29082 0.006472 0.002075 -0.00267 -0.00233 1.32E-05
2.224465 -33.4385 -15.6483 2.502801 1.401838 -1.67957 -1.46504 0.019397
0.0262* 0* 0* 0.0124* 0.1611 0.0932 0.143 0.9845
MARUTI 0.00269 -0.62579 -0.29418 0.002818 0.000674 0.001009 0.000614 2.23E-05
1.280695 -33.386 -15.7149 1.582966 0.652351 0.949262 0.617015 0.046539
0.2004 0* 0* 0.1135 0.5142 0.3426 0.5373 0.9629
ONGC 0.000575 -0.65264 -0.31693 0.003263 -0.00089 0.001007 -0.00196 -5.35E-06
0.608965 -35.3002 -17.1865 0.996747 -0.47699 0.417769 -0.84684 -0.00655
0.5426 0* 0* 0.319 0.6334 0.6761 0.3972 0.9948
RELIANCE -0.00086 -0.62362 -0.29176 -0.00159 0.000135 -0.00094 0.00084 8.27E-06
-0.65772 -33.5782 -15.7002 -0.57912 0.085915 -0.71409 0.649733 0.01369
0.5108 0* 0* 0.5626 0.9315 0.4752 0.5159 0.9891
SBIN -0.00434 -0.64904 -0.32302 -0.00854 -0.00361 -0.00091 0.001518 9.41E-06
-1.84307 -35.247 -17.554 -1.71105 -1.2901 -0.35875 0.592559 0.008322
0.0654 0* 0* 0.0872 0.1971 0.7198 0.5535 0.9934
TATAMOTORS 0.002117 -0.60248 -0.29974 0.010001 0.004803 0.001472 0.000398 1.71E-05
1.831746 -32.4752 -16.1814 2.445949 2.060553 0.718645 0.193345 0.018017
0.0671 0* 0* 0.0145* 0.0394* 0.4724 0.8467 0.9856
TATAPOWER 0.000567 -0.67181 -0.32956 0.005176 0.000482 0.000487 -0.00167 1.96E-05
1.063393 -36.4686 -17.9123 1.29886 0.20577 0.169155 -0.59321 0.01689
0.2877 0* 0* 0.1941 0.837 0.8657 0.5531 0.9865
TATASTEEL 0.002752 -0.6507 -0.32088 0.004721 0.002259 -0.00235 -0.00136 2.70E-05
1.184817 -35.2087 -17.4196 1.596251 1.352405 -1.85366 -1.06931 0.041422
0.2362 0* 0* 0.1106 0.1764 0.0639 0.285 0.967
TCS -3.20E-06 -0.633 -0.31846 0.001744 -8.78E-05 -0.00117 -0.00147 1.96E-06
-0.03951 -34.3437 -17.287 0.716598 -0.06184 -0.70322 -0.87843 0.003043
0.9685 0* 0* 0.4737 0.9507 0.482 0.3798 0.9976
NIFTY50 0.014997 -0.65103 -0.32431 -0.0049 -0.00294 -0.00015 2.37E-05 5.43E-06
2.494774 -34.2151 -17.3006 -2.51055 -2.72736 -0.1104 0.017811 0.014833
0.0127* 0* 0* 0.0121* 0.0064* 0.9121 0.9858 0.9882
Source: Computed Value.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 53

CONCLUSIONS
There are various reasons why traders pay attention to future price, trading volume and open interest. A rise in future closing price, trading volume and open
interest indicates that the market is strong and in upward trend. While a fall in price and a rise in trading volume and open interest indicate that the market is
weak and downward trend. This study concluded that the relationship between future closing prices, trading volume and open interest for three futures contracts
traded on Nifty Stock Index Futures are having a causal relationship since the p-value is less than 0.05 for that rejects the null hypothesis.
Granger Causality test was used to find out the causal relationship future closing price, trading volume and open interest. Overall it can be concluded that there
are high chances of predicting Open Interest from Trading Volume or vice-versa due to significant results from the causality test for almost all the stocks is evident.
The Johansenss Co-integration test was used to examine the long run relationship and it was found that the variables of the study that is future closing price,
trading volume and open interest have a long run equilibrium relationship between them. But in short run there may be deviations from this equilibrium and to
verify whether such equilibrium converges to long run equilibrium or not. Thus VECM can be used to generate the short run dynamics. It was being reflected that
there exist a short run relationship among the variables for the majority of stocks.

REFERENCES
1. Christos Floros (2001) The Relationship between Trading Volume, Returns and Volatility: Evidence from the Greek Futures Markets.
2. Gulati Deepti (2012), Relationship between Price and Open Interest in Indian Futures Market: An Empirical Study Pacific Business Review International
Volume 5 Issue 1.
3. Jonathan M. Karpoff (1987) The Relation between Price Changes & Trading Volume: A Survey The Journal of Financial and Quantitative Analysis, Vol.22,
No.1
4. K. Srinivasana, (2010) An Analysis of Price Volatility, Trading Volume and Market depth in Futures Market in India, Pondicherry University.
5. Stphane M. Yen & Ming-Hsiang Chen (2010)Open Interest, Volume, and Volatility: Evidence from Taiwan Futures MarketsJ Econ Finan (2010) 34:113
141
6. Tark Doru,mit Bulut(2012), The Price-Volume Relation in the Turkish Derivatives Exchange, International Journal of Business and Social Science Vol. 3
No. 8 April
7. Toshiaki Watanabe (2001), Price Volatility, Trading Volume, and Market Depth: Evidence from the Japanese Stock Index Futures Market, Applied Finan-
cial Economic s, 2001, 11, 651 658.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 54

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
FUTURE TRACK OF STRATEGIC GROWTH OF M-COMMERCE MARKET IN GLOBAL SCENARIO

Dr. VAIBHAV SHARMA

ASST. PROFESSOR
S. S. JAIN SUBODH P. G. (AUTONOMOUS) COLLEGE
JAIPUR

ABSTRACT
Ecommerce in rapidly growing all over world. Now it is converting in M-Commerce view due to Mobile, i-Phone, Tab, i-Tab utilization by Consumers. In the emerging
global economy, e-commerce and e-business have increasingly become a necessary component of business strategy and a strong catalyst for economic develop-
ment. The integration of information and communications technology (ICT) in business has revolutionized relationships within organizations and those between
and among organizations and individuals. Specifically, the use of ICT in business has enhanced productivity, encouraged greater customer participation, and enabled
mass customization, besides reducing costs. it will be possible to create networks for producing and sharing information, transcending national and geographical
boundaries. For example, economists are needed to understand the myriad of marketplace and financial considerations that shape the business environment. Social
scientists are needed to understand the behaviors of consumers and organizational entities competing in the new economy. Computer scientists, information
technology specialists are needed to understand the electronic and informational linkages among the infrastructures. Linguistics as a science is necessary to take
into account the interdisciplinary nature of ecommerce and find appropriate solutions for rather complex terminology, which requires continuous updating and
unambiguous identification of entities. Consequently, terminology of e-commerce must provide business transactions without ambiguity and uncertainty, which
are not desired from legal, commercial consumer and information technology perspectives. Now a days Flipkart, SnapDeal, Car Dekho, Property india, I.R.C.T.C etc
playing a big roll to Development of M-Commerce Market.

KEYWORDS
I.C.T, E2E, M-Commerce, C-Commerce, M-Commerce. virtual credit card, E-Payments Flipkart, SnapDeal.

1. INTRODUCTION

T he utilization of Smart devices like Mobile, i-Phone, Tab, i-Tab has change the Internet base market all over the world. The opening of access points on this
global collection of local networks to commercial enterprises in the early 1990s spurned numerous innovations to produce immense increases in speed of
transfer and quantity of storage of data capital. The means of competing in a free market economy adapted, and productivity increased at a much faster
pace in the last decade than the century and a half since the dawn of the Industrial Revolution. The manipulation of digital capital shaping the progress of the
Information Age must be secured in order for massive change in market space and transaction processes to become accepted and cost effective.

2. THE BUSINESS OF M-COMMERCE

M-commerce can be simply defined as conducting business over a data network. In some logical way has access to the all-encompassing Internet. The major
market researchers have weighed in with revenue projections to push the fervor higher to new extremes. Apple Group predicted in June 2012 that the year would
end with an Internet retail revenue tally in North America up 80% of 2010s figure of $286.8 billion and 210% from 2004. Taking into consideration M-commerce
in the much larger Business-to-Business (B2B) realm, the forecast by e-commerce statistical firm m-marketer is for the current $4563 billion global revenue of
2008 to approach $5.1 trillion by 2012.

3. EXECUTION OF MAJOR BUSINESS STRATEGIES BEFORE UTILIZATION OF M-COMMERCE

M-commerce is a Global based Intellectual business strategy-the web or other technologies has not changed the fundamental of business, but only expanded its
scope.
3.1. It is noticed, that any MNC that wants to innovate business online must remember that the m-commerce strategy is to use and expose existing systems and
processes, rather than build an isolated e-business system to do business online. Traditional rules of commerce still apply and should be used within e-commerce,
which should be integrated with traditional business processes and must be seen as technology helping to make the business more effective, efficient and easy to
use.
3.2. M-commerce is utilized in more secure and fast way with technological enhancement, and if used as a strategic tool; it can provide organizational benefits
though gains in productivity, market share or even bottom-line profitability. At the same time, if M-commerce is not suitable for a company and yet it decides to
maintain a presence, it can lead the firm to financial ruin. Therefore before entering the e-commerce marketplace, a firm must considered what business value it
holds. M-Commerce is applying business market in Technological Form.

4. EXECUTION OF MAJOR BUSINESS STRATEGIES AFTER UTILIZATION OF M-COMMERCE

A strategy is nothing without implementation. Implementation of M-commerce strategy is neither straightforward nor cheap, for example it comprises a complete
rethinking of traditional modes of behavior.
4.1 M-Commerce require mainly to involve internal staff and external suppliers and customers rights from the conceptual stage, need to re-valuate a companys
core competences and substantial investment in IT. Many of the advantages of e-commerce will be lost if it is implemented in isolation. The rise of the information
economy and the challenges of the global market have secured a strategic place in all organizations for e-commerce. For the success of change, integration
approach is desirable-there is little point in trying to change one element of an organization without changing the other supporting components.
4.2 M-Commerce is growing fast with integrate people within the organization such as the employees, recruit new skills and define new roles within the organiza-
tion, involve all departments, communicate with stakeholders, marketing people and ensure the integration of e-commerce projects.
4.3 M-Commerce focus on Innovative ideas in virtual developing environment and attempting to ascertain which ones will suit the new market conditions. Man-
agement of human resources is again a critical success factor in the age of e-commerce. Further, the basics principles of business remain the same.
4.4 Ideas, plans and strategies are virtually involved in implementation of M-Commerce in Virtual technology based Global Market. Many of the advantages of e-
commerce will be lost if it is implemented in isolation. For the successful implementation of e-commerce companies need to be continually reviewed throughout
the system life cycle and to keep pace with the developments on all fronts. All the more, companies using e-commerce technology should create a culture of using
e-commerce technologies.

5. VARIOUS TYPES OF M-COMMERCE STRATEGIES

5.1 (B2B) Businesstobusiness: All of the participants in business-to business m-commerce are businesses or other organizations. Today most MC is B2B.
5.2 (B2C) Business-to-consumer: It includes retail transactions from business to individual shoppers. This MC is also called m-tailing
5.3 (B2B2C) Business-to-business-to-consumer: enables some product or service to a client business. The client business maintains its own customers to whom
the product or service is provided.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 55

6. LATEST TECHNOLOGIES IMPLEMENTED IN THE FIELD OF PAYMENTS ONLINE PAYMENT CARDS

There are also a lot of new terms in the field of payments online. The overwhelming majority of Web payments (B2C payments) are made with payment cards
(usually credit cards,) not with digital cash.
6.1 VIRTUAL CREDIT CARD
One innovation in online credit cards is a virtual credit card. It is an e-payment system in which a credit card issuer gives out a special transaction number that can
be used online in place of regular credit card numbers.
6.2 PURCHASING CARDS
Purchasing cards are used for B2B. They are special-purpose payment cards issued companys employees to be used solely for purchasing non-strategic materials
and services up to a present dollar limit.
6.3 SMART CARDS
Smart cards look like plastic payment card but they are distinguished by the presence of an embedded microchip that enables predefined operations or the
addition, deletion or manipulation of information on the card. Smart cards can be categorized by the way in which data are downloaded and read from the card.
There are two major types of smart cards.
6.4.1 CONTACT CARD
The first type is a contact card. That is a smart card containing a small gold plate on the face that when inserted in a smart-card reader makes contact and so
passes data to and from the embedded microchip.
6.4.2 CONTACT LESS (PROXIMITY) CARD
The second type is the contact less (proximity) card, which is fact a smart card with an embedded antenna, by means of which data and applications are passed to
and from a card reader unit or other device.
6.5 ELECTRONIC PAYMENTS (E-PAYMENTS)
Electronic payments (e-payments) are another payment option. In fact it is a transfer of payment from one person or party to another person or party over a
network without face to-face-interaction. They are used as alternatives to credit cards when small amounts are in question and they are grouped into four cate-
gories:
E-cash and micro payments,
stored value cards,
E-loyalty and rewards programs, and
Person-to-person (P2P) payments.
6.6 E-cash is the digital equivalent of paper currency and coins, which enables secure and anonymous purchase of low-priced items.
6.7 Micro payments are small payments, usually under $10.
6.8 STORED-VALUE CARDS
Stored-value cards involve visa cash (sponsored by Visa) and mondex (sponsored by Mondex, a subsidiary of MasterCard), which are designed to handle small
purchases or micro payments.
6.9 E-LOYALTY AND REWARDS PROGRAMS
E-loyalty and rewards programs are used to generate repeat business. The currency used by loyalty programs is electronic script. It is a form of electronic money,
issued by a third party as a part of loyalty program. Consumers at participating stores can use it.
6.10 PERSON-TO-PERSON PAYMENTS
Person-to-person payments involve one of the newest and fastest-growing e-payment schemes, enabling the transfer of funds between two individuals.

7. SUMMARY
M-commerce is further developed from enhanced form in E-Commerce having wide scope all over world usually associated with buying and selling over the
Internet, or conducting any transaction involving the transfer of ownership or rights to use goods or services through a computer-mediated network. Though
popular, this definition is not comprehensive enough to capture recent developments in this new and revolutionary business phenomenon.

8. CONCLUSION
Now a days Global Economy is growing in M-Commerce segment such as the provision of enabling hardware and software and network equipment for Web-
based/online retail and shopping malls (or e-malls). It is made up of three major segments:
Physical (ICT) infrastructure, business infrastructure, and commerce various applications of e-commerce are continually affecting trends and prospects for business
over the Internet, including e-banking, e-tailing and online publishing/online retailing.
A more developed and mature e-banking environment plays an important role in ecommerce by encouraging a shift from traditional modes of payment (i.e., cash,
checks or any form of paper-based legal tender) to electronic alternatives (such as e-payment systems), thereby closing the e-commerce loop.

