international journal of business and administration ... · international journal of business and...

International Journal of

Business and Administration Research Review

(IJBARR)

Peer Reviewed

QUARTERLY JOURNAL

*Articles * Research Papers *Research Thesis * Case Studies

International Journal of Business and AdministrationResearch Review

No.51Easwer Enclave, Adjacent to Podar International SchoolOff Bannaraghatta Road, Basavanapura,

Bangalore-560083Karnataka.

E.Mail: [email protected].

Managing Editor : Prof .K.Sangeetha

Chief Editor : Dr.D.Loganathan

Publisher : Avinash Higher Education ConsultancyServices, Bangalore.

Issue : Volume – 1, Issue No - 1, June - Aug 2015(special issue).

Copy Right : All rights reserved, and copyright - 2013, Avinash HigherEducation Consultancy Services, Bangalore -83.

To Contact

The Managing EditorInternational Journal of Business and Administration Research ReviewNo.51Easwer Enclave, Adjacent to Podar International School,Off Bannerghatta Road,Basavanapura, Bangalore-560083Karnataka.E.Mail:[email protected],[email protected]

Dear Readers/Authors,

With great pleasure, we present this Vol.1,1 issue to our readers, the issue contains aneclectic combination of research articles/papers from eminent academia and books scansof latest publications of renowned authors. We hope that the contents of this issue willbenefit readers.

IJBARR is published to enable to researchers to fill the gap between present stage ofknowledge and new developments in all areas of Business, Administration, Management,Social Science and Research Areas.

IJBARR provides a common platform to the academic scholars and professional thinkersto express their valuable thoughts and share their research in the field of Finance,Marketing, Human Resources, International Business Commerce, Economics PoliticalScience, Psychology, Sociology,IT,Tourism,other Administration Research Reviews.

At this point, we would like to thank all our contributors and members of editorial teamwho helped in producing this innovative work. We would appreciate feedback from ourreaders with suggestions, comments and critique.

With Regards,The Managing Editor.

Editorial

We trust the discussions and suggestions deliberated in the conference would reach the right authorities atthe national and international level and help in improving the manufacturing sector in India. This mayalso be helpful for some amendments in the law, corrections in the decisions and initiatives of the “Makein India” project initiated in September 2014 by our Prime Minister Shri.Narendra Modi. We are everthankful to our beloved Chairman Dr. S.M. Venkatpathi for his ever inspiring support and guidance inall our endeavors. Our thanks to Shri. Pramod Gowda, Member, Academic Senate, VTU andShri. Rajiv Gowda, CEO, East Point Group of Institutions for their patronage. We sincerely thank Khadiand Village Industries Commission (Ministry of MSME, Government of India) and Federation ofKarnataka Chamber of Commerce and Industries for the encouragement and assistance provided to us.We acknowledge the efforts of all the delegates, research scholars and students without which thisacademic endeavor would have been impossible. Our special thanks to Dr.D.Loganathan, Chief Editor,International Journal of Business and Administration Research Review (IJBARR), AHEAD Publications,Bangalore for taking up the task of bringing out the conference publication.

Prof.S.GopalakrishnanEditor and Conference Coordinator.

Special Editorial Committee

Prof. S.Gopalakrishnan Editor

Dr.Ananthapadmanabhan Member

Prof.P.Kalyanasundaram Member

Prof. Ashok kumar Member

Prof. G.Raghunandan Member

Prof. Hama Vidya C. S Member

Message from Principal & Director

As a quality conscious institution focused on continual improvement, East Point College of HigherEducation is organizing International Conference on 'Make in India - Issues and Challenges' on 26thAugust 2015 in association with Khadi and Village Industries Commission (Ministry of MSME,Government of India) and Federation of Karnataka Chambers of Commerce and Industries. Theconference will be a platform for discussions and deliberations on the 'Make in India' campaign envisagedby our policy makers towards making India a manufacturing powerhouse. I am grateful to all thedelegates and paper presenters, academicians, researchers and professionals for making this conference amemorable one. The overwhelming response to the conference had inspired us to host many such eventsin the years to come in our journey towards excellence. We are delighted to release this conferencepublication. We hope the takeaway from this conference will benefit all the stake holders and will offernew insights to support the emergence of a vibrant India.

Dr. Roopa T.N.Principal & Director.

Message from Chairman

Dear All,Greetings from East Point College of Higher Education. The 'Make in India' Campaign conceived by ourpolicy makers calls for harnessing the latent power and potential that we are gifted with. With the kind oftalent and the natural resources we possess it is only a matter of time that we become the leaders of thisplanet in all spheres of life. The International Conference on 'Make in India - Issues and Challenges' weare organizing is a platform to exchange ideas, opinions and strategies to make our nation a supereconomic power. At East Point College, our effort towards quality education is to complement thecurriculum designed by the University by embarking on innovative initiatives. It is our earnest belief thatthis International Conference will speak for our commitment towards quality. I am sure that you willenjoy this academic exercise and hope our efforts will hone and enrich all the minds concerned. I thankall the contributors whole-heartedly. I wish you all the best. Thank you for joining us.

Dr. S.M. VenkatpathyChairman, East Point Group of Institutions.

International Journal of Business and AdministrationResearch Review (IJBARR)

S.No Title of the Articles P.No

1. ROLE OF R&D IN TELEMATICS IN THE EFFECTIVE IMPLEMENTATION OF “MAKE IN INDIA”PROGRAM. Dr. YVS Lakshmi, Dr. Roopa.T.N, Mr. J.U.V. Nagabhushanam

1-4

2. DIGITAL MARKETING IS STRATEGY FOR EASE OF DOING BUSINESS TO ATTRACT THEMARKET UNDER BENEFIT OF MAKE IN INDIA CAMPAIGN: AN EXPLORATORY STUDY

Dr. Cynthia Menezes, Renuka Devi5-10

3. AN EMPIRICAL STUDY ON LIFE AND CAREER SKILLS OF STUDENT YOUTH(With SpecialReference to Chennai City). Mr. A.G. Vijayanarayanan, Dr. M.V. Arulalan

11-16

4. ACHIEVING QUALITY IN HIGHER EDUCATION THROUGH INDUSTRY-INSTITUTIONINTERFACE IN THE REGIME OF MAKE IN INDIA. Dr Muralidhar S, Ms. Bhagya G B

17-21

5. A COMPARATIVE STUDY OF INTERNATIONAL AND INDIAN MARKET TREND FORGARMENT SEWING MACHINES WITH REFERENCE TO INSTITUTIONAL BUYERS.

Prof.S.Gopalakrishnan, Harish.H.R22-28

6. MAKE IN INDIA – A PARADIGM SHIFT TO A CAPITALISTIC ECONOMY. Vikram.G.B 29-35

7. A STUDY ON CHALLENGES OF WOMEN IN HOSPITALITY AND TOURISM INDUSTRY.Kanchana Arun

36-40

8. NON-PERFORMING ASSETS AND PUBLIC SECTOR BANKS IN INDIA. Dr. C.S.Hema Vidhya 41-46

9. EVOLUTION OF E-LEARNING IN INDIA: A STUDY OF ONLINE MARKETPLACES FOR ONLINETUTORING. P. Kalyanasundaram

47-50

10. A STUDY ON THE ISSUES AND CHALLENGES OF MAKE IN INDIA WITH SPECIALREFERENCE TO THE ELECTRONIC EQUIPMENT SECTOR.

Mrs. Rashmi.N, Mrs. Archana.N, Ms.Impa.B.J51-56

11. CROSS-CULTURAL ADAPTATION OF INDIAN EXPATS IN IT SECTOR AT BANGALORE.Dr.Cynthia Menezes, Mrs. Lubna Ambreen

57-60

12. INNOVATION OF RESILIENT AND SECURE MOBILE APPLICATIONS FOR BUSINESSDEVELOPMENT. Meenatchi Sundaram.C.T, Dr.A.R.Mohammed Shanavas

61-67

13. IMPACT OF MAKE IN INDIA CONCEPT-TO FACE ISSUES & CHALLENGES IN PHARMACEUTIC-- AL INDUSTRIES PRODUCTIVITY. Ms. Shenbagavalli .T, Ms Nalini Kantha.C

68-74

14. MAKE IN INDIA, NEED OF THE HOUR? Dr.Y.M.Satish,Prof. Manjula Satish, Dr P V Reveendra 75-77

15. MAKE IN INDIA – THE EMPLOYMENT PERSPECTIVE. Syed Kazim, Vinod Joseph 78-83

16. CROSS GENDER MENTORING FOR ACHIEVING SUSTAINABLE COMPETITIVE ADVANTAGEIN THE REGIME OF MAKE IN INDIA. Dr.S.Muralidhar, Sandhya.S

84-87

17. MAKE IN INDIA – IMPACT ON FII. Dr. Roopa T N , Prof. Chaya Devi H B 88-92

18. MAKE IN INDIA – ISSUES AND CHALLANGES “ROLE OF MICRO, SMALL AND MEDIUMENTERPRISES IN INDIAN ECONOMIC DEVELOPMENT”. Hemalatha. S

93-96

19. A CONCEPTUAL FRAMEWORK OF ‘MAKE IN INDIA’ INITIATIVE IN TELECOMMUNICATIONSSECTOR. Sadhna Shukla, Dr. Roopa TN

97-103

20. LEVERAGING THE WOMEN ENTREPRENEURS BY PROGRAMS & SCHEMES: WINGS TO FLY.Dr. Cynthia Menezes, Usha Rani M.R

104-106

21. A STUDY ON THE ROLE OF DEMOGRAPHIC DIVIDEND FOR THE SUCCESS OF “MAKE ININDIA” CAMPAIGN. S.V. Subramani

107-112

22. THE YELLOW LURE: A STUDY OF CUSTOMER AWARENESS IN GOLD BUYING.Prof. Swetha M.S. Prof. Kalyanasundaram. P

113-118

23. “MAKE IN INDIA” – ISSUES AND CHALLENGES STUDY OF HUMAN RESOURCES BESTPRACTICES IN INDIAN IT INDUSTRY. S. Rajamohamed, Dr. P. C. Sekar

119-122

International Journal of Business and AdministrationResearch Review (IJBARR)

24. GREEN COMPUTING IN INDIA: A STUDY OF SELECT COMPANIES.Ms. Shruthi.R, Ms. Namratha.K.S

123-128

25. MAKE IN INDIA - BACK TO THE ROOTS. Dr.Cynthia Menezes, Shruthika.N 129-131

26. SWACHH BHARATH – A STEP TOWARDS ENVIRONMENTAL ENHANCEMENT.Ms.Roopa Devi G., Mr.Ashok kumar K G

132-135

27. INDUSTRIAL SICKNESS - ISSUES AND CHALLENGES: A STUDY OF SELECT ORGANIZATIONSIN KARNATAKA AND KERALA. Ms. Pallavi K.V, Mr. Sukesh S, Ms. Malathi N

136-141

28. IMPACT OF MAKE IN INDIA ON AUTOMOBILE INDUSTRY – AN ECONOMIC OUTLOOK ANDEMPLOYMENT. Dr. Cynthia Menezes, K. Srinivasan

142-145

29. APPLICATION OF STATISTICAL TOOLS IN MAKE IN INDIA CONCEPT ISSUES ANDCHALLENGS IN SELECT SECTORS GROWTH & PRODUCTIVITY.

Ms. Shenbagavalli T, Padma Priya.L146-151

30. MAKE IN INDIA – A STRATEGY FOR JOB CREATION IN MANUFACTURING SECTOR.Vidya S. Patil, Rashmi R

152-156

31. “CREATING & MAINTAINING AN EMPLOYEE FRIENDLY WORK ENVIRONMENT FORSUSTAINABLE ORGANIZATIONAL PERFORMANCE IN THE REGIME OF MAKE IN INDIA”

Dr.S.Muralidhar, K.Shobha157-161

32. MAKE IN INDIA – A GROWTH ENGINE FOR SME ADAVANCES IN COMMERCIAL BANKS.Dr.T.P.Renuka Murthy, Mr.Ravisha. N. S, Swetha A

162-168

33. COMPARATIVE STYDY ON MAKE IN INDIA MODI AND FORMER PRESIDENT DR.A.P.J.ABDULKALAM. J.Hemalatha

169-170

34. A STUDY ON IMPACT OF CORRUPTION IN LOCAL GOVERNANCE ON THE POLICY OF‘MAKE IN INDIA’ WITH SPECIAL REFERENCE TO DAVANAGERE TALUQ.

Mr Chethan S, Dr. Roopa T.N171-175

35. METHODOLOGY TO IMPLEMENT VIRTUAL CLASS ROOM VIA WEB BASED.Mrs.Padmavathi R, Ms.Meenakshi Sundari D

176-181

36. IMPACT OF FOREIGN DIRECT INVESTMENT IN THE INDIAN RETAIL. Mary Lillian.J 182-183

37. BONANZAS OF MAKE IN INDIA – AN EMPIRICAL STUDY OF CITIZEN STAKEHOLDERSINBANGALORE. Dr. Cynthia Menezes

184-188

38. ROLE OF WOMEN IN 'MAKE IN INDIA'. D.N.P. Prema Ponmani 189-191

39. MAKE IN INDIA: A STRATEGIC APPROACH TOWARDS REVIVING INDIAN ECONOMY WITHMANUFACTURING SECTOR. Prof. Nisha Rajan, Ms. LakshmiPriya B

192-196

40. IMPLEMENTATION OF MANAGEMENT INFORMATION SYSTEMS, ISSUES AND CHALLENGES– AN EMPIRICAL STUDY. Dr. Cynthia Menezes, Raghunandan G

197-202

41. WHETHER “MAKE IN INDIA” CATCH UP FOR ALROUND DEVELOPMENT OF THE COUNTRYWITH ITS DIVERSIFIED DEMOCRATIC PRINCIPLES- AN ANALYTICAL STUDY.

Dr. Narasaiah B, Dr. Lakshmareddy B203-206

42. TECHNOLOGY ACQUISITION AS KEY TO SUCCESS OF “MAKE IN INDIA”Dr. Cynthia Menezes, Prakasha

207-213

43. THE ROLE OF HR IN MAKE IN INDIA. T. A. Mahesh Kumar, Srinivasa .C 214 -216

44. MAKE IN INDIA – INNOVATIVE HR PRACTICES OF INDIAN COMPANIES.Dr. Cynthia Menezes, Srinivasa. C

217-219

45. MAKE IN INDIA” – ISSUES & CHALLENGES. Rakesh T N 220-224

Research PaperImpact Factor: 3.072Special Issue

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International Journal of Business and Administration Research Review, Vol. 1 Issue.1, June- Aug, 2015. Page 1

ROLE OF R&D IN TELEMATICS IN THE EFFECTIVE IMPLEMENTATION OF “MAKE IN INDIA”PROGRAM

Dr. YVS Lakshmi* Dr. Roopa.T.N** Mr. J.U.V. Nagabhushanam**** Head, Marketing, C-DOT, Electronic City, Bangalore.

**Administrative Director, East Point Group of Institutions, Bangalore.***Team Leader, Marketing, C-DOT, Electronic City, Bangalore.

AbstractMake in India is an initiative program of the Government of India to encourage companies to manufacture their products inIndia. The major objective behind the initiative is to focus on 25 sectors of the economy for job creation and skillenhancement. Information Communication Technology is one among the sectors. The initiative hopes to increase GDPgrowth, aims at high quality standards .The initiative hopes to attract capital and technological investment in India. Indiadefinitely needs creation of world-class infrastructure to accelerate growth and meet people's basic needs. There is a needfor smart cities and towns. Villages are the new engines of economic transformation. "Make in India" turns India into a newglobal manufacturing hub. Connecting villages using broadband is the big challenge and Telematics plays an important rolein connecting every village.

Technology and innovation transforms governance, empower people, provide affordable solutions for societal challengesand reach the unreachable. With solar and wind power, thousands of Indian villages will be able to get access quickly toreliable, affordable and clean energy. India strengths in information technology are especially important for leadership inthe digital age. This paper gives the overview of current development projects in Telematics to encourage and enable the“Make in India”.

1. INTRODUCTIONMake in India is an initiative program of the Government of India to encourage companies to manufacture their products inIndia. It was launched by Prime Minister on 25 September 2014.The major objective behind the initiative is to focus on 25sectors of the economy for job creation and skill enhancement. Information Communication Technology is one among thesectors. The initiative hopes to increase GDP growth, aims at high quality standards .The initiative hopes to attract capital andtechnological investment in India. India definitely needs creation of world-class infrastructure to accelerate growth and meetpeople's basic needs. There is a need for smart cities and towns. Villages are the new engines of economic transformation."Make in India" turns India into a new global manufacturing hub.

2. BIG CHALLENGE AND SOLUTIONSConnecting villages using broadband is the big challenge and Telematics plays an important role in connecting every village.Technology and innovation transforms governance, empowers people, provide affordable solutions for societal challengesand reach the unreachable. With solar and wind power, thousands of Indian villages will be able to get access quickly toreliable, affordable and clean energy. India strengths in information technology are especially important for leadership in thedigital age.

2.1 How R&D organizations can encourage and enable Make in IndiaOrganizations like, C-DOT, an autonomous R&D organization under Govt. of. India, nation builder, committed to providinga wide range of indigenously developed, cost effective, state-of-art total telecom solutions. It is a body which has beenoperating in Make in India mode since its inception. It has come a long way and joined the mission of digital India bydeveloping an indigenous products like GyanSetu, with the perspective of connecting rural parts to urban India, usinginternet with simple GUI in most cost effective way.

2.2. GyanSetuGyan setu (Knowledge Bridge) is an internet based real-time ICT system designed by C-DOT primarily to provide various e-services to the under privileged rural population of India. Such systems are envisaged to be deployed in Gram panchayat as acarrier of information and knowledge along with traditional other government e-services. This common infrastructure will beable to serve the entire village population and can be accessed easily due to its simplified design.

2.3. Why GyanSetu?Internet has been one of the most outstanding innovations in the field of ICT in the recent technological era. Today “Internet”provides huge amount of information and services beneficial to all of us in almost all domains and verticals. Example



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services are: Railway ticket booking, online purchases, e-market etc. Unfortunately such a facility is not usable by the ruralpopulation due to following inherent limitations:

Low literacy level Understanding of local language only Non availability of quality power Lack of exposure to ICT systems

Hence Gyansetu is designed and developed to address all these issues concerning the Rural India, thereby extending thebenefits of internet based technological advances and expansions to all the citizens of India.

Gyansetu is a Platform for rendering an innovative user access method for illiterate and rural population adopting internetbased applications. It is expected that the deployment of this innovative technology platform at every panchayat or CSC(Community Service Centre) will enable easy use of Internet based services. Gyansetu is a simple yet advanced applicationthat offers a multitude of services like e-governance, e-market, e-education, e- health, e-agriculture, micro-finance and manyothers in highly interactive, convenient, comfortable and user friendly manner.

Further, technology adaptations from C-DOT’s Gyansetu may provide an insight to serve the rural & digitally “under-privileged” through easy and customized access which will be instrumental in bridging the digital divide.

Global ICT (Information Communication Technology) Development Index:Global Rank of India: ICT Development 129 (2012), 129 (2013)Global Rank of India: ICT Development Index 2.42(2012), 2.53(2013)

Source:ITU.2.4. Features of GyanSetuThe core design aspect of Gyansetu is to simplify the GUI (Graphical User Interface) of the application so that it isunderstandable even by illiterate person. Accordingly the below listed features are incorporated.



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Text support for multiple regional languages. Audio announcements in local language. Less text and intuitive image based ICONs. Navigation by simplified numeric characters of 0 to 9. Camera based image recognition for keyless information access.

Further Power optimized Hardware system consumes minimal power of around 5W, hence the system can be powered bySolar panels / Wind turbines, which makes it specifically suitable for Indian rural conditions.

2.5. Services of GyanSetu Online prices of Agricultural commodities. Online prices of Silk products. Agriculture tips and training videos. Ticket availability and PNR status in Indian Trains. HSC/SSLC exam results and marks. Online access of land records . Online lectures and Doctor Consultations. Public grievance logging and status tracking.

2.6 .GyanSetu Pilot Deployments in India Shimoga Zilla panchayat Office, Karnataka. Ramanagar Zilla panchayat Office, Karnataka. Sardhav gram panchayat office, Gandhinagar, Gujarat. Nandol gram panchayat office, Gandhinagar, Gujarat. Itadara gram panchayat office, Gandhinagar, Gujarat. Thanam gram panchayat office, Parwada block, Vishkhapatnam, Andhra Pradesh. Vadacheepurupalli gram panchayat office, Parwada block, Vishkhapatnam, Andhra Pradesh.

3. GIGABIT PASSIVE OPTICAL NETWORK (GPON)C-DOT presents a complete end to end GPON solution from the central office to the customer premises. Various flavors ofcustomer premises equipments are available which satisfy the requirement of Fiber to the Home (FTTH), Business and MDUapplications. C-DOT's GPON solution offers an industry standard technology, which is capable of providing Triple PlayServices (voice, video and data) to the end customer.

3.1. ApplicationsUseful for Residential colonies, Societies, Hospitals, Office and Commercial buildings, ISPs, Hotels, Educational Institutesetc.

4. BROAD BAND WIRELESS TERMINAL (BBWT)The Indian landscape on broadband connectivity remains sparse, sluggish and costly due to lack of Information Infrastructureand enabling broadband technologies. Even in the sub-urban and urban areas, there is requirement of high speed, secure andcost effective wireless technology for carrying voice, video and data signals. C-DOT provides panacea for such requirementby introducing its indigenous wireless connectivity solution, Broadband Wireless Terminal -BBWT. C-DOT's provides acost-effective solution for reaching IP connectivity to remote and rural area through wireless network. It can also be used forBackhaul link for Wi-Fi hot spots, cellular base stations and base station controllers, ATMs, Database servers etc.

Globalization and growth of internet has created IT related business opportunities, employment and services in urban cities,towns and rural India. Broadband is poised to be key enabler to basic services of all segments of the society and providesmeans to delivery of these services (e.g., education, finance & health) to the citizens. One of the biggest challenges in theprocess of nation building is inclusive growth, and for that, seamless broadband connectivity, of the rural India with urbanIndia and the external world, is highly imperative. 70 per cent of India's population is still residing in villages. To facilitatethe rural India with voice, video and data connectivity, wired connection to all the villages and hinterlands is not feasible.There is a distinctive need to deploy some wireless technology, to reach every nook and corner of the country as “last mileconnectivity”. This is especially important for providing internet connectivity to rural and far flung areas. To provide thewireless connectivity to the villages, C -DOT has developed a Broadband wireless technology (BBWT).This in-housedevelopment of C-DOT offers advantages in terms of appropriateness for Indian environment and cost.



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4.1. BBWT Pilot Trials in India Agartala, Tripura. Sankara University, Kancheepuram.

4.2. Solar powered WiFi Solution4.2.1. Major Benefits

Power feed from solar powered C-DOT Green Power source. Ruggedized solution for areas not having reliable grid power supply. Complies with IP67 standard.

4.2.2. Applications Hotspots for smart cities/ rural schools/ Panchayats. Extension of broadband connectivity to remote/unconnected places Disaster management networks. Meteorological applications. Remote Video surveillance and site monitoring. Sensor networks. Backhaul links for Wi-Fi hotspots, cellular base stations, Bank ATMs etc.

Source: Trai5. CONCLUSIONSThis paper has attempted to give a brief about Make in India program, objectives and discussed about connectivity issues.Brief description about C-DOT GyaSetu, C-DOT GPON, C-DOT BBWT, C-DOT Solar powered WiFi and theirapplications, benefits, services were explained. The above products are in line with the objectives of the Make in Indiaprogram and can be implemented in PAN India.

ACKNOWLEDGMENTSThe authors would like to thank the management of Centre for Development of Telematics for encouraging us to present thispaper.

REFERENCES1. The Global Information Technology Report 2015,ICTs for Inclusive Growth by Soumitra Dutta, Cornell University;

Thierry Geiger, World Economic Forum; Bruno Lanvin, INSEAD; The Business School for the world & JohnsonCornell University: ISBN: 978-92-95044-48-7 .

2. Measuring the Information Society Report 2014by International Telecommunication UnionPlace des Nations CH-1211 Geneva Switzerland, 2014: ISBN 978-92-61-15291-8.

3. C-DOT white paper: Gyansetu [4] C-DOT white paper: BBWT. www.trai.gov.in.



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DIGITAL MARKETING IS STRATEGY FOR EASE OF DOING BUSINESS TO ATTRACT THE MARKETUNDER BENEFIT OF MAKE IN INDIA CAMPAIGN: AN EXPLORATORY STUDY

Dr. Cynthia Menezes* Renuka Devi***Associate Professor & Research Guide, CBSMS, Bangalore University, Bangalore.

**Research Scholar, CBSMS, Bangalore University, Bangalore.

AbstractMake in India is a policy that combines incentives with easy handling of businesses and a faster redressal machinery. OnlyBusiness, No harassment is the underlining idea. The internet has developed into a virtual market place. Any business thatdoes not have a digital online presence is missing tons of opportunities to reach millions of customers and potentialcustomers using some of the most effective digital marketing solutions.

Most of the Buyer’s journey starts online for information search. 70 % of the buyers’ journey is completed before buyerseven reach out to sale. The Business needs to adjust their strategies to cope with this changing consumer practice.

This study explores the whether the companies are following Digital Marketing strategy for their business and challengesfacing by such companies in adopting digital marketing strategy to attract the market. The key questions of the study are“Whether the companies are using digital market if not why what are the challenges? Why the companies are adopting thedigital marketing strategy for their business?”. To investigate these, questions were asked to the middle level managers of 35companies. This study indicated that the companies are using digital marketing to attract the customer, enhance customerchannel relationship for brand building.

Key words: Digital Marketing, Customer Attraction, Brand Building.

INTRODUCTIONMake in India is an initiative program of the Government of India to encourage companies to manufacture their products inIndia. It was launched by Prime Minister Narendra Modi on 25 September 2014.

Objective behind “MII”: The Make in India campaign focuses on attracting and helping businesses to invest and set uptheir manufacturing units in India. The campaign covers and promotes 25 sectors. The initiative is focused to target the youth,who are coming ahead with new entrepreneurial ideas & concept innovation. MII has determined on attracting globalbusinesses to invest and manufacture in India to make the India a global manufacturing hub.

Social Success of “Make in India”According to the statistics from the ministry, MII’s Official FB page is adding a new member or fan every 2-3 seconds.Interestingly, it is for the first time that any such government initiative has been made interactive through a ‘Q&A’ session onTwitter on the issue of ease of doing business in India.

Not just the social networks, even the MII’s website (www.makeinindia.com) has received excellent response with pageviews of over +5.5 million accessed by over approx. 1.7 million users across the world which clearly indicates the interest ofpublic in benefits of make in India campaign.

Key Policies1. Ease of business: Make in India is a policy that combines incentives with easy handling of businesses and a faster

redressal machinery. Only Business, NO harassment is the underlining idea. India lies at 142 nd place in the Ease ofDoing Business Index below several African countries and it's a shame.

2. Skill and jobs for the youth: Skill endowment and job creation in 25 key industries will be encompassed under thisplan for able youth development and relevant training in certain key areas. These industries include roads andhighways, construction, defense development and automobiles among others…

3. Making India a manufacturer: Urging global investors to make India an industrial hub is the eye-catching featureabout which all of us read every day. Narendra Modi is urging investors to set up industries in India instead of justFDI. This includes making India a destination for production of goods and exporting the same to the world over.

India has demand, demography and democracy and we need $$$, technology and exposure. The Global investors arewatching India with a great interest. India is sitting at the cusp of a massive digital revolution through Make in India and



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Digital India campaign. India’s contribution in global trade is growing day by day. Economic transformation is on his waywith an aim to make India a global manufacturing hub. This clearly represents the benefit of make in India campaign.

Digital Marketing: Every business wants to expand beyond the horizon. Every business needs pre-qualified and targetedleads. Businesses are using online marketing for expansion in International Market. In simple terms doing business usinginternet for selling products to the customers and to create the customer relationship and for creation of Brand in the minds ofthe customers.

How can a Business Generate Export Leads OnlineExport companies need to have a well-planned international marketing strategy and strong online presence to generate leadsonline. There are various tools available to market international using digital media. Based upon buyer persona, everybusiness must start to use digital marketing.

OBJECTIVES1. To understand the Benefit of MAKE IN INDIA CAMPAIGN (MII).2. To find out whether the companies are using Digital Marketing if not what are the challenges?3. To find out why the companies are following Digital Marketing.4. To test Digital marketing is effective in attracting the customer.

METHODOLOGYSample was chosen by convenient method. Secondary data is collected through paper articles and news and magazines.Primary data is collected through exploratory study by supply of questionnaire, in-depth interview and over phone by askingthe questions to 35 marketers located in Bangalore major companies including ITC, HUL, P&G., Colgate & Polmolive. Therespondents are at the age group of 25 yrs to 62 yrs at the level of mid-level managers. Using simple statistical calculationand SPSS the collected data were analyzed and are presented using tables and charts. Chi Square test was performed to checkthe effectiveness of digital marketing in attracting the market.

DATA ANALYSIS AND FINDINGS1.To Understand the Benefit of MAKE IN INDIA (MII).Benefits of Make in India campaign

a) Increase in Manufacturing & Export : export is picking up giving a slight push to the economy. Globalinvestment will transform India a global manufacturing hub with use of latest technology.

b) Generation of more jobs: Increased investment will create more jobs for skilled labour force. This will create a jobmarket for over 1 crore. Government has started skill development programme which will generate more skilledworker.

c) Attract more FDI : With a promise to enhance the ease of doing business in India, Government will attract moreFDI in India. It has already attracted INR 20K millions worth investment proposal by October ’14.

HistoryModi and Cabinet ministers at the concluding session of the national workshop on Make in India in New Delhi, 25 December2014. Prime Minister Narendra Modi had hinted towards the initiative in his Independence Day speech of 15 August 2014. Itwas launched on 25 September 2014 in a function at the Vigyan Bhawan. On 29 December 2014, a workshop was organisedby the Department of Industrial Policy and Promotion which was attended by Modi, his Cabinet ministers, chief secretaries ofstates and various industry leaders.

OverviewThe major objective behind the initiative is to focus on 25 sectors of the economy for job creation and skill enhancement.Some of these sectors are: automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism andhospitality, wellness, railways, design manufacturing, renewable energy, mining, bio-technology, and electronics. Theinitiative hopes to increase GDP growth and tax revenue. The initiative also aims at high quality standards and minimizingthe impact on the environment. The initiative hopes to attract capital and technological investment in India.The campaign was designed by Wieden+Kennedy.

Under the initiative, brochures on the 25 sectors and a web portal were released. Before the initiative was launched, foreignequity caps in various sectors had been relaxed. The application for licenses was made available online and the validity oflicenses was increased to 3 years. Various other norms and procedures were also relaxed.



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In August 2014, the Cabinet of India allowed 49% foreign direct investment (FDI) in the defence sector and 100% inrailways infrastructure. The defence sector previously allowed 26% FDI and FDI was not allowed in railways. This was inhope of bringing down the military imports of India. Earlier, one Indian company would have held the 51% stake, this waschanged so that multiple companies could hold the 51%.Out of 25 sectors, except Space(74%), Defence(49%) and NewsMedia(26%), 100% FDI is allowed in rest of sectors.

ResponsesIn January 2015, the Spice Group said it would start a mobile phone manufacturing unit in Uttar Pradesh with an investmentof Rs. 500 crore. A memorandum of understanding was signed between the Spice Group and the Government of UttarPradesh. In January 2015, HyunChil Hong, the President & CEO of Samsung South Asia, met with Kalraj Mishra, UnionMinister for Micro, Small and Medium Enterprises (MSME), to discuss a joint initiative under which 10 "MSME-SamsungTechnical Schools" will be established in India.

In February, Samsung said that will manufacture the Samsung Z1 in its plant in Noida.

In February 2015, Hitachi said it was committed to the initiative. It said that it would increase its employees in India from10,000 to 13,000 and it would try to increase its revenues from India from ¥100 billion in 2013 to ¥210 billion. It said that anauto-component plant will be set up in Chennai in 2016.

In February 2015, Huawei opened a new research and development (R&D) campus in Bengaluru. It had invested US$170million to establish the research and development center. It is also in the process of setting up a Telecom hardwaremanufacturing plant in Chennai, the approvals of which have been granted by the central government.

Also in February, Marine Products Export Development Authority said that it was interested in supplying shrimp eggs toshrimp farmers in India under the initiative.

In June 2015, France-based LH Aviation signed an MoU with OIS Advanced Technologies to set up a manufacturing plant inIndia to manufacture drones.

Public Relations" Zero Defect Zero Effect" is an slogan coined by Prime Minister of India, Narendar Modi which signifies productionmechanisms wherein products have no defects and the process through which product is made has zero adverseenvironmental and ecological effects. The slogan also aims to prevent products developed from India from being rejected bythe global market. Such as Mudhi of Odisha, Gushtaba of Kashmir, chicken curry of Punjab, khakhra and khandvi ofGujarat, Bamboo steam fish, vada and medhu vada of South India, Khaja and Inarsa of Bihar and Kebab of Uttar Pradesh andPuran poli of Maharashtra have been selected as traditional regional food to be promoted in the campaign.

Primary DataThe following questions were framed supporting objectives of the study were posed to 35 marketers located in Bangaloreincluding major companies like ITC, HUL, P&G., Colgate & Polmolive. The responses are at the age group of 25 yrs to 62yrs at the level of mid-level managers. The reposes are tabulated as follows:

S.N. Questions Responses

1 Is your company is using digital marketing. If not Why

Yes 13

No 22

2 Why are you following digital marketing

Brand building 13

Broad reach 13Buzz building ( Comments ) 12

Enhancing the market 11Creative and innovation 10



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3Following the digital marketing is effective in attractingthe customer

Following & Not following Yes 25

Not following & No 10Major Companies responded are ITC, HUL,P&G, Godrej, Nestle India, Emami etc…

2. To find out whether the companies are using Digital Marketing if not why?Figure 1 represents the responses from the markets, 37% says their company is using internet for Marketing this reveals thatthey are following Digital marketing approach, rest are of the opinion that they are not using digital marketing due to thereasons such as training staff who are unaccustomed to internet usage, a strong public relationship capability and ability tocoordinate multiple service providers and due to financial investment.

Fig 1: Responses to the questions: Is your company is using Digital marketing?

3. To find out why the companies are following Digital MarketingFigure 2 represents, the responses for the question “Why are you following digital marketing?”, 37% of the marketers citefor Broad reach and for brand building followed by buzz building (31%), and enhancing marketing effectiveness, andcreative and innovation (29%).

Fig 2 : Responses to the question “Why are you following Digital Marketing?”,



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4. To test the Digital Marketing is effective in attracting the Market.Hypothesis was set up to test the effectiveness of digital marketing in attracting the customer. A Chi- Square test wasperformed to analyze the data.

H0: following the digital marketing strategy is not effective in attracting the customerH1: Following digital marketing is effective in attracting the customer.

Following Digital marketing is effective cross tabulationDigital Marketing is effective

Yes No TotalFollowing Yes 13 0 13

No 12 10 22

Total 25 10 35

Chi square Test: To test the digital marketing strategy is effective in attracting the customer.Chi-Square Tests

Value Df Asymp. Sig.(2-sided)

Exact Sig(2-sides)

Exact Sig(1-sides)

Pearson Chi-SquareContinuity correction b

8.27343

6.195

11

.004

.0130.005 0.004

Likelihood RatioFisher’s exact test 11.562 1 .001

Linear-by-LinearAssociation

8.036 1 .005

N of Valid Cases 35

a. 1 cells (25.0%) have expected count less than 5. The minimum expected count is3.71

Symmetric MeasuresValue Approx. Sig.

Nominal byNominal

Phi.486 0.004

Cramer's V .486 0.004

N of Valid Cases35

Chi Square Test was performed, since the significance value is 0.005 which is < 0.05, the result is interpreted as X2 (1,N=35)= 8.27343 , p=1). Hypothesis1 is accepted; hence it is proved that the following digital marketing is effective inattracting the customers.

CONCULSIONSApart from the benefits of Increase in Manufacturing & Export, Generation of more jobs: and Attract more FDI there will besome more benefit like fast project clearance, Technological up-gradation etc. through Make in India Projects. Every businesswants to expand beyond the horizon. Every business needs pre-qualified and targeted leads.



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Businesses companies are using digital marketing for Brand building, broad reach and expansion in attracting the market.Companies need to have a well-planned marketing strategy and strong online presence to generate leads through online usingdigital media to reach internationally. Based upon buyer persona, every business must start to use digital marketing that leadsto attract the global market and as well increase the employability.

REFERENCES1. Sultan, Fareena;Rohm, Andrew J (2004), The evolving role of the Internet in marketing strategy: An exploratory

study Journal of Interactive Marketing; spring ; 18, 2; pg. 6.2. Mayfield, A. (2008). What is Social Media?, iCrossing.3. Zielinski, D. (2012). Find Social Media's Value, The platform's return on investment often eludes measurement.

A recent KPMG Report of 2011, HR Magazine, 53.4. http://www.marketingprofs.com/charts/2011/6164/booz-adaptability-is-key-for-social-media-success.5. https://forums.bharat-rakshak.co...6. The Hindu. 4,946 views • 45 upvotes • Written 23 Dec, 2014.7. http://www.quora.com/What-is-the-Make-in-India-project.8. https://en.wikipedia.org/wiki/Make_in_India.



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AN EMPIRICAL STUDY ON LIFE AND CAREER SKILLS OF STUDENT YOUTH(With Special Reference to Chennai City)

Mr. A.G. Vijayanarayanan* Dr. M.V. Arulalan***Assistant Professor, Patrician College of Arts and Science, Chennai.

**Associate Professor, Guru Nanak College, Chennai.

AbstractIn this critical time where the world economy limps, the Indian economy is steadfast. We are growing at 7.5 percent, the bestgrowth rate for the second consecutive year as against the odds of the world economy rate of 3.3 per cent. The situation callsthe youth to deliver more to propel faster. The human resource is the vital asset which needs to steer up the economy. Thepotential workforce i.e., present student youth should enhance and enrich themselves with knowledge and skills respectively.The skills are the essential weapons which helps the new employees to have an upper hand over others. Nearly 50% of Indianpopulation consists of young India, i.e., the average age of Indian is less than 25 years which will reap the demographicdividend for the next two decades. Therefore, Indian youth should gear up and rise to the occasion to put our country at thetop of the ladder. The youth therefore should empower themselves by training under the special New National SkillDevelopment Policy (NSDP) programs. Make in India and National Skill Development Corporation (NSDC) is the doubleedged sword which protects the economy and stirs the growth of the economy. Therefore, this article discusses and exploresthe life and career skills which the student youth must possess to become “Globally competent individuals”.

Key Words: Life Skills, Career Skills, National Skill Development Corporation, New National Skill Development Policy,Communicative Leadership, Ratiocinative Skill, Tranquility Skill, Etiquette Skill.

INTRODUCTIONHuman Resources are one of the most vital assets of any organization1. Today’s employers expect a wide range of skill setsfrom the student youth who should be industry ready. Skills can be defined as the ability to carry out a task with pre-determined results often within given amount of time and energy2. Skill can also be defined as the transformation ofknowledge i.e., when knowledge is used in day today’s life it transforms into skill.

ROLE OF SOFT SKILLSSkill can be broadly categorized into two types namely hard skills and soft skills. Hard skills refer to one’s education,experience or expertise; while soft skills are those skills that influence how one interacts with others3.

Soft skills include traits, personal habits, and facility with language etc. Hard skills differ from industry to industry while softskills don’t. Soft skills are essential which the employees and prospective employee should develop regardless of industry orjob.

Life skills are those skills which deal with attitude, emotional intelligence, interpersonal skills and self-development aspects.Career skills are those which deal with communication, leadership, critical thinking, innovation and creativity aspects.

ROLE OF SOFT SKILLS IN INDIAIndia’s importance in the world economy grows and so there is a need for “Globally competent individuals”. One shouldpossess the education and skills necessary to perform successfully at international level4. The biggest challenge our countryfaces is not the absence of skill but the lack of a proper mechanism to train and certify the workforce. The policy makersshould also think about the qualitative aspect of the skill programmes.

“India is one of the youngest nations in the world with more than 54 per cent of the total population below 25 years ofage. Our young people have to be both educated and employable for the jobs of the 21st century. The Prime Minister hasexplained how Skill India needs to be closely coordinated with make in India. Yet today, only less than 5 per cent of ourpotential workforce gets formal skill training to be employable and stay employable.”

Finance Minister in his Budget Speech on 28th February 2015SIGNIFICANCE OF MAKE IN INDIAMake in India program was launched in September 2014 as a nation-building initiative. The main aim of the program is totransform India to a global manufacturing hub. The program was initiated by Department of Industrial Policy and Promotion(DIPP) by pooling various Public and Private Partners like Union Ministers, Secretaries to the Government of India, industryleaders, knowledge partners and State Governments.5



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IMPORTANCE OF NATIONAL SKILL DEVELOPMENT CORPORATION (NSDC)The National Skill Development Corporation at present has a capacity of training 82 million with 159 training partnershaving 1408 centres in 356 districts in 27 states and five union territories.6 Government of India has intended to train 500million young people by 2022 predominantly by fostering private sector initiatives in skill development programmes.7

The New National Skill Development Policy has been proposed by the Central Government and is expected to bridge theexisting skilled workforce gap of 30 crores. The policy aims skill one in every four Indian by the year 2020.

With the ‘Make in India’ dream and acceptance of skill development as a national priority for the next decade, reforms willhappen only when the Government integrates skill development with education system and industry needs.8

The Student youth of this era are more nurtured and are accessible to ample infrastructure facilities when compared toyesteryears’ youth. This article explores the acquired level of selected Life and Career skills of the student youth who pursuetheir higher education.

OBJECTIVES OF THE STUDY1. To know the personal profiles of the Student youth of Chennai City.2. To understand the underlying dimensions of Life and Career Skills (LCS) of Student youth.3. To understand the impact of all personal profiles on all Life and Career Skills (LCS) factors.4. To analyse the impact of all personal profiles on each Life and Career Skills (LCS) factor.

RESEARCH METHODOLOGYThe researcher collected the primary data with the help of a well-designed structured Questionnaire, from 500 studentspursuing various arts and science courses from both public/ private university and colleges.

The questionnaire has 2 sections as followsSection 1: Personal profile of respondents includes such as age, gender, place of school education, part time work experience,sibling status and monthly income of the family.

Section 2: This section deals about the Life and Career Skills (LCS) variables namely, decision making, analytical thinking,writing, presentation, interpersonal, critical thinking, oral communication, public speaking, conflict management, daily planmanagement, speed reading, anger management, problem solving, stress management, negotiation, creativity and innovation,networking, telephone etiquette, e-mail etiquette and leadership skills.

The Life and Career Skills (LCS) variables were measured using 5 Point Likert Scale. To check the reliability statistics,Cronbach’s Alpha reliability co-efficient was used. The value being 0.916, the scale is highly reliable and more consistent.

STATISTICAL TOOLS USEDThe data collected were subjected to percentage analysis, descriptive statistics, factor analysis and Multivariate GeneralLinear Model. Percentage and descriptive statistics gives us the demographic profile of the respondents. Factor analysisexhibits the underlying dimensions of LCS factors. Multivariate General Linear Model (GLM) helps in analyzing the overallinfluence of personal profiles on LCS factors both at individual and simultaneous levels. The statistical analysis was carriedout using SPSS version 17.

ANALYSIS AND INTERPRETATIONI. DEMOGRAPHIC PROFILE OF STUDENT YOUTH

Table 1 - Demographic Profile of Student YouthPROFILE GROUPS WITH FREQUENCY Total

Gender Male = 244 [48.8%] Female = 256 [51.2%] 500 [100%]Place of School

EducationUrban =

362[72.4%]Semi-Urban = 65 [13%]

Rural = 73[14.6%] 500 [100%]

Part Time WorkExperience

Yes = 105 [21%] No = 395 [79%] 500 [100%]

SiblingStatus

No Sibling = 72[14.4%]

One Sibling= 262 [52.4%]

Two Sibling= 126[25.2%]

[>2 Sibling]= 40[8%] 500 [100%]



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Monthly FamilyIncome(In Rs.)

Upto 20,000= 133 [26.6%]

[20,001-50,000]= 212 [42.4%]

[50,001-100000]=106 [21.2%]

[>100000]= 49 [9.8%] 500 [100%]

Mean Age of theRespondents = 21.64 years

Standard Deviation = 1.121 yearsMedian and Mode = 21

Years

Table 1 shows that majority of the respondents are female (51.2%) having their school education in urban area (72.4%) withno part time work experience (79%). Majority of the respondents have one sibling (52.4%). A sizeable portion of therespondents have monthly income of Rs.20,001 to Rs.50,000. The mean, median and mode age of the student youth are 21years with standard deviation of 1.121 years indicates that age is normally distributed.

II. FACTORISATION OF LIFE AND CAREER SKILLS (LCS) VARIABLES OF STUDENT YOUTHThe Factor analysis was applied to 20 Life and Career Skills (LCS) variables to understand the underlying dominantdimensions and the results as follows

Table – 2, Life and Career Skills (LCS) FactorsFACTORS &

% of VARIANCEEXPLAINED

VARIABLES MEAN S.D MSA COMMU-NALITIES

FACTORLOADING

COMMUNICATIVELEADERSHIPSKILL (CLS)

(25.465%)

Oral Communication 3.970 0.864 0.839 0.582 0.721Public Speaking 3.610 0.993 0.858 0.574 0.649

Presentation 4.010 0.850 0.823 0.499 0.615Writing 4.110 0.821 0.740 0.488 0.613

Creativity &Innovation 4.010 0.860 0.897 0.410 0.594Conflict Management 3.710 0.915 0.856 0.466 0.436

Leadership 4.050 0.841 0.846 0.503 0.412

RATIOCINATIVESKILL (RS)

(7.900%)

Interpersonal 4.170 0.709 0.849 0.450 0.643Decision Making 4.220 0.778 0.819 0.461 0.603Critical Thinking 3.880 0.872 0.893 0.476 0.601

Analytical Thinking 3.990 0.804 0.823 0.528 0.559Problem Solving 3.990 0.764 0.868 0.569 0.556

TRANQUILITYSKILL (TS)

(7.361%)

Anger Management 3.570 1.081 0.790 0.508 0.691Stress Management 3.780 0.957 0.771 0.553 0.656

Daily Plan Management 3.660 0.997 0.896 0.421 0.574Speed Writing 3.950 0.896 0.822 0.530 0.525

ETIQUETTESKILL (ES)

(6.665%)

Telephone Etiquette 3.850 0.846 0.782 0.667 0.796E-Mail Etiquette 3.900 0.830 0.757 0.676 0.784Networking 3.820 0.921 0.875 0.461 0.610

NEGOTIATIONSKILL (NS)

(5.415%)Negotiation 3.710 0.845 0.733 0.729 0.795

KMO-MSA = 0.828, Total % of Variance Explained = 52.806

Bartlett’s Test of Sphericity chi – square value of 2386.114 with df of 190 and P value of 0.000

Table 2 shows that 20 Life and Career Skills variables have robust mean values. Their communalities range from 0.410 to0.729 shows that they have goodness of fit for factorization. KMO – MSA value of 0.828 and chi-square value of 2386.114with df of 190 and P Value (P< 0.001) reveal that factor analysis can be applied for factorization of 20 LCS Variables. FiveLife and Career Skills (LCS) factors explaining 52.806% of total variance have been extracted out of 20 LCS variables. Ofthem the most dominant factor is Communicative Leadership skill factor followed by Ratiocinative skill factor, Tranquilityskill factor, Etiquette skill factor and Negotiation skill factor in the order of their dominance.



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Table 3: Descriptive Statistics of Life and Career Skills (LCS) FactorsDescription CLS RS TS ES NS Total

ScoreMean 24.470 20.240 14.956 11.578 3.712 77.956Std. Dev. 3.914 2.613 2.684 2.006 0.845 8.773Median 28.000 20.000 15.000 12.000 4.000 78.000Mode 28.000 20.000 16.000 12.000 4.000 76.000Skewness -0.459 -0.628 -0.638 -0.382 -0.653 -0.152Std. Error of Skewness 0.109 0.109 0.109 0.109 0.109 0.109Kurtosis 0.059 1.076 0.521 0.291 0.571 -0.098Std. Error of Kurtosis 0.218 0.218 0.218 0.218 0.218 0.218Minimum 13.000 9.000 4.000 4.000 1.000 52.000Maximum 35.000 25.000 20.000 15.000 5.000 100.000

QuartilesQ1 25.000 19.000 13.000 10.000 3.000 72.000Q3 30.000 22.000 17.000 13.000 4.000 85.000

Out of Total Score 35.000 25.000 20.000 15.000 5.000 100.000

Table 3 shows that the LCS factors have robust mean values which are more representatives of their values as their standarddeviation are lesser in values. Their distributions are slightly skewed.

III. INFLUENCE OF DEMOGRAPHIC PROFILES ON LCS FACTORS – MULTIVARIATE GENERAL LINEARMODELGeneral Linear Model (GLM) analysis has been applied to study the influence of demographic profiles on LCS factors andthe results are shown in Tables 4 and 5.

Table 4 –Multivariate Tests of Significance of Influence of all Profiles on LCS FactorsProfiles Effect Pillai’s

TraceWilk’s

LambdaHotelling’s

TraceRoy’s Largest

RootIntercept F 2337.265 2337.265 2337.265 2337.265

P – Value 0.000 0.000 0.000 0.000Inference Significant Significant Significant Significant

Age F 2.324 2.324 2.324 2.324P – Value 0.042 0.042 0.042 0.042Inference Significant Significant Significant Significant

Gender F 4.768 4.768 4.768 4.768P – Value 0.000 0.000 0.000 0.000Inference Significant Significant Significant Significant

Place of SchoolEducation

F 1.808 1.812 1.815 3.401P – Value 0.055 0.055 0.054 0.010Inference Not significant Not significant Not significant Significant

Part time workexperience

F 1.680 1.680 1.680 1.680P – Value 0.138 0.138 0.138 0.138Inference Not significant Not significant Not significant Not significant

SiblingStatus

F 2.647 2.647 2.647 2.647P – Value 0.022 0.022 0.022 0.022Inference Significant Significant Significant Significant

MonthlyFamilyIncome

F 0.089 0.089 0.089 0.089P – Value 0.994 0.994 0.994 0.994

Inference Not significant Not significant Not significant Not significant

Table 4 shows that Age, Gender and Sibling status have significant influence impact simultaneously on all LCS factors.



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Table 5 – Univariate Tests of Significance of Influence of profiles on each LCS FactorSource Dependent

variableType IIISum ofSquares

F Value P Value Inference

CorrectedModel

CLS FACTOR 153.025 1.435 0.189 NSRS FACTOR 57.863 1.214 0.293 NSTS FACTOR 51.657 1.024 0.413 NSES FACTOR 131.180 4.907 0.000 SNS FACTOR 7.905 7.905 0.135 NS

Intercept CLS FACTOR 107726.630 7072.973 0.000 SRS FACTOR 56516.535 8301.983 0.000 STS FACTOR 30925.398 4291.590 0.000 SES FACTOR 19476.589 5100.380 0.000 SNS FACTOR 1944.016 2743.522 0.000 S

Age CLS FACTOR 0.807 0.053 0.818 NSRS FACTOR 9.880 1.451 0.229 NSTS FACTOR 4.096 0.568 0.451 NSES FACTOR 22.836 5.980 0.015 SNS FACTOR 0.540 0.762 0.383 NS

Gender CLS FACTOR 4.745 0.312 0.577 NSRS FACTOR 33.761 4.959 0.026 STS FACTOR 11.176 1.551 0.214 NSES FACTOR 49.288 12.907 0.000 SNS FACTOR 0.540 0.565 0.453 NS

Place of SchoolEducation

CLS FACTOR 37.293 1.224 0.295 NSRS FACTOR 2.468 0.181 0.834 NSTS FACTOR 15.474 1.074 0.343 NSES FACTOR 26.909 3.523 0.030 SNS FACTOR 4.198 2.963 0.053 NS

Part time workexperience

CLS FACTOR 25.739 1.690 0.194 NSRS FACTOR 1.487 0.218 0.640 NSTS FACTOR 1.392 0.193 0.661 NSES FACTOR 1.680 0.440 0.507 NSNS FACTOR 3.140 4.431 0.036 S

Siblings Status CLS FACTOR 85.914 5.641 0.018 SRS FACTOR 0.578 0.085 0.771 NSTS FACTOR 18.680 2.592 0.108 NSES FACTOR 23.791 6.230 0.013 SNS FACTOR 0.270 0.381 0.538 NS

MonthlyFamily Income

CLS FACTOR 0.311 0.020 0.886 NSRS FACTOR 1.115 0.164 0.686 NSTS FACTOR 0.024 0.003 0.954 NSES FACTOR 0.155 0.041 0.840 NSNS FACTOR 0.071 0.100 0.751 NS

Table 5 shows that Age, Gender, place of school education, part time work experience, sibling status have significantinfluence on each respective factor.

1. Age significantly influences Etiquette skill factor.2. Gender significantly influences Etiquette Skill factor.3. Place of School education significantly influences Etiquette Skill factor.4. Part time work experience significantly influences Negotiation skill factor.5. Sibling status significantly influences communicative leadership factor and Etiquette Skill factors.6. Monthly income of family significantly doesn’t influence any of the factors.



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FINDINGS, SUGGESTIONS AND CONCLUSION1. It is observed that, communication and leadership skills are given the most importance followed by other skills.

Therefore, the students must emphasize on these skills and try to acquire at young age which helps in developingtheir career.

2. As the age increases, the etiquette of the student develops. The student youth must improve their etiquette skillswhich turns them into professionals in their career.

3. Part time work experience improves the negotiation skill of the student youth. Hence, the students should opt forpart time job which not only improves their negotiation skill but also the other skills. Care must be taken that thepart time work should not deter the academic side.

4. Place of School education plays a vital role in once human capital formation. The urban student youth have higherexposure and infrastructure facilities compared to that of semi-urban and rural areas. Therefore, the studentsbelonging to semi-urban and rural area should be given the same opportunity to enhance themselves.

5. The Government of India should develop a concrete syllabus on skill development to train the human resource. Themeaningful education system, robust skill development setup and active involvement of business are the key factorswhich will decide India’s economic growth.

REFERENCE1. L.M. Prasad, Human Resource Management, Sultan Chand & Sons, Pg. 6.2. https://en.wikipedia/wiki/skill.3. Hariharan, S Sundararajan, N & Shanmugapriya S P., Soft skills, MJP Publishers, Pg. 3.4. Steve Fox, Expanding Horizons, SPAN, Pg. 5.5. Amitabh Kant, “Transforming India into a Global Manufacturing Hub”, Yojana, March 2015, Pg. 18.6. Swadesh Singh, “National Skill Development Program: The way Ahead”, Yojana, March 2015, Pg. 33-37.7. http://www.nsdcindia.org/organisation-profile.8. National Skill Development Policy – 2009.



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ACHIEVING QUALITY IN HIGHER EDUCATION THROUGH INDUSTRY-INSTITUTION INTERFACE INTHE REGIME OF MAKE IN INDIA

Dr Muralidhar S* Ms. Bhagya G B ***Head, Dept. of Commerce & Management, Govt. First Grade College, Vemagal, Kolar, Karnataka.

**Vice Principal, Dr. NSAM First Grade College, Yelahanka, Bangalore, Karnataka.

AbstractModern business has become knowledge based, strategy based and intellectual inclined. Make in India is offering severalopportunities and challenges for the Indian manufacturers, marketers, policy makers and not the least, the Indian educators.The Indian higher education institutions also have to gear up and rise to the expectations of the Corporate in the changedmake in India regime. As the global markets demand higher standards in terms of performance, products, service and higherlevel of customer satisfaction, it is high time that the corporate with its academic partner should strive hard to achieve theobjectives of sustainable development and inclusive growth. The inclusive growth encompasses the individuals who aredirectly or indirectly involved in the manufacturing and service sectors in the economy which ensures wellbeing of the nationas a whole. The benefit of industry academia interface will help improvement in quality of the knowledge workers informulating the policies and procedures which penetrate the higher level of performance in terms of quality & quantity tomeet the global standards resulting in a very favorable balance of payments position, employment for all class of people,increased national and per capita income and improvement in the standard of living of the people of this country. One of themajor contributory for the success of make in India is the education sector in general and the higher education in particular.Therefore, if the higher education institutions rediscover their roles and responsibilities and discharge them properly with aninterface with the corporate, the rest of the sectors namely, the agriculture, industry and services would be performing better.Hence, it is expected that there should be a continuous interaction and cordial interface between Industry and Institutions forthe effective implementation of make in India.

Key Words: Higher Education, Industry, Institution, Interface, Quality.

INTRODUCTIONQuality in the corporate performance is expressed through the product and services delivered. The important determinant isquality output which is a major input of the production system irrespective of sectors. Human resource being major resourcewhich is used in bringing quality in the product, services, performance and results. Shaping the human resource with requiredattitude, skill and knowledge is the primary duty of an educational institution, in that sense institution in higher educationsector should lead corporate and provide the HR who is well trained, knowledgeable and skillful in delivering the qualityoutput. Unfortunately by and large the institutions are left behind the process. There is a complaint against the educationalinstitutions, universities and technical institutes that they fail in updating themselves in terms of curriculum enrichment.

The basic reason for the failure in the part of institutions of higher learning is in coping up with the need of industry is thatthere is no regular interaction and interface between colleges and corporate. The institution and industry have a commonobjective that is creating quality output which leads to value addition. The institution should provide quality HR and they inturn should deliver quality product and services to society but this sequence is not properly connected hence there is a gap inthe expectations of corporate from institutions and institutions actual delivery.

In the regime of make in India it is expected that the domestic industry should produce products and services of global resultsin a favorable Balance of Payments position with more exports and minimum imports with an assured network of buyersacross the world.

The prerequisite to ensure favorable situation is that the rules and procedure followed in the domestic corporation , the workstyle and pattern , the technology used should be upgraded to meet the global standard. People with high caliber will be ableto perform and contribute in the changed new age knowledge era. Hence a regular interaction between industry andinstitution is a basic requirement through which the academic curriculum would be upgraded and pedagogy would be mademore effective and gap between industry needs and institutional output would be reduced providing a platform todemonstrate the Make in India.

GROUND RESEARCHThe industry academia collaboration is not very popular in our country, however ideally both have to work in collaborationwith each other. Educational institutions have realized the importance of industry academia interface. The right blend has



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started making such interface a part of their curriculum. The interface could be achieved at several stages from the viewpoint of the academia such as at the stage of curriculum preparation , work study at institution level and at the stage ofrecruitment for corporate and at every stage of an active interface.

1. More people are entering into workforce and are poor in performance of fairly successful.2. Expectation of the industry is not matched by the institutions3. Educated class contribution to the national income by improving the productive capacity of the labor force is not

remarkable the progression is at a very low pace.4. New methods and technology has opened up new world to workforce with new models.5. Contribution of workforce to the Nation’s GDP is predominantly important to set right the balance of payment of the

country.

STATEMENT OF THE PROBLEMThere is a mismatch between expectations of industry from institutions as the type of education imparted does not match withthe standard expected from the education sector. The concentration of the institution is more on concept delivery rather thanits application in the corporate world. The expectation of the industry is that the type of education imparted to students shouldequip them to turn out to be higher performance. The industry, to be in tune with the global standards, there is a need forindustry- Academia interface in the development of curriculum and provision for interaction by the corporate executives withthe students to share their industry experiences on a regular basis.The students should be provided an opportunity to getexposed to real-work life situation in the form of industrial visits, project works etc. As the country and the economy ismoving beyond knowledge era where creation of self-reliant economy is to be replaced by creation of a global market leaderand to convert our country as the hub of global economic activities. Therefore, an attempt has been made in this paper toaddress the issue of Achieving quality in higher education through Industry-Institution Interface in the regime of make inIndia.

SIGNIFICANCE OF THE STUDYThere is a need for greater integration between campus learning and workplace learning. Grey rayn, Susan Toohey and ChirsHughes (1996). The issue of quality in Higher education by industry institution interface in the regime of make in India hasbeen developed out of the consciousness of individual sector and economic changes that have resulted in a more diverse anddeclining quality of workforce from different institution and exposure to varied work models. Supporting these institutionswhich feed the industry is seen as a way of attracting and recruiting the labour force needed to support economicdevelopment. Well equipped quality employee with adequate knowledge of industry working has been identified as critical tocompetitive advantage in a labour market where skilled, committed people are increasingly hard to find. Many of the factorsthat impact on quality improvement have been speculated and identified. Therefore, an effort is made to understand whetheraddressing the cordial collaborative working of both industry and institution factors would help in keeping the quality highwhich results in a more competent workforce.

REVIEW OF LITERATUREAspiration of India is to establish a knowledge society in the context of increasing globalization. Higher education empowerspeople with required competent skill and knowledge, quality of education prepares one from all pursuits of life in the absenceof acceptable level of quality. From last century ensure the increased attention has been paid to quality and excellence inhigher education to make the individuals highly employable to contribute to the nation development (N.Somashekar andVinod Kumar G.C, 2012).

The student centered approach of learning experience with collaborative education delivery level, by enhancing drivers ofknowledge, skill based economies, participation in higher education and social cohesion by enforcing responsible actions inprofessional practices which are to be imposed by external bodies –(Mareek Brooks and Nina Becket)Students in highereducation has to develop two types of expertise I,e mastery they want to acquire they want to acquire within a well definedoccupational or disciplinary domain and deep level learning needed to achieve that mastery as an expert student. 4 types ofknowledge should be acquired by student namely effectiveness, being about quintessence of expertise, experiencing problemsolving and lastly behavior as intrinsically motivating or rewarding in itself . P.J. Janssen, (1996).

Practicum constitute an integral part of many professional courses in higher education and manifests in several differentforms depending on the discipline, field experience , co-operative education , internship. Practicum has been conceptualized,implemented and evaluated in higher education. It focuses attention on practicum and learning outcome of a course as awhole the standard and placement of practicum within the course. It is widely acceptable and successful component of



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professional education . it has number of short comings like quality , difficult to draw conclusion. Grey rayn, Susan Tooheyand Chirs Hughes (1996).

METHODOLOGYFor the purpose of this research Paper, A survey of Academicians from the FIVE selected higher education institutionssituated in Bangalore North is conducted. Five Faculty members from each institution with a total of 25 faculty memberswith more than 10 years of teaching and more than 5 years of research experience are surveyed for the purpose the study. Astructured pre-tested questionnaire with appropriate number of questions has been used for the purpose of the survey. Further,to record the opinions of the Industrial representatives, 25 Executives, working at Top & Middle level in FIVE selectedIndustrial Establishments situated in different parts of Bangalore city are interviewed adopting in-depth Interview technique.Executives with more than 10 years of Industry experience are selected for the purpose of interview.

The data collected through questionnaires and Interview schedule are analyzed using Likert Scale. The objective wisefindings are presented along with valid suggestions.

OBJECTIVES: The major objectives of this technical paper are enumerated below:

Objective 1: To understand the need for Industry-Institution Interface in the Regime of make in India.Higher Education is an essential component which plays an important role in transforming an individual and in thedevelopment of society as a whole. In India the role of higher education has been growing at a very mediocre pace. Highereducation is very important in development of knowledgeable individuals who will contribute to the society and its welfare.The country has been striving for highly professional and hence there has been emphasis laid on quality education at tertiarysector . Demand for education programme has grown exponentially and to tap the desire market the institutions have ignoredthe quality aspect. Quality is not an act its a habit.

The advent of growth of knowledge economy has led to the decline of the agrarian economy and manufacturing sector. Theparadigm change has significantly emphasized on higher education role in preparing people for professional career. Themushroom growth of institutions has realized the increasing consciousness to adopt quality. The absence of which affect theculture and philosophy of institution as well as the stakeholders. Quality can be ensured only by a right interface of industrywith institution at all phases in parting quality education and policies being framed at the macro level.

Objective 2: To study role of Industry-Institution Interface in Achieving Quality in Higher Education.The main results of the study are

A. For the purpose of present study a structured questionnaire were administered to faculty members ofvarious college and the findings were as follows: Majority of the respondents were of the opinion that faculty members from industry background make

value addition to quality of education. In the absence of the above Guest lecturers from industry experts, industrial visits, live projects given by

industry, internship, could be introduced to give the students the feel of industry at campus and off campus. Framing of universal syllabus prepared in coordination with the industry will help students to expose

students to the recent trend and to match with the expectations of the industry.

B. For the purpose of present study a structured interview was conducted to with the corporate executives andthe findings were as follows: The corporate have been striking the balance between industry and institutions by giving opportunities to

the students by providing internship which help students to get the feel of industry and help them to mouldthemselves to the realistic work life environment.

Group projects are outsourced to the students to enhances the teamwork when they are at campus . Faculty training programme is extended to faculty members of the institutions to equip them with the

industry philosophy and culture. Tie up with university in preparation of syllabus which includes skill development of students to enhance

their competency level .

Objective 3: To develop a Win-Win Model in the Industry Institution Interface.A conceptual model is developed in the light of the interface being developed between the institution and industry.



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III WIN-WIN MODEL

The model is developed where in the industry creates institution run by government / management and the institution will besupporting and all expenses of running it will be borne by them , the faculties will be appointed by the government if it is agovernment institution or by the management in case of private college . The infrastructure is provided by the corporate,curriculum is framed in coordination with the institution and all required funding is done by the corporate including the feesof the students is taken care by the industry. The salaries of the staff are paid by the government / Management. The studentare the core, who is to be instructed with factual information and skill developed to match them to the industry requirement.

The instructional classes for students are conducted by the faculty members from partial hours in the day and post lunchsessions the corporate organize a prototype work environment set by them to the students wherein they work and unlearnwhat is instructed to them in classes. Once the student completes the course they are absorbed in the corporate house whichhelps the industry to get the students who have been trained by them. The students are also secured with the job when theyare in campus.

The benefit is enjoyed by the student and institution and industry. The post interface regime in the light of make inIndia is as follows:

Benefits to Students and institution Pre- InterfaceStudents get knowledge beyond the syllabus and are exposed to practical aspects at the industry. They get an opportunity tolearn work ethics, etiquette, work culture, corporate culture etc. Students get to interact with experts and job secured and canapply their theoretical knowledge in practical fields. They understand the technical & soft skill requirements of the industrysuch as communications skills, presentation skills etc. This interface acts as basic training to the students and enables thestudents to choose specializations and breaks classroom monotony. These students differentiate between theory & practice.This exposure trains students in time management, improvement of efficiency etc. This interface enables better framing ofcurriculum. Develops a sense of responsibility among students they enable students to adopt a different method of learningand make a realistic self-assessment.

Benefits to Industry Post InterfaceThis interface creates checks and balances in the functioning of the industry. This interface may enable industry in recruitingthe right people from the academia. It establishes reputation about the industry in the minds of students. This interfacedevelops teaching and oratory skills among the industry employees. This interface enables the industry to identify its ownloop holes and short comings and to work in the direction. The industry benefit by open mindedly accepting the suggestionsgiven by the students. Industry can develop new technologies by entrusting research projects etc. to the academia. Industry



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can understand market more effectively by getting market surveys conducted through the academia. Industry gets anopportunity to discharge its social responsibility by accommodating the academia.

The interface helps students, institution and industry in particular and global markets and domestic market as a whole

CONCLUSIONEmployees tend to be productive while working for an organization that demonstrates in the process of understanding andlinking the connectivity of industry and institution. An organization can be ensured with commitment of its employeestowards it as well as community. In this regard, companies that support the institution are more likely to have loyal, satisfiedand engaged employees. Corporate Leaders today should be able to create and inspiring students at campus by settingprototype workplaces environment that truly engage and inspire students and transform them into their potential employees togive their best to the organization in future. The primary move in this direction is to ensure that both corporate and institutionleaders have knowledge of where their students stand in terms of quality and collaboratively work towards their perfectionand development .

SCOPE FOR FURTHER RESEARCHOver the decade there has been a series of research has been carried on the industry institution interface to ensure quality withspecific reference to sustained development of the economy. Quality of work is the primary outcome of industry institutioninterface at the individual and corporate level. It would be worthwhile to conduct a comprehensive longitudinal empiricalstudy. Further, the study can be conducted in specific sectors which might throw new light on the “Achieving Quality inHigher Education through Industry-Institution Interface in the new era of developing knowledge economy”

REFERENCE1. N.Somashekar and Vinod Kumar G.C , (2012), Globalization And Higher Education In India – A World In One

Nest. 2012).2. Janailung Kamei Francis Journal of Indian Education, volume XXXVII, Feb 20123. P.J. Janssen, (1996) Studaxology : The expertise student need to be expertise in higher education.The international

journal of higher education and educational planning , 31(1), 117-1414. Schargel FP, (1996), ‘Why We Need Total Quality Management in Education’, Total Quality Management,6, Pp

213-217.5. Sivanci M, (1996), ‘Are Students The True Customers Of Higher Education?’ Quality Progress, 29(10), P.996. Grey rayn, Susan Toohey and Chirs Hughes (1996) The purpose, value and structure of practicum in higher

education, 31, 355-377



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A COMPARATIVE STUDY OF INTERNATIONAL AND INDIAN MARKET TREND FOR GARMENT SEWINGMACHINES WITH REFERENCE TO INSTITUTIONAL BUYERS

Prof.S.Gopalakrishnan* Harish.H.R***Vice Principal, East Point College of Higher Education, Bangalore.

**Lecturer, East Point College of Higher Education, Bangalore.

AbstractFood, clothing and shelter are the basic amenities of human beings. Hence, the demand for the products related to these

aspects is never ending. Textile industry occupies second place after agriculture in India in terms of providing employment.It involves various value chain activities starting from production of yarn and ends with readymade garment sectors. This isan attempt to study, analyze and suggest measures for the growth of Indian garment sewing machinery market to grow andcompete with the International market which is far-far ahead of the reach presently in terms of quality, price and theconfidence level in the minds of industrial machinery Institutional buyers.

Key Words: Readymade Garment Manufacturing, Sewing Machinery, Institutional Buyer, Technological Advancement,Foreign Made.

INTRODUCTIONThe Textile Sector in India ranks next to Agriculture. Textile is one of India’s oldest industries and has a formidable presencein the national economy in as much as it contributes to about 14 per cent of manufacturing value-addition, accounts foraround one-third of our gross export earnings and provides gainful employment to millions of people. The textile industryoccupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the totalIndustrial production, contributes to nearly 30% of the total exports and is the second largest employment generator afteragriculture.

Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growthfor improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to thedelivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to thecountry's economy.

Textiles and Garment Industry is the backbone of socio economic structure of the nation and also the State. It is the largestemployment provider, next to agriculture, single largest foreign exchange earner accounting for nearly 25% of exports andcontributes to almost 16% of Industrial production in the country.

STRUCTURE OF INDIA’S TEXTILE INDUSTRYUnlike other major textile-producing countries, India’s textile industry is comprised mostly of small-scale, nonintegratedspinning, weaving, finishing, and apparel-making enterprises. This unique industry structure is primarily a legacy ofgovernment policies that have promoted labor-intensive, small-scale operations and discriminated against larger scale firms:

Composite Mills :Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing are commonin other major textile-producing countries. In India, however, these types of mills now account for about only 3 percent ofoutput in the textile sector. About 276 composite mills are now operating in India, most owned by the public sector and manydeemed financially “sick.”

Spinning: Spinning is the process of converting cotton or manmade fiber into yarn to be used for weaving and knitting.Largely due to deregulation beginning in the mid-1980s, spinning is the most consolidated and technically efficient sector inIndia’s textile industry. Average plant size remains small, however, and technology outdated, relative to other majorproducers. In 2002/03, India’s spinning sector consisted of about 1,146 small-scale independent firms and 1,599 larger scaleindependent units.

Weaving and Knitting: Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted fabrics.India’s weaving and knitting sector remains highly fragmented, small-scale, and labor intensive. This sector consists of about3.9 million handlooms, 380,000 “powerloom” enterprises that operate about 1.7 million looms, and just 137,000 looms in thevarious composite mills. “Powerlooms” are small firms, with an average loom capacity of four to five owned by independententrepreneurs or weavers. Modern shuttleless looms account for less than 1 percent of loom capacity.



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Fabric Finishing: Fabric finishing (also referred to as processing), which includes dyeing, printing, and other clothpreparation prior to the manufacture of clothing, is also dominated by a large number of independent, small scale enterprises.Overall, about 2,300 processors are operating in India, including about 2,100 independent units and 200 units that areintegrated with spinning, weaving, or knitting units.

Clothing: Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers, manufacturerexporters, and fabricators (subcontractors).

OBJECTIVES OF THE STUDY1. To compare the growth and development of Indian made garment sewing machineries with that of foreign made

machineries2. To understand the various criteria considered for the purchase of garment sewing machineries3. To analyze the steps to be taken to improve garment sewing machine manufacturing sector in India

Value Chain ActivitiesTextile value chain activities involves

Spinning Weaving(handlooms and powerlooms) Pre loom activities Knitting Processing Garmenting Technical Textiles Textile machinery manufacturing

Technical TextilesIn India value added industry is collectively grouped into a single sector called as Technical textiles. This sector encompassesfibre into industry products.In India technical textiles are highly fragmented.These are used across wide range of economic activities such as:

Agriculture PackagingDefense AerospaceConstruction Sports equipmentsRoads/Highways Dams

Ready Made Garment SectorThe last stage of the textile value chain is the readymade garment sector, where the maximum value addition takes place.The garment sector is low capital intensive and highly labour intensive. It is estimated that Rs.1 lakh investment in thissector creates about 2-3 jobs. This sector can provide employment to rural workers, as it does not need sophisticated skillsets. This industry has a woman-friendly employment orientation and provides employment to large number of women.Karnataka, especially Bangalore, has had a strong garment industry for a long time. The garment units of Bangalore areproducing primarily, woven fabric based fashion garments. There are about 593 medium to big units in Bangalore andnumber of small units in and around Bangalore and Bellary.

It is observed that Asian countries are providing very good employment opportunity in readymade garment manufacturingindustry where Bangladesh stands No.1 and followed by India, Pakistan and Srilanka. But it is not able to produce thetechnologically advanced sewing machines. Hardly 2 to 3% of the manufacturers are using Indian made sewing machineswhere rest of them totally depended on Japan, China and German made machines.

Types of sewing machines dealt by the company are as follows1. JUKI – JAPAN2. JACK – CHINA3. PEGASUS – GERMANY4. TENJOY – TAIWAN5. USHA, NAGPAL, SIRUBA – INDIA



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Apart from Sewing machines, the garment factories also use the following types of machines, which are also purchased fromseveral foreign countries.

SINGLE NEEDLE MACHINE DOUBLE NEEDLE MACHINE OVERLOCK MACHINE FEED-OFF ARM MACHINE FLAT LOCK MACHINE BUTTON HOLE MACHINE BUTTON STITCH MACHINE

Few sample Garment Machineries

Introduction

Zigzag Stitching Machine

Double Chain Stitch Machine (DLR Series)



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Machine: Single Needle Lockstitch MachinePurpose: Single needle top stitch attach of yoke to shirt front

Shahi Exports Pvt. Ltd

RESEARCH GAPNo attempt was made in this way to analyze the gap between the Indian and International Industrial product with reference tosewing machines. Anyhow following were referred for the purpose of understanding the present status of this industry.

A project report on apparel production management – Indian designs Pvt ltd. Training manual for ToT students – IIGM Pvt ltd.

RESEARCH METHODOLOGY This research is of descriptive type with questionnaire as a tool used for collecting a primary data. Apart from that,

interview and observation methods were also used by the authors for collecting firsthand information. Secondary data was collected from IIGM training manual and few journals and articles as mentioned in the

references. Random sampling method was used to collect data from the buyers. 84 samples were collected using thequestionnaire.

Hypothesis Testing and percentage analysis was used to analyse the data to identify the findings. The authors visited a sewing machine dealer IIGM (India Industries Garment Machinery Private Limited) who are

dealing with various types of machines supplying to more than five hundred 500 Institutional buyers in severalAsian countries.

The authors also visited and met the buyers to collect the data and had a detailed discussion regarding theirrequirements and their concerns regarding the Indian Machines.

Chi-Square test was used to test the data collected using the questionnaire to analyse the (1) Machine life with reference tothe country of manufacture and (2) Selection criteria with reference to purchases made in different nations.

ANALYSISDetailed analysis was made to analyse the inputs collected using the questionnaire, interviews and observation methods ofdata collection

Test 1:H0: There is no significant difference between the machine life in terms of the country of manufactureH1: There is significant difference between the machine life in terms of country of manufacture.