REFERENCES
5. Feldman, S., (1999): The Objects of E-Commerce, OOPSLA99, Denver (USA).
6. http :// europa.eu.int /ISPO /ecommerce /multilateral /organizations.html

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 56

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 57

NEHA PUSHPAK
ASST. PROFESSOR
APEX INSTITUTE OF TECHNOLOGY
KAUSHALGANJ, RAMPUR, U.P.

ABSTRACT
The term corporate social responsibility became popular in the 1960s and has remained a term used indiscriminately by many to cover legal and moral responsi-
bility more narrowly construed. Actually, CSR refers to a business practice that involves participating in initiatives that benefit society. A responsible corporate
recognizes that its activities have wider impact on the society in which it operates. Therefore, it takes account of the economic, social, environmental & human
rights impact of its activities on all the stakeholders. In this paper, top BSE listed companies are selected for the purpose of study. Their prescribed CSR spend have
been compared with their actual CSR spends FY 2015-16. The study reveals that there is a gradual improvement in corporates CSR spends. The paper also focus on
the areas of priority of CSR spending by Indian Companies

KEYWORDS
BSE, Corporate social responsibility, prescribed CSR, Actual CSR, Indian companies.

INTRODUCTION

C orporate social responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental
benefits for all stakeholders.
CSR is a concept with many definitions and practices. The way it is understood and implemented differs greatly for each company and country. Moreover,
CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working
conditions and contribution to economic development. Whatever the definition is, the purpose of CSR is to drive change towards sustainability.
India is a country of myriad contradictions. On the one hand, it has grown to be one of the largest economies in the world, and an increasingly important player in
the emerging global order, on the other hand, it is still home to the largest number of people living in absolute poverty (even if the proportion of poor people has
decreased) and the largest number of undernourished children. What emerges is a picture of uneven distribution of the benefits of growth which many believe, is
the root cause of social unrest.
Companies too have been the target of those perturbed by this uneven development and as a result, their contributions to society are under severe scrutiny. With
increasing awareness of this gap between the haves and the have-nots, this scrutiny will only increase over time and societal expectations will be on the rise. Many
companies have been quick to sense this development, and have responded proactively while others have done so only when pushed.
Governments as well as regulators have responded to this unrest and the National Voluntary Guidelines for Social, Environmental and Economic Responsibilities
of Business or the NVGs (accompanied by the Business Responsibility Reports mandated by the SEBI for the top 100 companies) and the CSR clause within the
Companies Act, 2013 are two such instances of the steps taken.

OBJECTIVES OF THE STUDY

The research paper is mainly focuses on the fallowing objectives:
1. To study the CSR spending by Indian companies.
2. To study the area of priority of CSR spending by Indian Companies.

METHODOLOGY
The methodology in this research paper is based on descriptive research design, in which secondary data or source of information is used for study. Top BSE listed
companies are selected for study and data has been collected from various relevant websites, books, journals and reports etc.

CORPORATE SOCIAL RESPONSIBILITY IN INDIA

All the Business houses and corporate have been taking up social welfare activities from time to time. While CSR is relevant in business for all societies, it is
particularly significant for developing countries like India, where limited resources for meeting the ever growing aspirations and diversity of a pluralistic society,
make the process of sustainable development more challenging. CSR interventions-based on commitment, mobilization of employees-voluntarism, innovative
approaches, appropriate technology and continuing partnership-have been making lasting differences in the life of the disadvantaged. Further, synergy of corpo-
rate action with the government and the civil society are making the CSR interventions more effective and facilitating the corporate carrying on business in the
society.

CSR ACTIVITIES IN INDIA AS PER COMPANIES ACT, 2013

Companies Act 2013 (Companies Act) has introduced several new provisions which change the face of Indian corporate business. One of such new provisions is
Corporate Social Responsibility (CSR). The concept of CSR rests on the ideology of give and take. Companies take resources in the form of raw materials, human
resources etc from the society. By performing the task of CSR activities, the companies are giving something back to the society.
Ministry of Corporate Affairs has notified Section 135 and Schedule VII of the Companies Act as well as the provisions of the Companies (Corporate Social Respon-
sibility Policy) Rules, 2014 (CRS Rules) which has come into effect from 1 April 2014.
Applicability: Section 135 of the Companies Act provides the threshold limit for applicability of the CSR to a Company i.e. (a) net worth of the company to be Rs
500 crore or more; (b) turnover of the company to be Rs 1000 crore or more; (c) net profit of the company to be Rs 5 crore or more. Further as per the CSR Rules,
the provisions of CSR are not only applicable to Indian companies, but also applicable to branch and project offices of a foreign company in India.
CSR Committee and Policy: Every qualifying company requires spending of at least 2% of its average net profit for the immediately preceding 3 financial years on
CSR activities. Further, the qualifying company will be required to constitute a committee (CSR Committee) of the Board of Directors (Board) consisting of 3 or
more directors. The CSR Committee shall formulate and recommend to the Board, a policy which shall indicate the activities to be undertaken (CSR Policy); rec-
ommend the amount of expenditure to be incurred on the activities referred and monitor the CSR Policy of the company. The Board shall take into account the
recommendations made by the CSR Committee and approve the CSR Policy of the company.
Definition of the term CSR: The term CSR has been defined under the CSR Rules which includes but is not limited to:
Projects or programs relating to activities specified in the Schedule; or
Projects or programs relating to activities undertaken by the Board in pursuance of recommendations of the CSR Committee as per the declared CSR policy subject
to the condition that such policy covers subjects enumerated in the Schedule.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 58

TABLE 1: CSR SPEND BY INDIAN COMPANIES (In INR Crores)

Actual CSR spending Prescribed CSR Actual CSR Prescribed CSR
Sr. (2015-16)as % of Aver- Spending FY 2015- Spending FY Actual CSR Spending FY
N. Indian Companies age Net Profit 16 2015-16 spending in % 2016-17*
1 Adani Ports and Special Economic Zone Ltd. 2.02% 40.40 40.81 101.01% 48.55
2 Asian Paints Ltd. 2.04% 33.75 34.44 102.04% 34.36
3 Axis Bank Ltd. 1.69% 163.03 137.41 84.29% 218.66
4 Bajaj Auto Ltd. 2.01% 86.46 86.72 100.30% 94.01
5 Bharti Airtel Ltd. 0.45% 189 42.15 22.30% 227.15
6 Coal India Ltd. 2.00% 4.18 4.18 100.00% 303.19
7 Dr. Reddys Laboratories Ltd. 1.97% 41.88 41.2 98.38% 40.63
8 HDFC Bank Ltd. 1.90% 127.28 120.72 94.85% 311.59
9 Hero MotoCorp Ltd. 2.23% 58.18 65 111.72% 70.6
10 Hindustan Unilever Ltd. 2.00% 91.94 92.12 100.20% 113.91
11 Housing Development Finance Corporation Ltd. 1.90% 127.28 120.72 94.85% 311.59
12 ICICI Bank Ltd. 1.62% 212 172 81.13% 279.89
13 Infosys Ltd. 1.58% 256.01 202.3 79.02% 343.29
14 ITC Ltd. 2.01% 246.76 247.5 100.30% 273.75
15 Larsen & Toubro Ltd. 2.36% 101.46 119.9 118.17% 137.72
16 Lupin Ltd. 0.76% 54.15 20.51 37.88% 68.38
17 Maruti Suzuki India Ltd. 2.40% 65.4 78.46 119.97% 00.41
18 NTPC Ltd. 2.81% 349.65 491.8 140.65% 229.98
19 Oil & Natural Gas Corporation Ltd. 1.42% 593.7 421 70.91% 549.18
20 Reliance Industries Ltd. 2.34% 557.78 651.57 116.81% 619.91
21 State Bank Of India 2.00% 143.92 143.92 100.00% 328.41
22 Tata Consultancy Services Ltd. 1.63% 360 294 81.67% 514.74
23 Tata Steel Ltd. 2.84% 150 213.24 142.16% 162.33
24 Wipro Ltd. 2.05% 156 159.8 102.44% 204.31

FIG. 1: ACTUAL CSR SPENDING (2015-16)AS % OF AVERAGE NET PROFIT 2013, 2014 & 2015
Wipro Ltd.
Tata Steel Ltd.
Tata Consultancy Services Ltd.
State Bank Of India
Reliance Industries Ltd.
Oil & Natural Gas Corporation Ltd.
NTPC Ltd.
Maruti Suzuki India Ltd.
Lupin Ltd.
Larsen & Toubro Ltd.
ITC Ltd.
Infosys Ltd.
ICICI Bank Ltd. Actual CSR as % of Average Net Profit
Housing Development Finance Corporation Ltd.
Hindustan Unilever Ltd.
Hero MotoCorp Ltd.
HDFC Bank Ltd.
Dr. Reddys Laboratories Ltd.
Coal India Ltd.
Bharti Airtel Ltd.
Bajaj Auto Ltd.
Axis Bank Ltd.
Asian Paints Ltd.
Adani Ports and Special Economic Zone Ltd.
0.00 0.50 1.00 1.50 2.00 2.50 3.00
SOURCE: Report by NGOBOX September 2016

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FIG. 2: PRESCRIBED CSR SPENDING AND ACTUAL CSR SPENDING FOR FY 2015-16

Wipro Ltd.
Tata Steel Ltd.
Tata Consultancy Services Ltd.
State Bank Of India
Reliance Industries Ltd.
Oil & Natural Gas Corporation Ltd.
NTPC Ltd.
Maruti Suzuki India Ltd.
Lupin Ltd.
Larsen & Toubro Ltd.
Actual CSR Spending FY 2015-16
ITC Ltd.
Infosys Ltd.
ICICI Bank Ltd. Prescribed CSR Spending FY 2015-16
Housing Development Finance Corporation Ltd.
Hindustan Unilever Ltd.
Hero MotoCorp Ltd.
HDFC Bank Ltd.
Dr. Reddys Laboratories Ltd.
Coal India Ltd.
Bharti Airtel Ltd.
Bajaj Auto Ltd.
Axis Bank Ltd.
Asian Paints Ltd.
Adani Ports and Special Economic Zone Ltd.
0 200 400 600 800

SOURCE: Report by NGOBOX September 2016

INTERPRETATION
The following BSE listed companies together spent INR 4001.47 Cr in CSR while their prescribed CSR was INR 4210.21 Cr. This is almost 5% less than what the
Section 135 asks for.
Out of 24 companies only 14 companies spent either equal or more than prescribed CSR. And 10 Companies remain below the prescribed CSR spend, which means
these companies need more time to raise their CSR to the standard of 2% of their last three years profit. Though there is substantial improvement in the actual
CSR spent to prescribe CSR in FY 2015-16. As per the NGOBOX report, while it was 79% in FY 2014-15, it has increased to 92% in last financial year.
THEMATIC PRIORITIES IN CSR
Schedule VII-Theme-wise number of companies
FIG. 3: THEMATIC PRIORITIES IN CSR

Series1

Poverty Alleviation, Healthcare & WASH 219

Education & Skills 229

Women Empowerment and inclusive development 89

Protection of National Heritage, Art & Culture 54

Benefits to Armed Forces veterans, war windows 12

Environment Sustainability 140

Technology Incubation within academic institutions 11

Rural Sports, Paralympics and Olympic sports 56

PM Relief Fund and Others 36

Rural Development Projects 108

Urban Slum Development 5

SOURCE: Report by NGOBOX September 2016

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 60

REFERENCES
1. Concept of CSR, (May25, 2017) http://lexicon.ft.com/Term?term=corporate-social-responsibility--(CSR)
2. Corporate Social Responsibility in India (May25, 2017) https://www.pwc.in/assets/pdfs/publications/2013/handbook-on-corporate-social-responsibility-in-
india.pdf
3. CSR as per the provision of Indian Company Act (May25, 2017) http://www.mondaq.com/india/x/366528/Corporate+Governance/Corporate+Social+Re-
sponsibility+Indian+Companies+Act+2013
4. Namrata Singh, Dr. Rajlaxmi Srivastava, Dr. Rajni Rastogi (2015), An Analysis Of CSR Spending In Banking Sector In India, International Journal of Current
Research Vol. 7, Issue, 04, pp.15319-15322,
5. Needs of CSR activity in country (June 22, 2017) http://www.csrtimes.com/community-articles/why-india-needs-aggressive-csr-implementation/eFVPkxH-
MIn
6. Nitin Kumar (2014), Corporate Social Responsibility: An Analysis Of Impact And Challenges In India, Abhinav International Monthly Refereed Journal of
Research in Management & Technology, Volume 3, Issue 5
7. Premlata, Anshika Agarwal (2013), Corporate Social Responsibility: An Indian Perspective, Journal of Business Law and Ethics, Vol. 1 No. 1
8. Uvais.M, Hafeefa Cholasseri (2013), Corporate Social Responsibility: Dimensions and Challenges In India International Journal of Engineering Science In-
vention ISSN (Online): 2319 6734, ISSN (Print): 2319 6726 www.ijesi.org Volume 2 Issue 3, PP. 27-32
9. www.iica.in
10. www.ngobox.org (September, 2016)

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 61

SULTANA B. A. MAZUMDER
ASST. PROFESSOR
DEPARTMENT OF MANAGEMENT
NORTH EASTERN HILL UNIVERSITY
TURA CAMPUS, CHANDMARI

ABSTRACT
This paper made an attempt to study the impact of inward remittances on household savings and investment. The effects of remittances on the receiving country
can be dramatic on both a macro and microeconomic level, which creates serious challenges for governments, communities and families. The factors incorporated
in the study are; basic consumption, education, health, entertainment, savings pattern, building a new house and repayment of loan expenses. The paper highlights
that remittance receiving households experience a significant effect on the households consumption, education and health expenses as well as savings, which leads
to improving the wellbeing of the family.

KEYWORDS
remittances, migration, migrant, household, savings, investment.

1.0 INTRODUCTION

T he objective of this paper is to highlight the different aspects of migration. It gives a far reaching outline of the effect of remittance on spending conduct
by taking a gander at regular classes like nourishment, non-sustenance and instruction, and the sparing conduct of the remittance accepting households.
It highlights the different ways in which remittances are used by the households. Also this paper studies the impact of inward remittances on household
savings and investments. It studies the impact of remittances on the development of the financial sector, trade, labour market etc.

1.1 OBJECTIVES OF THE STUDY

The principle or broad objectives of undertaking this research were
1. To study the different facets of Migration
2. To identify the impact of Inward Remittances on Household savings and Investment

1.2 RATIONALE OF THE STUDY

Foreign remittances are favouring for a developing nation like India where a greater part of individuals are unemployed and poor. Remittances add to the GDP of
the nation specifically as the measure of remittances got is expanding generously year after year. They have both large scale and micro level impacts on the
economy of the nation. To the extent the large scale level impact is concerned it is watched that remittances influence nation's general savings, investments,
utilization, neediness mitigation, foreign exchange, and so on and they influence the nation's full scale economic circumstance. Then again, foreign remittances
influence the migrant's family's income, utilization, social insurance, instruction, investment in organizations, resources era. Be that as it may, different written
works on the impacts of foreign remittances on households propose that remittances diminish destitution from the migrant's families by expanding their acquiring,
enhancing their ways of life. Thus, one might say that remittances have positive socio-economic impact.