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More than

3-5 yrs 5-7 years 7 Years Total

Japan 16 14 8 8

14.93 13.12 9.95

0.077 0.059 0.383

China 9 9 8 26

10.21 8.98 6.81

0.144 0.000 0.208

Others 8 6 6 20

7.86 6.90 5.24

0.003 0.119 0.111

Total 33 29 22 84

Chi-Sq = 1.104, DF = 4, P-Value = 0.894As the calculated P-Value is more than the Alpha value of 0.05 the hypothesis is accepted which means that the country ofmanufacture does not matter.

Test 2:H0: Selection Criteria does not matter in terms of purchasing among different nations.H1: Selection Criteria varies among nations with regard to purchases.

Chi-Square Test: Cost, Quality, Supplier

Expected counts are printed below observed countsChi-Square contributions are printed below expected counts

Cost Quality Supplier Total

JAPAN 7 25 6 38

12.21 17.19 8.60

2.226 3.548 0.784

CHINA 13 7 6 26

8.36 11.76 5.88

2.579 1.928 0.002

OTHER 7 6 7 20

6.43 9.05 4.52

0.051 1.027 1.355

Total 27 38 19 84

Chi-Sq = 13.500, DF = 4, P-Value = 0.009

As the calculated P-Value is less than the Alpha value of 0.05 the hypothesis is rejected which means that the SelectionCriteria varies among the reasons such as Cost, Quality, and Supplier in terms of purchasing among different nations



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Preference of Foreign Machines

Considering Quality as a primary criteria, Foreign machineries are preferred by Garment Manufacturers. After quality,Advanced Technology is preferred followed by durability.

Number of buyers preferring Foreign and Indian Sewing MachinesS.No Number of buyers of sewing machinesJapan 38China 26India 3

Others 17

FINDINGSThe following findings are the result of analysis made on the inputs collected through the primary and secondary datacollected by the authors.

Most of the garment industries(98%) are using foreign machineries Majority of the garment factories use Japan made machines According to the result of chi-square test it is found that machines life is independent of country of

manufacturing.



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Through chi-square test it is observed that there is no difference in selection criteria among cost/quality andsuppliers in terms of selecting sewing machines.

Due to lack of technically specialized machines to manufacture sewing machines, India is not able tomanufacture and sell good quality and reliable sewing machines.

There is a strong need for the support from government side for the development of garment machinerymanufacturing industry.

There is a lack of specialized technicians and knowledge to manufacture advanced machines with superiorquality.

The beaurocratic system in India in practice posing a serious challenge to the investors for making use ofthe support provided by the government.

Buyers in India are more fascinated towards foreign made machineries rather than Indian machines.

CHALLENGES AHEAD Our economic condition is not suitable for investing much on manufacturing high cost machineries. Attracting the customers to avail Indian made machineries, who already accustomed to foreign made machines. Overcoming the difficulties in manufacturing advanced sewing machines and start Make in India. Textile industry is highly labor intensive, It is also a challenge to get technically skilled labors to operate the

advanced sewing machineries.

SUGGESTIONS Strong steps to be taken by the manufacturers to improve the technology of the Indian made machines, so that it will

match the quality of foreign made machines Manufacturers should send their technocrats to the countries like Japan and China so that they will learn the

technology and implement in India Just like Apparel park was made in June 2014 after GIM(Global Investor’s Meet), A garment sewing machine

manufacturer’s park need to be coined with the involvement of all potential industrial machinery manufacturers. Government should support this park with all the facilities and financial aids.

CONCLUSIONWith the growing fashion consciousness among the people and the newly emerging trend has created a wide range ofopportunities in the field of textiles. Keeping this as a parameter, India should start manufacturing more and more advancedsewing machines will help to fulfill the needs of many upcoming garment manufacturing units.

People have a wrong notion that the foreign products are superior. This mindset should be removed from the minds of Indiancitizens.

India is a young country, where the maximum percentage of population is below 30 years, it has got a very good future inmanufacturing sectors. By availing the newly available advanced technology and required skills, one can develop their ownestablishments and can provide wide range of employment opportunities in the field of garment machine manufacturingunits. Government should help in establishing these units by providing financial and infrastructural assistance; they caneffectively utilize those things and contribute towards the success of the mission “Make in India”.

REFERENCES1. A project report on apparel production management – Indian designs Pvt. Ltd.2. Textile policy, Suvarna Vastra Neethi (2008-2013) – Department of handlooms and textiles.3. Textile policy, Nootana Vastra Neethi (2013-2018) – Department of handlooms and textiles.4. Training manual for ToT students – IIGM Pvt ltd.5. http://www.iigm.in/.6. http://www.shahi.co.in/.



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MAKE IN INDIA – A PARADIGM SHIFT TO A CAPITALISTIC ECONOMY

Vikram.G.BAssistant Professor, P.G. Dept. of Commerce, Vivekananda Institute of Management, Bangalore.

AbstractAn acceptable fact is that most of the Public polices which have been framed in India are generally failed to anticipate withchanging needs and most of the cases they departure from central objective for which they have been framed by which ithindrance the economic development. Recently in Ease of Doing Business Report (2014), India has been ranked 140 out of189 countries. China a country next to India was able to secure 93rank in the report. On the other hand India’s GDP hasbeen majorly contributed by service sector itself. According to Mc Kinsey Global Institute (2012), among different sectors ofan economy manufacturing sector has helped to drive economic growth and rising living standards. In the wake of risingIndia’s manufacturing growth rate and also to provide with employment opportunity to the larger population many newinitiatives have been designed to facilitate investment, foster innovation, protect intellectual property under the heading ofMake in India.

An attempt has been made in this paper to critically evaluate the objectives determined under new initiative and also toevaluate the feasibility of proposed Make in India initiative by considering the previous policies prevailed in India.

Key Words: Manufacturing Sector, Economic Growth, SMEs, Technological Innovation.

INTRODUCTIONAn acceptable fact with India is that whenever a new government framed either at national level or state level usually framespolicies with a different set of view and philosophy mostly criticising the previous governments. As usually a promising andoptimistic stable government took over the charge of bringing prosperity in the lives of Indian people. During the electioncampaign present government promised to bring prospers days to the country men and should also be accepted that itproposed many policies in the light of achieving its said promises. But main thing which generally strikes is that will thegovernment is able to achieve its objectives? Because when it comes to the matter of India, it consists of large group of smallincome people and small group of large income people and bringing equality as well as economic prosperity is a thoughtfultask. Yet new government seems to be very optimistic and hopefully it may achieve all those objectives which are framed byit may not be in near future. Interestingly government’s concentration towards boosting manufacturing sector contribution toGDP has increased which is really an appreciable move. As it is known India is a trillion dollar economy contribution frommanufacturing sector to GDP is only 19% (CSO, 2013) and which cautions that share of manufacturing sector in country’sGDP should be increased.

Among different sectors of an economy, manufacturing industry sector has helped to drive economic growth and rising livingstandards for nearly three centuries and continues to do so in developing countries even now (McKinsey Global Institute,2012). In fact, it is the manufacturing sector which has been always at the forefront of accelerating economic growth andtransforming economic structure of nations through innovation and productivity growth. Thus, the stimuli for innovation andproductivity growth led competitiveness emerge from the manufacturing industry (McKinsey Global Institute, 2012).

But recently World Bank in its report of ease of doing business ranked India 140 out 189 countries (Ease of Doing BusinessReport, 2014) which is really a pressing issue and the rank is to be improvised or else it will leave serious repercussions onthe flow of foreign capital into India where government is also expecting much of the capital contribution from foreigncountries itself. Majorly the level of dependency on foreign capital is much higher and India converting itself as aninvestment destination by keeping this phase new government has proposed several new policies to facilitate easy flow offoreign capital into India and make to India as a world class manufacturing hub. This paper examines feasibility of newinitiatives and pro’s and con’s attached to those initiatives.

MAKE IN INDIA – A Set of New InitiativesIt is a set of initiatives launched by the Prime Minister on 25th September, 2014 under which several new initiatives aredesigned to facilitate investment, foster innovation, protect intellectual property and build best-in-class manufacturinginfrastructure. New processes to business with India have been introduced prominent include:

Process of applying for Industrial License & Industrial Entrepreneur Memorandum made online on 24×7 basis througheBiz portal - a single window IT platform for services and validity of Industrial license extended to three years.

State governments are asked to introduce self-certification and third party certification under Boilers Act.



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Major components of Defence products’ list excluded from industrial licensing. Dual use items having military as wellas civilian applications deregulated.

Services of all Central Govt. Departments and Ministries to be integrated with eBiz by 31 December, 2014 and evenprocess of obtaining environmental clearances made online.

Filing of all returns to be made through on-line in a unified form. All registers required to be maintained by thebusiness should be replaced with a single electronic register.

To facilitate for the manufacturing in the country even new infrastructure facilities have been proposed new infrastructuralprojects have been identified like creation of new smart cities and industrial clusters in identified industrial corridors havingconnectivity. New infrastructure initiatives include:

New youth-focused programs and institutions dedicated to developing specialized skills to facilitate the process oftransforming India into a manufacturing hub are also being planned.

A new ‘National Industrial Corridor Development Authority’ has been created to coordinate, integrate, monitor andsupervise development of all Industrial Corridors. Work on five smart cities is in progress as a part of the Delhi-Mumbai Industrial Corridor: Dholera, Shendra-Bidkin, Greater Noida, Ujjain and Gurgaon. The Chennai- BengaluruIndustrial Corridor with master Plans for three new Industrial Nodes Ponneri (TN), Krishnapatnam (AP),Tumkur(Karnataka) is in progress. It is also planned to link the North-eastern States with other Industrial corridors incooperation with the Japanese government. New Industrial Clusters are being created for promoting advancepractices in manufacturing.

Approval has been already given to 21 Industrial projects under Modified Industrial Infrastructure Up gradationScheme with an emphasis on use of recycled water through zero liquid discharging systems and Central EffluentTreatment plants. And also approval for 17 National Investment and Manufacturing zones has been accorded.

For strengthening the Intellectual Property regime by further up gradation of IT facilities and compliance withglobal standards and online Application processes. An Act recognizing National Institute of Design (NID),Ahmedabad, as an institute of National Importance has been notified.

Importance has been given to skill development through Indian Leather Development Programme. Four newbranches of Footwear Design & Development Institute at Hyderabad, Patna, Banur (Punjab) and Ankleshwar(Gujarat) are been proposed to establish.

For increasing share of manufacturing sector’s contribution to GDP several new sectors have been identified. With the easingof investment caps and controls, India’s high- value industrial sectors – defence, construction and railways – are now open toglobal participation under new initiative.Defence Sector:

Policy in Defence sector has been liberalised and FDI cap has been raised from 26 per cent to 49 per cent. Portfolio investment in Defence sector is now permitted up to 24 percent under the automatic route. 100 per cent FDI is allowed in Defence sector for modern and state of the art technology on case to case basis.

Railways: 100 per cent FDI under automatic route has been permitted in construction, operation and maintenance in specified

Rail Infrastructure projects such as Suburban corridor projects, through PPP, High speed train projects, Dedicatedfreight lines, Rolling stock including train sets and locomotives/coaches manufacturing and maintenance facilities,Railway electrification, Signaling systems, Freight terminals, Passenger terminals, Infrastructure in industrial parkpertaining to railway line/sidings including electrified railway lines and connectivity’s to main railway line andMass Rapid Transport Systems.

It is proposed that norms will be eased for FDI inthe Construction Development sector

MANUFACTURING POLICYOne of the major objectives under ‘Make in India’ is to raise the global competitiveness of the Indian manufacturing sectorfor which The National Manufacturing Policy has been proposed which is by far the most comprehensive and significantpolicy initiative taken by the Government. The policy is the first of its kind for the manufacturing sector as it addresses areasof regulation, infrastructure, skill development, technology, availability of finance, exit mechanism and other pertinentfactors related to the growth of the sector. The Policy envisioned an increase in manufacturing sector growth to 12-14 percent per annum over the medium term, an increase in the share of manufacturing in the country’s Gross Domestic Productfrom 16 per cent to 25 per cent by 2022.



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Another important initiative includes establishment of National Investment and Manufacturing Zones (NIMZ) with aminimum area of 5000 hectares (50 sq. kilometres) with minimum processing area of 30 per cent are being conceived asgiant industrial Greenfield townships to promote world-class manufacturing activities. Where, the central government will beresponsible for bearing the cost of master planning, improving/providing external physical infrastructure linkages includingrail, road, ports, airports and telecom, providing institutional infrastructure for productivity, skill development and thepromotion of domestic and global investments. But identification of land will be undertaken by state governments only. Stategovernments will be responsible for water requirement, power connectivity, physical infrastructure, utility linkages,environmental impact studies and bearing the cost of resettlement and rehabilitation packages for the owners of acquiredland.

Above all it has been proposed that the regulatory mechanisms would be simplified and timelines would be defined for allclearances. Even central government proposed to develop mechanisms for the cooperation of public or private institutionswith government inspection services under the overall control of statutory authorities. The policy intends to leverage theexisting incentives/schemes of government. A technology acquisition and development fund has been proposed for theacquisition of appropriate technologies, the creation of a patent pool and the development of domestic manufacturing ofequipment used for controlling pollution and reducing energy consumption. The fund will also function as an autonomouspatent pool and licensing agency. It will purchase intellectual property rights from patent holders. Any company that wants touse intellectual property to produce or develop products can seek a license from the pool against payment of royalties.Some incentives are being offered to manufacturing units like:

Transfer of Assets: In case a unit is declared sick, the transfer of assets will be facilitated by the company managingthe affairs of NIMZ. Relief from capital gains tax on the sale of plant and machinery of a unit located in NIMZ will begranted in case of the re-investment of sale consideration within a period of 3 years for purchase of new plant andmachinery in any other unit located in the same or another NIMZ.

Green Technology & Practices: 5 per cent interest in reimbursement & 10 per cent capital subsidy for the productionof equipment/machines/devices for controlling pollution, reducing energy consumption and water conservation. Agrant of 25 per cent to SMEs for expenditure incurred on audit subject to a maximum of INR 1,00,000. A 10 per centone-time capital subsidy for units practising zero water discharge. A rebate on water cess for setting up wastewaterrecycling facilities. Incentives for renewable energy under the existing schemes. An incentive of INR 2,00,000 for allbuildings which obtain a green rating under the IGBC/LEED or GRIHA systems.

Technology Development: Incentives for the production of equipment/machines/devices for controlling pollution,reducing energy consumption and water conservation. SMEs will be given access to the patent pool and/or part ofreimbursement of technology acquisition costs up to a maximum of INR 20,00,000 for the purpose of acquiringappropriate technologies up to a maximum of 5 years.

Special benefits to SMES: Rollover relief from long term capital gains tax to individuals on sale of residential propertyin case of re-investment of sale consideration. A tax pass-through status for venture capital funds with a focus onSMEs in the manufacturing sector. Liberalization of RBI norms for banks investing in venture capital funds with afocus on SMEs, in consultation with RBI. The liberalization of IRDA guidelines to provide for investments byinsurance companies. The inclusion of lending to SMEs in manufacturing as part of priority sector lending, easieraccess to bank finance through appropriate bank lending norms. The setting up of a stock exchange for SMEs. Serviceentity for the collection and payment of statutory dues of SMEs.

Government procurement: The policy will also consider use of public procurement with stipulation of local valueaddition in specified sectors. These include areas of critical technologies such as solar energy equipment, electronichardware, fuel efficient transport equipment. IT based security systems, power, roads & highways, railways, aviationand ports.

Industrial training & skill up gradation measures: The creation of a multiple tier structure for skill development,namely: Skill-building among large numbers of a minimally educated workforce. Relevant vocational and skilltraining through establishment of ITI in PPP mode. Specialized skill development through the establishment ofpolytechnics. Establishment of instructors’ training centre in each NIMZ.

Exit mechanism: It envisages an alternate exit mechanism through job loss policy and a sinking fund or a combinationof both. (Yojana, 2014)

LITERATURE REVIEWDeb Kusum Das (2002) explores the relationship between trade liberalization and industrial productivity in developingcountries, drawing upon a large number of studies in Latin America, Africa and Asia. Beginning with a discussion of anappropriate measure of trade liberalization, the paper reviews the relationship between trade liberalization and industrialproductivity at different levels of disaggregation. By and large, there is evidence of a positive relationship between trade



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liberalization and productivity growth in the industrial sectors of the economies of Latin America, Africa and Asia. However,the author suggests need for caution in interpreting framework.

Lakshman .S (2007) provided several set of various parameters for analysing competitiveness of Indian manufacturing sectorand also identified that India’s manufacturing exports are directly linked to the world GDP and inversely related to realeffective exchange rate. Indian manufacturing industries are having advantages like inexpensive, adequate and skilled labourforce and the major disadvantages are lower labour productivity and higher input and material costs. It has also beensuggested that to improve competitiveness of Indian manufacturing goods issues like further diversification of export basket,up gradation of export quality, improvement in productivity, increased technology intensity in production, enhanced R&Dactivity, encouraging business environment, less cumbersome regulatory environment, flexible labour laws, removal ofinfrastructural bottlenecks and SME related issues need attention of all concerned.

Shallu Sehgal (2011) analysed the inter-temporal and inter-industry comparison of total factor productivity (TFP) measuredby Malmquist productivity index (MPI), which is an application of DEA to panel data to calculate the indices of TFP change,technology change, efficiency changeusing pooled data for the period of 1981-82 to 2007-08 for different categories oforganized sector’s manufacturing industries for the sample state of Haryana. The study revealed that technical efficiencychange is the key driver of TFPG in the manufacturing sector of Haryana during pre-reforms period and positive impact ofliberalization policy on technological advancement of the manufacturing sector of the state has been experienced.

K.S. Seetharama (2012) studied the concept of involving different enterprises for designing and manufacturing basicapproach is to include the strength, efficiency and the resources of different enterprises for the successful design andmanufacture of new products to face the challenges of high global competitions. Author has discussed the various aspects ofdesign such as automation, process planning, evaluation and structure under a multi- enterprise environment formanufacturing. It is suggested that the multi enterprise approach necessitates solving of integrated problems that werepreviously solved as independent sub problems. Object oriented approaches in solving such problems are also discussed.

Sudip Chaudhuri (2013) studied manufacturing trade balance in India did not worsen after the economic reforms started in1991. In fact it improved till the early 2000s and paper argues that this is not due to the reforms of the 1990s or the 1980s. Itis rather the result of the successful growth of industries such as pharmaceuticals which the earlier planning strategy helpedto develop. As a result of Economic reforms of the 1990s the structure of demand changed in favour of capital goods such asaircraft and new types of telecom equipment. But the manufacturing base did not respond appropriately. Mainly studyidentified underdevelopment of neglected industries is the main reason why manufacturing trade deficit has worsened sincethe early 2000s. And also suggested reforms not in the form of de-regulation as in the 1990s but reforms to design andimplement a strategy for technological and industrial development in the country is required.

The above mentioned studies by and large support the argument of Importance of Manufacturing sector in economicdevelopment and the need for improving the Indian manufacturing sector not only by liberalising also by improving otherhindrances faced by Indian Manufacturing Sector.

OBJECTIVES OF THE STUDY1. To evaluate the feasibility of proposed Make in India initiative.2. To critically evaluate the objectives determined under new set of initiatives i.e., Make in India.

ANALYSIS AND INTERPRETATIONFeasibility of Make in India Initiative:1. As it is known manufacturing sector plays a dominant role in economic growth but when it comes to India

Manufacturing sector contribution towards GDP is not acceptable year to year there is a decrease in the contribution bythis sector which is shown in Table 1. The contributions from the service sector has almost crossed 50 percent andreaching to 60 percent means there is a much dependency on services which is not favourable in long run economicgrowth. When only one sector contribution is higher than other sectors implies rest of the sectors is not performing up tothe mark. So to increase the level of contribution from manufacturing sector certain actions should be taken up to andrecently to boost the manufacturing sector central government proposed many new initiatives under ‘Make in India’initiative. The newly proposed manufacturing policy envisioned an increase in manufacturing sector growth to 12-14 percent per annum over medium term and to increase share of manufacturing in GDP from 16 per cent to 22 per cent by2022.



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Table 1: Showing GDP at Factor Cost at 2004-05 Prices, Share to Total GDPActual Value at Current Prices (inRs.Crore) Share to Total GDP at Current Prices

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2000-01 2,000,743 460,608 388,722 520,190 45,868 306,296 1,019,944 23.02 19.43 26.00 2.29 15.31 50.98

2001-02 2,175,260 498,620 420,596 545,633 48,055 318,496 1,131,008 22.92 19.34 25.08 2.21 14.64 51.99

2002-03 2,343,864 485,080 404,491 613,403 62,982 348,534 1,245,381 20.70 17.26 26.17 2.69 14.87 53.13

2003-04 2,625,819 544,667 459,158 682,960 64,121 391,190 1,398,191 20.74 17.49 26.01 2.44 14.90 53.25

2004-05 2,971,464 565,427 476,634 829,783 85,028 453,225 1,576,255 19.03 16.04 27.93 2.86 15.25 53.05

2005-06 3,390,503 637,772 536,822 953,872 94,462 521,669 1,798,859 18.81 15.83 28.13 2.79 15.39 53.06

2006-07 3,953,276 722,984 604,672 1,140,197 106,787 634,828 2,090,095 18.29 15.30 28.84 2.70 16.06 52.87

2007-08 4,582,086 836,518 716,276 1,330,270 124,812 732,720 2,415,298 18.26 15.63 29.03 2.72 15.99 52.71

2008-09 5,303,567 943,204 806,646 1,500,254 139,828 818,322 2,860,109 17.78 15.21 28.29 2.64 15.43 53.93

2009-10 6,108,903 1,083,514 928,586 1,695,796 159,304 922,151 3,329,593 17.74 15.20 27.76 2.61 15.10 54.50

2010-11 7,248,860 1,319,686 1,143,517 1,968,450 204,866 1,072,489 3,960,723 18.21 15.78 27.16 2.83 14.80 54.64

2011-12 8,391,691 1,499,098 1,300,569 2,284,366 222,716 1,236,182 4,608,227 17.86 15.50 27.22 2.65 14.73 54.91

2012-13 9,388,8761,644,926 1,417,468 2,460,445 222,416 1,320,907 5,283,505 17.52 15.10 26.21 2.37 14.07 56.27

2013-14(P)

10,472,8071,906,348 1,653,802 2,594,172 222,652 1,350,039 6,003,893 18.20 15.79 24.77 2.13 12.89 57.33

Source:CentralStatisticalOrganisation(CSO)-31.05.2014

2. Any developing country will be usually characterized by unemployment or low employment opportunities even India isalso not excluded from that list. In India major population is employed in agriculture sector itself which is shown Graph-1.To reduce the problem of unemployment under ‘Make in India’ initiative government is expecting creation of 100million additional jobs by 2022 in manufacturing sector as also appropriate skill sets among rural migrants and the urbanpoor for inclusive growth. The New Manufacturing policy is also expected to increase domestic value addition andtechnological depth in manufacturing, enhancing the global competitiveness of the Indian manufacturing sector andensuring sustainability of growth, particularly with regard to environment. The focus sectors for the ManufacturingPolicy are:



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Employment-intensive industries like textiles and garments, leather and footwear, gems and jewellery and foodprocessing industries.

Capital goods industries like machine tools, heavy electrical equipment, heavy transport, earthmoving & miningequipment.

Industries with strategic significance like aerospace, shipping, IT hardware & electronics, telecommunicationequipment, defence equipment and solar energy.

Industries where India enjoys a competitive advantage such as automobiles, pharmaceuticals & medical equipment. Small & medium enterprises. Public sector enterprises.

Graph 1: Percentage Share in Employment

Source: CRISIL Research estimate using NSSO Reports.

Evaluation of Objectives Determined Under New Initiative:1. It has been envisioned that services of all Central Govt. Departments and Ministries to be integrated with eBiz. The eBiz

project is one of the integrated mission mode projects under the National e-Governance Plan of the government. Asmany as 26 central and 24 state services were integrated with the portal, but the Environment and Forest Ministry and theCentral Board of Excise and Customs (CBEC) had some reservations about the project.

But, in World Banks report of Ease of Doing Business India ranks at 134th position out of 189 countries it seems veryclear that India’s ranking is very poor and we don’t have proper registration as well as clearance mechanism oftengetting clearance certificate will be contradicting from one department to another to bring nearly 50 service under oneroof with in short span proves to be tougher task. Majorly there lacks a proper co-ordination between many departmentsboth in state as well as centre and without the fast approval mechanism manufacturing activities cannot kick start. Effortsshould be made to speed up the integration process.

2. Government has proposed to establish National Investment and Manufacturing Zones (NIMZ) with a minimum area of5000 hectares (50 sq. kilometres). Central government is responsible for bearing the cost of master planning,improving/providing external physical infrastructure linkages including rail, road, ports, airports and telecom, providinginstitutional infrastructure for productivity, skill development and the promotion of domestic and global investments.But,identification of land will be undertaken by state governments only. State governments will be responsible for waterrequirement, power connectivity, physical infrastructure, utility linkages, environmental impact studies and bearing thecost of resettlement and rehabilitation packages for the owners of acquired land. Need to be accepted that relationshipbetween state governments and central government is not up to the mark and when it comes to the part of landacquisition again it leads to chaos in any respective states. Recently newly established state finding very difficult acquireland for construction of capital city. If this issue is not properly resolved its gone be a major setback for ‘Make in India’initiative.

3. When it comes to the matter of Factors of production capital forms important part by keeping in view government hasproposed to raise FDI cap in key sectors like Defence and Railways. Even Portfolio investment has also been raised.



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But, raising key sectors would not be acceptable because these sectors are having lot of prominence from point of peoplewelfare. Government faced lot of criticism for rising in ticket rates in recent railway budget itself if the foreign tie-upscome with a toll charges for providing infrastructure than it will again lead to strong opposition from the general public.Usually (may not be regular) people will be opposing to pay or reducing toll charges for using up of road transportationand often foreign firms which are investing will be intended to take make profits with an intention to maximise theprofits the services offered may become costlier also.

4. Majorly, under ‘Make in India’ initiative concentration is provided on only manufacturing sector or government intendedto convert India as a global manufacturing hub for which it tries to strengthen the existing sectors and also to includenew sectors.But, without concentrating on the root cause we cannot provide remedy. As it is known major portion ofworking population in India is involved in Agriculture, if more industries are created by converting green area intoindustrial area it may have impact on agricultural yield and by creating jobs there might be a still more movement ofagricultural labour from rural areas to urban locality it will lead to more urbanisation and leads to many long termproblems. It does not mean that government should not involve in industries rather it means concentration should also begiven for achieving self-sufficiency in food production at least. By providing easy approval for foreign capital andprivate participation in normal and key sectors India slowly converting itself as a Capitalistic Economy.

CONCLUSIONFinally, it is better to concentrate both on ‘Made in India’ and ‘Make in India’ because previous one implies own productionand later one indicating welcoming other people to manufacture in our country. Today most of the developed countries haveattained self-sufficiency and having absolute advantage over manufacturing several products. But, when it comes to India wehave not yet achieved self-sufficiency in many products. So it is better to achieve self-sufficiency and then competing atinternational level. Most of the Indian companies are not able to sustain the competition posed by many Internationalcompanies and if these kinds of companies are unable to sustain the competition means what should be the fate of SMEs(Small and Medium Scale Enterprises).

Apparently, Indian SMEs segment is in Infant size but they are having all the potentials to grow larger. Rather than openingup the economic gates, facilitating for faster foreign capital inflowand converting as a purely capitalistic economy likewestern countries it is better to encourage domestic capital formation by which money earned will be retained with in thecountry and by providing with major technology required to the SMEs we can achieve self-sufficiency in manufacturingseveral set productsand it also leads to new technological innovations, better manufacturing processes and higheremployments by linking primary sector to manufacturing sector. As India is rich in many natural resources and with optimumutilisation and having a right mix of factors production sustainable development can be achieved by which the termEconomic Growth could be better defined.

REFERENCE1. BalaSubrahamanya (2001), Technological innovations in small firms in the north east of England: Dimensions and

Implications, International Journal for Entrepreneurship and innovation, 2(3), 141-152.2. L. Lakshmanan, S. Chinngaihlian and Raj Rajesh (2007), Competitiveness of India's Manufacturing Sector: An

Assessment of Related Issues, Reserve Bank of India Occasional Papers, 28(1).3. ShalluSehgal and Suparn Sharma (2011), Total factor productivity of manufacturing sector in India: a regional

analysis for the state of Haryana, Economic Journal of Development, 13&14 (1-2).4. K.S.Seetharama (2012), Solution to Challenges Faced by Indian industries: Designing with Multi-Enterprise

Partnership, International Journal of Engineering Science and Innovative Technology, 1(2), 150.5. SudipChaudhuri (2013), Manufacturing Trade Deficit and Industrial Policy in India, Working Paper, Indian Institute

of management, Calcutta.6. McKinsey Global Institute (2012), manufacturing the future: The next era of global growth and Innovations,

McKinsey & Company, USA.7. World Bank (2014), Doing Business 2015 – Going beyond efficiency, World Bank, USA.



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A STUDY ON CHALLENGES OF WOMEN IN HOSPITALITY AND TOURISM INDUSTRY

Kanchana ArunResearch Scholar, Hotel & Catering Management, Vels University, Chennai.

AbstractFor years, hospitality industry experts and analysts have identified about the "glass ceiling" that has prevented women in thefield from ascending to the upper ranks of supervisory and managerial positions. To an extent, the same conditions prevail invirtually every industry -- although women have come a long way in the workplace, men continue to hold most leadershiproles. However, the unique culture and history that define the hospitality industry have made the prospect of changeparticularly challenging. Although this pattern continues to hold true in the hospitality industry, the last several decadeshave been a period of remarkable change and growth for women in the field. The contribution of women in the businessworld has increased in recent years, and in the hospitality industry their representation in top management positions hasmade women’s status more prominent. Various social, cultural and economic factors influence the roles women occupy bothin society and the workplace. The Hospitality and Tourism industry aims to lift the acceptance of women in business andraise the profile of women in the Industry. The main objectives of this study is to – 1. To study the barriers to Womenadvancement in Hospitality and Tourism Industry 2. To highlight the reasons for more women professionals in thehospitality Industry and 3. To measure the skill level of women professionals in the Industry. This study is to explore theprofessional skills of women within the workplace. A discussion and interview method approach to data collection wasadopted. The questionnaires were distributed to the HR executives, Front Office executives and Sales Directors drawn fromdifferent Hotel and Travel groups to respond.

Key Words: Hospitality Industry, Women, Challenges, Development.

INTRODUCTIONHospitality Industry is one of the Leading Industry which offers a cluster of jobs to the women’s in which women plays aimportant role in contributing the Business by representing the top management hierarchy that develops the growth of thewomen status in capture and expressing the talents of the women in Hospitality sector.

Women in Hospitality Industry creates various Positions where they stand from the structure of top Positions from the gradesof Executives to the Supervisor and they are facing various critical challenges from the sides of family responsibilities, workBalance and need to face various problems and attaining many challenges to conquer a career prospects with high Prestigiousposition in the Hospitality Industry.

Role of women in management and other key positions in the field of Hospitality industry like: Director General Managers Executives etc.

According to the HR managers, 50% of those with a hotel management background join the high end hotels, five stars andabove.This is primarily because of –

Better career prospects Higher pay structures Greater work prestige

WOMEN IN HOSPITALITY INDUSTRYThe current scenario in the Industry has created a period of remarkable change and growth for women in this field. Inrestaurants, hotels, catering firms, resorts, and many other venues, women are becoming much more visible in managementroles and other key positions like – Director, General Managers, and Executives etc. than ever before, and experts predict thatthe need for women professionals in the industry will only increase in the future.

According to the HR managers, 50% of those with a hotel management background join the high end hotels, five stars andabove. This is primarily because of better career prospects, higher pay structures and greater work prestige. On the questionof profile of the women employees, interviews with several HR managers confirmed that employment of women in the hotelindustry is still mainly restricted to front-office, back office and housekeeping.



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Nevertheless, women seem to have good opportunities when it comes to a career in these positions. The managers soundedpositive in saying that there is a positive change predicted towards employing women in male dominated departments likefood and beverages.

WOMEN IN TOURISM INDUSTRYTourism creates a wide range of opportunities for women through the complex value chains it creates in the destinationeconomy. But these roles and activities that women perform in tourism are treated as invisible or taken for granted.

The need to acknowledge the important economic contribution of women and ensure for them, access to credit, capacitybuilding and enhanced skills, access to the market, encouragement to form unions, associations and cooperatives to increasetheir bargaining power and to ensure that their safety, health and social security needs are met is critical.

Tourism provides better opportunities for women’s participation in the workforce, women’s entrepreneurship, and women’sleadership than other sectors of the economy -

1. Women make up a large proportion of the formal tourism workforce.2. Women are well represented in service and clerical level jobs but poorly represented at professional levels.3. Women in tourism are typically earning 10% to 15% less than their male counterparts.4. The tourism sector has almost twice as many women employers as other sectors.5. One in five tourism ministers worldwide are women.6. Women make up a much higher proportion of own-account workers in tourism than in other sectors.7. A large amount of unpaid work is being carried out by women in family tourism businesses. (Global Report on

Women in Tourism, 2010)

Recognizing women’s centrality in development processes, the UN Millennium Development Goals (MDG) argued that oneof the main development challenges faced by the world today is that of the condition of women and decided to ‘promotegender equality and empower women’.

The United Nations World Tourism Organization (UNWTO) launched a new Action Plan for the empowerment of womenthrough tourism in March 2008 as part of MDG’s aim of gender equality. When UNWTO chose the theme of women andtourism for the year 2007 it was for the first time, since 1980, that the UNWTO focused its attention on the issue of women intourism.(Women in Bangalore’s Hotel Industry, EQUATIONS, 2010, Tracing the Maze: A Dossier on women and TourismJune11).

There are also known to be challenges faced by women in tourism. Women are often concentrated in low status, low paid andprecarious jobs in the tourism industry. Gender stereotyping and discrimination mean that women mainly tend to performjobs such as cooking, cleaning and hospitality. (Global Report on Women in Tourism 2010 UNWTO)Women in tourism arestill underpaid, under-utilized, under-educated, and under -represented; but tourism offers pathways to success.

OBJECTIVES1. To study the barriers to Women advancement in Hospitality and Tourism Industry.2. To highlight the reasons for more women professionals in the hospitality Industry.3. To measure the skill level of women professionals in the Industry.

SIGNIFICANCE OF THE STUDYOpportunities for women in the Hospitality and Tourism Industry are growing. Today, we can find successful women fillingmanagerial roles at every level, ranging from supervisors to executive board members.

The purpose of this study is to highlight the need for professional women and prove women are as professional andcompetent in the Hospitality and Tourism Industry as men, if not more.

RESEARCH METHODOLOGYThis study is to explore the professional skills of women within the workplace. A discussion and interview method approachto data collection was adopted. The questionnaires were distributed to the HR executives, Front Office executives and SalesDirectors drawn from different Hotel and Travel groups to respond. The parameters for the professional skills of the women



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in the industry were analyzed in a percentage analysis. Four five – star, four – four star and two- three star hotels and fivemajor travel players in Chennai were contacted to participate in the research.

LIMITATIONSThe study was analysed on focusing front line women professionals.The study was not intended to be a comparative study between men and women.

RESULTS & DISCUSSIONSTable 1: Barriers to Women’s Advancement in the hospitality and tourism industry

Barrier Percentage (%)

Family/Household responsibilities a higher priority 23

Steno typing /cultural prejudice/gender biasedattitudes/discrimination

32

Organization forces (limitations of organizational jobdesign/ succession planning /talent development

12

Work –life balance 20

Lack of networking opportunities (due to type ofactivity, timing or travel involved

9

Ego issues (lack of confidence) 12

Lack of mentoring 12

Age 8No barriers 3

The above table 1 and fig 1 shows that barriers to women’s advancement in the hospitality and tourism industry. Themajority of women (32%) had the barrier of steno typing /cultural prejudice/gender biased attitudes/discrimination andfollowed by the percentage of 23 of women had family/household responsibilities a higher priority. Only 20 per cent of thewomen were able to have work-life balance. A similar percentage of women had barriers like organization forces (limitationsof organizational job design/ succession planning /talent development, ego issues (lack of confidence) and lack of mentoring.



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9 per cent of women had lack of networking opportunities (due to type of activity, timing or travel involved, and eight percent of women had age as a barrier. Only 3 per cent of the women had no barriers for their advancement in the hospitality andtourism industry.

Table 2: Reasons for more women professionals in the hospitality and tourism industryReasons Percentag

eRecognition / Status 52Net working opportunities 80

Developing confidence 72Monetary benefits/Women welfare benefits 85

More job opportunities 92

Challenging carrieer 32

020406080

100

FIGURE 2: Reasons for more womenprofessionals in the hospitality

industry

Series 1

The above table 2 and figure 2 shows that – The reasons for more women professionals working in hospitality and tourismindustry and it clear the faster change is likely as more women professionals(92 %) in hospitality and tourism industrybecause they get more job opportunities. Eighty five percent and eighty per cent of the women professional in the hospitalityand tourism industry as they get monetary benefits/ women welfare benefits and networking opportunities respectively.Developing confidence, recognition/status and challenging carrier were 72 %, 52 % and 32% respectively.

Table 3: Skill level of women professionals in the hospitality industrySkills Percentage (%)

Effective problem solving 58

Personal attributes 72

Work life balance 45

Decision making 32

Situation handling 64

Objectives and goal set up 50

Communication skills 62

Leadership qualities 42

Convincing tactics 69



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Figure 3: Skill level of women professionals in the hospitality industry

01020304050607080

The above table 3 and Figure 3 shows that the skill level of women professionals in the hospitality industry. The majority ofwomen 72 % of them had personal attributes. 69 % of women had convincing tactics, 64 % of them had situation handlingand 62 % of women had communication skills. The skill like effective problem solving and objectives and goal set up were58 % and 50 % respectively. Regarding work life balance 45 % of women were able to manage. Women 42 % had skill withleadership qualities. Only 32 % of women had skill in decision making.

CONCLUSIONHospitality industry has become the largest employer of women in the current date. According to a report published by Timesof India (dated February 23, 2013) in south India and West Bengal, 55- 60 percent of the employees in hotels are womenwhile in Maharashtra , Punjab and Delhi the figure is 40- 50 percent.

Women can play a major role in Hospitality and Tourism Industry by connecting and using their feminine strengths incommunication, inter – personal skills and conflict management. To identify the various attributes required for HospitalityIndustry professionals, the aspect of “SHE” (Spirituality, Humanistic & Existential) model of women empowermentintroduced and practiced. Women also get equal and diverse opportunities. Having the right people at the right place in theright job is the motto of McDonald’s.