1.3 MIGRATION
Migration is defined broadly as a permanent or semi-permanent change of residence. Migration encompasses enormous economic and social diversity. Migrants
are concentrated in different types of work in rural and urban areas.
The ILO Convention on Migration for Employment 1949, (No. 97) in its Article 11, states: migrant for employment means a person who migrates from one country
to another with a view to being employed otherwise than on his own account and includes any person regularly admitted as a migrant for employment.
The 1990 UN Convention on the Protection of all Migrant Workers and their Families defines migrant as: A person, who is to be engaged, is engaged or has been
engaged in remunerated activity in a State of which he or she is not a national.
Migration flows are characterized by a basic distinction between skilled labour (professionals, technicians, etc.) and unskilled labour. This distinction is closely
connected because the two groups interact with the labour market differently and receive differential treatment in host countries. Skilled workers face few prob-
lems overseas given their qualifications and bargaining power. Most protection issues relate to unskilled migrant workers. Some writers have used terms such as
high level manpower and low level manpower to refer to the two categories (Stahl, 1993).
1.3.1 HISTORY
Information on individual migrants gathered from micro overviews demonstrates a huge bunching of migrants in the 1640 year age gathering (Conell et al, 1976).
This is considerably more the case with poorer semi-lasting or impermanent work migrants (Srivastava 1999, and pending). Concerning instruction, migration rates
are high both among the exceedingly taught and the minimum taught, and among occasional migrants there is a high dominance of illiterate individuals (Connell
et al, 1976; Rogaly et al, 2001; Haberfeld et al, 1999).
The different costs involved with migration include the earnings foregone while travelling, searching for, and learning a new job. Part of these foregone earnings
will be a function of the distance of migration. In addition the time required to find a new job is presumably affected by the level of unemployment. Since people
are often genuinely reluctant to leave familiar surroundings, family, and friends, migration involves a psychic cost (Sjaastad, 1962).
Where migration is basically automatic, it looks bad to utilize voluntaristic models to clarify the marvel. In Dhule locale (Maharashtra) sugarcane development
prompts appeal for work, however landowners enrol workers from different regions for reaping as they can have powerful control over the work. Nearby workers
are consequently compelled to move with their family units to South Gujarat (Teerink 1995). In Kerala, trawler-angling has drained marine assets. With unemploy-
ment in different enterprises like cashew and elastic, this has prompted substantial scale outmigration of young ladies (Sardamoni, 1995).
Managers frequently lean toward transient workers to nearby workers, as they are less expensive and don't create social associations with the place of goal. Ladies
migrants charge the most exceedingly bad; they are for the most part paid not as much as male migrants (Pandey, 1998). In the development business they are
seen as associates to their husbands, and kept to untalented jobs. The ensuing division is utilized as an avocation for low installments. Ladies likewise confront
more noteworthy weakness (Viajanyanta, 1998). In the fish preparing industry, they are gravely misused regarding working condition, wages, living condition and
now and again sexually badgering (Sarodamoni, 1995). In the general population part, wage structures additionally fluctuate from venture to extend. As most
contracts are given to private firms, they spurn work laws and the lowest pay permitted by law enactment. Low wages of occasional specialists are the aftereffect
of insecurity of demand, portioned work markets, unregulated nature and strength of work contractual workers and helplessness of laborers (Study Group on
Migrant Labor, 1990).

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1.3.2 CAUSES OF MIGRATION
Given the assorted qualities in the way of migration in India, the causes will undoubtedly differ. Migration is impacted both by the example of advancement (NCRL,
1991), and the social structure (Mosse et al, 2002). The National Commission on Rural Labor, concentrating on regular migration, inferred that uneven improve-
ment was the fundamental driver of occasional migration. Alongside bury provincial uniqueness, divergence between various socioeconomic classes and the
improvement policy embraced since freedom has accelerated the procedure of occasional migration. In tribal areas, interruption of pariahs, the example of set-
tlement, dislodging and deforestation, additionally have assumed a critical part.
Variables, for example, age, training level, riches, productivity and openings for work impact the interest of people and households in migration, however so do
social states of mind and supporting informal communities (Haberfeld et al, 1999; Rogaly et al, 2001; Mosse et al, 2002).
The essential factors which inspire individuals to move can be arranged into five classifications. They are economic factors, statistic factors, socio-cultural factors,
political factors and miscellaneous factors.
1.3.2.1 Economic Factors
The majority of the studies demonstrate that migration is basically roused by economic factors. This is the most obvious reason given i.e. the pull from higher
wages in receiving countries. In this sense, high levels of unemployment and poverty in source countries act as a push factor in the decision to emigrate.
In developing countries, low agricultural wage, agricultural unemployment and underemployment are viewed as fundamental factors pushing the migrants to-
wards created range with more noteworthy job openings. Along these lines, all studies agree that the vast majority of migrants have moved looking for better
economic open doors. The fundamental economic factors which persuade migration might be additionally named 'Push Factors' and 'Pull Factors'. The push factors
will be factors that propel a man, because of various reasons, to leave that place and go to some other place. The normal push factors are low efficiency, unem-
ployment and underdevelopment, poor economic conditions, absence of chances for headway, weariness of regular assets and common cataclysms. Presentation
of capital serious strategies for creation into agricultural segment, and motorization of specific procedures lessen work prerequisite in rural ranges. The non-
accessibility of option wellsprings of pay in rural zone is likewise vital factor for migration. The Pull Factors will be factors which draw in the migrants to a range.
Open doors for better employment, higher wages, offices, better working conditions and attractive pleasantries are pull factors of a territory.
1.3.2.2 Demographic Factor
Demographic changes in fast growing economies have created significant labour shortages. In general, labour-sending countries are characterized by high rates of
population and labour force growth as in the case of Pakistan, Bangladesh and the Philippines exceeding two per cent per annum into the twenty first century.
The distinctions in the population development rates of the diverse areas of a country have been observed to be a determinant in the internal migration. Richness
and the common increment in population are by and large higher in rural regions which float the population towards the city.
1.3.2.3 Socio-cultural Factors
Social and cultural factors likewise a critical part in migration. Some of the time family conflicts, the mission for independence, likewise cause migration particularly,
of those in the more youthful generation. Enhanced correspondence offices, for example, transportation, effect of television, great system correspondence, the
cinema, the urban oriented education and resultant change in states of mind and values likewise advance migration.
1.3.2.4 Political Factors
Sometimes even political factors encourage or discourage migration from district to another. Consequently, the political foundation, states of mind and individual
perspective of the general population affected on the migration of individuals.
1.3.2.5 Miscellaneous Factors
Other factors, for example, the nearness of relatives and friends in urban zones, lured by friends and social network, desire to get education which is accessible
just in urban zones are factors in charge of migration. Closeness of cultural contacts, cultural diversity, awesome imperativeness, and singular states of mind are
likewise connected with migration.
1.3.3 IMPACT OF MIGRATION
On migrants and their familys poorer migrant specialists, packed into the lower finishes of the work market, have couple of privileges versus their bosses or the
general population experts in the goal zones. They have small individual resources and endure a scope of hardships in the goal territories. In the source regions,
migration has both negative and positive outcomes for migrants and their families. Living conditions: migrant workers, regardless of whether farming or non-
agrarian, live in regrettable conditions. There is no arrangement of safe drinking water or sterile sanitation. Most live in open spaces or temporary safe houses
notwithstanding the Contract Labor Act which stipulates that the contractual worker or manager ought to give appropriate convenience (NCRL, 1991; GVT, 2002;
Rani and Shylendra, 2001). Aside from regular specialists, laborers who migrate to the urban areas for occupation live in parks and asphalts. Ghetto inhabitants,
who are for the most part migrants, remain in despicable conditions, with deficient water and awful seepage.
Nourishment costs more for migrant specialists who are not ready to acquire transitory apportion cards. Wellbeing and Education: workers working in unforgiving
conditions and living in unhygienic conditions experience the ill effects of genuine word related medical issues and are helpless against sickness. Those working in
quarries, development locales and mines experience the ill effects of different wellbeing dangers, generally lung maladies.
As the business does not take after wellbeing measures, mischances are very successive. Migrants can't get to different wellbeing and family mind programs
because of their impermanent status. Free general medicinal services offices and projects are not available to them. For ladies specialists, there is no arrangement
of maternity leave, driving them to resume work very quickly after labour. Labourers, especially those working in tile manufacturing plants and block ovens expe-
rience the ill effects of word related wellbeing dangers, for example, body hurt, sunstroke and skin disturbance (NCRL, 1991).
The costs are offset against the benefits for each of the societies to establish the true impact of migration for each of the societies. The net effect of migration
may differ for the receiving and sending societies. If for instance, the social & economic costs to the sending society are greater than the social &economic benefits
then the effect of migration are said to be negative for the sending society. The same sort of calculation can be done to establish the net effect of migration for
the receiving society often when these calculations are done migration that has a positive impact for one society will have a negative impact on the other. By
separating and understanding the various types of impacts which result from migration it impossible to assess the importance of migration in the short, medium,
& longer terms for the societies which migrants leave and those in which they settle.
DEMOGRAPHIC CONSEQUENCES
Migration may have profound effects on the size, structure and growth patterns of populations. Migration has effects on both populations of the patterns of
populations. Migration has effects on both populations of the places that people leave & on the populations of those in which they settle. These effects vary with
different types of migration & length of migrants stay in places. The absence of large number of either men or women may have a limited impact on the sending
society in short term but if they are absent for longer periods time their absence will have significant effects on population growth rates in the medium and longer
terms.
SOCIAL CONSEQUENCES
Migration also has effects on the cultures of both the places that migrants leave and those in which they re-settle. These effects vary with different types of
migration, the skills of the migrants & the lengths of time involved.
POLITICAL CONSEQUENCES
Migration can have an impact on politics in both the places which people live and those to which they move. Governments will have to make policies to attract
migrants, to persuade migrants to return, or to limit migration to ensure that they have access to skills that they need. These political effects vary with different
types of migration. Migration plays a major role in the complex process of change in the international political order we. It impacts states and regions, their
societies, economies, and polities (Stephen Castles, 2006).
ECONOMIC CONSEQUENCES
Migration can have significant effect on economics. Migration has impact on the economies that people live and those in which they re-settle. These effects vary
with different types of migration, the skills of the migration and length of time involved.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 63

1.4 HOUSEHOLD SAVINGS

With regards to the South Pacific the idea that non-productive types of consumption are "unproductive" or "wasteful" uses has been genuinely tested. Shankman
contends that in Western Samoa, lodging changes, alongside little scale extravagance utilization and church gifts speak to a "security investment".
Another study calls attention to that Tongan householders themselves once in a while see their utilization of remittances as unproductive or as cases of obvious
utilization, in light of the fact that "nothing is more productive than to have the capacity to accommodate their day by day subsistence and to have the economic
energy to satisfy their family and social obligations". All things considered, there has been little endeavour in past work on the South Pacific to gauge the degree
to which remittances add to savings and investment specifically, or by implication by increasing the pool of loan able assets for investment in income-creating
resources, physical or financial, by others in the private or state sectors.
1.4.1 END USE OF REMITTANCES
Remittance Income (RI): Remittance is the income for the households with transient part. On the off chance that the household gets any blessings or cash from
alternate people with the exception of their own household part from abroad, it is excluded as remittance income since it is extremely hard to review the little
endowments got and the recurrence of these receipts are never quantifiable.
Empowered livelihood (EL): Livelihood implies a man's capacity to procure a living. Be that as it may, it is about far beyond just income, it is about everything that
has an effect on a man's life training, wellbeing and access to sustenance all assumes an indispensable part. The employment strengthening implies the move of
energy from a condition of uncalled for to one that is simply. It is the arrangement of chance to the denied poor of the general public for settling on their choices
with reference to their household matters that incorporate essential utilization, training, wellbeing, diversion costs and so on. This implies for poor households
the term business change reflects expanding household's confidence that empowers them to perceive and enhance their financial prosperity in the general public.
Food and Non Food Expenses (FE): Food costs are ordinarily those expenses and costs related with the utilization cost brought about in buying nourishment things.
The non-nourishment consumption totals the costs on fills, transportation, and use on utilities, individual care things, other regular things and non-visit things.
Uses on marriage, endowments, burial service and other social and religious capacities are comes under the Non Food Expenses.
Education: Education costs are educational cost and certain related costs required for enrolment or participation at a qualified instructive establishment. The
training costs incorporates month to month charges, confirmation charges, uniform, course readings and supplies, transportation, private educational cost and
different costs related with instruction.
Health: Any cost caused in the counteractive action or treatment of damage or illness. Wellbeing costs incorporate wellbeing and dental protection premiums,
specialist and healing facility visits, co-pays, remedy and over-the-counter medications, glasses and contacts, braces and wheelchairs, to give some examples.
Medicinal costs that are not repaid are deductible inside specific breaking points.
Entertainment: Costs brought about in socialization related straightforwardly with a business reason, for example, acquiring a request or favorable trade terms.
Remittances and household consumption examples of chose families in Kathmandu valley.Such costs are for the most part required to be bolstered by narrative
proof to qualify as findings against income.
Saving Pattern: The sum left over when the cost of a man's buyer use is subtracted from the measure of extra cash that he or she procures in a given timeframe.
Building a New House: The cost happened while recreating a prebuilt house, its support costs, shading costs, and so forth or cost acquired in making another
house falls in this classification. It incorporates every one of the expenses acquired while making another house or redesigning an old one.
Repayment of Loan: The demonstration of paying back cash already obtained from a moneylender. Reimbursement generally appears as intermittent installments
that ordinarily incorporate part main in addition to enthusiasm for every installment. The other normal technique for reimbursement is a singular amount with
enthusiasm at development.
1.4.2 TYPE AND SIZE OF FAMILY
Family is defined as members of a social unit residing in the same compound and eating from the same kitchen. In this study the migrant worker has also been
accounted for in the family structure although he resides overseas. Three types of family structures have been identified: extended, joint and nuclear. Nuclear
family is comprised of migrant worker, his wife and children. In case of unmarried migrant workers it will include his parents, brothers and sisters; joint family
includes migrant worker, his parents, brothers and sisters, and if married, his wife/children; whereas extended family includes migrant workers own immediate
family, and parents brothers and sisters and their families.
1.4.3 MIGRATION EXPERIENCE OF FAMILY MEMBERS AND RELATIVES
The presence of remittance is complicatedly related with the connections of work migrants with their left-behind relatives. On one hand, the households income
level is to a great extent upgraded by the remittance and the expanded income level would enhance the family connections. On another hand, since the first
provider is far from home to work abroad, other relatives need to take up his obligations and change the family parts in light of the family heads nonattendance.
Alongside the changing family parts, clashes among relatives may turn out to be more regular. Clashes inside the household would diminish the nature of family
connections.

1.5 INVESTMENT
Migrants and their families financial activities not only impact national economies and financial systems, they also demonstrate an active capacity to build assets
in relation to remittances through money management and formal financial tools. The earnings received by households from migrants abroad allow them to stay
out of poverty and contribute significantly to building their assets because the effect of remittances is to increase disposable income. Moreover, in most countries,
remittance recipient families exhibit a positive relationship between remittance reception and financial activities. The more transfers that are received, the higher
the number of families with bank accounts, savings, and other financial obligations. Moreover, when the supply of financial services meets the demand, the local
economy is able to better absorb these flows. A relatively good initial economic situation allows for more opportunities to migrants and their families to use
remittances for savings and investment. Moreover, it is this situation that allows resources mobilization to finance migration without contracting debt. This in turn

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allows households and migrants not to have future debt repayment, leaving more opportunities to save or invest future remittances. However, when migration is
financed by debt, remittances will be used for several years to repay debt and meeting daily consumption needs. Thus, in the short run financing migration by
debt could motives for savings and investment (Bald, Y. (2011).
Remittance-receiving communities have thus significant potential to leverage their income for asset building. Typically, people build savings informally over time
as a result of substantial increases in their disposable income from remittance transfers. This is primarily the case with remittance transfers from developed to
developing countries; however, the trend has also been observed with South-South transfers, particularly in countries that have more established banking systems.
The sums received from remittances increase income above national average incomes and also affect the size of informal savings among remittance recipients.
Thus, their savings are larger relative to those not receiving remittances. The propensity for informal savings and the amount of savings among remittance recipi-
ents make formalizing their demand for financial services an important strategy for development practitioners and financial institutions alike.
At the household level, remittances contribute to asset building, both liquid and fixed. This impact is seen in the differences in financial practices among people
who receive remittances and those who do not. In general, remittance senders tend to think and consider investment options and remit for savings or investment
in the household. As a result, recipients tend to have a higher ability to save, invest, and open bank accounts. In most remittance-receiving countries the percentage
of people holding bank accounts is higher among remittance recipients than non-recipients.
1.5.1 REMITTANCES IN RELATION WITH INVESTMENT AND CONSUMPTION
The economic impact of remittances on the domestic economy predominantly relies on upon the usage of remittances by beneficiaries. Utilizing remittances for
utilization differently affects economic growth than utilizing remittances for investments. In the event that remittances are utilized for utilization it is required to
limitedly affect the economic growth of a nation. Then again, for productive investments the effect on economic growth is solid. For instance, when a rancher puts
resources into additional creatures in his domesticated animals, this may have a long haul effect on his economic position. In like manner, remittances can fund
business exercises. Potential solid confirmation for economic growth could be found in the connection amongst remittances and little organization new companies.
In spite of the fact that, the effect of remittances on economic growth is likewise influenced by the Multiplier effect. The multiplier effect could likewise work for
remittances that are spent on utilization. The multiplier effect is working if remittances increment utilization; along these lines this could make additional request
and this could bring about economic growth. By the effect of remittances on economic growth, remittances may enhance the fundamental needs of individuals
and may lift beneficiaries out of destitution. Remittances are by and large spent on utilization necessities, for example, sustenance, apparel, drug and sanctuary,
which straightforwardly enhances the flourishing of the beneficiary and this effect is broadly perceived (Barajas et al, 2009, p.3). What's more, remittances tend
to flow from generally rich transients towards moderately poor households and remittances beneficiaries in less created nations spend a higher bit of the got
remittances on utilization (Mallick, 2008, p.9). These two propensities amplify the positive effect of remittances on destitution lessening and resulting income
balance in the nation. Remittances are a piece of the savings of labourers abroad and increment the aggregate pool of accessible assets for investments in the
domestic economy (Solimano, 2003, p. 6). On the off chance that beneficiaries don't straightforwardly spend remittances in the domestic economy, however spare
remittances on a store record of the bank, it could improve economic growth on the off chance that the extra finances are utilized for loans that back productive
investments. A potential positive effect of remittances on economic growth is that remittances may expand investments by turning into a substitute for wasteful
or non existing credit markets (Guiliano and Ruiz-Arranz, 2006, p.1). Productive credit markets empower individuals to get credit with a specific end goal to attempt
investments adding to economic growth in the domestic nation. In the productive credit market case, if vast gathering financial specialists get remittances, they
advantage from the eagerness by banks to give loans, because of the expanded creditworthiness. Due to this remittances increment the capacity of the borrowers
to meet the obligation commitments set by the bank. Beneficiaries can attempt investments with the remittances and can likewise acquire a higher loan from the
bank. Be that as it may, credit markets may likewise work wastefully subsequently of credit apportioning. Credit proportioning is the circumstance when a bank
restrains the supply of loans, despite the fact that the bank has adequate assets to give the loans, notwithstanding when a borrower will acknowledge the terms
of the bank. The inflow of remittances may empower borrowers with a higher hazard to enhance their insurance, so that the danger of the borrower will diminish
and subsequently the bank will build the supply of loans. This may diminish the issue of the credit proportioning. Chiefly destitute individuals experience the ill
effects of the credit apportioning issue, since they fall in the high hazard pool as they have constrained insurance. The nearness of the inflow of remittances can
ease this credit market issue and may enhance the credit conceivable outcomes to embrace potential productive activities, which can prompt economic growth
in the domestic nation.
Remittances and the development of the financial sector
The impact of remittances on the advancement of the financial sector and the impact on economic growth is from the earlier not clear. A few instruments are
grinding away in the financial sector with restricting effects on economic growth. The advancement of the financial sector is influenced through the expansion in
creditworthiness of the beneficiaries. The expansion in creditworthiness makes the likelihood for the bank to make all the more new or expand existing loans.
Plus, the banking sector profits by the way that hazard on default is differentiated. On the off chance that that a specific financial specialist defaults, the bank will
endure a misfortune, however the bank won't wind up in credit issues or even go bankrupt. The bank is better secured against the danger of default by a solitary
financial specialist, on the grounds that the substantial gathering of speculators, with various investments, remunerates the danger of default by a solitary financial
specialist. This effect is general, yet for remittances the effect could be more exceptional. As remittances flow to an extensive gathering of potential financial
specialists, with various hazard profiles, the bank is better secured against default. As a result of this, the hazard premium set by the bank will diminish. The
financing cost on loans ascertained by banks will diminish, on the grounds that the loan fee incompletely comprises of the hazard premium. In the domestic
financial sector the cost of capital will diminish and the interest for loans will increment with positive effects for the economic growth in the nation.
Another instrument that influences the advancement of the financial sector is the expansion in financial exchanges, through which conceivable economies of scale
emerge. As Chami (2008, p.41-42) takes note of, the inflow of remittances expands the interest for exchanges by the domestic banking sector. The aggregate
volume of exchanges in the domestic banking sector will increment and this may bring about an abatement of the cost per exchange for the bank. Expressed in an
unexpected way, economies of scale may emerge from this procedure. The domestic banking sector will operate more productive and this may bring about a
lower cost of capital in the financial sector of the nation that may positively affect the economic growth.
Remittances may likewise negatively affect the improvement of the financial sector. Aggerwald et al. (2005, p. 2) see that the expansion of remittances, as an
inflow of new accessible subsidizes outside the domestic banking sector, may work as a substitute for the domestic banking sector. The expansion of remittances
offers speculators an other option to fund investments. In this way, the interest for bank credit will diminish and the advancement of the banking sector will be
contrarily influenced.
Remittances as (a) cyclical source of finance
A positive connection amongst remittances and economic growth is that remittances may increment macroeconomic soundness in the domestic economy. The
inflow of remittances is thought to be a more steady flow of capital than help, FDI and other capital flows (Ratha, 2003, p. 31). Consequently, the inflow of
remittances declines the unpredictability in the domestic economy. In this manner the hazard premium of financial specialists may reduction and undertaking
investments will turn out to be more alluring. Subsequently more investments will be embraced and this together may prompt economic growth in the domestic
economy (Barajas, et al., 2009, p. 6). In the event that beneficiaries of remittances experience terrible circumstances in the nation of origin, for example because
of an economic emergency or a surge fiasco, remittances may increment and work countercyclical for the domestic economy (Solimano, 2003, p.2).
Remittances and trade
A potential negative effect of the inflow of remittances on economic growth in the domestic nation is the supposed Dutch Disease effect. In the event that the
inflow of remittances causes a valuation for the genuine exchange rate and a hampering of the tradable sector, the intensity of the nation on the world market
will diminish. In the event that remittances flow in a nation, the request of merchandise by economic specialists in the domestic economy will increment. This
request is normally one-sided towards non-tradable domestic products. While costs tend to ascend in the non-tradable sector, the costs for the tradable sector
are resolved on the world market (expecting the nation does not influence the world market costs). Subsequently the genuine exchange rate will acknowledge

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1.6 CONCLUSION
Migration of people to other countries in search of employment has occurred all through history and it is by no means a new phenomenon. The objective of this
paper is to understand the different facets of migration. Migration and remittances are intertwined. The usage of the remittances at household level is affected
by several factors like the household and migrant characteristics. Remittances lead to better economic and social conditions of the households due to reduction
in credit constraints and allowing for access to better education and health care for the members of the migrant households. It should be noted that remittances
are put to several uses like day to day consumption, medical, education, improvement of house, purchase of a new land, financial help to relatives, and setting up
a business. Well, most of these might be thought as unproductive investments. However, such expenditures have a positive effect on hygiene, physical well being,
raising labour productivity and enhancing property values. Hence one can infer that migrant households are rational economic agents that do not essentially
engage into conspicuous consumption. It has been observed that migrant households set aside moderate amounts for savings, equipments, improvement of
house, home purchases etc. hence investing into productive activities.

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THE FUTURE OF BUSINESS IS DIGITAL MARKETING: A DESCRIPTIVE STUDY

BAJRANG LAL
RESEARCH SCHOLAR
DEPARTMENT OF MANAGEMENT
CHAUDHARY RANBIR SINGH UNIVERSITY
JIND

Dr. AJMER SINGH

ASST. PROFESSOR
CHAUDHARY RANBIR SINGH UNIVERSITY
JIND

ABSTRACT
Digital marketing facilitates the marketers to have frequent and interactive communication with the target customers in a speedy way. The diversity of digital
channels like internet, email, social-media, display-advertising and mobile phones provide an opportunity to develop long-term relationships with customers. At
present, the world people are getting themselves contacted with digital media. There are more than 3.7 billion internet users in the world. In India, digital media
business is growing at a rapid rate. Now, a need of the hour is to understand customers preferences, tastes, and likings regarding digital media so that marketing
campaign may success. The number of internet users, mobile penetration in the country and Digital India offer many opportunities for the marketing. Marketers
have to understand how to use digital channels effectively for marketing and also must concentrate on trust building among customers.

KEYWORDS
digital marketing, digital channels, strategies, internet-users.

1. INTRODUCTION

T here are different types of digital channels like internet, social media, email, mobile phones, mobile apps, and digital technology. These channels have
become an integral part in lives of more than 3.7 billion people in the world (Internetworldstats.com). Digital channels provide a new platform to develop
and maintain a long time relationship with customers. Marketers interaction with customers help in building strong and long term relationship with cus-
tomers and thus digital channels propel the business in this context (Bhattacharya & Belton, 2000). Marketers also understand the cost differentiation between
the use of traditional communication media and digital channels (Reinartz al.et, 2005). Comparing to the traditional communication media, digital media provide
cost efficiency as well as better and fast interaction with customers. Marketers prime objective is to make an interaction with the customers of the company and
its offerings. It can be easily fulfilled by the use of digital channels for marketing and this will enhance customer loyalty towards the brand as well as towards the
company. By doing this customers may feel emotionally valued himself/herself for being interacted and cared (Jayachandran et. al, 2005). Digital technologies
offer a great opportunity to the marketers and digital marketing will dominate over the marketing practices of next decade (Kenney way, 2007).

2. LITERATURE REVIEW
Concept of Digital Marketing: Electronic Marketing started with the use of telegraphs in the 19th centuary. It is the transfer of goods and services with the help of
electronic media. With the inventions of cable-network, electronic media, with the use of television and radio, marketing practices began to change (Hoge, 1993).
This term was first used in 1990. It refers to online marketing, internet marketing or web marketing. It has been a most common term after 2013. It is a booming
industry. It is an umbrella term for the marketing of products or services using digital technologies, mainly on the Internet, but also including marketing through
mobile phones, display advertising, and many other digital media (Barwise & Fairly, 2005;Mishra & Taruna, 2016). Urban (2004) defined the digital marketing
saying that digital marketing uses internet and information technology to extend as well as to improve traditional marketing functions. Recently, internet marketing
is playing a dominant role for the marketers. This is a specific paradigm which includes both market and medium (Farhoomand & Lovelock, 2001). Coviello, Milley
and Marcolin (2001) defined E-marketing as using internet and other technologies to create and to mediate dialogue between firms and identified customers.
Since the 1990s and 2000s, there have been dramatically changes in field of marketing. Digital marketing campaigns are becoming more prevalent as well as
efficient, as digital platforms are increasingly incorporated into marketing plans and everyday life. Digital marketing offers new opportunities to attract, to build a
strong relationship and also to serve customers (Rowley, 2005; Simon, 2007). Nowadays, people use digital devices instead of going to physical shops. Digital
marketing such as Search Engine Optimization (SEO), Search Engine Marketing (SEM), Content Marketing, Influencer Marketing, Content Automation, Campaign
Marketing, Data-Driven Marketing and E-Commerce Marketing, Social Media Marketing, Social Media Optimization, E-Mail Direct Marketing, Display Advertising,
EBooks, Optical Disks and games, are becoming more and more common in our advancing technology. In fact, this extends to non-Internet channels that provide
digital media, such as mobile phones (SMS and MMS), callback and on-hold mobile ring tones. E-marketing has also been renamed as interactive marketing (Brodie
et al., 2011).

3. OBJECTIVES OF THE PAPER

With passage of time, Marketing has gone through diverse improvements and changes. At present, modern marketing practices are prevailing and marketers
focus is on Internet Marketing, Web Marketing, Online Marketing, Telemarketing and Mobile Marketing and so on. Digitalization of marketing practices is the
future of marketing. This paper has the following objectives:
1. To highlight the potentials and scope of digital marketing in India as well as abroad.
2. To highlight the different paradigms of digital marketing.

4. RESEARCH METHODOLOGY
This research paper is review based.
RESEARCH DESIGN: For this research paper descriptive research design has been used.

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5. ANALYSIS
FIG. 1: DISTRIBUTION OF GLOBAL INTERNET USERS, 2011

The figure number 1 shows the distribution level of global internet users in 2011. In Asia there is the maximum number of internet users. Asia has 44%, Europe
has 22.7% and North America has 13% of the world internet users.

FIG. 2: TOTAL ESTIMATED NUMBER OF INTERNET USERS, 2011

The figure number 2 shows the distribution level of global internet users by 2011. In Asia there is the maximum number of internet users. Figure number 1.1
elaborates this. Asia has 992 million, Europe has 476.2 million and North America has 272 million of the world internet users.

FIG. 3: WORLD INTERNET USERS, 2017

Source: Internetworldstats.com
The figure number 3 shows the world internet users by March, 2017. In Asia there is the maximum number of internet users. Asia has 1.8 billion, Europe has 636
million, Africa has 345 million and North America has 320 million of the world internet users. Thus, it can be concluded after analysing the internet users of 2011
and 2017 that number of internet users has been increasing worldwide.