The hospitality experience would prove to be quite incomplete, without the charming smile of a woman at its outset. Thefeminine touch indeed lends grace and elegance to the hospitality industry. In fact, it would only be fair to say that theindustry today holds more potential for women than ever before.

REFERENCES1. The HR Managers, Sales Directors, Training Managers and Front Office Managers of Taj Club House, Asiana, The

Park, Aloft, GRT, Raddison , The Leela of Chennai and The Staff of Kuoni Travel Academy, Chennai.2. Bastounis, M., and J. Minibas-Poussard. 2012. Causal attributions of workplace gender equality, just world belief,

and the self/other distinction. Social Behavior and Personality 40 (3):433-52.3. Mandel, R. B. 1987. No striving for glory here: An essay on women and leadership in the U.S.S.R. Frontiers: A

Journal of Women Studies 9 (2): 16-22.4. Reddy, K. 2007. The Opt-Out revolution by women in management: Myth or reality?.5. Masters research report for the University of South Africa. Pretoria, Gauteng: University of South Africa.6. Global Report on Women in Tourism, 2010.7. www.womeninhospitality.com ,www.hospitality-school.com.8. ,www.caterersearch.com ,www.hotelierindia.com .



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NON-PERFORMING ASSETS AND PUBLIC SECTOR BANKS IN INDIA

Dr. C.S.Hema VidhyaAsst. Professor of Management, East Point College of Higher Education, Bangalore.

AbstractIn a bank-based economy, sound health of the banking system is an imperative for efficient financial intermediation in thecontext of overall development and financial stability. Developing of sound and healthy financial institutions, especiallybanks, is an essential condition for maintaining over all stability of the financial system of the country. The high level ofNPAs in banks and financial institutions has been a matter of grave concern to the public as bank credit is the catalyst to theeconomic growth of the country and any bottleneck in the smooth flow of credit, one cause for which is the mounting NPAs, isbound to create adverse repercussions on the economy. This paper extracts how public sector makes NPA and reason forgrowing NPA in current scenario.

INTRODUCTIONThe business of banking essentially involves intermediation-acceptance of deposits and channeling these deposits in tolending activities. Since the deposits received from the depositors have to be repaid to them by the bank, they are known asbanks’ ‘Liabilities’ and as the loan given to the borrowers are to be received back from them, they are termed as banks’‘Assets’ so assets are banks’ loans and advances.

In the traditional banking business of lending financed by deposits from customers, Commercial Banks are faced with therisk of default by the borrower in the payment of either principal or interest. This risk in banking parlance is termed as‘Credit Risk’ and accounts where payment of interest and /or repayment of principal is not forthcoming are treated as Non-Performing Assets2, as per the Reserve Bank of India, an asset, including a leased asset, becomes non-Performing when itceases to generate income for the bank. Existence of Non-Performing Asset is an integral part of banking and every bank hassome Non-Performing Assets in its advance portfolio. However, the high level of NPA is a cause of worry to any financialinstitution

FACTORS RESPONSIBLE FOR NPAsThe following factors confronting the borrowers are responsible for incidence of NPAs in the banks:-

a) Diversion of funds for expansion/modernization/setting up new projects/helping promoting sister concerns.b) Time/cost overrun while implementing projects.c) External factors like raw-material shortage, raw-material/Input price escalation, power shortage, industrial recession,

excess capacity, natural calamities like floods, accident etc.d) Business failure like product failing to capture market, inefficient management, strike/strained labor relations, wrong

technology, technical problem, product obsolescence, etc.e) Failure, non-payment/over dues in other countries, recession in other countries, externalization problems, adverse

exchange rate, etc.f) Government policies like excise, import duty changes, deregulation, and pollution control orders, etc.g) Wilful default, siphoning of funds, fraud, misappropriation, and promoters/management disputes etc.

Besides above, factors such as deficiencies on the part of the banks viz. deficiencies in credit appraisal, monitoring andfollow-up; delay in release of limits; delay in settlement of payments/subsidies by Government bodies, etc. are also attributedfor the incidence of NPAs

INDIAN BANKING AND NPA REGULATIONSUntil mid-eighties, management of NPAs was left to the banks and the auditors. In 1985, the first ever system ofclassification of assets for the Indian banking system was introduced on the recommendations of A. Ghosh Committee onFinal Accounts. This system, called the ‘Health Code System’ (HCS) involved classification of bank advances into eightcategories ranging from 1 (satisfactory) to 8 (bad and doubtful debt)4. In 1991, the Narasimhan Committee on the financialsystem felt that the classification of assets according to the HCS was not in accordance with international standards andsuggested that for the purpose of provision, banks should classify their advances into four broad groups, viz. (i) standardassets; (ii) substandard assets; (iii) doubtful assets; (iv) loss assets. Following this, prudential norms relating to incomerecognition, asset classification and provisioning were introduced in 1992 in a phased manner. In 1998, the NarasimhanCommittee on Banking Sector Reforms recommended a further tightening of prudential standards in order to strengthen the



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prevailing norms and bring them on par with evolving international best practices. With the introduction of 90-days normsfor classification of NPAs in 2001, the NPA guidelines were brought as par with international standards. The NPAs canbroadly be classified into (i) Gross NPAs, (ii) Net NPAs. Gross NPAs are the sum total of all loan assets that are classified asNPAs as per RBI guidelines as on balance sheet date. It reflects the quality of loans made by banks. (Gross NPAs Ratio =Gross NPAs/Gross Advances). Net NPAs are those type of NPAs in which the banks deduct the provisions regarding NPAs.It shows the actual burden of banks (Net NPAs = Gross NPAs-Provision/Gross Advances-Provisions

PUBLIC SECTOR BANKS IN INDIAThe banking system in India consists of Commercial Banks and Cooperatives Banks of which the Commercial Banks accountfor more than 90 percent of the banking system’s assets. Based on the ownership pattern, the Commercial Banks can begrouped into three type i.e. (i) State owned or Public Sector Banks (PSBs) that is the State Bank of India and its subsidiariesand the nationalized banks (there are 27 PSBs functioning in the country as on 31.3.2014), (ii) Private Banks under Indianownership, and (iii) Foreign Banks operating in India.

The PSBs dominated the banking business in the country. In 1990-91, they accounted for as much as 91 percent of the totalassets-with Private Indian Banks with 3 percent and Foreign Banks with 6 percent. After entry of a number of new PrivateIndian Banks in the mid-1990s, the Indian Banking Industry continued to dominate by the PSBs. At the end of 2000-2001,PSBs accounted for a little under 80 percent of total assets with Indian private sector with over 12 percent and foreign bankswith 8 percent8. Whereas at end March 2013, the PSBs accounted for about72.7 percent of the total assets in the IndianBanking Industry with 20.8 percent with Private Banks and 6.5 percent with foreign banks9. The classification of advancesas per the newly introduced ‘prudential norms’ enabled a proper assessments of the extent level of NPAs in the Indianbanking system for the first time. Asset quality in the banking system has deteriorated in the post-crisis years and amongbanks groups, PSBs had the highest level of stress in terms of NPAs and restructured advances

SHARE OF PUBLIC SECTOR BANKS IN GROSS NPAS AMONG ALL BANKS GROUPPSBs share a disproportionate and increasing burden in case of NPAs among the bank groups (i.e. share in gross NPAs ascompared to share in advances). The share of PSBs in gross NPAs has increased over the last decade and particularly since2009. PSBs’ NPAs accounted for 85 per cent of the NPAs of the banking system in 2013 as compared to 75 percent in 2003.During this period, the PSB’s share in total bank credit increased only marginally, from 74 percent to 76 percent. This is insharp contrast to the performance of the other segments of the banking system, especially the new private sector banks,whose share in NPAs has fallen from over 14 percent in 2003 to 8 percent in 2013.

REASONS FOR GROWING NPAs IN THE CURRENT PERSPECTIVEThe rising NPAs in recent period can attributed to the effects of the global recession coupled with internal factors like theslowdown in the domestic economy which had adversely affected the performance of corporate as well as small and mediumenterprises leading to a negative impact on credit quality. The asset quality of PSBs aggravated in comparison to privatesector banks as big ticket corporate loans form a larger share of the credit portfolio for PSBs. Data available with the Finance



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Ministry showed that thirty companies together owed Rs.16,877 crore as on September 30, 2013 to Public Sector BanksAnother reason for sudden rise in gross NPAs of PSBs was reported to be on account of a shift to a system based recognitionof NPAs from a manual one. Prior to 8 this computation for most banks was worked out manually at branch level and wastherefore subject to discretion of managers12. The RBI in its Financial Stability Report, December 2013 has identified fivesectors - Infrastructure, Iron and Steel, Textiles, Aviation, and Mining - as the stressed sectors. PSBs have high exposures tothe ‘industry’ sector in general and to such ‘stressed’ sectors in particular. Increase in NPAs of banks is mainly accounted forby switchover to system-based identification of NPAs by PSBs, slowdown of economic growth, and aggressive lending bybanks in the past, especially during good times. As PSBs dominate the Indian Banking Sector and increase in the NPAs ofPSBs is matter of concerns, steps are being taken to improve the situation.

NPAS AND INTEREST RATE CYCLEThe changes in lending rates of banks may also cause changes in NPA levels. Hardening of interest rates makes repayment ofloans difficult for borrowers, particularly those who have availed loans earlier at floating rates. Growth in NPAs also seemsto follow a cyclical pattern with lending rate. As a measure of debt servicing cost Bofondi and Ropele (2011) use the short-term money market rate since a large proportion of Italian households' and firms’ outstanding bank debt(about 70 and 90 percent, respectively) consists of floating rate loans or loans with short maturity. It was found that increases in money marketrate worsens the quality of loans as higher debt servicing costs make it harder for borrowers to honor their debt. Furthermore,higher interest rates may result in adverse selection of borrowers, with only the riskier ones left in the market (Stiglitz andWeiss, 1981).

In the Indian context, the movement in short-term money market rate and NPAs reveals that growth in NPAs has remainedlow during the phases of low interest rate, while NPAs growth has increased with the increase in interest rate. The empiricalestimates also corroborate the fact that growth in NPAs is likely to go up in the backdrop of elevated interest rateenvironment, i.e., 100 bps rise in interest rate (money market rate proxy for lending rate) leads to around 0.6percentage pointrise in NPAs growth after a lag of one quarter. Thus, hardening of interest rates in the recent times might have alsocontributed to increase in NPAs.

ASSET PRICES AND NPASA surge in asset prices can push up the net worth of borrowers through wealth effect and help in facilitating debt servicing.There is evidence in the literature about the role of asset prices, particularly stock prices in driving the asset quality ofbanks(Chen, 2001, Gambacorta, 2005 and Kunt and Detragiache, 1997). High asset prices can cushion borrowers fromunexpected shocks by facilitating access to credit and/or helping to service existing debts. Higher asset valuations should,therefore, be associated with lower levels of NPA ratios. A booming stock market reflects a buoyant outlook on firms’profitability; moreover, an increase in financial wealth is expected to decrease households’ probability of defaulting on loanssince it gives them additional means for servicing their debt (Bofondi and Ropele 2011). There is an inverse co-movement



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between asset prices and NPAs. The empirical evidence in this study points out that increase in stock prices by 1 per centleads to0.04 percentage points decline in NPAs, after a lag of 2 quarters.

RESTRUCTURING OF ADVANCES AND ITS LIKELY IMPACTRestructuring of loans and advances is a procedure to modify the terms and conditions of an existing loan in order to alleviatethe difficulties in repayment by the borrower due to temporary cash flow problems or general economic downturn. TheReserve Bank’s prudential guidelines on restructuring define a restructured account as one where the bank, for economic orlegal reasons relating to the borrower’s financial difficulty, grants to the borrower concessions that the bank would nototherwise consider. Restructuring would normally involve modification of terms of the Advances/securities, which wouldgenerally include, among others, alteration of repayment period/repayable amount/the amount of installments/rate of interest(dueto reasons other than competitive reasons) (Mahapatra Committee, 2012).

The Reserve Bank revised its prudential guidelines regarding restructuring of advances by banks from time to time, mainly inthe light of international best practices and the Basel Committee on Banking Supervision (BCBS) guidelines issued in thematter. The modifications in the guidelines for restructuring of advances announced in August 2008 was one of the proactivesteps taken by the Reserve Bank in order to arrest the downward spiral in the economy in the aftermath of the global financialturmoil of 2007. The guidelines on restructuring of advances by banks issued in August 2008 allowed banks to restructureaccounts of viable entities classified as standard, sub-standard and doubtful. It was prescribed in the August2008 guidelinesthat accounts of borrowers engaged in important business activities and classified as standard assets may retain their standardasset classification on restructuring subject to certain conditions.

ASSESSMENT OF THE IMPLEMENTATION OF RESTRUCTURING ADVANCES: IMMEDIATE ANDMEDIUMTERM IMPACTData on restructured advances for the time period 2007-2012 showed that due to the special dispensation given to the banksregarding restructuring of advances in 2008, total amount of restructured advances increased substantially during 2008-09.Following the slowdown observed in the domestic economy as well as the sluggish recovery of the global market, totalamount of non-performing assets (NPAs) as well as restructured advances witnessed accelerated growth during 2011-12.During 2011-12, total restructured advances grew at a rate of 63 percent, significantly higher than the corresponding growthrate of 2 per cent during 2010-11.

Restructured advances as percentage of standard advances shot up significantly at end-March 2012, as compared with thecorresponding period of the previous year (Chart 3)



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Chart 4: Trend in NPAs

IS IT DESIRABLE TO CONTINUE RESTRUCTURING OF ADVANCES?During 2011-12, banks aggressively resorted to restructuring of advances in order to contain the level of NPAs in theirbalance sheet. Without restructuring, gross NPAs at system level would have been substantially higher. However, thoughrestructuring of advances was helpful in containing the effect of rising bad loan in banks’ balance sheet, in the long -run, itcould have implications for asset quality, incase significant proportion of these restructured advances turn out to be bad loans

In addition, the October 2012 Global Financial Stability Report (IMF) noted that India, together with other emerging markets,is in the late stages of the credit cycle, suggesting NPAs and debt restructurings are likely to continue rising. With growthlikely to be weaker for a longer period than after 2008-09 and the loan composition of banks more skewed toward largeloans, more restructured advances are likely to slip into NPAs compared to the historical average of 15 percent. The FinancialStability Report, December 2012, has also noted that the spurt in restructuring of advances is a matter of concern, though itmay not have systemic dimension.

Hence, there is a need to carefully monitor the impact of restructuring on asset quality of banks in the medium to long run.The Mahapatra Committee has recommended that in order to prudently recognize the inherent risks in assets classified asstandard on restructuring, the provision requirement on such accounts should be increased from 2 per cent to 5 per cent.

INITIATIVES TAKEN BY THE GOVERNMENTSome recent initiatives taken by the government to address the rising NPAs include:-Appointment of nodal officers in banks for recovery at their head offices/zonal offices/for each Debts Recovery Tribunal(DRT).



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Thrust on recovery of loss assets by banks and designating asset reconstruction companies (ARC) resolution agentsof banks.

Directing the state-level bankers’ committees to be proactive in resolving issues with the state governments. Sanction of fresh loans on the basis of information sharing amongst banks. Conducting sector / activity-wise

analysis of NPAs. Close watch on NPAs by picking up early warning signals and ensuring timely corrective steps by banks including

early detection of sign of distress, amendments in recovery laws, and strengthening of credit appraisal and postcredit monitoring.

CONCLUSIONSA strong banking sector is important for a flourishing economy. The failure of the banking system may have an adverseimpact on other sectors thus, there is need to ensure that the banking system recognizes financial distress early, takes promptsteps to resolve it, and ensure fair recovery for lenders and investors so that banking sector start functioning without stress.With the help of government initiatives we can reduce NPAs stress and helps in MAKE IN INDIA.

REFERENCES1. Banking Sector Performance Study – H1FY14, Care Ratings -2013.2. Parliament Library and Reference, Research, Documentation and Information Service (LARRDIS),Reference Note.

no. 11 RN/Ref./November /2014.3. Shashidhar M. Lokare : Re-emerging Stress in the Asset Quality of Indian Banks: Macro-Financial Linkages,

Department Of Economic And Policy Research February 2014.4. Mohan, Rakesh (2004): “Finance for Industrial Growth”, Reserve Bank of IndiaBulletin, Speech article, March.5. Muniappan, G, (2002): “The NPA Overhang, Magnitude, Solutions and Legal Reforms”, Reserve Bank of India.



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EVOLUTION OF E-LEARNING IN INDIA: A STUDY OF ONLINE MARKETPLACES FOR ONLINETUTORING

P. KalyanasundaramProfessor, Department of Management Studies, East Point College of Higher Education, Bangalore.

AbstractThe learning landscape in India is undergoing a paradigm shift. Digital opportunities that are currently available and thatare evolving through e-learning can ensure and expand the reach and quality of education in India. The availability of onlinelearning opportunities vis-à-vis the traditional ones have, in fact empowered the new generation learners. In this paper, E-learning opportunities in various segments of the education sector are discussed and the study endeavors to highlight theemergence of online marketplaces for online tutoring services for various segments like the K12, professional training, skilldevelopment etc. The paper discusses the opportunities and challenges faced by them.

Keywords: Digital Opportunities, E-learning, Online Marketplace, Online Tutoring, Skill Development.

1.0 INTRODUCTIONIndia is fast turning into a knowledge economy and people are demanding different forms of educational resources.According to data published in the article in The Times of India in January 2012, an astonishing 220 million children areenrolled in Indian schools, but 140 million students are still left out. Meanwhile, gross enrollment in India is at only 12%,which is lower than other Asian countries. Today, India needs about 200,000 more schools and an additional 1500 collegesand universities. A country with such a shortfall in its educational facilities, and yet whose citizens spend 58 hours a weekonline, prefer to access the Internet from home, and will achieve 72% mobile services penetration by 2016, will certainly finda viable solution in online education through the Web. Online education gradually evolved from the concept of distanceeducation. Over the years, distance education has continuously adopted advancements in multimedia technology in order toimprove two-way communication, increase teacher-learner interactivity, improve pedagogy, and ease content distribution inan education system separated in time and space. The objective has always been to closely replicate the pedagogicalexperiences of a face-to-face learning environment. Currently the share of services sector to India’s GDP is 57 % and this isexpected to grow to 62% in 2020. With the growing contribution of services sector to the economy vis-à-vis manufacturingand agriculture, it is imperative for us to study this emerging services industry in the training/learning domain which is poisedfor phenomenal growth in days to come. The global e-learning industry is expected to reach $107 Billion in 2015 and theindustry is growing at 9.2% (Compounded Annual Growth Rate). India leads all other countries in terms of self-paced e-learning with 55% growth rate year on year followed by China (52%), Malaysia (41%), Romania (38%) and Poland (28%).

E-Learning in various segmentsThe e-learning market in India is a fragmented market as far as opportunity and solution providers are concerned. Theprovider side is led by players who offer Learning Management Systems (LMS)/technology platforms, content or assessmentsolutions. On the user side, there are opportunities in K-12, Higher Education (H.E.), professional courses, SkillDevelopment, English language training, test preparation (GMAT, GRE, TOEFL, IELTS, IIT-JEE, etc.) and MOOCs(Massive Open Online Courses).

A. K-12With enrolment projected to cross the 350 million mark by 2018, the K-12 segment offers the largest and most attractivesegment for e-learning providers in India. E-learning in the K-12 space is dominated by private sector providers such asEducomp Smartclass, Classteacher.com, Excel School Solutions (ESS) and Everonn’s Class on theweb. Each of thesecompanies provides the teacher with unique multimedia tools (hardware and software) to supplement teaching in theclassroom. The Educomp Smartclass, for instance, is a collection of multimedia digital lessons in 2D and 3D that covered theentire K-12 curriculum in Indian schools. The uniqueness of these systems is that none is mandated or even endorsed byeither of the main education examination boards, the CBSE (Central Board of Secondary Education) or the ICSE (Council forthe Indian School Certificate Examinations), or any other state boards of examination. The interactive nature of multimediacontent and instant feedback on their performance provided by these systems make this generation of ‘digital natives’ take tosuch technology assisted learning in a more positive way when compared to learning from traditional textbooks. Schoolshave also realized that using technology in classrooms has an attractive 21st century tag attached to it and thus compete witheach other to be associated with the most popular products. Some organisations like MeritNation and Clay6 also offer subjectspecific online tuitions directly to interested students. As the Clay6 website declares, the focus of these services is “centredon making students better at one thing: A+ing the exam!” Pearson India became the latest entrant (March 2014) into this



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segment with the announcement of a five-year deal with IBM to deliver customized e-learning solutions to more than 22,000classrooms across India.

B. Higher EducationThe size of the Indian education industry as a whole was pegged at INR 3,833.1 billion in 2012-13 by CARE Ratings, ofwhich higher education is estimated to contribute nearly 60% and growing at 8.7%. While 30% of higher education studentsworldwide take at least one course online, the Indian higher education system, which follows a fixed curriculum, does notallow students the choice of deciding which courses or the number of courses to be taken. However, by 2011 estimates, 26%of enrolments in the Indian higher education system (approx. 6 million) are still recorded under Distance Learning, which is asignificant increase from the 20% recorded in 2001. With students using their degrees to further employment prospects,certificate courses have higher acceptance over those that do not offer a certificate at the end of the course. GlobalNxtUniversity, a collaboration between Universitas 21 Global and Manipal Global Education Services, for example, providesdegree-level programs to meet the increasing demand of the web-based education platform. These include undergraduate,postgraduate and doctorate programs that are offered online.

Opportunities in the higher education sector are strongest in the following areas: 1) providing certified e-learning modulesthat can be embedded into regular courses, 2) “soft skills” programs that can be used to train college students preparing forjob interviews, for example, and 3) joint certification.

C. Corporate Training & Continuous Professional Development (CPD)An analysis of enrolment data in MOOCs seems to suggest that most of those enrolling in e-learning programs do so forprofessional development or as part of a program driven by their employers. Nearly half of all respondents in the PennUniversity/ Coursera study of MOOC students were employed full-time. 83% of students had a post-secondary degree (2 or 4years), 79.4% of students had a Bachelor’s degree or higher and 44.2% reported education beyond a Bachelor’s degree. InIndia, organizations like Hughes Global Education45 are specialists in the satellite based, professional education segment.Hughes collaborates with reputed institutions in India such as the IITs, IIMs, MICA and NLU, offering online education andtraining programs on a large scale. It has live, interactive, real-time, two way video, voice and data classes, and spread across155 classrooms in 75 cities.Opportunities: This is one segment where training companies could work with large corporations in India to deliverprograms directly. Key factors that will attract organizations will be interactive learning technology, bite-sized learningmodules, and on-the-job training. With the IT and outsourcing businesses leading in training initiatives, courses in these areaswill be in particular demand.

D. Skills Development & EmploymentWith the government mandate to train a workforce of 500 million people by 2022, e-learning seems poised as the most viablemeans of reaching the masses. To encourage the innovative use of technology and make skills development accessible acrossthe country, the National Skills Development Corporation (NSDC) set up the “NSDC Innovation Fund” in 2013. It hasalready partnered with a range of organizations and piloted twenty schemes, ranging from English Language and Soft Skills,to mobile-based applications to help farmers.

Opportunity: Skills development is the most talked about segment in India today. The new Companies Act 2013, mandatescompanies with a certain minimum income to spend up to 2% of their income on various Corporate Social Responsibility(CSR) activities, including education and training, and claim tax exemptions.

E. English Language Studies (ELS)Very few sectors have the pull-factor that English Language Studies and Test Prep services offer in India. The presence of alarge base of English language speakers is also the single largest reason for the boom in IT and outsourcing businesses inIndia. This boom has in turn fuelled an aspirational value amongst non-English speaking Indians who see English languageproficiency as a ticket to economic improvement. The British Council leads this space with its array of online offerings.Other programs like the English Edge offered by Liqvid e-learning services cater to beginners and intermediate level studentsto overcome their Mother Tongue Influence (MTI).

F. Private Tuition IndustryThe ubiquitous parallel tuition system of education in India is now a multi-billion USD industry. A survey by the AssociatedChambers of Commerce and Industry of India (ASSOCHAM) has revealed that remarkable 87% of primary school and 95%of high school students in metropolitan cities receive private tutoring. This is an industry that has grown by 35% in the last



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six years. “The current size of the private coaching industry in India is about US$23.7 billion and is likely to touch US$40billion by 2015,” the survey added. The private tuition industry, preparing students for various competitive examinationsusing online learning tools is also fast gaining in popularity. The “Aakash i-Tutor” program by the coaching institute Aakash,provides “access to real time high quality video lectures, self-study materials, self-assessment tools, and feedbackmechanism”, etc. on handheld tablets. The Aakash Institute offers coaching to students preparing to take various competitiveexaminations like the IIT-Joint Entrance Examinations (JEE), Pre-Medical, and Dental entrance examinations.

G. Test Preparation MarketAnother area for potential e-learning development is the international test-prep market. IELTS, TOEFL (ETS) and Pearsonalready offer many practice tests online for their respective tests. Tests like SAT, GMAT, and GRE too have multiple onlinepractice tests being offered by domestic test-prep companies like Jamboree, Virti, and Manya. Furthermore, with tests likethe GMAT and GRE being ‘adaptive’ in nature, the test prep segment also opens up avenues for new technologies likeadaptive learning technologies that can replicate real test environment for learners. Hobsons has become the latestinternational market entrant in India in this space. Hobsons has entered into a MoU with iProf to collaboratively developtablet based post-secondary education and career opportunities.

2. 0. METHODOLOGYThe study used secondary data from industry reports, journals and user reviews about online learning portals and discussionswere based on this data. Ten online tuition services were considered for the purpose of this study.

3.0 DISCUSSIONAn online marketplace (or online e-commerce marketplace) is a type of e-commerce site where product or serviceinformation is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Onlinemarketplaces are the primary type of multichannel ecommerce. In E-learning too, online market places have become a realitywith many companies providing platforms for learners and tutors to interact, especially in the field of home tuitions andprofessional training. Examples of online marketplaces are Amazon.com, Alibaba, etsy, eBay, Snapdeal, Flipkart, etc. In theonline education sphere we have online market places like WyzAnt, 2tion.com etc. The broad focus on such marketplace is tomatch tutors and tutors all over the country (world) for in-home and online tutoring, making the process easy and rewardingfor both the parties. The key activities of these marketplaces include registration of tutors, vetting their credibility and makingsure that they are proficient in the subject matter, taking care of a tutor’s marketing, payment processing and scheduling theirsessions. On the learner’s side the responsibilities include registration, finding suitable tutor, scheduling classes, monitoringprogress, arranging to for a demo if needed, handing complaints, refunds etc.

The following online tuition services have been considered for the purpose for the study.Table 1: List of Companies in the Online Tuition/Training Sector (Partial List)

S.No. Company Major Focus Offering Mode1 www.edureka.com Niche/Business/Professional Courses like Big

Data, Business Intelligence etc.Instructor led online training

2 www.tutorcity.in Selling leads of students to tutors Classes can be online/homebased

3 www.2tion.com Nursery to PG/Competitive Examinations Online/Home-based4 www.flipclass.com Nursery to Class XII Home-based

5 www.bharattutors.com Different Courses Online/Home-Based

6 www.simplilearn.com Business/Technology Skill Development Courses Online/Classroom/CorporateTraining

7 www.wiziq.com Mocktests/Analytics/Programming/Bigdata/Music/Language/Competitive examinations

Online

8 www.meritnation.com Mock tests for competitiveexams/CBSE/ICSE/State Board Courses

Online

9 www.tutorvista.com K-12 and other subjects Online

10 www.superprofs.com Competitive Exams & other Courses Online



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3.1 Customer Rating of Online CoachingA review of customer ratings of various online coaching services was conducted by referring to online review sites likesitejabber.com and the results are presented below. A total of 130 respondent reviews were considered for the purpose of thisstudy

Table 2: Customer Rating of Online TuitionsRating No. of Respondents % of Respondents1 – Star 30 232 - Star 6 53 – Star 7 54 – Star 46 355 – Star 41 32Total 130 100

As it is seen from the table it is evident that a majority of the learners are satisfied with the online services. 67% have given a4 –star rating and above. However it is to be noted that a substantial percentage of learners (30%) have rated the onlinelearning services as 1-Star. This is a matter of real concern and online tuition providers need to improvise on their offerings.

3.2 Rating SummaryThe online reviews on various factors like Service and Support, Information Depth, Content Timeliness, Design andUsability and Website load time was studies and the results are presented below:

Table 3: Rating SummaryFactor Average Score ( 1 to 5)Service and Support 3.3Information Depth 3.6Content Timeliness 2.88Design/Usability 2.88Website Load time 2.88

( 1- Poor; 5 – Excellent)As it is seen from the above table the online learning organizations have to work on the areas of load time and usability. Withregard to content depth customer review is satisfactory. However, there is scope for improvement in the areas of depth andservice. A deeper review of customer feedback throws light on issues like difficulties faced in booking of class schedules,renewal of subscriptions, shortfalls in the number of classes taken, irregularity of tutors, lack of knowledge of faculty andwastage of online time, issues with refunds due of deficiency of service, no response to mails, replacement of faculty etc.

4. 0 SUGGESTIONS & CONCLUSIONAccording to the World Bank, 180 million people in India will access the Internet by 2016. Coupled with Gartner’sprediction that close to 160 million smart phones would have been sold in the country by then, it is easy to deduce whyentrepreneurs are so upbeat about the opportunities in E-learning. This offers a unique opportunity for entrepreneurs andtutors who would like to enter this field. As outlined above caution has to be exercised as quality issues are likely to arisewhen the operation calls for scaling up. Tutor quality, content quality and delivery are the three essential factors that lead tolearner satisfaction. With only 10 percent of $23 billion private tuition market being organized with above 5000 organizedprivate tuition centres/chains there is much left for others to aim at. A study reveals that 50 lakh students spend about Rs.18000 on course work for at least three subjects annually. This speaks about the opportunities in the market.

REFERENCES1. Pratibha A Gokhale and Smitha Chandra (2009), Web 2.0 and E-Learning: The Indian Perspective. DESIDOC

Journal of Library & Information Technology, 29(1), 5-13.2. Puja Devgun (2013), Prospects for Success of MOOC in Higher Education in India. International Journal of

Information and Computation Technology, 3(7), 641-646.3. Vishal Krishna, (2015, March 23). Tutors On Tap, Business Today, 126-127.4. WizIQ Education (2012), E-Learning Trends in India – Facts, Figures and the Future.



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A STUDY ON THE ISSUES AND CHALLENGES OF MAKE IN INDIA WITH SPECIAL REFERENCE TO THEELECTRONIC EQUIPMENT SECTOR

Mrs. Rashmi.N* Mrs. Archana.N* Ms.Impa.B.J**Assistant Professor, Adarsh Institute of Management and Information Technology, Bangalore.

AbstractMake in India is an initiative program of Government of India to encourage companies to manufacture their products inIndia. It was launched by Prime Minister Narendra Modi on 25th day of September 2014. The major objective behind theinitiative is to focus on twenty five sectors of the Indian Economy for job creation and skill enhancement. The sectors includeautomobiles, chemicals, IT, electronics, electrical etc. In this paper an attempt is made to explain the issues and challengesfaced by the electronic equipments sector in fulfilling the objectives of Make in India. The data regarding the imports ofelectronic equipment are collected to know the outflow of capital from India. It is identified that the outflow of capital can bereduced to a greater extent by manufacturing the same goods in India, which is the primary mantra of Make in India. Thiscan be made possible through a co-operative effort between the government and the people.

Keywords: Indian Economy, Electronic Equipments, Imports, Make in India.

INTRODUCTIONMake in India campaign was launched by Prime Minister Sh. Narendra Modi on Sep 25, 2014. The key objective of Make inIndia campaign is to invite businesses not only in India but across the world to invest & manufacture in India. The purposeof Make in India campaign is- Job Creation, Economic Development and Global Recognition.

Make in India campaign is the Right Step in Right Direction. Make in India is recognized globally and has featured in“100 Most Innovative Global Projects”. Make in India initiative aims to correct the composition of Indian GDP. Currently,India’s GDP is heavily tilted in favour of service sector.

Three sectors which contribute to GDP of any country are (a) Agriculture (b) Industry / Manufacturing & (c) Services.Current contribution of these sectors in Indian Economy is as follows-

a) Agriculture: 28%b) Industry / Manufacturing: 16% (Lowest)c) Services: 56% (Highest)

It is clearly visible that our economy is over dependent on Services sector.

It is not only about Indian Economy but for that matter if it is observed that any world economies with over dependence onServices sector are in deep trouble. Contribution of Services sector in GDP of major world economies are - USA: 76%,China: 43%, Japan: 74%, Germany: 71%, France: 80%, UK: 77%.Except China, all these countries are struggling to revivetheir economy because Chinese economy has maintained a fine balance between Services and Industrial / ManufacturingSector. Contribution of Industrial sector is 47% to Chinese GDP & Services Contribute 43%. Because of meticulous finebalance, Chinese economy is stable and growing at healthy rate. Thus, it can be concluded that the common reason forworldwide economic recession is over dependence on Service sector.

STATUS OF THE INDIAN ECONOMYPost liberalization, subsequent Indian Governments focused extensively on Services sector. IT and BPO services were posterboys of economic liberalization. Service sector only generated employment for skilled workforce whereas low skilledworkers were completely marginalized. Every year approximately 12 million people are added to existing pool of workforceand overwhelming majority is either unskilled or low skilled workers due to urbanization. Service sector employ onlyskilled workers. There was no road map in place for these low skilled workers post liberalization. Therefore, overdependence on Service Sector is responsible for ill state of the Indian Economy and unemployment.

MAKE IN INDIA – THRUST TO INDUSTRY / MANUFACTURING SECTORMake in India initiative is an honest attempt to revive the fortunes of Industry / Manufacturing sector. Revival of Industrysector is the key to revival of the Indian economy. In short, the contribution of Industry / Manufacturing sector in Indian GDPhas to be increased. It doesn’t mean that Government will lose focus on Service sector. Digital India will help to maintaincontribution of Service sector but manufacturing / industry sector has to grow at much faster pace to out-pace service sector.It is not an easy task. Government should target to increase contribution of Industry / manufacturing from existing 16% to



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35% in next 5 years. Make in India will help to achieve this goal as the government of India has promised that it will provideall the approvals under Make in India initiate in a time bound manner through single online portal for the effectiveimplementation of its policies.

The various other goals that can be achieved through the Make in India initiative are as follows-1. Employment for Low skilled workers: As majority of workforce in India is low skilled therefore Make in India

initiative will provide large scale employment opportunities for this particular segment. Make in India will generatemillions of jobs.

2. FDI: Whether one loves it or hates it but fact of the matter is that India has huge dependence on FDI to keepeconomy alive. As industry / manufacturing is capital intensive industry therefore Make in India will attract hugeinflows of FDI. FDI inflow will help to revive Indian economy.

3. Small and Medium Enterprises: Any manufacturing hub needs supply of parts which is boon for SME’s. Make inIndia will help to generate indirect employment through SME’s.

4. Reduce Trade Deficit: Compared to Service sector, Industry / Manufacturing sector has multiplier effect onExports which will help the government to wipe off India’s trade deficit. Reduction in trade deficit will have largescale positive impact on the finances and economy of the country. It will stop devaluation of currency and increasesovereign rating which in turn will attract more FDI. FDI inflow is cyclic chain with positive ripple effects.

5. India as Consumer Market: India is one of the largest markets in world which cannot be ignored by developedeconomies. Any company investing in India under Make in India initiative will directly get access to huge market of125 Cr people. This advantage is not available for investment in service sector e.g. India is not a big market for ITservices; it is mostly outsourced from USA.

6. Defence: For the success of any initiative, it is crucial to set up an example to showcase. India is big market fordefence equipments. Big manufacturing projects related to Defence will set a right tone and environment for Makein India initiative to take off.

Thus, it can be said that Make in India will help the Indian economy to come out of shadow of recession. Over dependenceon service sector is suicidal, Make in India will help to break this situation and India can become a manufacturing powerhouse competing China in the near future.

ELECTRONIC EQUIPMENT SECTORIndia is the fifth largest economy in the world and has the second largest GDP among emerging economies. Owing to itslarge population, the potential consumer demand is almost unlimited and consequently under appropriate conditions, stronggrowth performance can be expected. In fact, the liberalization of the economy in 1991 has led to rapid growth. Theelectronics industry, in particular, is emerging as one of the most important industry in the Indian market.

The electronics industry in India dates back to the early 1960s. Electronics was initially restricted to the development andmaintenance of fundamental communication systems including radio-broadcasting, telephonic and telegraphiccommunication, and augmentation of defence capabilities. Until 1984, the electronics sector was primarily governmentowned. The late 1980s witnessed a rapid growth of the electronics industry due to sweeping economic changes, resulting inthe liberalization and globalization of the economy. The economic transformation was motivated by two compelling factors -the determination to boost economic growth, and to accelerate the development of export-oriented industries, like theelectronics industry.

The electronics industry has recorded very high growth in subsequent years. By 1991, private investments - both foreign anddomestic - were encouraged. The easing of foreign investment norms, allowance of 100 percent foreign equity, reduction incustom tariffs, and delicensing of several consumer electronic products attracted remarkable amount of foreign collaborationand investment. The domestic industry also responded favourably to the politic policies of the government. The opening ofthe electronics field to private sector enabled entrepreneurs to establish industries to meet hitherto suppressed demand.

Improvements in the electronics industry have not been limited to a particular segment, but encompass all its sectors. Strideshave been made in the areas of commercial electronics, software, telecommunications, instrumentation, positioning andnetworking systems, and defence. The result has been a significant trade growth that began in the late 1990s. The industrynow employs large numbers of electronics engineers and electronics technicians to design, develop, test, manufacture, install,and repair electrical and electronic equipment such as communication equipment, medical monitoring devices, navigationalequipment and computers.

Despite commendable achievements in the sphere of electronics, considerable infrastructural improvements remain a priority.



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Water, power, telecommunications, and transportation sectors must still be augmented so that high economic growth can besustained.

OBJECTIVES1. To study the strategies of Make in India in Electronic Equipment Sector.2. To identify the various issues and challenges faced by the Electronic Equipment Sector in implementing Make in

India’s strategies.

MAKE IN INDIA AND ELECTRONIC EQUIPMENT SECTORThe Electronic Equipment Sector comprises of electronic products, electronic components, semiconductor design andelectronics manufacturing services (EMS). The top 10 electronic products yielding more revenue to the government aremobile phones, flat panel display TVs, notebooks, desktops, digital cameras, inverters / UPS, memory cards/USB drives,EMS/LCD monitors and servers. The Indian Electronics Sector industry was estimated to be worth USD 68.31 Billion in2012 and is anticipated to be worth USD 94.2 Billion by 2015 with a CAGR of 9.88% between 2011-15.The country isexpecting to market consumer electronic goods worth US$ 29 billion by 2020.