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FIG. 4: DIGITAL MARKETING IN INDIA- SOME LUCRATIVE FACTS

The above figure shows the potentials for digital marketing with different aspects. Growth of digital media business is expected to reach INR 200 billion by 2020
in which 23-28% contribution would be of digital advertisements. The digital marketing not only allows to the marketers to market their products but also allows
the online consumers for customer supported services through 24/7 to make customer feel supported and valued. Consumers preferences, tastes and likings in
digital era are very important to understand so that success can be obtained. Consumers prefer to shortform content; with the average length of video viewed in
India being less than 20 minutes. Moreover, 62% of the content which is consumed on YouTube is short-form content. This trend has led content producers like
Eros International & Star to focus on exclusive and snackable content. It has created a huge opportunity for storytelling to be optimized from a story point of view,
and not from its length point. The same can be seen in the content created by digital media companies like AIB, TVF, Ping, Culture Machine and many others. Now
in India, 4G-inernet service is also available (ey.com/publication). By March, 2017 there were more than 462 million internet users that is the second largest after
the china which has about 731 million and about 157 million Facebook subscribers in India the second largest after the Unites States which has 201 million
(internetworldstats.com). In the whole world Indian mobile sector has established a sustained momentum. The development of this sector goes to higher sub-
scriber volume, lower-terrifs and falling handset prices. Mobile penetration rose from 72% in 2011 to 81% in 2016 and it is also expected that market will reach
with mobile penetration over 90% in 2021(Budde.com.au).

6. DIGITAL INDIA
This programme was started by Indian government in 2015. The aim is to connect Indian economy with rapid changing and growing world economy and also to
make Indian people available different services, benefits, newest information, and technologic- innovations digitally. The project has three main aspects:
(1). Digital infrastructure
(2). Digitalization of services and resources
(3). Digital education
Digital India will provide high speed internet access, e-services, Digital inclusion, Digital- locker, e-sign, and many more (digitalindiainsight.com). Thus, we can say
that in such circumstances marketers will have more opportunities to market their product not only to the urban Indian but also to the remote rural Indian in an
easy and speedy way.
6.1 CHANGING FACE OF RURAL INDIA
Rural India is getting transformations in case of literacy level, infrastructure, income, consumption, and usage of internet. As we know mobile wallet is increasing
popular in urban as well as in rural India. In 2013, as per an estimation-there were 351 million internet users in the country and out of which 33% were from rural
India. This percentage is expected to grow up to 50-55% by 2020.

FIG. 5: PERCENTAGE INTERNET USER IN RURAL-URBAN INDIA

Source: (ey.com/publication).

7. LATEST DEVELOPMENTS AND STRATEGIES

The emergence of digital marketing is the greatest change in the traditional marketing and this leads to reinvention in the traditional marketing (Patrutiu &
Loredana, 2015). Digital marketing is dependent on technology which is ever-evolving and fast-changing. More focus has been placed on segmentation within
digital marketing, in order to target specific markets in both business-to-business and business-to-consumer sectors. Viral campaigns: As per the opinions of the
opinion leaders, viral campaigns will be more effective and powerful in the online communities. For the very purpose, there is need to create viral campaigns
meticulously (Yang et. al, 2012). Factors like humour and sexuality are the main factors in ads which attract and propel the consumers to viral ads because when
users are entertained by ads, they tend to pass on ads to their interacted group (Golan and Zaidner, 2008). Proper use of social media: This can help the marketers
to establish a strong positioning among the online community. Except this, perception and responses of customers should be studied. Issues like study of customer

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8. DIFFERENT CHANNELS OF DIGITAL MARKETING

1. Influencer marketing: This is becoming an important concept in digital marketing. It is possible to reach Influencers via paid advertising, such as Facebook
Advertising or Google Ad words campaigns, or through SCRM (social customer relationship management) software, such as SAP C4C, Microsoft Dynamics,
Sage CRM and Salesforce CRM (Nielsen, 2015).
2. Online behavioural advertising: Digital media provide opportunities to youth to post their personal information and photos online on regular basis. The
study shows that in Brazil 46% of children follow this (Safenet, 2009). Young users maintain strong and positive attitudes towards online vedio, blogs, and
ads formats comparing to aged users (Cox, 2011). It is important for the marketers to investigate the factors which affect consumers attitudes and motives.
Consumers are taking part in different activities like consuming content, participating in group dialogues, and sharing knowledge with other consumers, to
contributing to other consumers activities (Heinonen, 2011). The study strived to disclose the different important aspects of social media sites that influence
consumers attitude and concluded that group members on Facebook have positive attitude towards social media site advertising. Thus, we can also conclude
that social media is a powerful platform for online ads (Chu, 2011). Online advertising may be divided into push advertising such as e-mail ads, pop-up
advertisements, newsletters, banner advertising which seems like offline advertising; and on-demand advertising such as search engine marketing,
smart/keyword activated banners which allows for a more non-interruptive form of advertising.
3. Data-driven marketing-It is a process of generating insights and trends by analysing market data or company generated data and then translating these
insights and trends into actionable strategies to cater changing trends and demands of customers (ngdata.com)
4. Remarketing-It is a business strategy to maintain contacts with the potential customers. It reminds the customers about the products/services they pur-
chased or used in past. With advent of internet, its role has increased in an effective way (marketing-school.org).
5. Game advertising-It uses different game apps.
6. Content marketing- Briefly, it can be described as delivering the content that your audience is searching for. The main objectives for content marketing
can be brand awareness, lead conversion, customer conversion and customer up sell (Rose and Pullizzi, 2011). Content should be with some uniqueness,
somewhat remarkable (Halligan and Shah, 2010) or it should support the objectives with satisfying customers needs (Davis, 2012).
7. Mobile marketing: Mobile marketing is marketing on or with a mobile device, such as a smart phone. Mobile marketing can provide customers with time
and location sensitive, personalized information that promotes goods, services and ideas (Karjaluoto & Leppniemi, 2005). Andreas Kaplan defines mobile
marketing as "any marketing activity conducted through a ubiquitous network to which consumers are constantly connected using a personal mobile de-
vice"(Andreas, Kaplan, 2012). There are three things; a marketer should consider when he wants to take business through mobile or internet marketing. (A)
Mobile apps (B) Payment Option (C) Adaption (gadzoog.com).India has 70% access web via mobile phones (ciim.in).
8. Social Media Marketing Social networking sites provide huge opportunities to interact with world and people to maintain and develop friendship and
relationship (Clarke, 2009). India has more than 82 million monthly active Facebook users, the third in world after the USA and Canada (ciim.in). 'Digital
Marketing' has a number of marketing channels used in and among these, comes the Social Media. When we use social media channels like Facebook,
Google+, Pinterest, Twitter, etc. to market a product or service, the strategy is called Social Media Marketing. It is a procedure where in strategies are made
and executed to draw in traffic for a website or to gain attention of buyers over the web using different Social media (digitaldoughnut.com). Skaar (2009)
argues that websites like Habbo and Piczo have become very important for the children and offers impotant social space and experiences.
9. Display Advertisement- Website is the most important tool of communication on internet (Lopez & Ruiz, 2011) and fulfils different functions (Hwang et al.
2003; Karson & Fisher, 2005). It involves graphical advertisement and placing them next to content on the websites via Emails, using other digital formats.
Advertisement can be images, audio/vedio clips, animation or other interactive contents (digitaldoughnut.com). It provides a platform for public relation.
Online marketing facilitates this through different ways.
a) Video advertising: Such type of advertising means the advertisements that are played on online videos e.g. YouTube videos. Such type of marketing has seen
an increase in popularity over time. Online Video Advertising usually consists of three types.
(i) Pre-Roll advertisements which play before the video is watched
(ii) Mid-Roll advertisements which play during the video
(iii) Post-Roll advertisements which play after the video is watched.
b) Affiliate Marketing: It is also called performance based marketing. It involves business owner and one or more websites/affiliates. Affiliate owners place
advertisement on their websites to market the products or services in exchange for percentage of profits. The affiliates can make money in three ways (A)
pay per click (B) pay per sale (C) pay per lead. In this marketing- owners advertisement is free of cost (digitaldoughnut.com).
10. APP Based Marketing: With the increasingly widespread use of smart phones, app usage has also greatly increased. Therefore, mobile marketers have
increasingly taken advantage of Smartphone apps as a marketing resource. This allows for direct engagement, payment, and targeted advertising (sta-
tista.com).

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FIG. 6: TOTAL NUMBER OF APPS DOWNLOADED FROM THE APPLE APP STORE FROM JULY 2008 TO SEPTEMBER 2016 (in billions)

Source- (statista.com)
9. FINDINGS OF THE STUDY
1. There are more than 3.7 billion internet users in the world. In Asia, there is maximum number of internet users (I.8 billion) followed by Europe (636 million),
Africa (345 million) and North America (320 million) by March, 2017.
2. India has the more than 462 million internet users by March, 2017 of which 150 million Facebook- subscribers. India has more than 82 million monthly active
Facebook users, the third in world after the USA and Canada.
3. Digital media business is expected to reach INR 200 billion by 2020 in which 23-28% contribution will be of digital-advertisements. Marketing with Mobile-
Apps and social media is like emerging trends.
4. 62% of the content consumed by consumers on you Tube is short term content.
5. In India, Mobile penetration rose from 72% in 2011 to 81% in 2016 and is expected to reach over 90% in 2021.
6. By the end of 2020, there will around 650 million internet users in India and of which 50-55% will be from rural India.
7. Marketers should not ignore the power of Viral Campaigns to gain competitive advantages.
8. In digital marketing, Trust-Building is must.

10. SUGGESTIONS AND MANAGERIAL IMPLICATIONS

(1). Digital integrated marketing approach should be used by marketers. (2). For the success of digital marketing, marketers focus should be on short term content
as consumers prefer short-term digital-content and length of vedio viewed in India being less than 20 minutes. (3). In India, mobile penetration is high, so APP-
based marketing will be the perfect weapon. (4). Business should focus on their social responsibilities and trust building among their customers and this will create
customer loyalty among customers. (5). Marketers should effectively utilise viral campaign and social media. Mazzarol et. al., (2007) and Ferguson, (2008) pro-
posed that positive word of mouth plays a significant role in marketing and viral campaigns propelling customers to purchase. In this study, the researchers said
that Digital Content should be valuable, useful, as per time, relevant and compelling (Holliman and Rowley, 2014). Work-framed communication will generate a
more effective influence than fun-framed communication (Mckey and Yoon, 2015). A current study concluded that users generated e-WOM directly influences
the brand attitude and customers purchase intention (kudeshia and Kumar, 2017).The study of (Yang et. al, 2017) stated that entertainment, informativeness,
irritation and credibility influence the purchasing attitudes of online customers. All these suggestions will help the marketers to understand and avail the digital
environmental opportunities in India as well as in abroad and all this will enhance their morale in field of marketing.

11. CONCLUSION OF THE STUDY

Online connected customers offer huge opportunities to be availed by the marketers. Online network is a bazaar, a place to interact with ongoing world and to
learn many new things (Levine, et al., 2001). Digital Marketing especially social marketing is driving changes in customers behaviour and also in society at global
level (Kaplan and Heinlein, 2010). For digital marketing shared consciousness and a sense of moral responsibility and affinity from companies will enhance the
trust level of customers and will make consumers more confident for acting on information gained from online communities (Bart et al., 2005). The appearance
of the online community Web site will facilitate the trust-building among customers and success of online marketing campaign (Schlosser et al., 2006). Effective
use of digital marketing can result in relatively lower costs in relation to traditional means of marketing such as lowered external service cost, advertising cost,
promotion cost, processing cost, interface cost and control cost (Van, 2007).Advertising in online social networks will soon become a key marketing strategy as
visits to the online social networks are continue to increase and will definitely impact traffics to commercial websites. Digital marketing is an effective tool in the
hands of marketers in this competitive era and for this marketing manager should focus on digital contents (Rowely, 2010). E-mail has also become integral part
of people everyday lives in workplaces and home (Danaher and Rossiter, 2011). Thus, marketers has started thinking with development of digital media that
immediate future is full of opportunities for broadening the focus for making marketing a success (Bell et. al, 2012). Young Customers show strong attributes for
online advertising formats with blogs, video, brand channel and brand page than the matured and aged customers (Brackett & Carr, 2001).
Digital marketing is a very important feature in the success of a business. Now there is need to modify the marketing devices as per the changing scenario. The
growth is expected to be fuelled by availability of low- cost smart phones, low rates of data plans and development of smart cities in rural areas. Marketing
practices like internet marketing, mobile marketing and email marketing will help to achieve a competitive edge in the market for long run profits. A good marketer
should know how to avail the power of social media and other devices of digital marketing to market the brand image of company. Digital marketers should focus
on products with unique selling propositions, better quality, zero defects and cost effectiveness. Simultaneously, there is need to understand the online social
network users attitude before drafting marketing campaign as attitude of online users differ across different age group.

12. SCOPE FOR FURTHER RESEARCH

This research paper is a review based effort. If extensive literature review is done or primary data is collected, findings may be different. So, the researchers have
an opportunity to do a similar study with extensive literature survey and with primary data to highlight the hidden paradigms of digital marketing.

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VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
AN ANALYSIS OF THE USE OF STRATEGIC MANAGEMENT ACCOUNTING BY ZIMBABWEAN MEDICAL
LABORATORIES IN HARARE

CHEZA ALEXANDER
FELLOW (MEDICAL LABORATORY SCIENTIST)
AFRICAN SOCIETY FOR LABORATORY MEDICINE (ASLM)
KIRKOS SUBCITY

MATAMANDE WILSON
LECTURER
DEPARTMENT OF ACCOUNTANCY
UNIVERSITY OF ZIMBABWE
HARARE

KAPESA TONDERAI
LECTURER
DEPARTMENT OF ACCOUNTING & FINANCE
ZIMBABWE EZEKIEL GUTI UNIVERSITY
BINDURA

ABSTRACT
The study finds out that there is a largely high level of use of operational strategies, but this is not translating into usage of SMA practices medical laboratories in
Zimbabwe. SMA practices commonly used by medical laboratory institutions in Zimbabwe are: brand valuation; use of balanced score cards; activity based man-
agement; strategic costing and pricing; target costing; customer accounting; and benchmarking respectively. There are numerous factors with varied impact on
influencing the embracing of SMA practices by medical laboratories, these include lack of financial resources primarily and extending poor technologies, lack of
skills, and insufficient human resources. However, policy inconsistency and an unfavourable business environment rank weakly in influencing the adoption of SMA
practices. The study recommends the enhancement of operational strategies by using SMA practices because strategies not financially informed may lead busi-
nesses to pursuing strategies that lack economic viability and the medical laboratories should consider investing in systems that support adoption of SMA practices,
such investments as hiring qualified accountants as well as equipping their accounting staff with SMA skills.

KEYWORDS
Zimbabwean medical laboratories, strategic management accounting, Harare.