Growth Drivers of Electronic Equipment Sector Significant local demand. Rising manufacturing costs in alternate markets. 65% of the current demand for electronic products is met by imports.

Reasons to invest in Electronic Equipment Sector Global demand would to reach USD 94.2 Billion by 2015. Large demand for electronic equipments will be generated due to government schemes like the National Knowledge

Network (NKN), National Optical Fibre Network (NOFN), tablets for the Education sector, a digitisation policy and variousother broadband schemes.

Adequately developed Electronic Manufacturing Services (EMS) industry is set to be a significant contributor to theentire industry’s development.

India has the third largest pool of scientists and technicians in the world. Skilled manpower available in abundance in Semiconductor Design and Embedded Software. Strong design and R&D capabilities in auto electronics and industrial electronics.

Investment Plans for the Electronic equipment sectorThe Make in India policy has made provisions to invest capital in the various regions of our country which are termed as theInformation Technology Investment Regions (ITIR). They are-

Karnataka (42.5 sq. km, near Bengaluru, a USD 17.6 Billion investment). Telangana (202 sq. km, near Hyderabad, USD 36.4 Billion investment). Electronics Manufacturing Clusters (EMC) are being established across the country by GMR (near Bangalore),

Telangana Government Corporation (near Hyderabad), Electronics Components Industries Association (near Delhi), MPState Electronics Development Corporation (Bhopal and Jabalpur); Kerala Industrial Infrastructural DevelopmentCorporation (near Kochi).

Semiconductor Wafer Fabrication (FAB) manufacturing facilities being set up in India in Uttar Pradesh and Gujaratwith a total investment of USD 10.5 Billion.

Venture funds with a strong focus on electronics planned includes the Electronics Development Fund, Walden IndiaFund, KITVEN Fund and the SIDBI Fund.

Electronic Sector Skills Council and Telecom Sector Skills Council have been set up for establishing an effectiveand efficient ecosystem for developing and imparting outcome-oriented skills for the ESDM sector. A total of90,000 people are to be supported under the Skill Development Scheme in 6 different states.

Government Policies to develop the Electronic Equipment Sector as per Make in India Modified Special Incentive Package Scheme (MSIPS) (USD 13.4 Billion investment proposals till March 2014). Electronics Manufacturing Clusters Scheme (EMC).



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Skill Development Scheme. Huge consumption in the Middle East and in emerging markets such as North Africa and Latin America. Existing R&D capabilities can be encouraged to develop ‘Made in India’ products and generate local IP.

Provisions of the 2014-2015 Union Budget for Electronic Equipment Sector Basic customs duty on LCD and LED TV panels below 19 inches is being reduced from 10% to NIL. Basic customs duty is being exempted on specified parts of LCD and LED panels for TVs. Basic customs duty on colour picture tubes for manufacture of cathode ray TVs is being reduced from 10% to NIL. Special additional duty on all imports/components used in the manufacture of personal computers is being

exempted. Education cess and secondary and higher education cess is being levied on imported electronic products. Full exemption from SAD is being provided on specified inputs i.e. PVC sheets and ribbon used in the manufacture

of smart cards. Basic customs duty is being reduced from 7.5% to nil on e-book readers.

Either of the following two deductions can be availed:1. Investment allowance (additional depreciation) at the rate of 15% to manufacturing companies that invest more than INR 1Billion in plant and machinery acquired and installed between 01.04.2013 to 31.03.2015 provided the aggregate amount ofinvestment in new P&M during the said period exceeds INR 1 Billion.

2. In order to provide a further fillip to companies engaged in the manufacture of an article or thing, the said benefit of anadditional deduction of 15% of cost of new P&M, exceeding INR 250 Million which is acquired and installed during anyprevious year, until 31.3.2017.

Under the existing provisions of Section 35 AD of the Act, investment- linked tax incentive is available by way ofallowing deduction of the whole of any expenditure of a capital nature (other than expenditure on land, goodwill andfinancial investments) incurred wholly and exclusively for purposes of the “specified business” during the previousyear in which such expenditure is incurred.

In order to promote investment in new sectors few more businesses have been added under the above section. Setting up and operating a semiconductor wafer fabrication manufacturing unit, if such a unit is notified by the

board in accordance with the prescribed guidelines. The above business shall begin operations on or after 01.04.2014. It has also been decided to provide for a lock-in period of 8 years for use of assets in respect whereof a deduction

under Section 35 AD has been claimed.

Modified SIPS Capital subsidy up to 20-25% for 10 years on capex. Reimbursement of CVD/excise for capital equipment in non-SEZ units. Reimbursement of central taxes and duties for 10 years in select high tech units like fabs and ATMPs. Available for the entire value chain of identified electronics products. Incentives available for 10 years from the date of approval.

Preferential Market Access Preference to domestically manufactured electronics goods in government procurement. Extent of government procurement from domestic manufacturers will not be less than 30% of the total procurement.

Electronic Manufacturing Clusters Subsidy of 50-75% – up to USD 10 Million per 100 acres of land. Applicable to both greenfield and brownfield projects.

Export Incentives Focus product scheme – 2% duty credit scrip. Special focus product scheme – 5% duty credit scrip.



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Areas Based Incentives Incentives for units in SEZ/NIMZ as specified in respective acts or the setting up of projects in special areas such as

the North-East, Jammu & Kashmir, Himachal Pradesh &Uttarakhand. National Scheme for Supporting MSMEs in the ESDM sector. For compliance of electronic goods with Indian Standards, both testing and certification are required for exports. Development of Electronic Manufacturing Clusters by MSMEs.

ISSUES AND CHALLENGES FACED BY THE ELECTRONIC EQUIPMENT SECTOR IN IMPLEMENTINGMAKE IN INDIA STRATEGIESIssue 1: Government PoliciesThe current government of India is taking baby steps towards reviving the industrial sector of India through variousinitiatives in general and Make in India in particular. Even then, India being a federal country lacksthe political consensusand in framing the effective policies for the development of our country. There is a bias in policies framed by ourgovernment regarding the tax reforms, budget allocations, rules for departmental functioning, delegation of work to name afew. The country is facing many problems even in the implementation of the policies right from the grass root level, due towhich it may become an obstacle to implement the Make in India strategies. The Electronic Equipment Sector being in thestate of developing needs the government support but due to the various policies of government like Investment ApprovalPolicies, Foreign Investment Policies, Tax Policies and Companies Act rules etc., the sector is failing to reach the developedstage. Even the Make in India policy will face various challenges due to which our government is failing to formulateappropriate policies for the development of the Electronic Equipment Sector like-

i. Red tapism in granting approvals to the start-up firmsii. Corruption in the departmental functioning

iii. Bureaucratic operationiv. Internal conflicts among the law makersv. Favouritism towards few families in the business

vi. Delay in judicial accomplishmentsvii. Land reforms

viii. Labour Reforms etc.,

Issue 2: Indian Business EnvironmentThe Business Environment of India is as diverse as it is large, with a number of major sectors including manufacturingindustries, agriculture, textiles and handicraft, electronics, and services. The Business Environment of India is very dynamicand has gone through various phases of change from the colonial rule to the democratic rule which has moulded the differentsectors of its economy. The Electronic Equipment Sector being a part of the manufacturing sector of our economy hasimported nearly $462.9 billion worth of goods in the year 2014 (Trade map, International Trade centre).

Make in India’s saying not to import but to produce will be a boon to the Electronic Equipment Sector that encourages thesector to import less. There are many strategies in the policy of Make in India to revive our Business Environment and toprovide a conducive environment for the development of Electronic Equipment Sector. But the effective implementation ofthese strategies is backed by many challenges due to the nature of our business environment. They are-

i. Lack of adequate infrastructural facilitiesii. Lack of skilled human resource

iii. Lack of financial supportiv. Lack of technical and marketing assistancev. Cut throat competition

vi. Lack of entrepreneurial spiritvii. Lack of upgraded technology

viii. Inequality of income distribution

Issue 3: Global Business EnvironmentIndia happened to be a part of the global economy after the acceptance of the LPG policy in the year 1991. Thanks to the thenPrime Minister Narasimha Rao and Finance Minister Manmohan Singh for liberalising the Indian Economy. Since then Indiahas witnessed many milestones in its development path like increase in the GDP, increase in foreign trade and increase inforex reserves etc. One of the milestones in this regard is the phase of technology transfer which is the key to ElectronicEquipment Sector. The Indian Electronic Equipment Sector has moved from a gramophones era to the digital technologicalera due to the opening up of our economy to the globe.



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In spite of these achievements Indian Electronic Equipment Sector has failed to strike the electronic inventions anddevelopments of the countries like China, Japan, USA, Germany etc. The reason for this failure is the vague foreign tradepolicy of our country which has led to the brain drain from our country. Now the Make in India policy has various strategiesfor the development of Electronic Equipment Sector on par with the techno countries of the world. The effectiveimplementation of these strategies are backed by various challenges like-

i. Competitive Marketii. FDI and FII rules

iii. EXIM policiesiv. Difficulties of technology transferv. Labour mobilization

vi. Problems of foreign relations

CONCLUSIONThe Electronic Equipment Sector has seen many phases of change since 19th century.The sector has made manyachievements in the production of various electronic goods in the fields of communication, medicine, navigation, computersand so on. Modi’s government has taken a leading step through MAKE IN INIDA to revive and develop this sector to makeIndia as the best manufacturing hub of electronic equipment by 2020 with the expectation of US$ 29 billion worth of marketfor consumer electronic goods.

The dream of Make in India in Electronic Equipment Sector or any other sector can be appreciated only when thegovernment is able to implement it by facing all the challenges. Moreover the co-operation between the individuals,businesses and government is very indispensable to witness Make in India in reality.

REFERENCES1. www.makeinindia.com.2. www.pmindia.gov.in/en/government-tr-rec/make-in-india.3. www.indiabudget.nic.in.4. www.indiafilings.com/learn/2015-budget-highlights-for-startups-and entrepreneurs/.5. www.eximbankindia.in/sites/default.6. www.rbi.nic.in.7. www.commerce.nic.in.8. www.intracen.org/market analysis.



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CROSS-CULTURAL ADAPTATION OF INDIAN EXPATS IN IT SECTOR AT BANGALORE

Dr.Cynthia Menezes* Mrs. Lubna Ambreen***Associate Professor, Canara Bank School of Management Studies, Bangalore University, Bangalore.

**Research Scholar, Bangalore University.

AbstractThe current research paper concentrates on identifying the factors causing difficulty in cross cultural adaptation by Indiancitizen expatriates. The survey was carried out with the help of structured questionnaire. The data was collected from 30Indian expats working in Indian organisations posted to foreign countries for the assignment by home organisation. By theanalysis 5 major factors were identified as reasons for cross-cultural adaptability by the Indian expats namely businesscommunication, language, and colleagues at work, folks around after work and religion & culture. The paper revealed thatthere was difficult faced by the expats with regards to business communication and language, besides the colleagues at workwere cooperative and less interactive in personal life as well they faced differences in religion and culture. After all, basedon the findings few valuable measures were proposed for an enhanced cross-cultural adaptation.

Keywords: Cross-Cultural Adaptation, Overseas Assignments, Indian Expatriates.

INTRODUCTIONAs boundaries of countries are softening due to the emergence of liberalization and globalization, we find free movement ofHR from one country to another and expatriation is one of the common ways to make effectual use of HR. Expatriation hasbenefits and to the employees as well as to the organization.

In the current era of competition organizations are realizing they must concentrate on global business for their survival aswell as for their growth. As a process of commencing a new business, acquiring an overseas company or becoming a part ofjoint venture it is the need of the hour to have successful expatriation. The companies are investing across the globe andthereby giving opportunities for employees to prove their capabilities/skills for the betterment of the organizations andhelping the organization get the advantage of utilizing talented workforce in their branches spread across the globe.Expatriate assignments play a pivotal role in the execution and development of global business.

Expatriation is no more a new word, all thanks to spreading of MNCS across the globe, which has lead not only to theliberated movement of goods and services even the skilled human resource. Expatriation is the process where in employeesare posted to foreign country for an assignment to the their branch office located in foreign country, usually the experts aresent to make use of their expertise, contributing to the companies as well as individual growth through there specialized skillsin respective areas where high level of professionalism and individual competency is required. The study reveals thedifficulties faced by expats in adapting the foreign culture during their assignments oversees.

The study reveals the difficulties faced by expats in adapting the foreign culture during their assignments oversees.

The current research is base on Indian expatriates and is focused on - the factors leading to difficulty on culture adaptabilityexperienced by Indian expatriates during overseas assignments. The current situation of Indian expatriates in adopting cross-culture and identifying the major difficulties in cross-cultural adaptation.

LITERATURE REVIEW Charles W.L.Hill et. al, (2006); Expatriates are citizens of one country who are working in another country. At times

the word inpatriates is used to identify a subset of expatriates who are citizens of a foreign country working in the homecounty of their multinational employer.

P.Subba Rao, (2002); Expatriates are those living or working in a foreign country. The home country nationals workingin foreign subsidiary and third country nationals are expatriates.

K.Ashwathapp Et. Al, (2008); An expatriate is an individual who works anywhere in the globe but not in his or her owncountry, with scrupulous globalization, companies need to depute more and more employees to work overseas. India isattracting more expats as MNCs having subsidiaries view the country as advantageously critical.

Peter J.Dowling et. al,(2004); One of the differences between domestic and international HRM is that human resourceis moved across the national boundaries into various roles within the international firm’s foreign operations- theseemployees have traditionally been called expatriates.



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JESSE E. OLSEN et. al, (2009); Managing expatriation is the key issue to the success of expatriation with this regardthe author have concentrated on the factor of support from the locals in the host country as expats work with them. Thestudy is based on expatriation success leading to successful repatriation

Gunter K. Stalh, et. al, (2001); The authors have concentrated on the careers irrespective of employee nationalities.Usually of the expatriates accept the foreign assignments as an opportunity for self-development both in terms of careerand professional. The authors have developed a model for successful repatriation after expatriation.

OBJECTIVES OF THE STUDY1. To identify the factors causing difficulty in cross-cultural adaptation2. To study the current position of Indian expats in adapting the mentioned factors3. To suggest the measures to overcome the cross-cultural adaptation difficulties

SCOPE OF THE STUDYThe pace with which globalization is increasing with the same speed more number of MNCs are forming in various countriesand this has led to the need of expatriation. Expatriates are found in all the sectors of business and the study expatriates indifferent IT companies.

The study shall be conducted in the organizations in Bangalore. The study focuses on expatriates in Bangalore. It attempts to study the cultural adaptability factors in the host organization.

RESEARCH DESIGNThe research design adopted for the study is descriptive & empirical in nature, leading to quantitative research.

MethodologySince the study is descriptive and analytical in nature, primary data is collected through the structured questionnaire andsecondary data through the various secondary data sources. For Collection of the primary data the sampling techniques usedfor the study is snowball sampling. Collected data is analyzed by calculating mean and analyzed data is interpretedtechnically suggesting suggestive measures.

Survey Method: The methods adopted for the collection of data for survey on the topic under study was with thehelp of structured questionnaire.

Sample Design: The industry considered for the collection of data for the study was IT sector in Bangalore. Sampling Technique: The sampling technique adopted for the study is snow ball sampling technique. Sample Unit: The sample unit of the study is the pool of expatriates from the Information Technology Sector. Sampling size: The sample size for the study is 30. Data Collection: Primary Data: The primary data for the study is collected through the structured questionnaire from the

expatriates working in Information Technology sectors. Secondary Data: The secondary Data is collected from the national and international journals on Human

Resource Management, International Human Resource Management and International Business. The articlesfrom the various magazines like Human Capital, HBR, online magazines, books of national and internationalauthors, thesis submitted to the different universities and web portals.

Limitations of the Study This study limits itself only to some adaptability factors faced by expatriates. The data collected during the study both primary and secondary sources depend on the time factor, respondents bias

and situation of the respondents and authenticity of the data obtained During the conduct of the study natural biases are unavoidable. The study limits itself to Bangalore City.

FINDINGSThe Indian expatriates as respondents in this study were personally experienced by the adaptation of cross- culture duringtheir stay in foreign nation for their assignments Based on the analysis five major and sub attributes, totaling to 15 attributesas adaptability factors were identified and considered for study. The details of it are presented in the table below.



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Table - 1, Cross-cultural adaptation level of Indian expatriates

Sl.NO Particulars Mean Total Mean1 Business Communication

Audience centred Presence of two way communication Message and medium match Straightforward

3.812.362.193.10

2.86

2 Language Difficulty in understanding business jargons Word confusion Grammatical differences Paralinguistic

3.35

2.303.153.10

2.97

3 colleagues at work Cooperative Encourages Minds own business

3.793.822.50

3.37

4 Folks around after work Helpful Minds own business

2.833.50

3.16

5 Religion and Culture High difference in tradition Racism

3.753.23

3.49

The above Table showing the cross-cultural adaptation level of Indian expatriates in the overseas assignments.

According to the current study, business communication and language, religion and culture are the major hitches in cross-cultural adaptation for Indian expatriates. The adaptation level of business communication was 2.86 which clearly showsmean to be less than 3 and hence the study revels there was a difficulty to Indian expat in understanding the businesscommunication but if we take in to consider the individual factors of business communication then Indian expats agree thatthe business communications done by various countries are audience centred and it was straight forward as the mean foraudience cantered and straight forward is 3.81 and 3.10 respectively, whereas the respondents view on presence of two waycommunication and message and medium match is on the disagreeing side with mean 2.36 and 2.19 respectively.

Concerning to language the total mean is sliding towards moderating agreeing to language barriers with mean of 2.97.Coming to individual factors of language respondents have agreeableness towards difficulty in understanding businessjargons with mean being 3.35, whereas the word confusion seems to be lesser with mean being 2.30 and the respondentsagree the presence of grammatical difference and paralinguistic complexity with mean of 3.15 and 3.10 respectively.

As regards to colleagues at work the total mean with 3.37 states that the people were cooperative and encourages at workwith individual mean being 3.79 and 3.82 respectively. The study also reveals that the people in foreign countries do interactwith expats, with mean of 2.5.

In respondents view people around after work are less helpful with a mean of 2.83 and mind their own work with a mean of3.5.Regarding religion and culture there is are differences in culture with a mean of 3.75 and there exist racism with a mean of3.23.

CONCLUSIONThe current study focused on adaptability factors causing difficulty in successful expatriation by employees in Indiaaccepting the assignments in foreign land. The paper has exposed that the expats have difficulty in understanding businesscommunication hence the organisation can concentrate on giving special training programmes focused on country specificbusiness communication this will not only increase the success rate of an assignment as well will contribute to the workconfidence of an expat. Further the research has revealed the difficulties in language understanding particularly with regardsto grammaticism and paralinguistic, a special training should be organised by the home organisation to equip Indian expats tohave a better understanding of the above. Colleagues at work appear to be helpful but the expats have to be prepared to



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handle things on their own when it comes to personal endowers. And also they have to be well prepared to face the wholenew world of customs and culture different from home country without having space for personal prejudices.

Although an attempt was made to indemnify the reliability of this study, the generalizations of the study are restricted tosample groups. And there are some inexorable limitations to this study- the survey was conducted on-line the data collected islimited to the understanding of the expatriated. This study has used only some factors of adaptability which are notexhaustive and expatriate adjustment and the cross-cultural adaptation are considered to be a time-related process (Black &Mendenhall, 1991; Ward et al., 1998).

In spite of the limitations discussed above, the present study through some appealing light onto the complexity of cross-cultural adaptation. And also provides food for thought for further research in the concerned area.

SCOPE FOR FURTHER RESEARCHPossible research can be conducted to understand more influential factors the adaptability and also the factors causingcultural shock can be considered.

REFERENCES Charles w. L.Hill & Arun K. Jain, “International Business Competing in the Global Marketplace”, fifth edition, Tata

McGraw hill 2006, PG 498. P.Subba Rao, “international business- text & cases”, first edition, May 2002, Himalaya publishing house, pg. 490. Peter J.Dowling, Denice E.Welch, & Randali S. Schuler, “international human resource management- text & cases”,

fifth reprint 2004, Thomson south-western, pg. 204. K.Ashwathapp & Sadhna Dash, “international human resource management: managing people in a multinational

context”, 2008, Tata McGraw-Hill, pg. 141. Dr.Sengupta et al. “International human resource management”, first edition: New Delhi 2006, excel books pg.79. Peter J.Dowling, Denice E.Welch, “international human resource management: managing people in a multinational

context”, fourth edition 2004, Thomson learning, pg. 5. Jesse e. Olsen and luis l. Martins, “the effects of expatriate demographic characteristics on adjustment: a social

identity approach”, human resource management, March–April 2009, vol. 48, no. 2, pp. 311– 328 © 2009 wileyperiodicals, inc. Published online in Wiley inter science (www.interscience.wiley.com). DOI: 10.1002/hrm.20281.

Gunter k. Stalh, Edwin L. Miller, Rosalie l. Tung (2001), “toward the boundary less career: a closer look at theexpatriate career concept and perceived implications of international assignments”, printed at instead, Fontainebleau,France

Anderson, et al “effective repatriation” - a case study of volvo construction equipment in eskilstuna, jönköping2006-10-15



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INNOVATION OF RESILIENT AND SECURE MOBILE APPLICATIONS FOR BUSINESS DEVELOPMENT

Meenatchi Sundaram.C T*, Dr.A.R.Mohammed Shanavas*** Garden City College, Bangalore.**Jamal Mohamed College, Trichy.

AbstractIn the age of technological development and globalization, mobile technology hogs the exposure in the area ofcommunication. This technology has catapulted the development of mobile applications for the ease of the users. Since a fewyears in the past decade, much progress has been prepared in harnessing mobile technology for several platforms whichincorporate iPhone, J2ME and Android..

The objective of this research is to provide a in depth description is to build an android app which help any enlighteninginstitution to properly maintain all the records In the modern scenario the enlightening institution has to maintain separatedocuments for student marks and attendance and also they have display every event in the notice board which might miss outby the few students.

Keywords:-Communication, Platforms, Mobile Technology.

INTRODUCTIONIn the age of technological development and globalization, mobile technology hogs the exposure in the area ofcommunication. This technology has catapulted the growth of mobile applications for the expediency of the users. Since afew years in the the past decade, much advancement has been made in harnessing mobile technology for several platformswhich incorporate iPhone, J2ME and Android.

In the course, many scalable and secure applications are developed across various platforms and the customer is also assistedin porting an installed application to different platforms supplementing the features and functionality. Numerous developersoffer reasonable cost for innovative mobile applications to be delivered to the target spectators. The multi-platformapplication is tested by considering several devices, networks and carriers. Also, unique and quint essential applications arebeing developed for specific purposes. Such applications provide the business with extremely fast and innovative serviceswhich aid the process of business development. An individual is thus able with the opportunity and technology to haveimmediate access to important information whenever the person wishes to irrespective of the physical location. The mobilephone application services, being cost efficient, have become the viable option for business groups. The security of theinformation is highly administered and such protection only encourages the user to take the aid of the applications inbusiness.

The mobile phone device interface can be added to the pre-installed applications on a phone. The mobile applications aresupplemented with better infrastructure which includes location-based services components. The applications are gettingsmarter and more interactive with each passing day and thus the user experience is becoming better. Also, data can besynchronized between cell phones and the enterprise application which is a huge step toward making the process moreconvenient for the user. Notification services and company alerting are other features which ensure right information all thetime. The application developers design an advanced framework and implement them in live environment to tread on the pathof advancement. Applications are developed around several mobile technologies like messaging, MMS, GPRS, GPS and soon.

The innovation of mobile applications thus sets the stage for colossal development in business by nullifying the adversitieswhich have in some way impeded the growth of these enterprises.

ObjectiveThe purpose of this research is to provide a in depth description is to build an android app which help any enlighteninginstitution to properly maintain all the records In the current scenario the enlightening institution has to maintain break updocuments for student marks and attendance and also they have present every event in the notice board which might miss outby the few students. Instead of this our app will help college to store all the records of students and also faculty in onedatabase and also students can get the details in one click.



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Problem DescriptionMost recently the educational institutes have so many students and departments. Maintaining all the credentials for each andevery department and section leads to lot of paper work and the college has to maintain separate documents for student marksand attendance.

Proposed SystemThe college has to maintain separate documents for student marks and attendance. And also they have display every event inthe notice board which might miss out by the few students. Instead of this our app will help college to store all the records ofstudents and also faculty in one database. And also students can get the details in one click.

System Requirement SpecificationThe requirements specify the hardware and software that are required in order to run the application properly. The SoftwareRequirement Specification (SRS) is explained in detail, which includes overview of this dissertation as well as the functionaland non-functional requirement of this dissertation.

Software InterfacesAndroid Operating System is the software interface used

Assumptions and DependenciesThe main dependencies is that the Android SDK environment that is set up uses Eclipse as the IDE, with a plug-in for theSDK and the Android Platform for which it will be developed.

Specific RequirementsThe first step in developing anything is to state the necessities. In this requirement design, the various requirements such asperformance requirements, hardware and software requirements needed to develop our system are stated and described.

Functional RequirementsFunctional requirements are those that refer to the functionality of the system.

a. An individual mobile user should check the availability as following: The application should be installed and there are three login one as Admin, Faculty and Student login. Admin will register both student and faculty for the particular department and semester. Admin can upload time table and events to the students.

b. The Faculty module can do following The faculty can login with the password provided by the admin which can be changed later. He can update about the marks and attendance for the particular student on the specific subject.

c. The Student module can do the following: The student can view the timetable and also events. He can view the marks and attendance. There is forum present for students which will display all the message of one student to others.

Non Functional RequirementsThese are requirements that are not functional in nature, that is, these are the constraints within which the system must work.

a. Capacity, scalability and availability: The system shall achieve 100 per cent availability at all times. The systemshall be scalable to support additional clients and volunteers.

b. Maintainability: The system should be optimized for supportability, or ease of maintenance, as far as possible



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REQUIREMENT ANALYSIS

PROTOTYPEThis stage involves deriving classes and class diagrams, table structures, business rules, and forms.

ClassesClasses are derived from Use Cases. A class can be of an actor or an artifact. For a class all possible attributes and methodsare identified. For e.g. A customer is a class then his Name, Address etc. can be the attributes.

Class diagramsDepict the relationship between classes’ i.e whether they are one to many, one to one, many to one or many to many. Oncethese are established detailed data structures are arrived at and developed. Other than this detailed class diagrams for formsare also drawn at this stage.

Business rules are arrived at but not impliedThe prototype goes in for quality control. Again a bug-tracking tool is used here to record errors and track their statuses. Acheck sheet is used to perform basic quality control procedures. This check sheet is consistently upgraded from theaccumulated errors from the bug-tracking tool.

MODULES1. Management Module2. Teacher Module3. Learner Module4. Routing Drawer

Module DescriptionManagement ModuleIn this module the admin is able to register faculty and student with the general password. And he can upload time table forthe particular subject and semester for six working days. Admin is able to upload the events for the particular branch. Theevents can be registered by giving details like venue, description and timings and start date and end date. The time table andevents can be changed using update button.

Teacher ModuleIn this module faculty can logged in and can change password of his interest. He can able to add marks and attendance of thestudent in the particular subject. If there is any change in marks and attendance he can update it.



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Learner ModuleIn this module Students can view the events where he will come to know about the description, start date, end date andtimings. He can also view his attendance and marks. He can view the time table for the particular day. In this module we havegiven a group chat where one student can post his messages in the forum which can be viewed by any student and replied toit.

Routing DrawerThe navigation drawer is a panel that displays the app’s main navigation options on the left edge of the screen. It is hiddenmost of the time, but is revealed when the user swipes a finger from the left edge of the screen or, while at the top level of theapp, the user touches the app icon in the action bar. All the menu items of all the modules are placed in the navigation drawerusing array list. These each items on the navigation drawer is linked to particular fragment which leads to start a specificactivity.

System Design

Class Diagram

Admin Staff Student

Me Method Method

Members

Member Members

USECASE DIAGRAMA use case diagram in the Unified Modeling Language (UML) is a type of behavioral diagram defined by and created froma Use-case analysis. Its purpose is to present a graphical overview of the functionality provided by a system in terms ofactors, their goals (represented as use cases), and any dependencies between those use cases.

The main purpose of a use case diagram is to show what system functions are performed for which actor. Roles of the actorsin the system can be depicted.

A use case diagram is a type of behavioral diagram created from a Use-case analysis. Its purpose is to present a graphicaloverview of the functionality provided by a system in terms of actors, their goals (represented as use cases), and anydependencies between those use cases

Marks, attendance

Databasehandler()

Addmarks()

Addattendance()

Registerstaff,students,events

Call databasehandler()

Strore data ().

sqlite

Events,marks,attendance,forum

Databasehandler()

Viewevents()

View marks()

View attdendance()



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Use case diagram

Admin

staff

Student

Sequence Diagram

A sequence diagram shows, as parallel vertical lines (lifelines), different processes or objects that live concurrently, and, ashorizontal arrows, the messages exchanged between them, in the order in which they occur. This allows the specification ofsimple runtime scenarios in a graphical manner.UML sequence diagrams model the flow of logic within your system in a

Register Staff

Register Student

Add events

Add timetable

Add attendance

Add Marks

view events

View timetable

view Marks

Forum



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visual manner, enabling you both to document and validate your logic, and are commonly used for both analysis and designpurposes. Sequence diagrams are the most popular.

Sequence Diagram

Click on app

Request App access

App home page Redirects

Admin

Login Authorise Verify data

Response back

Login Success

Register Staff Sends data stores data

Response success

Student Register

Update Send data

Store data

Success response success

Add events Request

Store data

Done Response

Staff Login authorize verify data

Staff Page response store data

Enter student marks response

Input Design and Output DesignINPUT DESIGNThe input design is the link between the information system and the user. It comprises the developing specification andprocedures for data preparation and those steps are necessary to put transaction data in to a usable form for processing can be

Application Linux kernel Data Base server



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achieved by inspecting the computer to read data from a written or printed document or it can occur by having people keyingthe data directly into the system. The design of input focuses on controlling the amount of input required, controlling theerrors, avoiding delay, avoiding extra steps and keeping the process simple. The input is designed in such a way so that itprovides security and ease of use with retaining the privacy. Input Design considered the following :

Which data must be given as input? How the information must be arranged or coded? The dialog to guide the operating personnel in providing input. Methods for preparing input validations and steps to follow when error occur.

OBJECTIVES1. Input Design is the process of converting a user-oriented description of the input into a computer-based system. This

design is important to avoid errors in the data input process and show the correct direction to the management forgetting correct information from the computerized system.

2. It is achieve by creating user-friendly screens for the data entry to handle large volume of data. The goal ofdesigning input is to make data entry easier and to be free from errors. The data entry screen is designed in such away that all the data manipulates can be performed. It also provides record screening facilities.

OUTPUT DESIGNAn excellence output is one, which meets the requirements of the end user and presents the information clearly. In anysystem results of processing are communicated to the users and to other system through outputs. In output design it isdetermined how the information is to be displaced for immediate need and also the hard copy output. It is the most importantand direct source information to the user. Professional and intelligent output design improves the system’s relationship tohelp user decision-making.

1. Designing computer output should proceed in an organized, well thought out manner; the right output must bedeveloped while ensuring that each output element is designed so that people will find the system can use easily andeffectively. When analysis design computer output, they should Identify the specific output that is needed to meetthe requirements.

2. Select methods for presenting information.3. Create document, report, or other formats that contain information produced by the system.

CONCLUSIONThis paper offered necessary regulation and recommendations for mobile users who have installed the android applications.The output form of an information system should accomplish the following objectives.

Convey information about past activities, current status or projections of the Future. Signal important events, opportunities, problems, or warnings. Trigger an action. validate an action.

REFERENCES1. Axtell, C, Hislop, D, & Whittaker, S. Mobile technologies in mobile spaces: findings from the context of train

travel. International Journal of Human Computer Studies, 66(12), 902–915.2. Budgen, D, Burn, AJ, Brereton, OP, Kitchenham, BA, & Pretorius, R. (2010). (2010) Empirical evidence about the

UML: a systematic literature review. Software: Practice and Experience3. B.Pattan, Robust Modulation Methods & Smart Antennas in Wireless Communications. Upper Saddle River:

Prentice Hall, 2000.4. Panayiotis Ioannides and Constantine A. Balannis, “Uniform Circular Arrays for Smart Antennas,” IEEE Antennas

and Propagation Magazine, Vol. 47, No. 4, pp.192-206, August 2005.5. Roy Blake, “wireless Communication Technology” ,Cengage Learning,India Edition Mark Ciaampa,Jorge

Olenewa,”Wireless Communication”,Cwenage learning.6. R. Schmidt, “Multiple emitter location and signal parameter estimation,” IEEE Transactions on Antennas and

Propagation, Vol. 34, No. 3, pp. 276-280, March 1986.7. Sibille,C.Roblin,and G. Poncelet,“Circular switched monopole arrays for beam steering wireless communications,”

Electronics Letters, Vol. 33, No. 7, pp.551-552, March 1997.8. The Mobile Landscape: Part 4B – The Impact on Enterprise Mobility, David Akka, July 21, 2011.



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IMPACT OF MAKE IN INDIA CONCEPT-TO FACE ISSUES & CHALLENGES IN PHARMACEUTICALINDUSTRIES PRODUCTIVITY

Ms. Shenbagavalli .T* Ms Nalini Kantha.C***Research Scholar, East Point College of Higher Education, Bangalore.

**Lecturer, East Point College of Higher Education, BangaloreAbstractIndian pharmaceutical industries are playing a leading role in a competitive global market. For this, world class qualitymanufacturing facilities with high level of productivity with innovative capabilities are required. However, these are on onehand very capital intensive and cannot be established and opened by Pharma Manufacturing Units especially the SMEs attheir own due to financial constraints while on the other hand global level technical expertise is an adverse handicap. Thepharmaceutical industry is growing exponentially; there is a constant thirst for working capital and the brightest ofemployees. After information technology, the pharmaceuticals industry is grappling with the highest level of attrition rate of30 to 35 per cent, according to a recent survey of Indian pharmaceutical companies by Interlink Marketing Consultancy. Thearticle discusses about how make in India concept helps the pharmaceutical industries development like the nature ofmanufacturing is changing. Low-cost automation and robotics are making pure labour cost arbitrage less important. Leadtimes and a flexibility of supply chains are far more important, leading many companies to move manufacturing back closerto the big markets, the United States and Europe. The Government of India has unveiled 'Pharma Vision 2020' aimed atmaking India a global leader in end-to-end drug manufacture. It has reduced approval time for new facilities to boostinvestments. Further, the government has also put in place mechanisms such as the Drug Price Control Order and theNational Pharmaceutical Pricing Authority to address the issue of affordability and availability of medicines.

Key words: - Pharmaceutical Industries, Make in India, R&D, Drug,

1. INTRODUCTIONMake in India is a new national program designed to transform India into a global manufacturing hub. It contains a raft ofproposals designed to urge companies local and foreign to invest in India and make the country a manufacturing powerhouse.Sectors covered the focus of Make in India programme is on creating jobs and skill enhancement in 25 sectors. Theseinclude: automobiles, aviation, chemicals, IT & BPM, pharmaceuticals, construction, defence manufacturing, electricalmachinery, food processing, textiles and garments, ports, leather, media and entertainment, wellness, mining, tourism andhospitality, railways, automobile components, renewable energy, mining, bio-technology, space, thermal power, roads andhighways and electronics systems. The Indian pharmaceutical industry is one of the most attractive investment destinations inthe world. With ever increasing returns, lowering risks and anticipated multifold growth, investors are more interested in thisindustry than ever before. Since 2000, the drugs and pharma sector has attracted one of the highest foreign direct investment(FDI) inflows of approximately $12,689 million (April 2000 to September 2014). Unlike many other countries, theinvolvement of the Indian government in the pharma industry has been deep and often controversial. The government hasmade numerous efforts to stimulate organised growth of the industry. In the pursuit of achieving global leadership in themanufacture of end-to-end drugs, the government unveiled its Pharma Vision 2020, which inter alia, provides for reduction inapproval time for new facilities to boost investments. Further, robust mechanisms such as the Drug (Prices Control) Ordersand the National Pharmaceutical Pricing Authority (NPPA) have been implemented to address the issue of affordability andavailability of medicines. The growth story of the Indian pharma industry into a mammoth industry is an impressive onemarked with numerous important turning points. These turning points have typically stemmed from the issues faced by theindustry and have changed the nature and mechanisms of the industry, and to a large extent have sculpted the trends in theindustry. This article aims to explore a few issues and challenges that have affected the Indian pharma industry and howmake in India concept helps to face it.

2. OBJECTIVES OF THE STUDYFollowing are the main objectives of the study

(a) To identify the various issues and challenges faced by pharmaceutical industries in India.(b) To identify the current position of Indian pharmaceutical sectors.(c) How make in India concept helps the pharmaceutical industries to prove their performance benchmarks.

3. REVIEW OF LITERATURE(A) Huge amount of R&D expenses for development of a drugs

This diagram shows the steps:



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This complicated diagram illustrates the attrition risk, and the approximate time involved at each step. Importantly, what’scalled “basic research” and then “discovery research” component is the “research” part of the R&D. What follows, throughtrials is actually considered the “development” component. There are four key variables that influence overall R&D costestimates:

1. Out-of-Pocket Costs: - These are the direct costs spent on trials.2. Success Rates: - These are the cost incurred on identify the potential drug.3. Development Times: -These are the cost met by the SMPIs to develop other papers from phase I to phase III.4. The Cost of Capital: - Cost incurred to generate for its owners.

The New EstimateFor this new analysis the R&D cost is based on, 97% of the new product (drugs) development cost- through the confidentialsurveys of pharmaceutical companies. The aggregated costs and then averaged costs for each component of research anddevelopment, estimating the overall probability of success of any single drug at 7%. (i.e.)

97% of R&D cost affects the 7% of profitability of each drug.Source: New England Journal of Medicine.From the above analysis the R&D cost affects 7% of the profitability of each drug, is more for the small and medium scalepharmaceutical Industries. Because of this, majority of SMPIs are Manufacturing the drugs depending upon the specificationgiven by the large scale pharmaceutical industries

(B) Exits from the sector by key playersThe companies are exiting the business in entirety or selling certain brands, those companies are under complete and partialacquisitions. Because of the acquisition, the companies which are being acquired completely are exiting the business to investits discharged money in non-related sectors like energy, financial services. Those which are selling only certain brands



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leading to partials acquisitions are the ones which aspire to stay and grow in the pharmaceutical sector itself. The pharmaindustry is plagued by many top-notch industry bigwigs quitting the sector.

Ranbaxy was sold to a Japanese company Daichii Sankyo for US $4.6 bn in 2008. Abbot bought Piramal healthcare for US $ 3.7 bn making it the market leader and it gained access to 350

brands of Piramal healthcare & trademarks.Since 2001, 100 % FDI was allowed in the Pharmaceutical sector both in Brownfield & Greenfield investments.

(C) Survival strategy of the Indian pharmaceutical companies.There are certain hindrances to the development of Indian pharma Industry, especially in the wake of the sell-offs that havehappened off late. Indian the companies are looking towards developing innovative drugs. Right now the bulk drugscontribute to a minority of their income. The following diagram explains the manufacturing process of small and mediumscale pharmaceutical industries helps to manufacturer only limited generic drugs.

4. ANALYSISLet's have a look at five challenges that the 'Make in India' could face.

1. Creating healthy business environment will be possible only when the administrative machinery is efficient. India has beenvery stringent when it comes to procedural and regulatory clearances. A business-friendly environment will only be created ifIndia can signal easier approval of projects and set up hasstle-free clearance mechanism.

2. India should also be ready to tackle elements that adversely affect competitiveness of manufacturing. To make the countrya manufacturing hub the unfavourable factors must be removed. India should also be ready to give tax concessions tocompanies who come and set up unit in the country.

3. India's small and medium-sized industries can play a big role in making the country take the next big leap inmanufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chartout plans to give special sops and privileges to these sectors.

4. India’s make in India campaign will be constantly compared with China's 'Made in China' campaign. The dragon launchedthe campaign at the same day as India seeking to retain its manufacturing prowess. India should constantly keep up itsstrength so as to outpace China's supremacy in the manufacturing sector.



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5. India must also encourage high-tech imports; research and development (R&D) to upgrade 'Make in India' give edge-to-edge competition to the Chinese counterpart's campaign. To do so, India has to be better prepared and motivated to do worldclass R&D. The government must ensure that it provides platform for such research and development.FDI POLICY- MAKE IN INDIA

100% FDI is allowed under the automatic route for Greenfield projects. For Brownfield project investments, up to 100% FDI is permitted under the government route. The government may incorporate appropriate conditions for FDI in Brownfield cases, at the time of granting

approvals. ‘Non-compete’ clauses are not allowed except in special circumstances, with the approval of the Foreign Investment

Promotion Board.

The FDI is subject to applicable regulations and laws.Make in India concept increase and open up a new dimension. The ‘generic’ model is slowly getting changed asmore and more companies are gradually carrying out R&D in original drugs. Some of the pharma companies likeDr.Reddy’s, Glenmark had already started investing money in the R&D sector as early as 90’s. Today 40% ofDr.Reddy’s production counts for original drugs and 60% for generic drugs make in India concept gives 100%confident those Companies such as these had an added advantage for companies like Piramal which was based on100% generic production in 2020.

STATISTICS The country’s pharmaceuticals industry accounts for about 2.4% of the global pharma industry by value and 10% by

volume. Industry revenues are expected to expand at a CAGR of 12.1% during 2012-20 and reach USD 45 Billion. The healthcare sector in India is expected to grow to USD 250 Billion by 2020 from USD 65 Billion currently. The generics market is expected to grow to USD 26.1 Billion by 2016 from USD 11.3 Billion in 2011.

GROWTH DRIVERS. Between 2011 and 2016, patent drugs worth USD 255 Billion are estimated to go off-patent leading to a huge surge

in generic product and tremendous opportunities for companies. In 2011, India’s OTC drug market stood at USD 3 Billion and a rise to USD 6.6 Billion is forecast by 2016. With increasing penetration of chemists, especially in rural India, OTC drugs will be readily available. Pharma companies have increased spending to tap rural markets and develop better infrastructure. The market share

of hospitals is expected to increase from 13.1% in 2009 to 26% in 2020.



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Following the introduction of product patents, several multinational companies are expected to launch patenteddrugs in India.

The purported rise of lifestyle diseases in India is expected to boost industry sales figures. Over USD 200 Billion is to be spent on medical infrastructure in the next decade. Rising levels of education are set to increase the acceptability pharmaceuticals. India’s patient pool is expected to increase to over 20% in the next 10 years, mainly due to the rise in population.

Through Make in India concept the government gives subsidy to share some portion of the expenditure. Thefollowing chart gives the clear picture about the current scenario



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R&D BENEFITSIndustry/private sponsored research programs

A weighted tax deduction is given under section 35 (2AA) of the Income Tax Act. A weighted deduction of 200% is granted to assesses for any sum paid to a national laboratory, university or

institute of technology, or specified persons with a specific direction provided that the said sum is used for scientificresearch within a program approved by the prescribed authority. Companies engaged in manufacture having an in-house R&D centre:

Weighted tax deduction of 200% under section 35 (2AB) of the Income Tax Act for both capital and revenueexpenditure incurred on scientific research and development. Expenditure on land and buildings are not eligible fordeduction.

A national centre to help develop bulk drugs and facilitate their research is being set up in Hyderabad.

R&D DestinationThe privatisation and globalisation policy of the government of India in the mid-1990s provided incentives to R&D in thepharma sphere. Innovative products were given exemption from price control, a number of financial schemes were madeavailable to firms for undertaking R&D, technology collaborations were brought under the automatic approval route, andpatent rights were granted for a period of 20 years for products as well as processes.

Cost effectiveness: The cost of setting up world class R&D facilities in India cost a fraction of what they do in thewest. The overall R&D costs are about one-eighth and clinical trial expenses around one-tenth of western levels;17

Skill: A large pool of English speaking technical skill power is available at a low cost with highly developed R&Doriented skill sets;

Established R&D centres: Pre-established state of the art R&D centers offer logistic convenience and costeffectiveness;

Growing biotechnology industry: Indian biotechnology industry has grown by leaps and bounds and has someworld class players;

Market access: India is one of the fastest growing markets in the world. R&D in India allows companies to gain afoothold in this new and growing market;

Rising household incomes: The growing middle class in India is an attractive market for drugs. With increasingdisposable incomes, the market for non-essential drugs, is set to grow rapidly;

Governmental incentives: Post the liberalisation era, the Indian government has offered numerous incentives toR&D in India; and

Biodiversity: Some drugs aimed at the Indian market require certain gene specific R&D and clinical trials. India’srich genetic bio diversity offers a perfect destination for such R&D and clinical trials.

Pharma R&D in India is expected to witness exponential growth in 2020 and with the growth of the economy and pharmaindustry in India; innovation assumes new economic importance in the Indian pharma industry.

5. CONCLUSIONS(i) Producing pharmaceuticals is a complex process that requires a reliable, high quality supply of raw materials, technicalexpertise and a stable supply of electricity, gas and other utilities, plus sufficient human resource capacity with Ph.D-levelscientists and expertise in pharmaceutical process and regulation. Pharmaceutical plants are capital intensive and take manyyears to develop and tend to be located in countries with good infrastructure, reliable utilities and access to technicalexpertise.

(ii) “To make India the Largest Global Provider of Quality Medicines at Reasonable Prices.” The Vision is to be achieved asper the following Mission:

• Develop Human Resources for Pharmaceutical Industry and Drug Research and Development• Promote Public‐Private Partnership for development of pharmaceuticals Industry• Promote Pharma Brand India through International Cooperation• Promote environmentally sustainable development of Pharmaceutical Industry

• Enable availability, accessibility and affordability of drugs

(iii) Future of Indian pharmaThe Indian pharma industry has come a long way and made significant progress in infrastructure development and technicaland R&D capabilities. With the integration of the Indian pharma market with the global market, new issues are being facedand tackled by the industry. Some old challenges such as IPR and pricing continue to be contentious issues in the market. The



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trends of increased foreign interest in the markets and increased investments in R&D are expected to stay. With numerousstrengths and a growing consumer class, the pharma industry in India may face certain legacy and new issues, but it isexpected to grow multifold and continue to be an attractive investment and reach the destination in 2020

REFERENCES1. FDI statistics, Department of Industrial Policy and Promotions, Ministry of Commerce and Industry, Government

of India. Available at (http://dipp.nic.in/English/Publications/FDI_Statistics/2014/india_FDI_September2014.pdf)2. Current Issues in Indian Pharmaceutical Industry - iPleaders http://blog.ipleaders.in/current-issues-in-indian-

pharmaceutical-industry/#ixzz3iAqDl0bA3. Source:- http://www.sciencebasedmedicine.org/?4. #Data pertains to Q2 2014-15 STATUS OF MANUFACTURING SECTOR The situation of the manufacturing

sector in India is a cause of concern5. http://www.sciencebased medicine .org/?6. http://www.indiainfoline.com/article/news-economy/state-of-indian-economy-banking-factoring-services-rbi-

113111801586_1.html#sthash.oVWiUPY1.dpuf7. Financial Management-I.M.Pandey, Vikas Publishing.

.



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MAKE IN INDIA, NEED OF THE HOUR?

Dr.Y.M.Satish Prof. Manjula Satish Dr P V Reveendra*Associate Professor, Department of Management Studies, M.S.R.I.T, Bangalore.

**Research scholar, M.S.R.I.T, Bangalore.***Professor, Department of Management Studies, M.S.R.I.T, Bangalore.

AbstractThe Narendra Modi government’s ambitious plan of the MAKE IN INDIA, aimed at attracting industrialists in India andabroad to boost the suffering manufacturing sector and trade deficit etc, can be a huge turn around in Indian history and oneof the greatest political decisions. Launched on 25th September 2014 with the initiative “to design and facilitate investment,foster innovation, enhance skill development, protect intellectual property and build best-in-class manufacturinginfrastructure”. This paper aims at analysing the current scenario of Indian economy, challenges involved and programmesto be designed to make this initiative successful and views of Industry leaders.

Key words: Make in India, Manufacturing sector, Skill development, obstacles, Policies.

INTRODUCTION“There's never been a better time to Make in India”- an initiative by the current government launched on 25th September2014,“to design and facilitate India an investment destination, foster innovation, enhance skill development, widen financialinclusion, initiate labour reforms, protect intellectual property and build best-in-class manufacturing infrastructure”. Has thedecision come under the right circumstances?

CURRENT SCENARIOThe employment structure of Indian economy has not got equal contribution from all the sectors. Contribution fromagricultural sector is around 14% of GDP and continues to employ more than 50% of workforce, but with low labourproductivity. Though the service sectors contribution is nearly 60% of GDP, the employment is only around 25%.Theanalysis emphases that though the service sector contribution has enhanced growth rate, but without satisfying the largerobjective of creating an equitable development in India.

As of today, the registered manufacturing sector with high productivity has greater potential of generating high growth. Theirproductivity is registered at 7.2 times more than unregistered manufacturing sector. With major players in the manufacturingsector during 2012-14 were textile, apparel and leather products with growth rate at an average of 17.7%.

There has been a sustained contribution of output and employment by the MSME.

OBSTACLES IN THE MANUFACTURING SECTORThe obstacles faced by the manufacturing sector are land acquisitions, rehabilitation, Red Tapism, lack of clarity for theentrepreneurs, complex and multiple process of clearances to be obtained to set-up a factory, lack of marketing strategies andexport orientation, lack of infrastructure, power and water supplies, Environmental clearance.

In the last few quarters, highest number of stalled projects is from manufacturing sectors majority being in steel, cement,garment and processed food.....which provides employment for the semi-skilled and unskilled labour force.

POLICIES TO BOOST THE SECTORThe manufacturing sector requires intervention by the government to facilitate the interaction between the two majorparticipants, namely...the entrepreneurs and the workers for the smooth functioning. Also the policies rolled out by thegovernment should act like a catalyst for the manufacturing sector as a whole. National Manufacturing Policy(NMP) whichwas introduced in 2011 with a focus to boost manufacturing and a vision to created 100 million additional jobs by 2022 inmanufacturing sector, would ensure that globally competitive manufacturing emerges.

WHY "MAKE IN INDIA"?India is a unique country with unique characteristic feature of Democracy, Demand and Demography. ‘Make in India' is atimely policy initiative to convert India into a global manufacturing hub. In order to facilitate new channels of investmentsand also to promote manufacturing, this "Make in India" programme addresses the problem areas of the manufacturing sectorthrough different channels of interventions. Some of the major interventions include the E-Biz portal enabling 24X7



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application of industrial; license making the process seamless. The process of getting environment clearance has been madeonline. The policy has given approval to National Investment and Manufacturing Zones, wherein , the provision for singlewindow clearance will be provided.

Indian manufacturers can tap on the Go-Green phenomenon, to promote indigenous textile and jute products. As India has atypical demography and demand patterns , its Indigenous culture and tradition could help create employment and manufac ---turing. Timely intervention by the government with proper channel of protection, encouragement and promotion of groundlevel knowledge and also facilitating them with good marketing strategies to reach out the domestic base of consumers as ellas to compete globally. Woollen products of Kashmir, Channapatna toys from Karnataka, Phulkari of Punjab, Bandhej ofRajasthan, Pochampalli of Andhra Pradesh, Jamdani and Tant of Bengal, Benarasi of UP etc, can be made popular worldwidewith proper marketing strategies of frequent exhibitions, fairs and art shows globally. Tie up with many online marketingstart-ups to create an online purchasing thereby creating more employment opportunities. This would ensure that the benefitsof the believed demographic dividends are reaped optimally.

Promoting manufacture of renewable energy equipment to generate wind and solar energy is another area of scope forCreating employment and encouraging manufacturing. It is vital to strengthen the connectivity links within the country andoutside the country. Spreading the road, rail and waterway connectivity network and making good use of the vast coastline inIndia would lay strong foundations for the manufacturing sector. Work related to the dedicated freight and industrial; corridorneeds to be hastened as these could provide multi-level boost to manufacturing both enhancing its demand and supply sides.These will create a virtuous cycle of self-sustained demand for manufacturing.

In order to create a market base for Indian manufacturers, the idea of industrial corridors and industrial clusters for potentialgeneration of forward and backward linkages and promotion of advanced manufacturing techniques at multiple levels isrequired.

Inclusion of Youth focused programmes and institutions for skill development. The Skill India initiative focuses on skillingthe Indian youth on segments which are more labour intensive like leather, textile, and food-processing. Jute, sericulture,handicrafts etc. Facilitating the system of self -certification for all the non-risk and non-hazardous business will encouragesmall entrepreneurs to set up their businesses 'Make in India' has taken special care to facilitate business. Provisions ofcreating dedicated teams to guide and assist the first time investors and opening single window clearance systems, will boostinvestments in manufacturing. Furthermore, greater emphasis is being placed on a simple, certain and non-adversarial taxregime.

INDUSTRY'S REACTION TO MAKE IN INDIAThe industry has reacted positively to 'Make in India' campaign. They are of the view that it would increase competitivenessin India. Arun Kakatkar, Vice President of Human Resources India and Asia Pacific, TE Connectivity, said, “The recentthrust on manufacturing is much-needed and if this translates into actions it will be help the country and the industry. Onlyabout an eighth of India’s workforce is in the organized manufacturing sector. With almost a million people joining theworkforce every month, and a large young workforce, a vibrant manufacturing sector is needed to gainfully employ theyouth. ‘Make in India’ Campaign is a positive step in this direction.”

‘Committed to Make in India Dream’ say Cisco Chairman and new CEO Chuck Robbins and outgoing CEO John Chamberspointed out that “red-tape and bureaucracy were the biggest constraints, although in India the government’s approach wasunique as it plans to target over 100 cities and over 250,000 villages.”

Airbus Defence CEO Bernhard Gerwert meets PM Modi and expresses interest in Make in India.

The recent China visit by our PM also gave a boost to the Make in India when the Chinese companies CEOs supportNarendra Modi's 'Make in India' campaign. With Alibaba Chairman Jack Ma saying “We are excited about India. We areexcited about Make in India and Digital India.”, SONY Chairman Liang Wengen “We are full of hope about India, whichoffers a dynamic work force and huge market.”, Harbin Electric Chairman Zou Lei: “Harbin Electric would like to bringmore light to India, take advantage of Make in India.” And Xiaomi President Lin Bin saying “We have some big plans forIndia. We fully support Make in India.”

McKinsey analysis finds that rising demand in India, together with the multinationals’ desire to diversify their production toinclude low-cost plants in countries other than China could together help India’s manufacturing sector to grow six fold by2025, to $1 trillion, while creating up to 90 million domestic jobs.



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“With almost a million people joining the workforce every month, a vibrant manufacturing sector is needed to gainfullyemploy the youth.”Anu Babu Kurian, Managing Editor of People Matters.

“Investments are not coming into the manufacturing space because manufacturing in India is not competitive. Make in Indiais a step towards fixing that” opined by R.C.Bhargava, Chairman, Maruti-Suzuki.

REFERENCES1. " A leap forward- New initiatives of the Government", India 2015- A Reference Manual, Publication Division,

Ministry of Information and Broadcasting, Government of India, pp 1037-1038.2. Kasturi Chakrabarty and M Mishra:"The Need for Make in India", Yojana, April 2015, pp 27-30.3. Economic Survey 2014-15, Government of India.4. Union Budget 2015, Government of India.5. " Roll out of Make in India", Economic Times, November 16, 2014, pp 10-13.



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MAKE IN INDIA – THE EMPLOYMENT PERSPECTIVE

Syed Kazim* Vinod Joseph**Assistant Professor, Department of Management, Kristu Jayanti College (Autonomous), Bangalore.

AbstractA new “Make in India” campaign to “transform India into a global manufacturing hub” aims to use manufacturing as avehicle for job growth. Is this strategy realistic? This paper helps answer the question by describing the job growth potentialof the Indian economy. Formal-sector manufacturing demonstrates the most potential for job growth under a moresupportive policy regime. The paper models future employment paths for India for the next 20 years. Assuming sufficientreforms to generate East Asia-style manufacturing growth, the impact on employment and output is substantial, even if thecampaign target of 100 million new manufacturing jobs remains difficult to achieve. The paper then describes a set ofreforms sufficient to unleash such a manufacturing growth boom.

Key Words: Make in India, Employability, Job.

INTRODUCTIONIndia has a jobs problem. The country’s economic growth, even at the impressive rates of the last decade, has not producedmeaningful jobs for its expanding working-age population. Dead-end rural construction jobs have offered the only area ofexpansion. Millions too many families depend on low productivity agriculture for a living as a result.

Modi’s headline-grabbing response has been a “Make in India” campaign to “transform India into a global manufacturinghub” and thereby use manufacturing as a vehicle for job growth. The plan includes a variety of measures from easing theregulatory burden to establishing special economic zones to awaken India’s latent manufacturing power.

Yet many economists consider labour-intensive manufacturing to be a futile goal given India’s internal hurdles and externalcompetition. They suggest that India stick with its service sector orientation and focus on improving job creation potentialthere.

Developing a strategy for job growth requires careful identification of sectors with true potential. Examining the economy atthe level of manufacturing and services skims over important detail, including many types of firms and industries that bearlittle potential. Choosing the path forward is further complicated by the fact that past performance provides a poor indicatorof true potential. A sector hobbled by an adverse environment could look completely different with appropriate policyinterventions.

The incremental approach to reform taken thus far by the Modi government has not yet removed enough barriers tomanufacturing growth to initiate such a best case scenario. In subsequent sections the paper reviews policy measuresnecessary—labour reforms, general business climate, provision of public goods, and institutional reforms—to achievemeaningful change. More ambitious reforms will be needed to overcome the significant barriers to competitive labour-intensive manufacturing in India.

OBJECTIVES OF THE STUDY1. To understand the various aspects of ‘Make in India’ campaign2. To understand the impact of ‘Make in India’ on employment3. To identify the major factors impacting the growth potential

METHODOLOGYLooking into requirements of the objectives of the study the research design employed for the study is of descriptive type.Keeping in view of the set objectives, this research design was adopted to have greater accuracy and in depth analysis of theresearch study. Available secondary data was extensively used for the study. Analytical research is used to conduct the study.Different news articles, books and web were used which were enumerated and recorded.

KEY POLICY OF THE CAMPAIGNDuring the last 6-7 months, the new government has undertaken many reforms in the recent times that have created scope forrejuvenation of India’s growth story. The focus of the government has been on refuelling growth, taming price pressures,facilitating industrial and businesses environment and simplifying the policies and procedures.

Launch of ‘Make in India’ to make India a manufacturing hub



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FDI limits in insurance and defence enhanced to 49% and 100% FDI in railway infrastructure Development of 100 smart cities to facilitate infrastructure development Launch of a user-friendly Indian Trade Portal aimed to facilitate Indian exporters Launch of Jan Dhan Yojana to remove financial untouchability. The scheme targets to open 100 million bank

accounts by January 26, 2015. Amendments to three archaic labour laws - Apprenticeship Act 1961, Factories Act 1948 and Labour laws act

(Exemption from furnishing returns and maintaining of registers by certain establishments 1988) approved Relaunch of KisanVikasPatra Scheme to increase domestic savings Launch of labour inspection schemes, ‘ShramSuvidha’ portal, Universal Account Number (UAN) facility for

Employees Provident Fund Organisation (EPFO) subscribers Easing of green rules for mining, roads, power and irrigation projects Proposal to replace the Planning Commission with a new body Digital India to connect all gram-panchayats by broadband internet Creation of a ‘Common National Market’ for the entire country to ensure free movement of goods across the state

borders.

SIGNIFICANT ANNOUNCEMENTS DURING THE LAUNCH OF MAKE IN INDIA To increase manufacturing sector growth Facilitate investment To make India a manufacturing hub Enhancement of FDI limits Enhancement of FDI limits in insurance and defence from 26% to 49% 100% FDI in railway infrastructure Amendments to labour laws Apprenticeship Act 1961 Factories Act 1948 Labour laws Act

OBJECTIVES OF THE CAMPAIGN To make investing in manufacturing more attractive to domestic and foreign investors To give the Indian economy global recognition To create competitive industrial environment To development infrastructure To invite latest technologies To generate employment and skill formation

THE NEED FOR MORE JOBSOne of the highest priorities of the Indian government is economic inclusion —bringing more citizens into the modern,productive economy. This is critical for meeting poverty alleviation targets and improving many related health and educationindicators. The most effective route to improving economic outcomes is through formal sector jobs, which pay regular—andgenerally higher—wages. They provide economic stability for families, allowing greater predictability and planning in otheraspects of their lives. In India only about 14 percent of the workforce has such a formal sector job.

Formal sector jobs were the main vehicle by which China lifted 500 million people out of poverty over the past 25 years.While poverty measurement in India is a controversial topic, India has likely made half of China’s poverty reductionprogress. It has at least as far to go to reach Chinese poverty rates of 6 percent.

STRUCTURAL PROBLEMSThe story behind India’s lack of progress on higher-productivity job creation can be summed up in one graph. Agriculturepossesses most of the labour force, but services produce most of the output. Industry ranks behind services in both categories,playing a relatively minor role in the economy. Clearly a re-alignment of the labour force toward more productive activitieswould yield large benefits.

ASPECTS TO UNDERSTAND THE ‘MAKE IN INDIA’ CAMPAIGNi. Global ComparisonsFor India’s level of development, this economic structure does not fit the usual pattern seen elsewhere. One of the manycontributions of Nobel Prize-winning economist Simon Kuznets was to document the typical pattern of economic



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development through the evolution of the agriculture, industry, and services sectors. Today’s rich economies took adevelopment path that transitioned from the dominance of agriculture to large-scale manufacturing for both employment andGDP. Only at higher levels of per-capita income did their service sectors come to dominate the economy, becoming post-industrial economies.

The classic pattern of structural change continued in the last half of the 20th century among successful developing countries.Most East Asian and Southeast Asian countries that have achieved sustained high growth rates experienced industrializationprior to the rise of the service sector. In the new century, the pattern is beginning to evolve as some of the more advanceddeveloping countries in Asia begin their shift toward service sector growth. Developing countries as a group are lookingmore post-industrial.

ii. India’s Economic Structure in DetailWalt Rostow, eminent economist and former national security advisor, stated, “Without appropriate disaggregation the studyof growth is … [like] playing piano while wearing mittens.” There are a few high-performance pockets of the economy, andlarge laggards.

To some degree, the point of this policy paper is to identify which bubbles India should target with supportive policies, andhow. The aim is to create large bubbles in the northwest corner of the graph.

iii. AgricultureIndia’s labour force is languishing in low-productivity agriculture. Although agriculture provides the majority of India’s jobs,the sector contributes little to GDP. It is the default employment option for millions of rural residents with poor jobopportunities, with families dividing farms into ever-smaller plots with each generation. There is scope for improvingproductivity in agriculture through improved infrastructure, investment in irrigation and cold storage technology, removingrestrictions on marketing agricultural products, and easing land acquisition. Nonetheless, no productivity improvement willlikely increase demand for agricultural labour. Rather, the opposite is more likely.

The current lack of productivity means that the Indian economy is underutilizing its labour abundance. Shifting workers outof agriculture into urban manufacturing and services holds tremendous potential. India’s Ministry of Finance calculates that amanufacturing worker is four times as productive as his or her counterpart in agriculture; a services worker is almost seventimes more productive. A transfer from agriculture to a more productive sector would also benefit workers.

iv. ServicesSince colonial days India’s service sector has defied the classic development pattern, as services have exceeded industry as ashare of GDP since at least 1901. It has historically been a source of formal jobs, meaning jobs with a work contract,performance-linked incentives, benefits, better physical working conditions, and training, and it still is today.

The service sector also defied conventional wisdom by fuelling India’s growth from 1994 to 2008. It avoided many of theconstraints faced by manufacturing because it does not rely as heavily on infrastructure and land. Further, regulations onlabour and competition largely do not apply to services, and the tax burden is lighter. So once technology allowed the exportof software and business services efficiently, India’s service sector developed rapidly. Service sector output growth has nottranslated into significant employment growth in the last 10 years. Despite service sector economic growth of 9.7 percent peryear from 2005 to 2012, employment grew a meager 2.5 percent.

The overall story of the service sector consists of slow job growth, but improvement in availability of jobs for high-skilleducated workers. Indeed, service sector employment has been good to certain segments. Service sector growth has beenassociated with substantial improvements in employment conditions in the economy, in particular a substantial increase in thenumber of quality jobs with benefits. A much clearer understanding of the service sector can be gained by dividing it between“modern” and “traditional” services. Modern services are technology-enabled, transportable, and tradable. They includefinancial intermediation, computer services, business services, communication, and legal and technical services. Because oftechnology and trade, modern services perform much more like manufacturing, characterized by fast productivity growth andpotential to leverage export markets for growth.

JOB GROWTH POTENTIALFrom a macroeconomic and demographic perspective, policymakers should aim for two job market outcomes. The first is toaccommodate the continued shift of workers out of agriculture. In this regard, almost any job they take will increase their



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productivity and income. Thus far the economy has supported sufficient low-end jobs to sustain employment. The lack ofprospects for productivity growth in these uncompetitive, largely untraded sectors means this objective alone is insufficientfor the long-term health of the economy.

The second objective is to shift the job structure to more competitive industries. Unlike construction, for instance,manufacturing faces global competition. The necessity to improve efficiency drives productivity growth and hence wages.When these industries obtain the size to impact broader labour markets, they pull up wages and incomes across the economy.For this reason growth economists label them “elevator industries.” They are an essential component of the developmentprocess.

MAJOR FACTORS IMPACTING THE GROWTH POTENTIALi. Domestic Market CapacityFirst and most importantly, India’s domestic market is the primary consumer of services, and it remains largely undeveloped.Almost 80 percent of service sector growth from 2000 to 2010 came from domestic final demand. As income levels rise andIndia’s middle class develops, many new large markets for more sophisticated services will open wide. India’s extremely fastgrowth of mobile phone services provides an excellent example. India’s demand for services has grown faster than one-for-one with rising income. Globally the share of income spent on services continues to rise, suggesting the trend in India willonly persist. Further, the capacity for expansion of technology into the Indian service sector is immense, from providinghigh-tech logistics support in the trade and transport sector to computerizing government operations. This will give themodern service sector a particularly fertile market for expansion as the traditional economy matures. However, the net impacton employment from this sort of expansion is questionable, since technology may displace workers.

ii. Export Market CapacityThe export markets that earned software programmers and call centres their reputations will determine the ability to leverageglobal markets for service sector growth. The US and Europe (the market for about 90 percent of their exports, according totrade group Nasscom) are saturated, growing slowly and courting competitors from countries like the Philippines, Nigeria,and Mexico. Efforts thus far to diversify into new markets have not shown promise. Despite weakness in export markets,modern services are the only sectors that have maintained high growth rates during the economic malaise of the last twoyears. Extending the trend of export-led growth may prove challenging in the future without significant change, but the sectorhas beaten the odds thus far.

iii. Reform ImpactModern services are the miracle sector that grew despite the adverse business environment, so presumably their potential tobenefit from further liberalization is lower than other sectors. That is not to say that areas of finance could not benefit frompolicy change. Proposals by the Modi government to abolish laws preventing women from working night shifts couldimprove hiring by call centres and other businesses working on foreign time zones. But no policy barrier holds the potentialto unleash a major new wave of growth. Traditional services are another story. Improvements in the provision of core publicsector goods like infrastructure, law enforcement, and education could dramatically improve transportation, trade, hospitality,and health care. Some efficiency may be labour-reducing. Presumably, however, the overall quality improvements that couldbe enabled would give a big boost to overall growth.

iv. DemographicsAn adequate supply of skilled labour poses one potential limitation on growth. Despite the education forecast cited above, theConfederation of Indian Industries’ India Skills Report 2014 cites research showing that the information technology industrywill face a shortage of 3.5 million skilled workers by 2022. Wage costs in modern services have generally risen faster thaninflation, indicating difficulty acquiring adequate staffing. However, modern services have proven many previous forecastsof labour shortages wrong. Large employers have managed to develop the employees they need through in-house trainingprograms and collaboration with private educators. Further, the analysis above suggests plenty of new educated workers willgraduate in the next 20 years. Another way to approach the question is through growth rates.

The additional workers with post-secondary education coming on-board over the next 20 years represent a 3 percent annualgrowth rate. Over the past decade, modern services output grew at about three times faster than its workforce. If therelationship between output and employment holds, the supply of educated people can support a 9 percent growth rate inmodern services output. Overall, future services output growth will likely be driven by domestic growth. It may continue torise in share of GDP, as spending on services rises faster than one-for-one with income. That is compatible with a fallingshare of agriculture in GDP. However, export markets are unlikely to provide as much leverage as in the past, and little room



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exists for policy change to unleash a new wave of growth. Service sector growth is less likely to significantly exceed overalleconomic growth. In this sense, the Indian service sector will look less like an outlier unless manufacturing growth continuesto underperform.

Manufacturing, the core policy debate on job growth in India centres on the potential of manufacturing to provide large-scalequality jobs. The argument begins back with Simon Kuznets and the fact that every developed country went through a periodwhen manufacturing dominated output and employment. In the last century manufacturing-led growth in Japan, South Korea,and Taiwan was characterized by high investment ratios, small public sectors, export orientation, labour market competition,and government intervention in economic matters. No other path to a fully developed economy has been blazed, and thosecurrently making the best progress, like China, are following the same route. Despite the fact that only one well-worn pathexists, India sits so far off the path that it can be difficult to imagine how it can reach it. Economies with a dominant servicesector have not seen manufacturing return to dominance. Further obscuring the vision of a manufacturing-led path for India isthe common mistake of examining India’s whole manufacturing sector, rather than limiting the analysis to the formal sector.Since the inception of the Industrial Revolution, competitiveness in manufacturing has meant scale, both in size andsophistication of firms.

India’s informal manufacturing sector holds little promise for the kind of rapid growth needed for structural transformation.Omitting informal firms from the calculation completely changes the picture. The strongest argument in favour of pursuingthe manufacturing path is India’s labour force. Most the economies that relied on manufacturing for development began withrelatively poorly educated, predominantly agricultural workforces. They started by developing labour-intensive industrieslike textiles, toy making, and low-end electronics assembly, which capitalize on the large, cheap, low-skill labour force.

Indeed, India’s labour force appears well-suited to manufacturing employment at the bottom of the value chain. About 33percent of the labour force has no education, and therefore probably remains unemployable for factory work. This proportionis expected to decline over time. On the other hand, those with primary and secondary education—the prime labour pool formanufacturing—should remain about 60 percent of the labour force for the foreseeable future. To capitalize on a labour forceprimed for large-scale, low-value chain manufacturing, labour-intensive manufacturing will need to become much morecompetitive than it stands today. Manufacturers will need to build large-scale operations tied into global supply chains. Twomajor types of constraints face the formal manufacturing sector. The first is the policy environment. Formal manufacturing issignificantly more exposed to adverse policies than the modern service sector. Further, it is much more reliant on thegovernment delivery of public goods like infrastructure. Presumably, removing these obstacles could facilitate vigorousgrowth.

CONCLUSIONThe Modi government is right to prioritize creation of high-quality jobs as a key to economic inclusion. India needs toachieve two objectives: creating new jobs and shifting more workers into high-productivity sectors. Meeting both can providelarge economic headwinds to the Indian economy for several decades. The current trend will not meet the goal. The statusquo implies the preponderance of the labour force languishing in low-productivity sectors. This includes not only agriculture,but also construction, informal manufacturing, and traditional services. Modern tradable, technology-enabled services havedriven the Indian economy during its growth acceleration of the last 20 years. Conversely—and contrary to popularconception—services have grown mostly on the back of domestic demand. In the modern service sector, this growth camewith high productivity levels and high-quality jobs. Compared to the size of the labour force, however, the number of thosejobs is quite small.

In the future, the service sector is unlikely to transform into a substantial, high-quality job producer. It may grow well if thebroader domestic economy performs well—export markets do not look as promising as in the past—but there is no argumentto suggest that it will increase its employment intensity. It is more reasonable to expect a continuation of the same pattern ofthe past 20 years. Formal-sector manufacturing, on the other hand, has played the dark horse of the Indian economy. It sooften gets bundled together with its low-growth, low-productivity competitors in the informal sector that it has not receivedthe attention it deserves. Formal-sector manufacturing has exhibited remarkable dynamism in output and employment despitea relatively inhospitable business environment.

In response to that business environment, manufacturing has specialized in capital-intensive production techniques, whichlimit its impact on employment. Despite its dynamism, however, it remains a small portion of the economy. There are twomain reasons to remain hopeful that formal-sector manufacturing could provide a new, labour-intensive acceleration to theeconomy. The first is that India’s massive low-skilled labour force is ripe for application to that purpose. It is growing and



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education levels are improving. The second is that formal manufacturing has not yet had a chance to meet its potential. Morethan almost any other sector of the economy, it has been artificially constrained by India’s particular mix of adverse policies.Removing the constraints could transform manufacturing.

While manufacturing may not hold as much promise as a driver of economic development as it used to—whether due tochanging global consumption patterns or slower global growth—India has a trump card over any other nation looking toexpand its manufacturing engine: India has a large domestic market of its own. Close access to the domestic market willmake India a preferred destination to locate factories for both domestic and foreign firms, just as China was 15 years ago.

But since the modern service sector is not a big employer and formal-sector manufacturing is just not very big, the questionremains whether these two main sources of high-quality, high productivity jobs can make much of an aggregate impact. Toanswer this question, the paper provides simulations of the economy under various scenarios. The simulations first indicatethat the Make in India campaign may have set unrealistically high goals for manufacturing growth and job creation. Evengiving the campaign an extra three years to hit its targets would require unrealistically high growth rates. And no scenariopresented here produces 100 million new manufacturing jobs—even in the next 20 years. Sticking to more realistic, yet stillambitious, growth assumptions does not ruin the outcome, fortunately. A plausible outcome from sufficiently removingbarriers to labour-intensive formal sector manufacturing growth is that India’s manufacturing sector performs as well as EastAsian countries did during their 20-year manufacturing booms. Compared to a no-change scenario, the 20-year projectionsindicate very large benefits to East Asia-style labour-intensive manufacturing growth.

Overall GDP is double what it might be without reform. Productivity (which should correlate with wages) also nearlydoubles. Over 100 million additional jobs would be created above the no-change scenario—though not in manufacturingalone. Both the ratio of manufacturing output-to-GDP and the manufacturing share of employment would end up in the samerange as the East Asian booms did, despite assuming continued strength in India’s modern service sector. There is noescaping, however, the small starting point for employment in high productivity sectors. Even after 20 years of exceptionalgrowth, formal-sector manufacturing and modern services would together only employ 15 percent of the workforce after 20years, compared to the forecast that half the workforce will hold a high school degree by that point. Perhaps that comparisonsuggests the growth scenario is not bold enough. Say’s law suggests that when barriers are removed, the economy will find away to utilize a strong labour force.

The second is the centrality (pun intended) to the reform process of layers of government outside the Centre’s control. Modi’slimited power to achieve state-level reform will probably cause years of more delay, with progress occurring at first onlyamong a few likeminded state governments. The scenarios are not forecasts, because the future depends so heavily on a hardslog of major reform. They are mere projections. Overall, the conclusions of this paper about the potentially high impact ofan acceleration of formal-sector manufacturing should serve as motivation for the Indian government at all levels to pushhard toward the goal.

REFERENCES1. National Statistical Sample Organization survey data on labour force participation combined with population

estimates from the Population Division of the Department of Economic and Social Affairs of the UN (2012).2. Simon Kuznets, Economic Growth of Nations: Total Output and Production Structure (Belknap Press of Harvard

University Press, 1971), but also Hollis B. Chenery, “Patterns of Industrial Growth,” The American EconomicReview 50, no. 4 (1960): pp. 624–54; Hollis Burnley Chenery and Moises Syrquin, Patterns of Development, 1950-1970 (Oxford University Press for the World Bank, 1975).

3. KalpanaKochhar et al., “India’s Patterns of Development: What Happened, What Follows,”Journal of MonetaryEconomics 53, no. 5 (2006): 981–1019. The article illustrates India’s outlierstatus in 2000 along several parameters.

4. Rajesh Shukla, How India Earns, Spends and Saves (New Delhi: Sage Publications, 2010).5. Rana Hasan, DevashishMitra, and Asha Sundaram, “What Explains the High CapitalIntensity of Indian

Manufacturing?,” Indian Growth and Development Review 6, no. 2(November 4, 2013): 212–41.6. Ministry of Labour & Employment, Annual Employment Review, 2011 (New Delhi:Government of India, 2013).