INTRODUCTION AND BACKGROUND OF STUDY

T he major challenge faced by practitioners when practicing conventional management accounting is its affiliation with strategy. Thus, challenges for most
managers, consultants and management scholars, pertains to the proper alignment of entities functional activities and disciplines at the same time sup-
porting corporate strategy for the entity, specifically aligning the strategy and management accounting function. Extensively published criticisms of the
conventional management accounting practices during the 1980s and 1990s resulted in an increase of interest in strategic management accounting (SMA) as an
alternative or development of the conventional management accounting approaches by trying to give more strategic role to management accounting (Cadez &
Guilding, 2008).
Strategic Management Accounting (SMA) is defined as: the body of management accounting concerned with strategically orientated information for decision
making and control (Langfield-Smith, 2008). (Shah , et al., 2011) submits that the launch of SMA and its development by accounting scholars as a contemporary
discipline, which is envisioned as a flagship of the accounting profession, focusing on the evaluation of the business against their rivals/opponents (Simmonds,
1981), in order to enable management to have a birds eye view of the competitors actions and business practices so that they make apposite decisions (Brom-
wich, 1990). Zimbabwes private for-profit health sector expanded between 1995 and 2007, with both local and foreign investors active, particularly through
mergers and acquisitions (Munyuki & Jasi, 2009). Additionally, the adoption of multiple currencies as legal tender which ended years of hyperinflation in 2009,
saw Zimbabwe developing into a centre of investment and business attraction for foreign investors in all sectors including health services (Marufu, et al., 2014) as
a result of the hard currency used which is more valuable and acceptable internationally. This escalated the competitive forces in Zimbabwes health sector
including medical laboratories. In addition to this there has always been indirect competition for Zimbabwean medical laboratories emanating from the forces of
globalization as South African medical laboratories have always been attracted to Zimbabwe because of the geographic proximity as well as their ability to offer
state of the art laboratory services, which have higher learning curves due to a lot of experience and higher technological exposure (Marufu, et al., 2014). This has
resulted in Zimbabwean medical laboratories facing stiff competition in the tough economic environment currently prevailing in Zimbabwe.
Since SMA helps in monitoring a business performance in the market using a variety of strategic variables over a decision horizon appropriately long for strategic
plans to come to fruition. Therefore, SMA supports those management accounting practices that are strategy focused, with a futuristic posture and exact outward
focus. As supported by (Juras, 2014), SMA relies on non-financial performance measures, such as the well-organized functioning of customer related and compet-
itor-related SMA practices depends on measures of a non-financial nature. On the other hand, conventional management accounting is generally mostly financial
orientated, thus more importance is given to historical financial assessment. Zimbabwes medical laboratory firms need to increase their profitability as well as
sustaining business growth when faced with such a challenging operating environment. They also endeavour to increase value for both clients and the firm through
improving the quality of their services. This therefore requires a blend of accurate conventional cost and management accounting practices and additional quali-
tative information obtained from using SMA. Therefore, the study endeavours to establish the most common SMA practices used by medical laboratories in
Zimbabwe specifically focusing on those operating in Harare, the capital city of Zimbabwe.

STATEMENT OF THE PROBLEM

Generally, accounting research has been able to prove the popularity of numerous SMA practices and the significance of management accountants in relation to
playing strategic roles. As outlined by McLellan & Moustafa (2011), the role of SMA in the manufacturing sector is indisputable since most entities depends on
SMA practices for coming up with winning competitive strategies. Contemporary business demands that management accountants not only provide strategic
information but they should be active in the strategic decision-making process (Bhimani and Kershtvarz, 2009). Nevertheless, understanding is minimal on the

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 74

RESEARCH OBJECTIVES
The objectives of the study are to:
1. Establish the extent of adoption of SMA by medical laboratories in Zimbabwe;
2. Categorise the commonly used SMA practices by Zimbabwean medical laboratories; and
3. Assess factors affecting use of SMA practices by medical laboratories in Zimbabwe.

LITERATURE REVIEW
Scholars such as Boedker (2010) and Kreiner & Mouritsen (2003), outline that the relationship between management accounting and strategy is an extensively
researched matter. Accounting roles cab be divided into reflective or constitutive roles and there is a complicated relationship between these roles. Hopwood
(1983) outlines that the reflective role of accounting shows accountants reliance on the entities in which it is entrenched and on the other hand that the consti-
tutive role usually compels entities based on the opportunities and potentialities of the accounting expertise. Usually, the constitutive role forms perceptions of
both the limitations on planned actions and the desired outcomes (Hopwood 1983). Furthermore, Hopwood (1987) highlights that the roles of accounting continue
to be defined outside of the practice of the profession, with a number of other studies having focused on the analysis of the role of accounting as seen in the
enrichment of business performance. In essence accounting practices need to be viewed as being active progressively in producing rather than simply allowing
organised enterprise (Hopwood, 1987). Usually, conventional research views accounting as having a subordinate role aimed at ensuring the precise execution of
set objectives (Boedker, 2010).
Theoretically the study adopts the Institutional theory notwithstanding the presence numerous other theories dealing with change and these include the structu-
ration theory and the radical theories. The Institutional theory, as propounded by Scapens (1994) and further refined by Burns & Scapens (2000), defines the
nature of rules, routines and institutions within organisations. The management accounting practices can either shape or be shaped by the organisations which
direct activities in the entities. Naturally, entities create and replicate established ways of doing business and acting. Accordingly, the institutional perspective is
an appropriate model to focus on rules, practices and routines, dealing with institutional character in organisations is known. The study is concerned with processes
across organisations such as the application of management accounting practices, and therefore adoption of the institutional perspective. The management ac-
counting practices are inevitably entwined with managerialism systems of philosophy.

STRATEGIC MANAGEMENT ACCOUNTING (SMA) PRACTICES AND THEIR USE

Lee and Park (2006) postulates that efficacious decisions by management must improve the ultimate performance of the entities involved. Since accounting is
essential to management, and specifically the use of strategic management accounting for the enhancement of management decisions for general performance
of business (Cadez & Guilding, 2008). Therefore, a key view guiding the study, is that enterprises which carefully use suitable strategic management accounting
practices should yield more effective decision-making resulting in to healthier performance. The strategic management accounting basis as outlined by Simmonds,
(1981), which was later rearticulated as accounting for strategic positioning by Roslender, (1996) is based on the reason that a better market-focused and strate-
gically tailor-made accounting is imperative for business welfare (Langfield-Smith, 2008). The role of strategy is dynamic because managers constantly evaluate
blends of several contingency factors (Chenhall, 2003). Thus, there are defender and harvest orientated strategies as well as those strategies meant to attain cost
leadership or those linked to recognised performance measurement systems such as objective budget performance targets.
In the 1990s the notion of strategic management accounting (SMA) and contingency studies developed, assuming that the SMA existed as part of management
accounting practices applicable in the strategic purposes. However, Roslender & Hart (2003) submits that SMA can be clearly understood as a common method to
account for strategic positioning of entities. By definition it is an effort to put together views from management accountants and marketing managers in a strategic
management context. Therefore, SMA can generally be defined as the use of management accounting systems to enhance strategic decision making. Most research
in SMA is focused on the accounting practices used in various circumstances (Tillman & Goddard, 2008). Numerous studies on SMA practices have been done by
such scholars as Carr & Tomkins (1998) and Guilding et al. (2000). Guilding et al. (2000) acknowledged twelve variations of strategic management accounting
practices which include: strategic costing; attribute costing; target costing; brand value budgeting and monitoring; lifecycle costing; competitor cost assessment;
competitive position monitoring; competitor appraisal based on published financial statements; quality costing; strategic pricing and value chain costing. Such
studies found competitor accounting and strategic pricing as the commonly used practices, whilst Tillman & Goddard, (2008) on the other hand advocate that the
SMA is not broadly known in businesses, and as a result the meaning of the concept is not understood by most managers.
A number of empirical studies have been done across the globe assessing the adoption of various SMA practices, such studies include Cinquini & Tenucci (2006)
who studied big Italian companies and the following 14 SMA practices were ranked in their descending order of use: 1) Attribute Costing, 2) Customer Accounting,
3) Strategic Pricing, 4) Competitive position monitoring, 5) Competitor performance appraisal based on published financial statements, 6) Strategic Costing, 7)
Quality Costing, 8) Competitor cost assessment, 9) Target Costing, 10) Benchmarking, 11) Value Chain Costing, 12) ABC/M, 13) Integrated performance measure-
ment, and 14) Life Cycle Costing). From the above SMA practices use by Italian big companies the first seven had mean scores above whilst the las seven had
mean scores less than 3. In another study by Al-Khadash & Feridun (2006) assessing the level of adoption of ABC, JIT and TQM as strategic initiatives by Jordanian
industrial companies found that mainly listed entities used such practices, and moreover, there was more cognizance of these practices by their financial managers.
However, on the contrary the same study suggested an inverse relationship between awareness level and the level of adoption of the practices. In another study
conducted in Croatia by Ramljak and Rogoi (2012) with a population of 400 big firms, detected various frequencies of usage of certain strategic management
accounting practices: ABC had a 40% frequency; Quality costing had 39, 4% usage frequency; Target costing had 25.8% frequency of usage by these companies;
the balanced scorecard had a 15.2% frequency; and on the lower end of usage was life cycle costing with a 9.1% frequency and environmental costing with a 6.1%
frequency. The study concluded that using two or more SMA practices have a positive effect on cost control and reduction improvement.
The last empirical study reviewed conducted by Abdul-Hussien and Hamza (2012) with 20 respondents selected from four Romanian companies as the sample,
was meant to test the significance of four SMA concepts and the following results were obtained: Continuous Improvements (mean score was 3.73); Value Chain
Analysis (mean score of 3.64 was realised); ABC (mean score of 3.50); and, Balanced Scorecards (with 3.25 as mean score). Based on these findings the study
further specified constraints and challenges cited by respondents in applying SMA practices, with the most prevalent limitation being the prohibitive costs related
using these approaches in comparison with traditional approaches. On the other hand, the same study also found numerous benefits for Romanian companies
after their use of SMA practices. Indisputably, over the years there has been increasing interest in SMA as evidenced by the number of studies which include:
Roslender & Hart, (2003); Cadez & Guilding, (2008); Bhimani & Langfield-Smith, (2007); as well as Langfield-Smith, (2008). On the contrary in the numerous studies
there is still no consensus as to what makes up SMA (Cadez & Guilding, 2008). It is the result of the view that SMA is widely unknown that the current study
interrogates the use of SMA practices by medical laboratory companies in Harare Zimbabwe.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 75

FINDINGS AND RESULTS

The sample for the study was made up of 36 individual selected from 9 medical laboratories. 27 questionnaires were distributed and 9 interviews scheduled.
Response rate for the questionnaires was 88.9% since 24 questionnaires were returned valid whilst for the interviews 7 were successfully conducted resulting in
a 77.8% success rate. The overall response rate was 88.9%. The demographic information of participants in the study is shown in table 1 below:

TABLE 1: DEMOGRAPHICS OF RESPONDENTS

Gender Male Female
21 10
Age 30 yrs 40 yrs 50 yrs > 50 yrs
1 14 11 5
Education Degree Diploma Certificate Other
21 6 1 3
Presented in table 1 above are the key demographic features, of note being the fact that the majority respondents were males with a modal age between 31 and
40 whilst holding university degrees as qualifications.
USE OF STRATEGIC MANAGEMENT ACCOUNTING PRACTICES
Responses were obtained for a closed-ended question meant to obtain information on the status of the use of strategic management in generally and then SMA
specifically. On the use of strategies in general 93.5% (29) of respondents indicated their institutions made use of operational strategies. Results for the use of
SMA practices are shown in figure 1 below:
FIGURE 1: USE OF STRATEGIC MANAGEMENT ACCOUNTING PRACTICES

Figure 1 shows that 58% of respondents indicated use of strategic management accounting practices in their institutions whilst 42% indicated no use. It is clear
that medical laboratories in Harare use more of operational strategies than SMA. These findings concurred with other scholars such as Al-Khadash & Feridun
(2006) who assessing the level of adoption of ABC, JIT and TQM by Jordanian industrial companies and found that mainly listed entities used such practices. Thus,
findings from the study showed that mainly large and medium sized laboratories use SMA practices, with an adoption rate of 58%.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 76

TABLE 3: DESCRIPTIVE STATISTICS FOR VARIOUS SMA PRACTICES

N MINIMUM MAXIMUM MEAN STD. DEVIATION
Brand valuation 31 1.00 3.00 2.5161 0.67680
Use of balanced scorecards 31 1.00 3.00 2.3226 0.79108
Activity based management 31 1.00 3.00 2.0968 0.70023
Strategic costing and pricing 31 1.00 3.00 1.8065 0.79244
Target costing 31 1.00 3.00 1.6774 0.59928
Customer accounting 31 1.00 3.00 1.6129 0.55842
Benchmarking 31 1.00 3.00 1.5806 0.76482
Quality costing 31 1.00 2.00 1.5484 0.50588
Competitor assessment 31 1.00 3.00 1.3871 0.61522
Valid n 31
Table 3 shows that the most predominantly used SMA practice was brand valuation with the highest mean of 2.5161, implying that respondents indicated that
the medical laboratories almost always use brand valuation strategically. The least used was competitor assessment with mean of 1.3871 and the standard devi-
ations are almost similar for all practices. These findings were further explained by the interviewees who indicated that most medical laboratories were run by
scientists and therefore they preferred more scientific practices such as brand valuation and using balanced scorecards. The use of brand valuation as an accounting
practice has been subjected to extensive deliberation. However, from the management accounting view of brand valuation, its prospective value in determining
marketing successes for well branded companies is apparent (Cadez & Guilding, 2008). It must be noted that interviewees indicated brand valuation as a highly
scientific and complicated practice requiring technical aptitude, which however, was regarded easy by laboratory scientists who were responsible for the account-
ing functions in their entities.
FACTORS AFFECTING THE ADOPTION OF SMA BY MEDICAL LABORATORIES
After identifying the commonly used SMA practices the study went on to assess the factors which affect the use of SMA practices by medical laboratories in Harare,
closed-ended question suggesting possible factors and the strength of their effects and responses obtained are shown in figure 2 below:

FIGURE 2: FACTORS AFFECTING ADOPTION OF SMA PRACTICES

Figure 2, shows a total of 7 factors which were suggested to the respondents and responses on their effects towards the adoption of SMA practices by the various
medical laboratories are shown above. One of the SMA practices identified as being less frequently used by the study is competitor assessment which involves
information about competitors and responses show that only 9% indicated it had low effect whilst 38% indicated mild effect and 53% indicated a strong effect.
Interviewees also supported this view by citing the challenges in Zimbabwe in engaging in competitive benchmarking as most businesses are too secretive. Other
factors highlighted as having a strong effect on the adoption of SMA by the medical laboratories are: the lack of required skills (50%), inadequate financial resources
(47%) and insufficient human resources (44%). Interviews further explained that the rest of challenges were attached to financial resources limitations since hiring
of qualified personnel requires financial resources or the training of current staff also require finances. Findings concur with Boedker (2010), on the effects of
financial challenges on the implementation of strategies, the economic situation is contributing towards the levels of adoption of the various SMA practices. On
the contrary, Baxter & Chua (2003), argue that poor investment in SMA systems and practices exposes business to competitive challenges resulting in their inability
to realise their desired strategies. Technological changes and unfavourable business environments were regarded as having mild effect on the implementation of
various SMA practices.