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CROSS GENDER MENTORING FOR ACHIEVING SUSTAINABLE COMPETITIVE ADVANTAGE IN THEREGIME OF MAKE IN INDIA

Dr.S.Muralidhar* Sandhya.S***Associate Professor & Head, Department of Commerce & Management, Government First Grade College,

Vemagal, Kolar.**Head, Department of Commerce & Management, REVA Institute of Science & Management, Bangalore.

AbstractAchieving Sustainable Competitive advantage in a highly competitive environment where our country is integrated with theGlobal Market is on the priority of any business entity in the present context. Producing the products and services of globalstandard with its uniqueness in its quality, utility and delivery of value satisfaction to the end user. To address the issue ofreaching the global standards in terms of adopting the manufacturing process and inculcating the state of art technology forenhancing the production capacity and new possibilities of manufacturing and distribution of goods and services. Make inIndia can be considered as a unique opportunity for the Indian business men to raise to the level of Global Market. Throughthis concept, the domestic firms can get optimum benefit in terms of sales, profits, market share, and creation of employment,and a host of indirect advantages. To sustain in the long run, a focused objectives with clear cut action plan is required.Hence, CGM can be used as one of the tool to motivate the work force to work on the goals of the organization andcontribute for the better performance. The practical difficulties in the implementation of CGM should be sorted out at theinitial stage to have conceptual clarity and practical workability. A mixed blend of CGM and MII can bring a very positivechange in the lives of the people of this country and the economy.

Key words: Make In India, Cross Gender Mentoring, Sustainability, Globalization, Domestic Firms, Competitiveness.

INTRODUCTIONIn this globalized and competitive economy the importance of mentoring is playing a vital role. This subject focuses on thespecific problems related to mentoring because the outcomes of this area are very limited. Today men and women treatedequally in all the sectors, but still certain differences cuts the growth and development of both the genders. Since there is verymuch need in the development of manufacturing sectors to overcome the problems of competitiveness the cross gendermentor helps to achieve sustainability.

Make in India is a dream of every Indian so that we can have a self-dependent, sustainable, competitive, and stable economywhich helps to improve the standards of nation.

Achieving Sustainable Competitive advantage in a highly competitive environment where our country is integrated with theGlobal Market is on the priority of any business entity in the present context. Producing the products and services of globalstandard with its uniqueness in its quality, utility and delivery of value satisfaction to the end user. To address the issue ofreaching the global standards in terms of adopting the manufacturing process and inculcating the state of art technology forenhancing the production capacity and new possibilities of manufacturing and distribution of goods and services.

In this direction, the organizations of present age are striving hard to come out with advanced methods and techniques wherethe capacities of individuals and teams can be synchronized for achieving the optimum results. Of late the managementgurus have realized that the one-to-one mentoring is considered to be one of the best practices for bringing transformationalchange and in turn the net effect in terms of production, sales, profit, market share, etc.,

The increased participation of women in the workforce has led to new possibilities and problems as well at the work place.To motivate the employees at work place several traditional and modern techniques are evolved and adopted. However, theMentoring is considered to be very useful motivational tool, specifically, where a particular protégé has to be guided,monitored and helped on specific issues. Mentoring across genders is a common phenomenon in an organizational set up.Cross Gender mentoring has serious implications on the performance of the individual as well as the organizations. Thepublished research review on the cross gender mentoring establishes that this concept has a very positive bearing on thesustainable performance of the organizations in the long run.

Cross gender mentoring as a concept and practice is at its developmental stage. Several dimensions on this concept are yet toopen for its utility. Hence, the researcher has made an attempt in this paper to address the issues pertaining to the crossgender mentoring and its implications on achieving sustainable competitive advantage in the regime of make in India.



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REVIEW OF LITERATUREThe Study and analysis of the published research works revealed that there are hardly a few studies conducted on mentoringand its impact on achieving sustainable competitive advantage. Specially, the researcher is surprised to note that there wereno specific studies on the impact on cross gender mentoring on achieving the sustainable competitive advantage. A fewsignificant studies the researcher has come across are briefed below.

Although the mentoring literature has proliferated within the past three decades, very little work has been done on thetheoretical foundations of mentoring (Zagumny, 1993). This paper uses Bandura’s (1977) Social Learning Theory and SocialCognitive Theory as the broad explanatory base to address the mentoring phenomenon and the difficulties that are unique towomen in mentoring relationships. Bandura’s (1977) Social Learning Theory and Social Cognitive Theory serve as thetheoretical foundation for mentoring because it is based on the tenet that humans can learn by observing others. According toBandura (1977), a large proportion of human behavior is learned through observation. By observing others, an individual candevelop an approximate sense of appropriate behaviors and how to perform them. In many respects, senior managers who arementors model desired corporate behaviors so that their young developing protégés can directly observe and learn thosebehaviors in a mentoring environment without making grave or career ending mistakes. Additionally, social cognitive theoryprovides a solid foundation for explicating mentoring’s role as a socializing process aimed at the personal and professionaldevelopment of protégés. Louis (1980) defines socialization as a process wherein an individual or employee learns to valuethe norms, expertise, expected behaviors, and social knowledge essential to assuming an organizational role and functioningas an organizational member. The work of Kram (1985) and Levinson et al. (1978) have illustrated the effective use ofmodeling, a component of social cognitive theory in teaching work-related interpersonal skills to developing managers.These behaviors of modeling and vicarious reinforcement form the basis of Bandura’s (1977) Social Learning and SocialCognitive Theory and are encouraged as important modes of learning in mentoring relationships.

Organizations design employee development programmes with the mutually beneficial purpose of helping them understandthe vision of the organization, share the core corporate values and culture to ensure that through mutually productive waysboth the employee and the organization may be able to contribute to each other’s wellbeing (Gerbman, 2000; Kottke, 1999).

STATEMENT OF THE PROBLEMMake in India is in news. Everybody from a lay man to a successful entrepreneur is discussing about the differentdimensions of make in India. To explore the production and marketing possibilities in international market in the regime ofmake in India, and to make use of this great opportunities and the facilities and various schemes offered by the centralgovernment, the organizations should improve its competitiveness and raise to the standards of the Global Market. Hence tograb the competitive advantage in a changed scenario, it is high time that the domestic organizations should change its styleof working and adopt innovative techniques and methods which can motivate its work force to contribute their best forachieving optimum level of performance and results. With this background, The Cross Gender mentoring is adopted by manycorporates both at manufacturing and services sectors in the country from a recent times. In the changed situation, the CGMcan be used as a float to materialize the opportunities offered in the New Age i.e, During the Make in India regime. Hence anattempt has been made by the researcher to address the issue of achieving the sustainable competitive advantage in the regimeof make in India and the same has been appropriately titled as “Cross Gender Mentoring for Achieving SustainableCompetitive Advantage in the regime of Make in India”.

Objectives of the StudyThe basic objectives of this technical paper are

1. To analyze the issues pertaining to the cross gender mentoring in achieving sustainable competitive advantage.2. To examine the relevance of cross gender mentoring in achieving the sustainable competitive advantage in the light

of make in India concept.3. To summaries the findings, conclude and offer valid suggestions.

SCOPE OF THE STUDYThe scope of this study is confined to the analysis of the impact of cross gender mentoring on achieving sustainablecompetitive advantage. The data is collected using a structured pretested questionnaire. The data is collected from 50respondents, of them 25 are mentors and remaining 25 are protégés. Further the study is confined to manufacturing sector andthe units are located in Bangalore city. Five multinational companies are selected for the purpose of data collection. Thepaper does not address any other issue.



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RESEARCH METHODOLOGYThis present study is Exploratory in nature. The study is based on both primary and secondary data. The primary data iscollected using a pre-tested structured questionnaire. The date is collected using simple random sampling techniques. Theconvenience sampling technique is adopted for selecting the sample manufacturing units. Primary data is collected from 25Mentors and 25 protégés working in 05 different manufacturing units situated in Bangalore city. The secondary data iscollected by referring the journals, magazines, research reports, etc., The Data is analysed using percentages, Averages, 5points Likert Scale for the purpose drawing inferences and conclusions.

DISCUSSIONBased on Data analysis, the following major inferences are drawn.

Opinions of the protégés are presented below: Most of the protégés are comfortable with the cross gender mentoring process. Nearly 80% of the respondents are

of the opinion that they can perform better in the regime of make in India and contribute in a better way for attainingthe sustainable competitive advantage through cross gender mentoring.

Majority of the respondents are of the opinion that the cross gender mentoring is an appropriate platform for them tolearn informally, which are not possible for them to learn through formal methods.

It is also evidenced that cross gender mentoring helps to reduce the employee turnover and the retention rate isimproved.

Through cross gender mentoring the performance of the employees is improved.

Opinions of the Mentors are presented below For management CGM is the effective tool for increasing the productivity and overcome the differences between

employer and employees. The 70% of the respondents are of the opinion that cross gender mentoring also helps in improving the overall

personality of the employees. Nearly 76% of the respondents revealed that the CGM encourages bridging the Knowledge & skill gap between the

different cadres of the employees. A predominant segment of the respondents opined that they are also learning in the process of mentoring and the

sharing of knowledge with their protégés would help them to update themselves in handling various performancerelated issues.

FINDINGS OF THE STUDYThe Major findings of the study are presented below:

It is found that the Concept of CGM is going to be a key component for achieving sustainable competitive advantagein the regime of Make in India.

It is evidenced from the study that the young as well as experienced work force of this country is looking at make inIndia as a lucrative opportunity for them to shape their careers as well the performance of their organizations.

There would be better opportunities for women employees in the regime of make in India. Hence, there is a widerscope for CGM in the days to come.

Women with right level of knowledge and skill, the CGM is going to be a float to reach to the expectations of theemployers and contribute for the sustainable growth and development in a highly competitive corporateenvironment.

With CGM in the regime of make in India, it is being forecasted that the Balance of Payments position of thecountry would be further improved. As the performance at the individual level, organizational level and at thecountry level is on the upward trend, the standard of living of the people of this nation would be improved.

SUGGESTIONSThe important suggestions for making the CGM as an effective tool for attaining a sustainable competitive advantage in thecontext of make in India are presented below:

Though most of the organizations have understood the relevance of their existence in the era of make in India, but,there is a missing link between CGM and Achieving Sustainable Competitive Advantage in the new age. Therefore,it is suggested that the organizations should start working on bringing synchronization effect between these twoconcepts for ensuring maximum usage in terms of production and profitability and employment generation.

CGM is not free from several limitations at the implementation level, but the utility of this Concept should behighlighted among the employee segments. The benefits derived from CGM should be made known to employees.



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The required systems & Procedures should be designed for effective implementation of CGM at grassroots level. CGM should be implemented in all the sectors like IT sectors where there are more issues related to gender. So that

even the women employees can work equally and competently with men. which in turn helps the organization inproviding the equality and in turn achieving the productivity.

An effective implementation of CGM would enable the organization to cut down the cost. AS the CGM results inmutual learning and behavioural change, the entire task force would be pro-active. Hence, the HR of anyorganization would more focus.

Better Industrial relations can be achieved through proper implementation of CGM in the MII regime. Healthy competition among the employees and healthy work environment can be created through execution of

CGM at all levels in an organization.

CONCLUSIONMake in India can be considered as a unique opportunity for the Indian business men to raise to the level of Global Market.Through this concept, the domestic firms can get optimum benefit in terms of sales, profits, market share, and creation ofemployment, and a host of indirect advantages. To sustain in the long run, a focused objectives with clear cut action plan isrequired. Hence, CGM can be used as one of the tool to motivate the work force to work on the goals of the organization andcontribute for the better performance. The practical difficulties in the implementation of CGM should be sorted out at theinitial stage to have conceptual clarity and practical workability. A mixed blend of CGM and MII can bring a very positivechange in the lives of the people of this country and the economy.

REFERENCE1. Adubato, S. (2006). Make the connection: improve your communication at work and at home. New Brunswick, NJ:

Rutgers University Press.2. Brandham, L. (2005). The 7 hidden reasons employees leave: how to recognize the subtle signs and act before its

too late. New York: AMACOM Books.3. Cohen, A. R. and Bradford, D. L. (2005). Influence without authority. 2nd ed. Hoboken, NJ: John Wiley and Sons4. Connor, M. and Pokora, J. (2007). Coaching and mentoring at work: developing effective practice. Maidenhead:

Open University Press.5. Cook, S., Macaulay, S. and Coldicott, H. (2004). Change management excellence: using the four intelligences for

successful organizational change. London: Sterling, VA: Kogan Page.6. Cranwell-Ward, J., Bossons, P. and Gover, S. (2004). Mentoring: a Henley review of best practice. Houndmills;

New York: Palgrave Macmillan.7. A. J., Hilman, and G. D. Keim, Shareholder value, stakeholder management and social issues: What’s the bottom

line? Strategic Management Journal (2001), 22: 125-139.8. P., Berrone, J., Surroca, & J. A. Tribó, Corporate ethical identity as a determinant of firm performance: A test of the

mediating role of stakeholder satisfaction. Journal of Business Ethics (2007), 76 (1): 35-53.9. Lynch- Fannon (2004). Employees as corporate stakeholders: Theory and reality in Transatlantic Context. Journal of

Corporate Law Studies, 5(1): 155-186.10. The Times 100 (2006). Respecting stakeholder values: Michelin Case study from http://www.thetimes100.co.uk

/downloads/ michelin/Michelin_11_3.pdf Retrieved on 25th December, 2013.11. G. Flynn. Group mentoring solves personality conflicts. Personnel Journal (1995), 74 (8): 22 - 29.



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MAKE IN INDIA – IMPACT ON FII

Dr. Roopa T N * Prof. Chaya Devi H B**Administrative Director & Principal, East Point College of Higher Education, Bangalore.

Head of UG Department, East point College of Higher Education, Bangalore.AbstractIndian market has become a focal point of foreign investment due to rapid changes in the Indian economy. The changes arebecause of liberal economic policies and fast pace changes due to globalization. Business concerns tend to target for largevolume of trade in this epoch of globalization requiring huge amount of funds. International investment is a powerful sourcein gathering such finance. FII refers to the investment made by resident of one country in the capital market of other country.Since the volume of trade by Institutions is often through large blocks of shares, it may have a major impact on marketvolatility. The announcement of “Make in India” program by our Prime Minister Narendra Modi has brought India to theglare of publicity. The present paper aims at examining the impact of FII on stock index during one year prior and post ofMake in India program, stability of stock index, Turnover of NSC during select period and trends & pattern of FII flow.

Key terms – FII, CNX Nifty, Make in India, NSC Turnover.

INTRODUCTION OF FIIAccording to SEBI "Foreign Institutional Investor means an institution established or incorporated outside India whichproposes to make investment in India in securities. Provided that a domestic asset management company or domesticportfolio manager who manages funds raised or collected or brought from outside India for investment in India on behalf of asub-account, shall be deemed to be a Foreign Institutional Investor."

Indian financial markets have expanded and deepened rapidly over the last few decades due to economic reforms anddismantling of capital controls in early 1990s. The Indian capital markets have witnessed a dramatic change in terms ofamount of investment, types of securities, profile of investor’s etc. These changes in market environment have made themarket more innovative and competitive enabling the issuers of securities and intermediaries to grow.

Investors are mainly of two categories – individual investor and institutional investor. The institutional investors may be fromdomestic, i.e., Domestic Institutional Investor or from foreign, i.e., Foreign Institutional Investor.

Institutional investors can be Portfolio Investors, Mutual Funds, Financial Institutions, Insurance Companies and Banks.

In India the institutionalization of the capital markets has increased with FII’s becoming the dominant owner of the free floatof most blue chip Indian stocks. Institutions often trade large blocks of shares and institutional order’s can have a majorimpact on market volatility. In smaller markets, institutional trades can potentially destabilize the markets. Moreover,institutions also have to design and time their trading strategies carefully so that their trades have maximum possible returnsand minimum possible impact costs.

Source of FII flowThe sources of these FII flows are varied. The FIIs registered with SEBI come from as many as 28 countries. The mainsource of flow is US-based institutions, followed by UK and other countries.

It is, however, instructive to bear in mind that these national affiliations do not necessarily mean that the actual investor fundscome from these particular countries. Given the significant financial flows among the industrial countries, nationalaffiliations are very rough indicators of the ‘home’ of the FII investments. In particular institutions operating fromLuxembourg, Cayman Islands or Channel Islands, or even those based at Singapore or Hong Kong are likely to be investingfunds largely on behalf of residents in other countries. Nevertheless, the regional breakdown of the FIIs does provide an ideaof the relative importance of different regions of the world in the FII flows.

Factors affecting FII flowsFII flows depend on the performance of the stock exchange of the country. The EPS of the stock exchange of the country isone of the important factors which have a bearing on the FII flows in to the country. The FIIs study the average EPS ofvarious countries’ stock exchange and invest in the profitable ones. The specific return of specific stocks also influences theFII decisions.



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Country risk measures: This includes political and other risks in addition to the usual economic and financial variables, whichmay be expected to have an impact on portfolio flows to India though they are likely to matter more in the case of FDI flows.

Capital market performance of other Emerging Developing Countries also influences the flow of FII. Developing countriesalways compete with each other in attracting FIIs.

Advantages of FII to the host country can be summarized as followsFII provide capital to the company with low cost and helps the domestic companies to access cheap global credit. FIIsupplement the domestic savings and bridges the gap between the savings and investment of a country. It leads to higherasset prices in the Indian market. It has also led to considerable amount of reforms in capital market and financial sector. Themain advantage of FII is it increases the flow of foreign currency without increasing debt obligation.

Eligible Securities for investment by FIISecurities in the primary and secondary markets including shares, debentures and warrants of unlisted, tobe listedcompanies or companies listed on a recognized stock exchange, Units of schemes floated by domestic mutual funds includingUnit Trust of India, whether listed on a recognized stock exchange or not, and units of scheme floated by a CollectiveInvestment Scheme, Government Securities, Derivatives traded on a recognized stock exchange – like futures and options.FIIs can now invest in interest rate futures that were launched at the National Stock Exchange (NSE) on 31st August, 2009,Commercial paper and Security receipts

Investments by FIISThere are generally two ways to invest for FIIs. Equity Investment [100% investments could be in equity related instrumentsor up to 30% could be invested in debt instruments i.e.70 Equity Instruments: 30 Debt Instruments]100% DEBT [100%investment has to be made in debt securities only.] It should be noted that foreign companies and individuals are not beeligible to invest through the 100% debt route.

MAKE IN INDIA PROGRAMIt is an initiative program of the Government of India to encourage companies to manufacture their products in India. It waslaunched by Prime Minister Narendra Modi on 25 September 2014. Prime Minister Narendra Modi had hinted towards theinitiative in his Independence Day speech of 15 August 2014. It was launched on 25 September 2014 in a function atthe Vigyan Bhawan on 29 December 2014, a workshop was organised by the Department of Industrial Policy andPromotion which was attended by Modi, his Cabinet ministers, chief secretaries of states and various industry leaders.The major objective of this initiative is to focus on 25 sectors [like Automobiles, Chemicals, IT, Pharmaceuticals, Power,Bio-Technology etc.] of the economy for job creation and skill enhancement.

The initiative hopes at Increasing GDP and Tax Revenue, High quality standards and minimum impact on the environment,Attract capital and technological investment in India.

With regard to foreign investment the policy made some changes like foreign equity caps in various sectors had been relaxed[before the initiative was launched], The application for licenses was made available online and the validity of licenses wasincreased to 3 years. Various other norms and procedures were also relaxed.

Stock Index - CNX NiftyThe CNX Nifty is a well-diversified 50 stock index accurately reflecting overall market conditions, used in National StockExchange. The reward-to-risk ratio of CNX Nifty is higher than other leading indices, making it a more attractive portfoliohence offering similar returns, but at lesser risk. CNX Nifty is based upon solid economic research and is well respectedinternationally as a pioneering effort in better understanding how to make a stock market index. CNX Nifty Index iscomputed using free float market capitalization method, wherein the level of the index reflects the total free float marketvalue of all the stocks in the index relative to particular base market capitalization value. CNX Nifty can be used for a varietyof purposes such as benchmarking fund portfolios, launching of index funds, ETF’s and structured products.

LITERATURE REVIEWP. Krishna Prasanna studied on Foreign Institutional Investors: Investment Preferences in India (2008), It was observed thatforeign investors invested more in companies with a higher volume of shares owned by the general public. The promoters’holdings and the foreign investments are inversely related. Foreign investors choose the companies where familyshareholding of promoters is not substantial. Among the financial performance variables the share returns and earnings pershare are significant factors influencing their investment decision.



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The empirical study for the period April 2003–March 2011 by MARAM SRIKANTH and BRAJ KISHORE titled Net FIIFlows into India: A Cause and Effect Study revealed that there was bi-directional causality between net FII inflows and theBSE Sensex— which mutually reinforced each other. It was observed that net FII inflows had a positive impact on the Indianstock market thereby enhancing India’s image in international financial markets and foreign exchange reserves. Further,higher IIP and interest rates acted as catalysts for FII flows into India. Clearly, policy-makers are encouraged to continue theexisting policy norms on portfolio investments from FIIs without any reservations.

Impact of Flow of FDI & FII on Indian Stock Market by Dr. Syed Tabassum Sultana, Prof. S Pardhasaradhi - The flow ofFDI & FII accelerated the Indian economy and also gave opportunities to Indian industry for technological up-gradation,gaining access to global managerial skills and practices, optimizing utilization of human and natural resources and globalcompetitive advantage with greater efficiency. In the study it is evident that there is a strong positive correlation between FDI& sensex and FDI & nifty and moderate positive correlation between FII & sensex and FII.

A study conducted by Dr. Ambuj Gupta titled Does the stock market rise or fall due to FIIs in India? - proved that there hasbeen growing presence of FIIs in Indian stock market evidenced by increase in their nut cumulative investments. The increasein FIIs investments brings inflow of capital; however, there are limits in India (maximum 22%) for FII investment in a singlefirm. On the flip side, foreign capital is free and unpredictable and is always on the lookout of profit, the reason being, theportfolio managers of these FIIs are always on their toes for booking profits for their dynamic portfolios across countries.Therefore, increased volatily associated with FIIs investments resulting in severe price fluctuations can’t be ignored.

IMPACT OF MAKE IN INDIAEconomies like India, which offer immense growth potential, are emerging as favourite investment destinations for foreigninstitutional investors (FIIs). With a rising conviction about the performance of Indian debt securities, FIIs are graduallyincreasing their investments as Indian bonds are likely to outperform other emerging markets in the medium-term, accordingto some of the global fund managers. Investors are highly optimistic on India, their sentiments riding high following thegovernment’s announcement of a series of reform measures in recent months.

According to a poll conducted by Bank of America Merrill Lynch (BofA-ML) recently, in which 50 investors participated,India was the most favourite equity market for the global investors for the year 2015 at 43 per cent, followed by China at 26per cent. The global investment bank is of the view that India remains to be in a structural bull market.

Significantly, India saw 800 new technology start-ups—taking the total number of start-ups to 3,100—setting up theirventures so far in 2014-15, as per IT-BPO industry body Nasscom. India is poised to become the second biggest eco-systemoption after the US in the next two years on account of the ongoing high growth rates. Such start-ups have received over US$2.3 billion in funding since 2010, while over 70 private equity (PE) and venture capital (VC) funds remain active in thesegment. Apart from this, there were over 62 angels active in 2014 and there are over 80 incubators and start-up acceleratorsoperating in the country at present.

There have been big changes in preferences of FIIs since last year. Data collected about few important changes are –The financial services sector has emerged as the most favoured since May this year by attracting Rs 11,024 crore till October15 as against an outflow of Rs 5,666 crore in this period previous year.

Telecom services has got Rs 7,375 crore since May 16, nearly 15 times more than the Rs 487 crore received in the sameperiod last year. It is followed by pharma & biotech, which has attracted Rs 5,248 crore. It was a favourite last year also andattracted Rs 4,125 crore, the third among all sectors.

Software and services, the most preferred last year with net investment of Rs 3,535 crore, is at the fourth rank; it has got Rs7,366 crore from FIIs.

Auto & auto component and oil & gas sectors are among the top six this year with FII investments of Rs 3,304 crore and Rs2,409 crore, respectively.

FIIs are upbeat on oil & sector companies due to increase in the government-mandated price of natural gas and deregulationof diesel and petrol prices. Their exposure to oil & gas companies was Rs 1,07,995 crore on October 15 this year as againstRs 81,927 crore a year ago.Reforms and FII inflows helped the BSE Oil & Gas index rise 24% to 10,901 between January 1and November 12.



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OBJECTIVE OF THE STUDY To understand the trend and pattern of FII flow. To understand the relationship between CNX Nifty and FIIs trading activity. To find correlation between FII monthly flow and the CNX NIFTY.

METHODOLOGY OF THE STUDYFor the purpose of study secondary data was collected from various research articles, news reports etc. The statistical datawas downloaded from NSC and Money Control websites. Analysis is done by using statistical tools like Mean, Standarddeviation, Coefficient of variation and Correlation analysis.

Limitations of the StudyFindings could not be taken for making generalizations because:

• Period taken for study is only two years, one year prior and a year post Make in India program• The study is based on CNX Nifty. The index companies have an external image that they are the best performers in

the country and may not be heterogeneous.

DATA ANALYSISFor the study purpose the monthly volatility in cash flows of FII’s are analyzed in relation to the monthly volatility in theNational Stock Exchange [NSE] of Indian benchmark Index (CNX NIFTY). The period selected was a year before and a yearafter announcement of Make in India, i.e., from August 2013 to July 2014 and August 2014 to July 2015.

Table 1 – Showing the Net FII, CNX Nifty and Turnover in NSE during Aug-2013 to July-2014(Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr)

Date Gross Purchase Gross Sales Net FII CNX TurnoverAug-13 70,692.60 78,163.07 -7,470.47 5471.8 11431.52Sep-13 68,120.40 56,944.35 11,176.05 5735.3 5642.77

Oct-13 60,286.13 42,730.57 17,555.56 6299.15 9560.54Nov-13 52,448.11 45,491.74 6,956.37 6176.1 5487.36Dec-13 61,150.68 47,684.69 13,465.99 6304 3032.11Jan-14 65,566.26 66,832.14 -1,265.88 6089.5 5407.1Feb-14 51,761.74 50,341.84 1,419.90 6276.95 7869.42Mar-14 88,941.73 63,565.28 25,376.45 6704.2 7743.3Apr-14 69,601.75 63,318.58 6,283.17 6696.4 7066.78May-14 109,809.08 98,006.27 11,802.81 7229.95 13837.29Jun-14 94,458.30 87,126.39 7,331.91 7611.35 7887.37Jul-14 92,008.38 85,043.80 6,964.58 7721.3 11718.26Total 884,845.16 785,248.72 99,596.44 78316 96683.82Mean 55015.709 49003.894 6011.8149 5523.754 6561.105Standarddeviation 18329.6592 18130.92 8637.3522 699.0474 3108.793Covariance 33.3171371 36.998937 143.67296 12.65529 47.38216

The above analysis indicates that the average flow of FII is Rs. 6011.81 crore with a covariance of 143%, which shows thatforeign funds are flowing into the country. However it is not following any pattern of flow, the flow is very much scattered.The scattering of flows are seen in covariance which is 144%. CNX Nifty is a stable index as the covariance is very low. Theturnover in NSE amounts to Rs. 96683.83, with a variation of 47%.

Table 2 – Showing the Net FII, CNX Nifty and Turnover in NSE during Aug-2014 to July 2015

(Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr)

Date Gross Purchase Gross Sales Net FII CNX TurnoverAug-14 70,685.63 68,004.16 2,681.47 7954.35 10417.14

Sep-14 91,063.57 89,560.48 1,503.09 7964.8 7467.66



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Oct-14 68,678.08 70,360.95 -1,682.87 8322.2 9450.53

Nov-14 92,237.70 81,292.11 10,945.59 8588.25 10053.47

Dec-14 76,004.51 79,941.33 -3,936.82 8282.7 4221.32

Jan-15 97,928.91 89,388.15 8,540.76 8808.9 12385.18

Feb-15 98,624.75 91,878.55 6,746.20 8901.85 10064.41

Mar-15 113,231.70 106,651.03 6,580.67 8491 8108.36

Apr-15 112,729.67 104,865.31 7,864.36 8181.5 14755.35

May-15 115,328.54 120,124.79 -4,796.25 8433.65 20736.2

Jun-15 88,687.39 96,880.31 -8,192.92 8368.5 8425.52

Jul-15 87,724.15 85,426.10 2,298.05 8532.85 9522.19

Total 1,112,924.60 1,084,373.27 28,551.33 100830.55 125607.33

Mean 79139.3209 74857.66628 4281.654615 8220.602564 8339.859615Standarddeviation 15901.36271 15144.79386 6020.213867 292.0188284 4128.863582

Covariance 20.09287233 20.23145338 140.6048457 3.552280092 49.50759092

After the announcement of the Make in India policy, there has been an increase in the trading, which is clearly shown inpurchases and sales yet the net flow has reduced and still flows the pattern of high variability [covariance 141%], whichproves that FII cannot be considered for long term financial obligation. CNX index has become more stable [covariance3.55%]. Turnover of NSC has increased with high rate of variability [covariance 49.5%]

Table 3- Calculations of various statistics

Mean SD Covariance Correlation

FII & CNX ,2014-15 5390.911667 5180.604793 96.09886 0.356380572

FII & CNX ,2013-14 7413.018333 20494.94153 276.4723 0.300856406

FII & Turnover,2014-15 6423.2775 22192.50379 345.5012 0.052277033

FII & Turnover,2015-14 8178.344167 127916.6892 1564.09 -0.101396578

Comparison of Net FII 5339.490417 20449.37308 382.9836 -0.23097716

Comparison of CNX Nifty 7464.439583 20418.60479 273.545 0.274121519

Comparison of Turnover 9262.13125 21364.57433 230.6659 0.607131584

The relationship between FII and Stock index is not significant in both the periods as the Correlation between them is 0.36during 2014-15 and 0.3 during 2013-14. The correlation between FII and Turnover is very week. Net FII during two periodsis negatively correlated at a week level of significance. CNX Nifty of two periods shows positive correlation but again it isinsignificant. Turnover of NSE has satisfactory increase over the period with a significant correlation of 0.61.

CONCLUSIONFrom the study it is evident that the impact of FIIs on stock market is trivial and FII are not following any pattern of flow.The inflow and outflow of funds are stirring at a very high rate although the accumulation of foreign funds is not satisfactory.Agreeable result in capital market is the improvement in turnover, which is a good sign of capital formation in the country,supporting our Make in India program. The results of the statistics is not indicating a strong relation among the variables thereason being the period is too short period with only one year of data since the inception of the program and one more pointas per experts in the capital market is that three years is the minimum period required to show any changes or impact. Hencethe tools are not helping greatly to measure the results or impact of the good program. Make in India program is a programsupporting the development of the country’s economy, even though it is not a policy it has resulted in many new initiativeswhich can be seen in inflow of many new technologies, new tie ups, new startups, new investments.



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MAKE IN INDIA – ISSUES AND CHALLANGES “ROLE OF MICRO, SMALL AND MEDIUM ENTERPRISESIN INDIAN ECONOMIC DEVELOPMENT”

Hemalatha S* Deepshikha Singh**Lecturer, East Point College of Higher Education, Bangalore.

AbstractMicro, Small and Medium Enterprises (MSMEs) play very significant role in almost all countries of the world irrespective oftheir development stage. Developed countries like Japan, China, Malaysia, Taiwan, the United States of America and theUnited Kingdom have developed through the MSMEs many aspects of business such as employment generation, export, tax,income, innovation, competitiveness. The recent wave of Globalization has influenced overall business of the world. TheMSMEs have prospered better under this wave of Globalization. Particularly in India, they have made a significant impacton income distribution, social stability, domestic resources utilization technique, structural and regional development,exports, employment and creation of a broad entrepreneurial base. Hence, the MSMEs’ are rightly regarded as the backboneof modern Indian economy. With the advent of planned economy in 1951, and the subsequent industrial policy of theGovernment of India, both planners and the Government have earmarked for small and medium industries a special role inthe economy.

INTRODUCTIONThe MSMEs form the backbone of the Indian manufacturing sector and have become engines of economic growth in India. Itis estimated that the MSMEs account for almost 90 per cent of the industrial units in India and 40 per cent of value additionin the manufacturing sector. It is increasingly recognized that the MSMEs play a crucial role in employment creation andincome generation in the Asian Region. The MSMEs can be easily established since their requirements in terms of capital;technology, management and even utilities are not as demanding as it is in the case of large enterprises. Their development isclosely associated with more equitable distribution of income and thus important as regards poverty alleviation. At the sametime, the MSMEs serve as a training ground for emerging entrepreneurs in some of the Asian region. The full potential of theMSMEs has yet to be tapped as there are a number of constraints hampering its development. The Micro, Small and MediumEntrepreneurs, by and large, represent a stage in economic transition from traditional to modem technology. The variation inthe transitional nature of this process is reflected in the diversity of Small-Scale Industries. Most Small-Scale Industries usesimple skills and machinery. Besides playing an important role in the country’s economic development, small enterprisesbecause of their unique economic and organizational characteristics play a social and political role in local employmentcreation, balanced resource utilization, income generation and in helping to promote change in a gradual and peacefulmanner. Socio-economic factors affecting Small-Scale Industrial entrepreneurs came to the forefront during the industrialrevolution, with nations of entrepreneurial importance gaining favor by the mid-twentieth century. During the 1960’s, thebehavior of the individual came to be highlighted as a major factor contributing to Small-Scale Industrial entrepreneurship.Thus, the supply of Small-Scale Entrepreneurs came to be recognized as critical to development of Small-Scale Industries. InIndia, state and private enterprises co-exist. The Small and Medium Enterprises sector and business are left completely toprivate enterprises. Of late, deve1opmet of the MSMEs has become extremely important to achieve all round development inthe country. Consequently, many MSME opportunities are emerging out in fields like electric goods and applications,medicine, engineering, agriculture, communication, atomic-energy, telecommunications, food technology, packing and thelike. These opportunities have been increasing rapidly. A robust and vibrant MSMEs can derive benefits from the newopportunities in both public and private modes. In recent years both government and private agencies have initiated strategiesand programmes for developing the MSMEs skills among people. The MSMEs produced a wide range of industrial productssuch as food products, beverage, tobacco and tobacco products, cotton textiles, wool, silk, synthetic products, jute, hemp &jute products, wood and wood products, furniture and fixtures, paper and paper products, printing publishing and alliedindustries, machinery, machines, apparatus, appliances and electrical machinery. MSMEs also have a large number of serviceindustries.

DEFINITIONSDefinition of Micro, Small and Medium Enterprises changed over years with the changing circumstances and pressingproblems of the Indian economy. Various institutions, government agencies, individuals had defined small industrial units indifferent ways. Small Industrial Units (1948): The factory sector units registered under the Factories act of 1948 fromorganized sector. All traditional units and the remaining units of small industries segment not covered under the Factories Actof 1948 constitute the unorganized sector. Such units generally employ fewer than 10 workers, if power is used and fewerthan 20 workers, if power is not used. The Union Budget 2002-03: The Union Finance Minister announced the change for thesmall industries definition i.e., enhancement of small industries investment ceiling for specified hosiery / hand tool items.The investment limit in plant and machinery with regard to industrial undertakings manufacturing specified items in the



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hosiery and hand tool subsectors was enhanced from Rs.1 crore to Rs.5 crores. Micro, Small and Medium Enterprises(MSME) Development Act, 2006: The Micro, Small and Medium Enterprises (MSME) sector has been recognized as anengine of growth all over the world. Many countries have etab1ished a SME Development Agencies as the nodal agencies tocoordinate and oversee all Government interventions in respect of the development of this sector. In India, the term Mediumestablishment has for the first time been defined in terms of a separate Act, governing the promotion and development ofMicro, Small and Medium Enterprises (MSME). This came into force from 2nd October, 2006. The definitions given by theAct are as follows

(a) For Manufacturing Enterprises• A micro enterprise is one where the investment in plant and machinery does not exceed Rs.25 lakh.• A small enterprise is one where the investment in plant and machinery is more than Rs.25 lakh ,but does not exceed

Rs.5 crore.• A medium enterprise is one where the investment in plant and machinery is more than Rs 5 crore but does not

exceed Rs 10 crore.(b) For Servicing Enterprises• A micro enterprise is one where the investment in plant and machinery does not exceed Rs.10 lakh.

• A small enterprise is one where the investment in plant and machinery is more than Rs.10 lakh but does not exceedRs.2 crore.

• A medium enterprise is one where the investment in plant and machinery is more than Rs.2 crore but does notexceed Rs.5 crore.

ROLE OF MSMES IN INDIAN ECONOMIC DEVELOPMENTThe role of MSMEs in the economic and social development of the country is well established. the MSMEs sector is anursery of entrepreneurship, often driven by individual creativity and innovation. this sector contribute 8 per cent of thecountry’s GDP, 45 per cent of the manufactured output and 40 per cent of the exports. MSMEs provide employment to about600 lakh persons through 260 lakh enterprises. the labor- to-capital ratio in MSMEs and the overall growth in the MSMEssector are much higher than in the large industries. the geographic distribution of the MSMEs is also more even. thus,MSMEs are important for the national objective of growth with equity and inclusion. the MSMEs sector in India is highlyheterogeneous in terms of the size of the enterprises, variety of products and services produced and the levels of technologyemployed. while one end of the MSMEs spectrum contains highly innovative and high growth enterprises, more than 94 percent of the MSMEs are unregistered, with a large number established in the informal or unorganized sector. with theliberalization and globalization of India’s economy, the MSMEs sector is facing several challenges in the areas oftechnology, access to credit and equity capital, and intense competition in marketing. In recognition of the potential of theMSMEs sector for employment generation and the challenges faced by it, the Government has emphasized on its growth anddevelopment

GOVERNMENT POLICY TOWARDS MSMEsThe primary responsibility of promotion and development of micro, small and medium enterprises lies with the stateGovernments. However, the Government of India, in recognition of the potential of these sectors in both creation of wealthand employment, and of the need for countrywide framework of policies and measures for their promotion and development,has always taken active interest in supplementing the efforts of the State Governments in several ways. The Government ofIndia set up the Small Industries Development Organization (SIDO) in 1954, a public sector enterprises called the NationalSmall Industries Corporation Limited (NSIC) in 1955, and enacted the Khadi and Village Industries Commission Act in1956. The establishment of Khadi and Village Industries Commission (KVIC), Coir Board and MSMEs -developmentInstitutes [formerly known as Small Industries Service Institutes (SISIs)] in nearly every State followed2 . Over the year, theCentral Government has formulated policy packages for the promotion and development of the sector and has been alsoimplementing a large number of scheme and programmes. The policies and programmes implemented by the Ministry spanacross different areas of operations of the MSMEs, covering credit, marketing, technology, skill development, infrastructuredevelopment, fiscal matters and legal/regulatory framework. These programmes are implemented through variousorganisations under the Ministry, commercial banks, Small Industries Development Bank of India (SIDBI), and the State/ UTgovernment. Besides, the Ministry runs three training institutes, namely the National Institutes for Micro, Small and MediumEnterprises (NIMSME), Hyderabad; National Institute for Entrepreneurship and Small Business Development (NIESBUD),NOIDA; and Indian Institute of Entrepreneurship (IIE), Guwahati, with the objective of training and development of humanresource relevant to small industries as also entrepreneurship, It has also supported in setting up a large number ofEntrepreneurship Development Institutes (EDI) in various States. The Office of the Development Commissioner (MSME)assists the Ministry in formulating, Co-coordinating, implementing and monitoring different policies and programmes for the



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promotion and development of MSMEs in the country. In addition, it provides a comprehensive range of common facilities,technology support services, marketing assistance, etc. ,through its network of 30 MSME- DIs; 28 Branch MSME-DIs ; 4MSME Testing Centres (MSME-TIs); and 1 MSME- Technology Development Centre- Hand Tools (MSME-TDC-HandTools). MOMSME also operates a network of tool rooms and technology development centres which are autonomous bodiesregistered as societies under the societies Act.