CONCLUSIONS AND RECOMMENDATIONS

Findings presented and analysed above which are based on data from the research led to the following conclusions:
There is a largely high level of use of operational strategies, but this is not translating into usage of SMA practices medical laboratories in Zimbabwe.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 77

REFERENCES
1. Al-Khadash, H. A., and Feridun, M. (2006). Impact of Strategic Initiatives in Management Accounting on Corporate Financial Performance: Evidence from
Amman Stock Exchange. Managing Global Transitions, Vol. 4, No. 4, pp. 299 312.
2. Abdul-Hussien, M.H., and Hamza, S. (2012). Strategic Management Accounting Techniques in Romanian Companies: An Empirical Study. Studies in Business
and Economics, pp. 126 140.
3. Boedker, C. (2010). Ostensive versus performative approaches for theorising accounting strategy research null. Accounting, Auditing & Accountability Jour-
nal, 23(5), 595625.
4. Burns, J. & Scapens, R. (2000) Conceptualising management accounting change: an institutional framework. Management Accounting Research, 11 (1), 3-25.
5. Cadez, S. & Guilding, C., 2008. An explanatory investigation of an integrated contingency model of strategic management accounting. Accounting, Organiza-
tions, Society, Volume 33, pp. 836-863.
6. Carr, C. & Tomkins, C. (1998) Context, culture and the role of the finance function in strategic decisions. A comparative analysis of Britain, Germany, the
U.S.A. and Japan; Management Accounting Research, 9 (2), 213-239
7. Chenhall, R. (2003) Management control systems design within its organizational context: findings from contingency-based research and directions for the
future. Accounting, Organizations and Society, 28 (2-3), 127168.
8. Cinquini, L., and Tenucci, A. (2006). Strategic management accounting: Exploring distinctive features and links with strategy. Munich Personal RePEc Archive,
9. Guilding, C. & Cravens, K. S. - Tayles, M. (2000) An international comparison of strategic management accounting practices, Management Accounting Re-
search, 11 (1), 113-135.
10. Hansen, A., & Mouritsen, J. (2005). Strategies and organizational problems: constructing corporate value and coherence in balanced scorecard processes. In
Chapman, C. (ed.) Controlling strategy: management, accounting, and performance measurement (pp.
11. Hopwood, A. (1983) On trying to study accounting in the contexts in which it operates. Accounting, Organisations and Society, 8 (2-3), 287-305.
12. Hopwood, A. G. (1987). The archaeology of accounting systems. Accounting, Organizations and Society, 12(3), 207234.
13. Juras, A., 2014. Strategic Management Accounting What Is the Current State of the Concept? Economy Trans disciplinarily Cognition, 17(2), pp. 76-83.
14. Langfield-Smith, K. (2008). Strategic management accounting: how far have we come in 25 years? Accounting, Auditing & Accountability Journal, 21, 204-
228.
15. Leedy, P.D. and Omrod, J.E. (2010); Practical Research, Planning and Design. 9th Edition. New Jersey, Pearson Educational International and Prentice Hall.
16. Marufu, J., Chimusoro, E. & Karodia, A. M., 2014. An Assessment of the Impact of Total Quality Management Practices at Parkview Premier Clinical Labora-
tories. Singaporean Journal of business Economics, and management Studies, 2(11), pp. 7-42.
17. McLellan, J., & Moustafa, E. (2011). Management Accounting Practices in the Gulf Cooperative Countries. International Journal of Business, Accounting, and
Finance, 5(1), 129-142.
18. Munyuki E and Jasi S (2009) Capital flows in the health care sector in Zimbabwe: Trends and implications for the health system EQUINET Discussion Paper
Series 79. Rhodes University, Training and Research Support Centre, SEATINI, York University, EQUINET: Harare.
19. Ramljak, B., and Rogoi, A. (2012). Strategic Management Accounting Practices in Croatia. The Journal of International Management Studies, Vol. 7, No. 2,
pp. 93 100.
20. Roslender, R. & Hart, S. (2003) In search of strategic management accounting: theoretical and field study perspectives. Management Accounting Research,
14 (3), 255-279.
21. Scapens, R. (1994) Never mind the gap: towards an institutional perspective of management accounting practices, Management Accounting Research, 5
(3/4), 301-321.
22. Shah, H., Malik, A. & Malik, M., 2011. Strategic management accounting A messiah for management accounting? Australian Journal of Business and Man-
agement Research, 1(4), pp. 1-7.
23. Terrell, S. R. (2012). Mixed-Methods Research Methodologies. The Qualitative Report, 17(1), 254-280. Retrieved from http://nsuworks.nova.edu/tqr/vol17
/iss1/14
24. Tillman, K. & Goddard, A. (2008) Strategic management accounting and sense making in a multinational company; Management Accounting Research, 19
(1), 80-102

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 78

A Monthly Double-Blind Peer Reviewed (Refereed/Juried) Open Access International e-Journal - Included in the International Serial Directories
http://ijrcm.org.in/
VOLUME NO. 7 (2017), ISSUE NO. 09 (SEPTEMBER) ISSN 2231-5756
GROWTH AND PROGRESS OF HANDLOOM INDUSTRY IN INDIA - A STUDY

VINAY KUMAR BOLLOJU

RESEARCH SCHOLAR
M.S.W
DEPARTMENT OF SOCIAL WORK
KAKATIYA UNIVERSITY
WARANGAL

A. SREENIVAS
RESEARCH SCHOLAR
KAKATIYA UNIVERSITY
WARANGAL

ABSTRACT
The study finds out that Handloom is the one of the oldest industry in India. Handloom industry is play key role in the economic development of the country.
Providing employment to 43.32 lakhs in this papers has cover Growth & Progress Or handloom industry in India during the first five year plan to 12th five year plan.

KEYWORDS
India, handloom industry.

INTRODUCTION
andloom industry is an ancient cottage industry with a decentralized setup. Handloom industry provides employment to nearly 43.32 lakhs of people with
H 23.77 lakhs looms. Of people are depending up on ancillary occupation connected with this industry. Handloom sector wears are classified into independent
weavers, weavers working under master weavers, weavers working for co-operative societies and wage weavers.

OBJECTIVES OF THE STUDY

The study with focus on the following objectives.
1. To study the introduction of handloom industry.
2. To study the growth of progress of handloom industry.
3. To draw the conclusion.

SCOPE OF THE STUDY

The study broadly examines the growth & progress of handloom industry in India.

METHODOLOGY
The required data has been collected using secondary data. Secondary data collected from Reports, Books, Articles, these dissertations.

GROWTH AND PROGRESS OF HANDLOOM INDUSTRY IN INDIA

The Indian handloom industry has become world famous because of its innumerable varieties of fabrics which go into the making of garments and dresses with
30 lakhs looms employed on cotton handloom throughout the length and breadth of India.
During the sixth five year plan, the employment generated in India handloom sector has increased from 61.50 lakhs person in 1979-80 to 74.66 lakhs persons in
1984-85. The export of handloom fabrics value terms went up from Rs. 290.4 crores in 1979-80 to Rs. 348.8 crores in 1948-85. Further the share of handloom
sector in terms of output is 39.38 percent in the total production traditional industries during sixth five year plan period.
During seventh five year plan the target of production of handloom cloth has been placed at 4,600 million meters and additional to be generated has been
estimated at 23.47 lakhs persons. The export of handloom fabrics and products were also expected to increase from Rs. 348.86 Crores to Rs. 485 Crores.
During eight five year plan period on annual rate of growth of 5% for production of cloth in the handloom sector suggested and the target of production of
handloom cloth during 1990-91 to 1994-95 has been estimated 21,300 million meters in cotton, 935 million meters in silk and 695 million meters in wool. To
increase availability of silk production should be increased by 100% by the terminal year of the eight five year plan. Number of handloom weavers 65 lakhs,
handloom families 14.50 lakhs and handloom 35 lakhs. It is interesting to note that out of 35 lakhs handlooms in the country more than 14 lakhs handlooms are
in the co-operative sector.
During ninth five year plan achievements in production of handloom cloth in 1997-98 was 6792M.Sq.M but decreased to 7506 M.Sq.M in 2000-01 and again
increased to 7579 M.Sq.M in 2001-02 during the ninth five year plan the government of India adopted a good number of development schemes to develop the
handloom industry in India. The handloom industry assigned an increasingly important role. An outlay of Rs. 2768.19 Crores was envisaged during the plan em-
ployment potentiality remained stable with 12.5 million persons it is interesting to note that out of 35 lakhs handloom in the country more than 80% handloom
are in the co operative sector.
During Tenth five plan were to produce 7875 M.Sq.M cloth in 2002-03 and 10,000 M.Sq.M in the terminal year 2004-05 employment potentiality was reduced to
12.0 million persons and export target was set to Rs. 2950 Crores in 2002-03 and 4500 Crores in the terminal years 2004-05 during the tenth five year plan outlay
for handloom industry was Rs. 140 Crores for 2002-03 and for terminal year 2002-07 it was sent to 625 crores.
During Eleventh five year plan number of handloom weavers 43.32 lakhs handloom families 15.10 lakhs, handlooms 23.77 lakhs and eight five year plan handloom
weavers 65 lakhs, handloom families 14.50 lakhs and handloom 35 lakhs. Decreasing the handloom weavers, handlooms and handloom families eight five plan to
eleventh five year plan handloom weavers 22.19 lakhs, handlooms 11.23 lakhs and handloom families 0.6 lakhs.
During twelfth Five Year plan should be to develop a strong, competitive and vibrant sector in order to provide sustainable employment to the weavers and
ancillary workers, particularly belonging to the disadvantaged section of the population and to ensure faster, more inclusive growth of the sector. In line with the
vision, the focus of action by the government should on strengthening the raw material delivery systems, achieving universal financial inclusion of weavers/ancillary
workers, professionalizing the existing institutions with emphasis on strengthened marketing & brand building initiatives, promoting weaver welfare programs,
restructuring the cluster development approach and establishing robust monitoring and evaluation systems. The thrust should also be on introduction and Inten-
sification of partnerships with the private sector for greater efficiency and faster growth. Further, design and product diversity, including development of niche

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 79

CONCLUSION
Handloom is the one of the oldest industry in India. Handloom industry is play key role in the economic development of the country. Providing employment to
43.32 lakhs in this papers has cover Growth & Progress Or handloom industry in India during the first five year plan to 12th five year plan.

REFERENCES
1. Ankam sreenivas problems & prospects of handloom industry A study of Karimnagar District -2011
2. Ankam sreenivas socio- economic conditions & handloom weavers A study of karimnagar Distric -2011
3. Laxman Subbaiah status of position & Handloom industry in India.
4. Srinivas Rao K Socio Economic analysis & Handloom industry in AP. Items-Sep 2012
5. Srinivas.R. Development or industry caghu udyog samachor September 1979.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 80

SUMI.KV
RESEARCH SCHOLAR (UGC-SRF)
KERALA UNIVERSITY LIBRARY
PALAYAM

ABSTRACT
Information Technology has become the flagship industry underlying Indias recent presence on the global stage. It is also in the spotlight worldwide due to the
relatively high and increasing numbers of women in IT in India in comparison to the small and falling numbers of women in this sector in the Western world. Women
inclusivity efforts motivated women to join the IT sector without fear and enables them to build confidence. Gender inclusion which brings diversity in the workplace
needs to be sustainable and this is a challenge faced by several companies. As of now, only 18 per cent of women in the IT industry are employed at management
level - a figure that needs to be increased. We need to appreciate the diversity dividend, so its really crucial to make that transition and increase the women
workforce across the corporate ladder. Around 60 per cent of university graduates are women, 46 per cent of internet users are women, said Suresh Narayanan,
chairman and managing director at Nestle India Limited, speaking at the summit. When women become part of the workforce it requires out-of-the box thinking
to factor in parameters of safety and security. With this, it becomes imperative for companies to bring in gender-neutral mentoring and tackle bias to strengthen
the talent fabric of the company. This study aims to understand the constraints faced by women employees in the workplace and to determine the impact of women
inclusivity in jobs in IT BPM sector.

KEYWORDS
inclusivity, attrition, impact, reasons, efforts.

INTRODUCTION

T he industry is increasingly turning women centric, with women constituting 51 per cent of entry level hiring, and having a 50 per cent higher chance of
getting IT-BPM job offers. The study was aimed at understanding the role of women in the sector, and help companies formulate practices which can
further accelerate inclusion in the industry. According to the industry focus is shifting from inclusivity & diversity to empowerment, stating that women are
also moving away from support roles and growing in core business operations through added focus on Over the years, NASSCOM has been working with various
stakeholders across the industry to enable organizations to build a work environment that embraces diversity where employees, customers and other stakeholders
thrive and succeed. NASSCOM has been instrumental in creating platforms of knowledge exchange across various forms of inclusion and across different cultural
context for companies to share and learn best practices. The organization is also working with the government and the society to create a legal and commercial
framework for support the same. Gender equality has been established at entry levels, women still constitute a far lower share of CXO roles; the trend of women
resigning at a higher rate than men as their personal priorities change is hampering this growth.

COMPOSITION OF EMPLOYEES IN IT-BPM INDUSTRY

Information technology-business process management (IT-BPM) industry employs around 3.7 million people and generates indirect employment for more than
10 million employees. This makes it the largest private employer in India. The industry, which is fast growing, enjoys worldwide demand for its services. In FY2016,
it clocked an estimated revenue of 143 billion USD. This in turn has given rise to challenging job opportunities as well as roles, and has made the industry an
attractive place for millennials and young minds, who view the sector as a viable career option, irrespective of gender, disability and location. The average age of
the workforce within the industry stands at 27 years. It thus emerges as a leading sector in terms of employing the millennial workforce (defined roughly as those
born between the early 1980s and the mid-1990s, and for whom digital is a way of life). The industry is a melting pot of different cultures, nationalities and
geographies in India. Today, around 50% of its employees hail from Tier I locations in India. Further, it employs foreign nationals from over 100 countries (a total
of 1,70,000 foreign nationals), and over 40% of the headcount of global MNCs in India. While a majority of its hires (approximately 50%)are graduates (excluding
engineers), the sector employs a diverse mix in terms of skills and knowledge, with a fair share of engineering graduates (32%) and postgraduates (13%), and over
2,50,000 digital specialists and super specialists in the area of social media, mobility, analytics, cloud (SMAC).Today, women constitute 34% of the IT-BPM work-
force (i.e. over 1.3 million women employees)an increase of around 1.8 times since FY2009. Nearly 10% of these women are in senior management roles (ap-
proximately 1% in the C-suite). Further, around 28% of the women employees in the sector are primary breadwinners, thereby indicating the changing trend of
womens employment and inclusion in the sector. The ITBPM sector is one of the frontrunners in driving practices for the inclusion of persons with disabilities
(PwDs) in India. However, PwD representation in the sector is less than 1%, which indicates the need to implement progressive measures in this space.

FIG. 1: COMPOSITION OF EMPLOYEES

60%

50%

40%
Axis Title

30%

20%

10%

0%
Women employees Person with Disability Employees from Tier1 location
Series1 34% 1% 50%

REVIEW OF LITERATURE
Shanker (2008) in the study on gender relations in IT companies in Bangalore revealed that there is a increasing trend of women employees joining the IT sector
is due to the various influencing factors like lucrative job options, higher salary, flexible work options. He attributes that greater representation of women in the
workforce to comparatively high salaries, easy international mobility and gender neutral policy based on knowledge-centric skills possession. Varma (2002a) asserts
that IT sector still remains a preferred choice among many fresh technology graduates for obvious reasons of clear career choices, best salary offered in the
industry, rewarding career, international exposure and experience and perfect work ambience and above all intellectually stimulating work opportunities. Tank

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 81

OBJECTIVES
1. To understand the constraints faced by women employees in the workplace.
2. To determine the impact of women inclusivity in jobs.

METHODOLOGY
A survey was conducted among 100 women IT workers at Technopark by usind random sampling method. 10 female employees from 10 companies were selected
using random sampling, by making a total of 100 respondents. Questionnaire is used for collection of primary data which is circulated via hard copy and Google
forms

PROBLEMS FACED BY WOMEN IN IT INDUSTRY

TABLE 1
Reasons Percentage of respondents
Harassment (mental, physical and others) 55
Inequality 12
Insufficient Security 16
Career sacrifice for childcare 17

FIG. 2

40
Axis Title

10
Percentage of respondents

Axis Title

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 82

Professionally oriented organisation 7

Higher employee productivity and profits 20

Customer satisfaction/creating value for shareholders 15

Ethical business practices 6

Build an employer brand 7

Reduced attrition 20

Enhance the organisation's creativity, productivity, and ability to manage

25
change

0 5 10 15 20 25 30

FIG. 4

Efforts taken by organisation for inclusive workplace

Series1 Series2 Series3 Series4

16
15 15 15

8 8

FINDINGS
The major problems faced by the women in ITES sector are described. The impact of gender inclusivity and the efforts taken by organization for inclusive workplace
are analysed. 55% are of the opinion that they face many kinds of harassment at workplace like mental, physical, sexual etc. 12% suffer from inequality at work-
place. 16% opines insufficient security at work place. 17% of respondents sacrifice their jobs for child care. As the leave availability for child care is very less they
are forced to quit jobs for caring their child. The positive impact of the efforts around gender inclusivity have had on the organisations that participated in the
study. 7% have opined to build a professionally oriented organization due to gender inclusivity. 20% opined to have higher employee productivity and profitability.
15% on customer satisfaction and value creation. 6% opined about ethical business practices. 7% on building an employer brand. 20% opined to have reduced
attrition. 25% mentioned Enhance the organisation's creativity, productivity, and ability to manage change.

SUGGESTIONS
Some of the suggestions to build gender inclusivity are strong security requirements for women staff who work late and long hours. Strong emphasis on teamwork,
irrespective of gender. Cross-cultural exposure. Aggressive and inclusive gender inclusivity policy that is proactive and stems attrition due to the need for a large

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 83

CONCLUSION
It is seen that women constitute a sizeable no. of workforce in IT. However, they are not representative of all women in the society. Access to IT is restricted to a
select group of women. They are a select group of women who belong to urban background with high socioeconomic status. Implementation of gender inclusivity
policies will go a long way in tapping more women workers and reduce attrition rates. As diversity plays a role in business transformation, companies across
verticals should leverage technology to create a flexible gender-conducive working environment. Connectivity and technology are dimensions required to ensure
gender inclusion. For outcome-based results, women employees should have the option of working in the virtual world, whose operations happen through algo-
rithms and artificial intelligence. The efforts of the companies and stakeholders have been a contributing factor in achieving the growth in the number of women
in Indias IT sector. Furthermore, specific HR policies and practices such as conveyance, flexible working hours, parental leave, anti-harassment, healthcare, and
an emphasis on recognizing and supporting womens needs have led to the positive trend.

REFERENCES
1. Abraham, Margaret, Globalisation and the Call Center Industry, International Sociology, 23 (2), 2008, 197- 210.
2. Arfken, D. E., S. L. Bellar, M. M. Helms, The Ultimate Glass Ceiling Revisited: The Presence of Women on Corporate Boards, Journal of Business Ethics, 50
(2), 2004, 177-86.
3. Beck, Ulrich, Risk Society: Towards New Modernity. London: Sage, 1998Clark, A.W. and T. V. Sekher, Can Career-Minded Young Women Reverse Gender
Discrimination? A View from Bangalores High-Tech (5) Sector, Gender, Technology and Development, 11 (3), 2007, 285-319.
4. Castells Manual, The Internet Galaxy: Reflections on the internet, business and Society. USA: Oxford University Press, 2001.
5. Castells, Manual, Rise of Network Society: The Information Age: Economy, Society and Culture, Vol. I. USA: Blackwell publishers Inc. 1997.
6. Friedman, Thomas L, The World is Flat: a brief history of the twenty-first century. New York: Farrar, Straus and Giroux, 2006.
7. Giddens, A. Reflexive Modernisation: Politics, Tradition and Aesthetics in the Modern Social order, in Beck Ulrich, Giddens Anthony and Lash Scott (eds.):
Living in a post Industrial Society, London: Stanford University press, (56-107), 1994.
8. Giddens, Anthony, Modernity and Self identity: Self and Society in Late Modern Age. Standford California: Standford University Press, 1991.
9. Giddens, Anthony, Runaway World. New York: Routledge, 2000.
10. Hochschild, Arlie, The Time Bind: When work becomes home and home becomes work. New York: Metropolitan Books, 1997.
11. Hochschild, Arlie. and A. Machung, The Second Shift: Working parents and the Revolution at Home. New York. Viking Penguin Inc. 1989.
12. Kelkar, G. and D. Nathan, Gender Relations and Technological Change in Asia, Current Sociology, 50(3), 2002, 427- 441.
13. Kelkar, G., G. Shrestha, and N. Veena, IT Industry and Womens Agency: Explorations in Bangalore and Delhi, India, Gender, Technology and Development,
6(1), 2002, 63-84.
14. Kumar, Nagesh, Indian Software Development: International Perspective, Economic Political Weekly, 36(45), 2001, 4278- 4290
15. NASSCOM-Mencher, Gender Inclusivity in India: Building Empowered organisation. New Delhi: NASSCOM, 2009.
16. Nayyar, Deepak, Globalisation: What Does It Mean for Higher Education?, Economic Political Weekly, 42(50), 2007, 30-35.
17. Sassen, Saskia, Losing Control? Sovereignty in an age of Globalisation. New York: Columbia University Press, 1996.
18. Scott Lash, Reflexive Modernisation: Politics, Tradition and Aesthetics in the Modern Social order in Beck Ulrich, Giddens Anthony and (20) Lash Scott
(eds.): Reflexivity and its Doubles: Structure, Aesthetics, Community, Society, London: Stanford University press, 1994, 110-162.
19. Shanker, Deepika, Gender Relations in IT Companies: An Indian Experience, Gender, Technology and Development, 12 (2), 2008, 185- 207.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 84

SALIM
RESEARCH SCHOLAR
JK LAKSHMIPAT UNIVERSITY
JAIPUR

ABSTRACT
E-commerce is considered as everything that contains an online transaction. E-commerce delivers various advantages to the consumers i.e. variety of products,lower
price, saves time etc. e- commerce can be classified as S E-Merchandise, E-Finance. Doing business using latest technology and equipments like telephone, mobile,
fax, e-payment, money transfer systems, Internet. This research paper focus on SWOT Analysis of Ecommerce in Indian oriented which will consist of strengths,
weaknesses, opportunities and threats faced by ecommerce in current scenarios in India. India is an emerging economy and how e-commerce had played a signif-
icant role in the growth of the businesses and overall economic development.

KEYWORDS
E-commerce, Emerging Trends, India, Internet Marketing, SWOT.

INTRODUCTION

E -commerce means buying and selling of goods and services through the electronic media & internet. The quick and speedy growth of e-commerce in India
provides convenience, choice and payment modes to the consumers with the help of internet the vendor or merchant directly sells products or services to
the customer and allows payment trough debit card, credit card or electronic fund transfer payments. The growth of E-commerce business in India is due
to wide range of product with minimum price wide range of suppliers & customers. In this Present era every business organization want to join online business
due to increasing numbers of internet users in India.
DEFINITION
The process of buying & selling of products & services by businesses & customers through on electronic medium, without using any paper documents. E-commerce
is the process of buying & selling of products online i.e. internet, any transaction that is completed through electronic measures can be considered e-commerce.
Waghmare G.T. (2012) has defined the following types of e-commerce:
(i) B2B E-Commerce (CISCO)
Companies doing business with each other example manufacturers to distributors and wholesalers to retailers. Pricing is based on quantity of order and is often
negotiable.
(ii) B2C E-Commerce (AMAZON)
Businesses selling to the public
(iii) C2C E-Commerce
E Bays auction service is a great example of where customer-to customer transactions take place every day.

OBJECTIVES OF STUDY
The objectives of present study are:
1. To find out the key drivers in Indian E-Commerce.
2. SWOT analysis of E-Commerce in India.

RESEARCH METHODOLOGY
The present paper is purely conceptual in nature and based on a review of relevant literature from the past i.e. various books, journals, research papers and
reports. The study focuses on data collected from various books, National & international Journals, publications from various websites which focused on various
aspects of E Commerce.

E-COMMERCE PROCESS
As we know that a company and a customer browses through internet to get his/her required information about the product and make comparison with other
products in terms of price, features. When he/she is completely happy and satisfied then he/she places an order for the product and for this purpose he/she
chooses online transaction option and make online payment via debit, credit cards, net banking after successfully make payment the order will be delivered very
soon.

KEY DRIVERS OF INDIAN E-COMMERCE

Introduce 4G across the Nation and large percentage of population subscribed to broadband Internet.
Increase in percentage of Smartphone users, soon to be world's second largest Smartphone user base.
Availability of product range as compared to brick and mortar retailers.
Competitive prices as compared to brick and mortar retail driven by disintermediation and decrease inventory as well as real estate costs.
Increased usage of online classified sites, with more consumers buying and selling second-hand goods
Evolution of Million-Dollar startups like Jabong.com,Saavn, Makemytrip, Bookmyshow, Zomato Flipkart, Snapdeal etc.

SWOT ANALYSIS OF E-COMMERCE

SWOT analysis is about to focus on various aspects of e-commerce emerged in Indian i.e., focusing on strength, weaknesses opportunities and threats.
STRENGTHS
No Boundary
E-commerce can deal worldwide as no specific boundary is required.
Convenience and Save Time
It saves time and provide convenience.
No time constraints
It can be used anywhere any time as there is no time constraints.
Price and products comparison
It provides platform to the consumers to compare price and products features very rapidly and easily.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 85

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 86

CONCLUSION
As we see the change in the pattern of buying and selling of products and services in India due to the rapid development of E- commerce. The future of shopping
is E-commerce. E-Commerce reduced the gap between manufacturer and consumer. There is a vast scope of E Commerce in India due to the large population
base and only nineteen percent people using internet for selling & buying goods & services so remaining percentage we can considered that we having scope in
Indian Market. Due to weak cyber security law in India people have fear in their minds towards purchasing online. There is weak Cyber security Law in India that
is why Indian People are facing challenges toward e-commerce. The future of e-commerce in India would be bright in the upcoming years if all essential factors
would be implemented, by establishing cyber & have their benefits as per person wish. The role of government is to provide a legal framework for e-commerce
so that while domestic & international trade are allowed to expand their horizons, basic right such as privacy, intellectual property, prevention of fraud, consumer
protection etc. are all taken care of. The expansion of e-commerce has been developed in rural as well as urban area in reign able cost for consumption, because
of that more people are getting linked with e-commerce & the ratio of that is getting increase day by day.

REFERENCES
1. Abhijit Mitra, E-commerce in India- A Review, International Journal of Marketing, Financial Services & Management Research (ISSN 2277-3622, 2013, 2.
2. Chakraborty, K. D. and Chatterjee, D., E-Commerce, B. B. Kundu Grandsons, Kolkata, 2011, pp- 32- 56
3. Das, L., Growing Trends of E-Commerce and Its Role in Consumers Buying Pattern, International Journal of Marketing, Financial Services & Management
Research, Vol.1, Issue 10, October 2012, pp- 200-209
4. E-commerce in India (2015, Nov 10) Retrieved from https://www.en.wikipedia.org/wiki/Ecommerce in India.
5. Goele S, Channa N. Future of E-Commerce in India, International Journal of Computing & Business Research, Proceedings of, I-Society 2012 at GKU, Talwandi
Sabo Bathinda, Punjab (Referred from:,10/11/2012)
6. Hassan S, Li F. Evaluating the usability and content usefulness of websites: A benchmarking approach
7. Jain S, Kapoor B. Ecommerce in India- Boom and the Real Challenges, VSRD International Journal of Business & Management. 2012; 2(2):47-53.
8. Kaur P, Joshi MM. E-Commerce in India: A Review, IJCST, 2012; 3(1)-802-804.
9. Kothari, CR Research Methodology: Methods and Techniques New Delhi: Rakashan, 2003.
10. Rosen Anita, the E-commerce Question and Answer Book (USA: American Management Association, 2000), 5.

INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE, IT & MANAGEMENT 87

REQUEST FOR FEEDBACK

Dear Readers

At the very outset, International Journal of Research in Commerce, IT & Management (IJRCM) acknowledges
& appreciates your efforts in showing interest in our present issue under your kind perusal.

I would like to request you to supply your critical comments and suggestions about the material published
in this issue, as well as on the journal as a whole, on our e-mail [email protected] for further improve-
ments in the interest of research.

If you have any queries, please feel free to contact us on our e-mail [email protected].

I am sure that your feedback and deliberations would make future issues better a result of our joint effort.

Looking forward to an appropriate consideration.

With sincere regards

Thanking you profoundly

Academically yours

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Co-ordinator

DISCLAIMER
The information and opinions presented in the Journal reflect the views of the authors and not of the Journal
or its Editorial Board or the Publishers/Editors. Publication does not constitute endorsement by the journal.
Neither the Journal nor its publishers/Editors/Editorial Board nor anyone else involved in creating, producing
or delivering the journal or the materials contained therein, assumes any liability or responsibility for the
accuracy, completeness, or usefulness of any information provided in the journal, nor shall they be liable for
any direct, indirect, incidental, special, consequential or punitive damages arising out of the use of infor-
mation/material contained in the journal. The journal, neither its publishers/Editors/ Editorial Board, nor any
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information contained herein is in every respect accurate or complete, and they are not responsible for any
errors or omissions or for the results obtained from the use of such material. Readers are encouraged to
confirm the information contained herein with other sources. The responsibility of the contents and the
opinions expressed in this journal are exclusively of the author (s) concerned.

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