STATE LEVEL INSTITUTIONAL SUPPORTState Level Institutional Support State governments execute different promotional and developmental projects/ schemes andprovide a number of supporting incentives for development and promotion of the MSME sector in their respective States.These are executed through State Directorate of Industries, who has District Industries Centers (DICs) under them toimplement Central/ State Level schemes. The State Industrial Development & Financial Institutions (SIDFI) and StateFinancial Corporations (SFC) look after the needs of the MSME sector3 . The classification of enterprises is presented infigure.

PERFORMANCE OF MSMES IN INDIAThe micro, small and medium enterprises (MSME) sector plays a significant role in the improvement of production,employment and exports of the country. This sector accounts for about 45 percent of manufacturing output and 40 percent oftotal exports of the country. This sector employs about 60 million persons in over 26 million units throughout the country.Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. These are over 6000products ranging from traditional to high-tech items which are being manufactured by the MSMEs in India. It is well knownthat the MSMEs provide the maximum opportunities for the self-employment and jobs.

The state-wise percentage distribution of number of registered MSMEs by the type of organization is furnished in table 3. Ofall the type of organizations, proprietary category is conspicuous with 90.66 per cent MSMEs in the country. This ishowever, distantly followed by partnership and private company category of units of 4.01 and 2.77 per cent respectively.Among the states, the proprietary category recorded the highest percentage of 99.29 in Manipur and lowest of 10.66 percentin Dadra & Nagar Haveli.



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This range is however, highly pronounced in the case of partnership from 0 (zero) in Lakshadweep to 36.36 of Daman & Diuwhile the percentage varied from 0.24 per cent in Mizoram to 24.92 percent of Daman and Diu in the case of privatecompany organization. Except union territories like Daman and Diu and Dadra and Nagar Haveli, majority of states andunion territories (17) witnessed more than 90 per cent of investment under proprietary category, followed by 9 states in therange of 80 to 90 per cent and 5 states in the rage of 70 to 80 per cent.

CONCLUSIONSIndia's small and medium-sized industries can play a big role in making the country take the next big leap in manufacturing.India should be more focused towards novelty and innovation for these sectors. The government has to chart out plans to givespecial sops and privileges to these sectors to help Make in India programme

REFERENCES1. Micro Small and Medium Enterprises (MSMEs) Development Act, 2006, MSMEs Classification, 2011, New

Delhi.2. www. Khadi and Village Industries Commission (KVIC), Coir Board and MSMEs -development Institutes 2010.3. Salient Provision of Micro, Small and Medium Enterprises Development Act, 2006.



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A CONCEPTUAL FRAMEWORK OF ‘MAKE IN INDIA’ INITIATIVE IN TELECOMMUNICATIONS SECTOR

Sadhna Shukla* Dr. Roopa TN ***Research Scholar, Visvesvaraya Technological University, Belgaum, India.

**Administrative Director, East Point Group of Institutions, Bangalore, India.

Abstract‘Make in India’ is the government’s initiative to boost manufacturing sector in India. It is the vision and roadmap fortransforming India into a global manufacturing hub. Indian Telecommunication Industry with over 996 million telecomsubscribers is growing tremendously in the world and is recognized as one of the most lucrative sectors globally. This paperattempts to assess the impact of growth of telecommunication industry on the economic growth of India. The primary focus ofthis paper is to come up with a conceptual framework to well understand the concept ‘Make in India’ and analyze the Indiangovernment’s initiative to transform India into a global manufacturing hub. Using the extant literature on telecommunicationgrowth in India, the present paper narrows down on three key factors viz., demographic dividend, low cost of labour androbust demand that contribute to the economic development of the nation.

Keywords –Demographic dividend, Telecommunication Industry, Telecom Subscribers.

1. INTRODUCTIONIndian Telecom market has witnessed phenomenal growth in the recent years. The Telecommunication Industry is consideredas a backbone of industrial and economic development and has been continuously revolutionized the human communicationacross the world. Telecommunications industry has accelerated the growth of economic and social sectors and contributes toabout 3% to India’s GDP.The telecom sector is also the second highest FDI attracting sectors in India, attracting 8.53% of thetotal FDI inflows into India during Apr 2000 to July 2011. The amount of FDI attracted by telecommunications sector duringthis period was US$ 12.3 billion, according to DIPP (Department of Industrial Policy & Promotion) statistics.

Telecom Regulatory Authority of India (TRAI) reported that the total subscriber base as of March, 2015 reached 996 millionthat includes 577 million in urban and 419 million in rural region. The overall teledensity has reached to 79%. The monthlygrowth rates of urban and rural subscription were -0.27% and 2.63% respectively. The total wireless subscribers comprise969 million whereas wire line subscribers constitute to only 26 million. Voice and data services are the key growth driversreviving the telecommunications industry. The report by National Council of Applied Economic Research (NCAER, 2008)states that from 2001 to 2011, number of telephone subscribers have grown at a Compound Annual Growth Rate (CAGR) of35 per cent. Today’s development of communication technology ignores the global border and makes the world as “globalvillage” (McLuhan, 1964).

According to a World Bank study, a 10% increase in mobile penetration is known to boost per capita GDP by 0.8% points indeveloping nations. According to a study by the Indian Council for Research on International Economic Relations (ICRIER),states with a higher teledensity have grown faster than those with lower teledensity.

2. LITERATURE REVIEWTelecommunication growth, being a complex and dynamic techno economic phenomenon, is the integrated interaction of alarge number of technical, social and economic forces (Mikerov, 1998). Various researchers beginning with Hardy (1980),Leff et al., (1984), Norton (1992), Greenstein et al., (1996)have all found that there is an “externality” component inenhanced fixed telecoms penetration – that is, GDP is higher, and growth faster in countries with more advanced telecomsnetworks.

Cronin et al(1991) confirmed the existence of a feedback process whereby economic activity and growth stimulates demandfor telecommunication services. Population density, demographic shifts (joint to nuclear families, rural/hills to urban/planes),customer behavior patterns and network externalities have a significant influence over growth and demand for services(Dutta, 2001).

Dutta(2001) employs the framework of Cronin et al.(1993) and finds strong evidence of bidirectional relationship betweentelecommunications infrastructure and economic growth. He also finds that causality running from telecommunicationsinfrastructure to economic growth is stronger than that running in the opposite direction. Relatedly, Waverman et al.,(2005)explore the role played by mobile phones in developing countries’ economies. Their results indicate that a ten percentincrease in the mobile penetration levels in developing countries is associated with 0.6 percent increase in the growth rate.



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Earlier work by Saunders (1983), suggests that telecommunication’s help in the delivery of services, including healthcare,education, emergency services, and others. The results further show that demand for telecommunications is positively relatedto education and income. Saunders concludes that telecommunications infrastructure contributes to economic growth throughsupply and demand channels by reducing transaction and production costs. Parker et al, (1995) support Saunders (1983)finding; they find a positive relationship between economic diversification and telecommunications. Related to Parker et al, isa recent case study (Jensen, 2007) that analyzes how mobile phones have transformed the market for fish in kerala, India.Jensen finds that information’s obtained by calling a number of markets to find the best selling price permits fisherman toprofit from arbitrage. Jensen also contends that the growing use of mobile phones reduces fishermen’s transaction costs andinformation asymmetry regarding product prices.

Micevska (2005) in his cross-country analysis indicate that an increase in the stock of telecommunications infrastructure ispositively correlated with an improved health status of the population. He also points out that telephone access is alsoassociated with an increased demand for telecommunications infrastructure and medical facilities.

Norton (1992), Roller and Waverman (1996, 2001), Cornin et al (1993) and Nadiri and Nandi (2003) has focused primarilyon one component of infrastructure investment, namely telecommunications infrastructure investment and its ability togenerate significant gain in productivity growth.

In a cross-country study of multiple African and South American countries, Wallsten (2001) points out how infrastructureliberalization and privatization affect investment patterns. He identifies a positive correlation between mainline competitionand connection capacity. However, for privatization, no positive effect on competition exists.Wallsten (2002) concludes thatthe sequence of privatization and deregulation significantly affects the performance of telecommunication markets.Heniszand Zelner (2001) also analyze the role of the government on telecommunication market performance. They focus on howcountries can close the gap to other countries with a more advanced telecommunication infrastructure in place. Kim et al.,(1997) demonstrates the phenomenon that the impact of telecom infrastructure on economic development is morepronounced as compared to other traditional infrastructure.

Sridhar and Sridhar (2004) in their study analyze the impact of telecommunications infrastructure on economic growth fromdeveloping countries’ perspective.Roller&Waverman(2001) points out that as the ICT infrastructure improves, transactioncosts reduce, and output increases for firms in various sectors of the economy. Heller (2010) explores the factors that affectthe investment choices in infrastructure with special focus on demographics. He argues that beyond universal servicesinfrastructure, the shifting age structure of the population, particularly the rising number of working-age people, will requirecountries to provide economic infrastructure that can attract private sector investments and facilitate the creation of jobs.

In a cross-sectional study, Hulten and Schwas (1991) conclude that expansion of telephone infrastructure provides“substantial growth – and investment- enhancing activity and thus facilitates economic development.

3. RECENT DEVELOPMENTS IN TELECOMMUNICATIONS INDUSTRY3.1 National Telecom Policy (NTP) 2012: The key objective of NTP-2012 is to provide effective and affordablecommunications services in rural and remote areas. The vision is to transform the country into an empowered and inclusiveknowledge-based society, using telecommunications as a platform. The core vision of the policy is to provide Broadbandfor Everyoneto ensure participation for all citizens and businesses in accessing the internet and web across the nation. Policylays emphasis on to promote Research and Development , enabling citizens to participate in the government projects such ase-governance, m-governance, e- panchayats, designing a network ecosystem with cutting edge ICTE technologies, promotedomestic manufacture of telecom equipment for meeting the infrastructure needs of domestic and global markets with focuson security and green technologies.

3.2Make in India Initiative (Domestic Manufacturing): Make in India is a global initiative by government of India tofoster innovation and growth in manufacturing sector. As per Baseline Profitability Index (BPI) India is ranked No. 1investment destination.Rich demographic dividend, low labour cost and growing consumerism are the key factors attractingforeign investors to invest and manufacture in India. Department of Telecom (DoT) emphasized on pushing the growth oflocal manufacturing of telecom equipment to plug the widening trade deficit gap in telecom market segment (Sharma, 2015).Make in india is a roadmap to invest aggressively in R&D and infrastructure development to fast track economic growth ofIndia.



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3.3 Digital India Project: Digital India is an initiative of Government of India to make people of India digitally literate. Thefocus of Digital India project is to build a digital infrastructure by providing government services on demand to everyindividual. Digital India will broadly aim at four things: bridging the digital divide, improving governance, harnessing powerin the common man’s hand, and a politically and ideologically neutral campaign (FE,2015).The Campaign lays emphasis onto interconnect the 1.2 billion populations with optical fibre network in India. The rising demand of telecom equipment in thecountry has led to manufacturing of products domestically that can cater to the need of global market as well. TelecomSecretary RakeshGarg said:"Rapid growth of the sector has fuelled demand for telecom equipment (in India) including mobile phones which is USD 20billion for 2015-16 and is expected to exceed USD 30 billion by 2020. This large demand has created strong base on whichIndian companies have created innovative high quality products and solution,"

Government planned to roll out Digital locker facility that would help citizens to store their important documents online thatcan be accessedanywhere, anytime. The Vision of Digital India Campaign includes (Panwar, 2015):

Digital Infrastructure as a Utility to Every Citizen Governance & Services on Demand Digital Empowerment of Citizens

Digital India Programme boosts the electronic manufacturing and targets net zero imports by 2020.

3.4 Emergence of Technologies (M2M&Cloud Services) :M2M refers to technologies that enables networked devices toexchange information. M2M is commonly used on the ICT platform to collect data from remote sources. It is used forconnecting, monitoring and managing remote machines or devices worldwide. According to GSMA intelligence data,Between 2010 and 2013, 120 million M2M connections have been added globally (38% CAGR) reaching a total of 195million in Q4 2013. Globally, M2M connections account for 2.8% of total mobile connections in 2013, up from 1.4% in2010. Global M2M connections will reach a quarter of a billion (250 million) in 2014 (Kechiche et al., 2014). Cloudcomputing is regarded as the future of telecom. Cloud computing is a model for enabling convenient, on-demand networkaccess to a shared pool of configurable computing resources(Gabrielsson et al., 2010). Cloud services are designed to meetthe demand of users over the internet. The advantage of cloud computing in telecom segment is its scalability and highlydynamic computing power. The cloud service providers also have the ability to customize the network connectivity to theneeds of their users.

4. CONCEPTUAL FRAMEWORK

Source: Author’s Research



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The key drivers influencing the Make in India initiative are rich demographic dividend, low labour cost and robustdemand,whereas the impact of the Make in India initiative would be high economic growth, increase in FDI inflow and employmentgrowth. Each of the factors are explained in detail below:

1. Rich Demographic dividend: According to the United Nations report, India has world’s largest youth population. Indiahas a large pool of skilled manpower from diverse background working in different sectors of the economy. By 2025, Indiawill be experiencing a period of “demographic bonus,” where the growth rate of the working age population would exceedthat of the total population (Bhat, 2003).According to the Institue of Applied Manpower Research(a government think-tank),the total number of people who need to be trained by 2022 ranges between 249 and 290 million across differing skillrequirement scenarios (Dhoot, 2013).Aiyar and Mody (2011) report that the demographic dividend could add about 2percentage points per annum to India’s per capita GDP growth. They conclude that the level and the growth rate of theworking age ratio have both exercised a large impact on India’s economic growth. The telecommunication industry hasemerged as one of the dynamic sectors of Indian economy. This sector employs close to 9.8 million people directly orindirectly, making it one of the largest employment generating sectors in the country. Telecom Sector Skills Council (TSSC)website reported that “The Cellular Operators Association of India (COAI), Indian Cellular Association (ICA), & TelecomCenters of Excellence (TCOE) have joined hands for setting up Telecom Sector Skills Council (TSSC) in India under theaegis of the National Skills Development Corporation (NSDC) to map the skill gaps and create a human resource pool of theright size and quality in the telecom.”The vision of TSSC is to develop world class skilled manpower for the Telecomindustry to fulfill the growing need in India for skilled manpower across the Telecom Sector and narrow the existing gapbetween the demand and supply of skills.

2. Low Labour Cost: India with booming demography is a hub of cost competitive labour. AA large segment of ruralpopulation work in unorganized sectors that are not regulated leading to cheaper workforce. According to a survey, Labourcosts in India are among the lowest in the world while the highest are in European countries Belgium, Sweden and Germany(ET, 2005). According to the global professional services company, the sharp fall in the value of the rupee against the USdollar in 2013 contributed to reducing labour costs in India (ET, 2014).

3. Robust Demand: The demand for data and value added services continues to grow stronglydue to increasing smartphonepenetration and technological advances in the telecommunications market.The growth in the demand for telecom services hasdriven the demand for telecom equipment’s such as cell phones, chipsets, wireless and landline infrastructure equipment,digital subscriber-line (DSL) and cable modems, and networking devices, such as routers and switches. Appendix – Aillustrates the pan India investment of Telecom Equipment Manufactuing (TEM) Industries. Excess demand for telephoneservices and telecom equipment’s makes the telecommunications sector one of the lucrative sectorsin the country.TheTelecom regulatory Authority of India (TRAI) in one of the recommendations on Telecom Equipment Manufacturing Policyreport that “The demand for telecom equipment in India was Rs 54,765 crore in 2009-10 which was about 5.5% of the globaldemand. This is projected to grow to Rs 96,514 crore in 2015 and Rs 170,091 crore in the year 2020. Besides, the AsiaPacific region accounting for a major share of the growth of telecom in the future, the potential for India to become amanufacturing hub for export is also bright.”

4. Economic Growth:Telecommunication Industry has emerged as a socio-economic tool in the growth of Indian economy,contributing to about 3% to India’s Gross Domestic Product (GDP). As per latest statistical calculations, India’s economy isexpected to grow at 7.4% making India the fastest growing major economy in the world.According to Mckinsey&Company’sreport,India’s manufacturing sector could touch US$ 1 trillion by 2025 accounting for 25-30 per cent of the country’sGDP.Empirical studies suggest that the telecommunication industry (telecom) has a significant contribution to economicgrowth. In a cross-sectional study, Hulten and Schwas (1991) conclude that expansion of telephone infrastructure provides“substantial growth – and investment- enhancing activity and thus facilitates economic development.

5. FDI inflow: The deregulation of Foreign Direct Investment (FDI) has made the telecom sector one of the fastest growingsectors in the country.According to the data released by Department of Industrial Policy and Promotion (DIPP), the telecomindustry has attracted FDI worth US$ 16,994.68 million during the period April 2000 to January 2015. Prime MinisterNarendraModi in his ‘Make in India’ campaign emphasized on two FDI’s – First Develop India and Foreign DirectInvestment. He explained that for Indians FDI is a responsibility, it means to First Develop India, for global investors FDI isan opportunity in the form of Foreign Direct Investment. According to an industry expert, payment of spectrum auction andinvestments in network rollout are some of the factors that have helped attract more FDI in the sector. In 2011-12, 2010-11and 2009-10, the sector attracted FDI worth $1.99 billion, $1.66 billion and $2.55 billion respectively (ToI, 2014).



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6. Employment Growth: According to report released by GSMA in collaboration with BCGreveals that in 2012, the mobileecosystem generated approximately 5.3 per cent of GDP for India, directly supported 730,000 jobs and an additional twomillion jobs when points of sale and distributors are included. The report further predicts that by 2020, mobile will contributealmost US $400 billion to India’s GDP, create 4.1 million additional jobs and invest US $9 billion in India’s infrastructure,with US $34 billion contributed to public funding. According to experts, surge in demand would be seen for skilledtechnicians, engineers, installation and maintenance service providers, sales, marketing, HR, in the sector. Going by theestimates of consulting firm Randstad India " the telecom sector likely to create 40 lakh direct and indirect jobs over the next5 years which is fueled by increased penetration into rural markets as well as growth of mobile Internet and broadbandservices" (ToI, 2014).

5. CONCLUSIONIndian telecommunication sector has witnessed the exponential growth in the recent past and is recognized as the fastestgrowing market globally. Various researchers have proved the positive impact of telecom infrastructure on economic growth.Indian government’s initiative ‘Make in India’ to bring India on a global platform of manufacturing will help boostemployment and economic growth. Massive investment in skill development could bridge the disparities in the educationsystem. Government’s effort towards youth empowerment and digital inclusion is the need of the hour to transform India intoa digitally empowered society and knowledge economy. Government’s move to increase the FDI cap to 100 per cent is amajor reform push to fast track the macroeconomic decision making. Make in India initiative requires major reforms inmultiple areas such as infrastructure growth, job creation and skill development to synergize product and servicedevelopment in the country. To promote indigenous telecom equipment manufacture for both import and export, thegovernment must invest extensively on telecom infrastructure and implement an economically viable ecosystem of learningfor skill building and improvement to achieve ‘Make in India’ goals.

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Monetary Fund, WP/11/38. Retrieved from http://www.imf.org/external/pubs/ft/wp/2011/wp1138.pdf2. Bhat, P. N. Mari. Demographic scenario, 2025, Study #S-15,Research Projects on India- 2025 conducted by

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6. Dutta A., (2001): "Business Planning for Network Services: A Systems Thinking Approach", InformationSystems Research, l2(3), 260-283.

7. Dutta A. (2001). Telecommunications and economic activity; An analysis of Granger causality. Journal ofManagement Information systems, 17,71-95.

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86.12. Heller, Peter (2010). People and Places: Can They Align to Bring Growth to Africa?,center for global development

essay. Retrieved from http://www.cgdev.org/files/1424441_file_Heller_Demographics_ Infrastructure_FIN AL.pdf.13. Henisz, W. J., and B. A. Zelner (2001): “The Institutional Environment for Telecommunications Investment,”

Journal of Economics and Management Strategy, 10(1), 123–147.14. Highlights of Telecom Subscription Data as on 31st March, 2015, TRAI.Press Release No.34/2015. Retrieved

fromhttp://www.trai.gov.in/WriteReadData/WhatsNew/Documents/PR-34-TSD-Mar-12052015.pdf15. Hulten, C. R. & R. M. Schwas, (1991). Is There Too Little Public Capital? Infrastructure and Economic Growth.

Paper presented at the AEI Conference.



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16. Jensen R.T. (2007). The digital provide: Information (technology), market performance and welfare in the southIndian fisheries sector. The Quarterly Journal of Economics, 122, 879-924. Doi: 10.1162/qjec.122.3.879.

17. Kechiche, S.,George, D., Jain,N. (2014). Analysis from concept to delivery: the M2M market today. GSMAIntelligence. Retrieved from https://gsmaintelligence.com/research /?file=140217-m2m.pdf&download.

18. Leff, Nathaniel H., (1984). Externalities, Information Costs, and Social Benefit-Cost Analysis for EconomicDevelopment: An Example from Telecommunications. “Economic Development and Cultural Change, 32(2), pp.255-76.

19. Melody, W. H. (2001). Policy objectives and models of regulation. William H. Melody, Den Private Ingeniorfond(Ed.), Telecom Reform Principles, Policies and Regulatory Practices, Technical University of Denmark, Lyngby

20. Melody, W. H. (2003). Preparing the information infrastructure for the network economy. In G. Madden (ed.),World Telecommunications Markets: International Handbook of TelecommunicationsEconomics,Vol III. London: Edward Elgar.

21. Micevska, M., (2005): “Telecommunications, Public Health, and Demand for Health- Related Information andInfrastructure”, The Massachusetts Institute of Technology Information Technologies and InternationalDevelopment Volume 2, Number 3, Spring 2005, 57–72.

22. Mikerov I. & Soto O.G.(1998): "Modeling And Selecting Best Access Networks", Alcatel TelecommunicationReview, Second Quarter, 144-145.

23. Mobile Economy India 2013 report. Retrieved from .http://www.gsma.com/newsroom/press-release/new-gsma-report/

24. McLuhan, M. (1964). Understanding Media: The Extensions of Man. New York: McGraw-Hill.

25. NCAER (2010), Infrastructure Development in India: An Assessment of Status and Strategies, NCAER, New Delhi,India, Volume II.

26. Norton, Seth W., (1992). Transaction Costs, Telecommunications, and the Microeconomics of MacroeconomicGrowth. Economic Development and Cultural Change, 1992, 41(1), pp. 175-96.

27. Panwar, P.,(2015 July, 2)All you need to know about Digital India programme: Explained.Oneindia.Retrieved fromhttp://www.oneindia.com/feature/what-is-digital-india-programme-explained-1792279.html

28. Parker, E.B., Hudson, H.E., Dillman, D., Strover, S., & Williams, F. (1995). Electronic byways: State policies forrural development through telecommunications (2nded.).Washington, DC: Aspen Institute.

29. Roller, L.H. and L. Waverman. 2001. Telecommunications infrastructure and economic development:A simultan- -eous approach, American Economic Review, 91 (4): 909-923.

30. Saunders, R., Warford, J. and Wellenius, R. (1983) Telecommunications and Economic Development, Baltimore,MD: John Hopkins University Press.

31. [31] Sharma, P. (2015, February, 6). Telecom department bets on 'Make in India' to cut equipment imports. DailyNews Analysis (DNA). Retrieved from http://www.dnaindia.com/money/report-telecom-department-bets-on-make-in-india- to-cut-equipment-imports-2058478

32. Sridhar, K. S., Sridhar, V., (2004). Telecommunications Infrastructure and Economic Growth: Evidence fromDeveloping Countries, National Institute of Public Finance and Policy (New Delhi, India) Working Paper No.14.

33. Telecom sector skill council (TSSC). Retrieved from http://tsscindia.com/mytssc/index.html#section-about34. TRAI releases recommendations on “Telecom Equipment Manufacturing Policy”. Press Release No. 32/2011.35. Wallsten, S. J. (2001): “An Econometric Analysis of Telecom Competition, Privatization, and Regulation in Africa

and Latin America,” Journal of Industrial Economics, 49(1), 1–19.36. Wallsten, S. J (2002): “Does Sequencing Matter? Regulation and Privatization in Telecommunications Reforms,”

World Bank Policy Research Working Paper, 2817, 1–23.37. Economic Times (ET)-2005: ’Labour costs in India is lowest in the world’, (2005, April, 12).38. ‘FDI in telecom sector jumps manifold to $2.33bn in April-July’,(2014, October 2). -2014. ‘Telecom sector likely

to create 40 lakh jobs in 5 years: Experts’, (2014, October, 2).

Appendix - A



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Investments in Telecom Equipment Manufacturing

Sl.No.

Name Location Nature of Project

1. (i) Ericsson JaipurFacility for manufacturing GSM Base Stations and Mobile Switchingequipment

(ii) Ericsson Chennai R&D facility and Global Service Delivery Centre

(iii) Ericsson Gurgaon R&D facility and Global Service Delivery Centre

2. Elcoteq Bangalore Telecom manufacturing

3. LG Pune and Noida Mobile handsets etc.

4. (i) Nokia Chennai Mobile handsets manufacturing

(ii) Nokia ChennaiGlobal Network Operation Centre for Customers in Asia PacificRegion, Europe, Middle East and Africa.

5. Aspocom Chennai High density interconnections PCB manufacturing plant

6. Salcomp Chennai Mobile Phone Chargers

7.HonHai (FoxConn)Precision Industry Co.

ChennaiManufacturing of mobile handsets and components and ElectronicHardware and related Services

8. Perlos Chennai Handset Mechanics

9. Laird Technologies Chennai Manufacturing of Mobile phone accessories

10. Alcatel Chennai WiMax Centre etc.

11. SamsungManesar, Gurgaon,Haryana

Handset manufacturing

12. Flextronics ChennaiManufacturing of Telecom Hardwares such as Cell phones, Set TopBoxes, Optical Networking systems etc. Mechanical and Systemintegration of Base Stations.

13. (i) Motorola ChennaiManufacturing of Motorola's first Made in India low cost GSMPhone

(ii) Motorola Chennai Manufacturing of handsets

14.Nokia SiemensNetwork

Chennai Wireless network equipment

15.Velankani InformationSystem Pvt Ltd.

Sriperumbedur,Kanchipuram

Electronic hardware & software including ITes

Source :Department of Telecommunications (DoT).



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LEVERAGING THE WOMEN ENTREPRENEURS BY PROGRAMS & SCHEMES: WINGS TO FLY

Dr. Cynthia Menezes* Usha Rani M.R***Associate Professor, Bangalore University, Bangalore.

**Research Scholar, Faculty at ISBR B-School, Bangalore University, Bangalore.

AbstractEntrepreneurship plays an imperative function as it provides self-employment for those who have start-up business of theirown and enhancing confidence and innovation skills, among the entrepreneurs. Women Entrepreneurs have been recognizedduring the last decade, as an important untapped source of economic growth. This conceptual paper indicates andemphasizes the women entrepreneurs as the potential emerging human resource.Women Entrepreneurs creates new jobs forthemselves and others. It is imperative for Government organizations and Non-governmental organizations to designprogrammes that will address to attitudinal changes, training, financial and other supportive services for womenentrepreneurs.

INTRODUCTIONMicro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indianeconomy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities atcomparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby,reducing regional imbalances, assuring more equitable distribution of national income and wealth.

Women Entrepreneurs pursue entrepreneurship for many reasons including financial gain, independence, a desire to balancework and family, self-realization, recognition and respect and a desire to work in an environment that is consistent withvalues. The New Industrial Policy of 1991 has also stressed upon the need for conducting special entrepreneurshipprogrammes for women.

In India, women entrepreneurship is a recent topic which started only after the 1970s with the introduction of the Women’sDecade (1975 to 1985) and geared up in late 80s. Women entrepreneurship as phenomenon was particularly visible only inthe metropolitan and state capitals in India. It took a much longer time to percolate to the other cities. The primaryresponsibility of promotion and development of MSMEs is of the State Governments. However, Government of India,supplements the efforts of the State Women Entrepreneurs is defined as “those women who think of business enterprise,initiate it, organize and combine the factors of production, operate the enterprise, undertake the risk and handle economicuncertainty involved in running business enterprises”. It is estimated that women entrepreneurs presently comprise about 10percent of total number of entrepreneurs in India, this percentage is growing every year. If prevailing trends continues, it islikely that women entrepreneurial force will comprise 20 percent by the end of 2020. There are thousands of examples in tinyand small scales sectors where women have shown entrepreneurship and have succeeded. However there are negligible fewwomen entrepreneurs in case medium and large scale companies. This does not mean that they lack talent and resources.What they lack is encouragement from family and conducive environment to take up higher challenges the variousgovernmental institutions and non-governmental agencies which empowers women entrepreneurs are as follows:

Small Industries Development Bank of India (SIDBI)Small Industries Development Bank of India set up on April 2 1990. SIDBI is the principal financial institution for thepromotion and development of MSME sector in India. The business domain of SIDBI consists of Micro Small and MediumEnterprises, which contribute significantly to the national economy in terms of production, employment and exports. MSMEsector is important pillar of Indian economy, it comprises around 3 crore units, creating employment of about 6 crores,manufacturing more than 6000 products.

MUDRA – a wholly owned subsidiary of SIDBIThe aim objective of setting MUDRA (Micro Units Development & Refinance Agency) to empower Non-Corporate SmallBusiness sector which is the economic foundation of India. Non Corporate Small Business sector comprises of smallmanufacturing units, shop keepers, fruits/vegetable vendors, food service units, small industries artisans, food processors andmany other who are unregistered. MUDRA operates a special scheme for women entrepreneurship Mahila Uddyami SchemeMUDRA Bank has rightly classified the borrowers into three segments: the starters, the mid-stage finance seekers and thenext level growth seekers.



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To address the three segments, MUDRA Bank has launched three loan instruments:1. Shishu: covers loans upto Rs 50,000/-2. Kishor: covers loans above Rs 50,000/- and upto Rs 5 lakh3. Tarun: covers loans above Rs 5 lakh and upto Rs 10 lakh

Small Industries Development Organization (SIDO)SIDO was established in 1954, SIDO provides economic information services and advises Government in policy formulationfor the promotion and development of SSI.Various services provided to SIDO to SME,:

1. Facilities for testing, tool menting training for entrepreneurship development2. Preparation of projectk and product profiles3. Technical & managerial consultancy, assistance for exports4. Pollution and energy audits

GOVERNMENT OF INDIA MINISTRY OF WOMEN & CHILD DEVELOPMENTKarnataka State Women’s Development Corporation (KSWDC)In a society that has been striving for equalitarian status, empowerment of women should be among the top priorities. 40 p. cof entire population in the country are below poverty line. In the year 1987, Government of Karnataka established KSWDC.The corporation has set of specified objectives in empowering women.Some of the schemes designed by the Government are

Udyogini Marketing Assistance Scheme Women’s Training Programs State Resource Centre Special Component Plan Asare Scheme Urban Stree Shakti Scheme STEP (Support women for training &Employment)

There are thirty offices in Karnataka, which empowers women. KSWDC provides subsidies for women inundertaking business activities. Rs. 7500 subsidy for women owned business apart from loans granted bybanks/financial institution. Rs. 10,000 subsidy for women handicapped person, SC women group, widow anddestitute. The beneficiary age limit is between 18-45 years and family income limit to avail these benefits is Rs.40,000 P.A

Association of women entrepreneurs of Karnataka (AWAKE)AWAKE is Non-Governmental Organization, not for profit established in 1993 with the mission “empowering womenthrough entrepreneurship for economic development”. It is an ISO 9001-2008 accredited organization. AWAKE has aunique approach of entrepreneur guiding entrepreneur through voluntary efforts from successful women entrepreneursAWAKE has developed 4S module which encompasses all the programs conducted to support entrepreneurs at differentlevels of enterprises.4SModule includes STIMULUS-Business counseling, Entrepreneurship Awareness Program (EAP),START- EDP,Skill Development Program, Business Incubator, Vocational Training Program, SUSTENANCE- Marketingsupport , MDP, Credit referrals, SUPPORT- Research & Resource Centre, Membership service. AWAKE is also in corporatesocial responsibility project, AWAKE has been selected to execute HP-LIFE(Learning Initiatives for Entrepreneurs) aprogram is to promote computer literacy among 1000 micro entrepreneurs and youth who are interested for additional skills.AWAKE is a consortia partner with University of Agricultural Science, Bangalore under ICAR-NAIP project on value chaincommercialization of maize to signify the importance of maize as value added health foods and nutritional supplementationinvolving women SHG as stakeholder from production, processing and marketing. It has trained 250 women SHG.

AWAKE is a partner institution with Ni-MSME (an organization of the Ministry of MSME, Government of India,Hyderabad) to conduct EDP & ESDP under the scheme of Entrepreneurship Development Centre (EDCs) across the districtsof Karnataka.

NSRCEL-IIMBN S Raghavan Centre for Entrepreneurship LearningConverting business idea into successful business requires a meticulous planning and careful execution. Advancingknowledge of entrepreneurship with a focus on emerging economies with reference to India is the center’s institutional



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mission. The centre conducts two programs –Management Program for Entrepreneurship and Family Business (MPEFB) andManagement Program for Women Entrepreneurship(MPWE) , these two programs are immense popular.

NSRCEL works with panel of mentors who are successful entrepreneurs/ corporate managers. Mentors guide business start-up entrepreneurs who approach the centre for the guidance.

NSRCEL promote growth of new entrepreneurs through its business incubator funded by Global Internet Ventures (GIV)The centre conducts Skill Development workshop for women entrepreneurs.

Confederation of Women Entrepreneurs (COWE)“Gearing Women Power” is the slogan.Confederation was inaugurated 2004, today it has emerged as a well-organized and established organization and has a vision“Working towards our goal of liberating woman by making them financially independent and vibrant”.

The services extended for women entrepreneurs include: Organize fairs/exhibition, EDP(Entrepreneurship DevelopmentPrograms);ESDP(Entrepreneur Skill Development Programs); loan mela for entrepreneurs; promotion of members productsthrough social media; counseling for budding entrepreneurs; industrial site visits; conducts seminars on IT &ITES; leanmanufacture; building market linkages through exhibition; seminar on retail; seminar on franchising opportunities are someof the few to name.

Federation of Indian Women Entrepreneurs (FIWE)It is national level organization, found in1993. Today it is one of India’s premier institutions for women thoroughly devotedtowards entrepreneurship development in the country. The organization educates and training young aspirant, start-up womenentrepreneurs for their right initiatives into business. Some of the programs & services framed by FIWE are Businesscounseling; Entrepreneurship Awareness Programs (EAP) which includes EDP ; skill development program; MDP; MemberService Program (MSP); Micro Credit Program etc.

CONCLUSIONIn India, entrepreneurship has been considered a male prerogative sector. Hard work and smart work must go hand in thesuccess. Indian women entrepreneurs have come in long way, becoming visible and successful in all spheres and have shiftedfrom 3’P – Powder, Pickles, Pappad to higher level of professional activities 3’E – Energy, Electronics, Engineering.Modern women entrepreneurs start the enterprise not for survival but to satisfy their inner urge of creativity, create ownidentity and become role models for others. To promote start-up activity among women more effectively, Governmentalagencies and Non-governmental organizations act as a catalyst in instilling confidence and increase perceived competencyamong women.

REFERENCES www.msmedibangalore.gov.in www.sidbi.com awakeindia.org.in www.nsrcel.org www.fiwe.org Co-we.com



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A STUDY ON THE ROLE OF DEMOGRAPHIC DIVIDEND FOR THE SUCCESS OF “MAKE IN INDIA”CAMPAIGN

S.V. SubramaniAssistant Professor, Department of Commerce and Management, Government First Grade College,Arsikere ,Hassan.

1. INTRODUCTIONIn order to make INDIA a manufacturing hub, one of the factors of production viz, human capital (labour) will play a majorrole. Harnessing the potential of Democracy, Demography and Demand that is the key focus of Prime Minister NarendraModi’s ‘Make in India’ campaign. The success or failure of “Make in India” Campaign stands on demographic dividend ofIndia. On 25th September 2014 Prime Minister Narendra Modi launched the ambitious 'Make in India' campaign in thepresence of global and domestic CEOs. The campaign is aimed at making India a manufacturing hub, and the government ispulling out all the stops for ensuring a smooth sailing for investors, by setting up a dedicated cell to answer queries ofbusiness entities within 72 hours. It will also closely monitor all regulatory processes to make them simple and reduce theburden of compliance to encourage companies to manufacture products in India. Focusing on job creation through growthof the manufacturing sector, Modi said, “We need to enhance the purchasing power of Indians and to create jobs to movepoor to middle class bracket.” “Treat India as not just a market. See every Indian as an opportunity to increase theirpurchasing power,” Modi emphasized. The major objective behind the initiative is to focus on 25 sectors of the economy forjob creation and skill enhancement. Some of these sectors are: Automobiles, Chemicals, Information Technology,Pharmaceuticals, Textiles, Ports, Aviation, Leather, Tourism and Hospitality, Wellness, Railway, Design, Manufacturing,Renewable energy, Mining, Bio Technology and Electronics. The initiative hopes to attract capital and technologicalinvestment in India. India must become a manufacturing power house in order to gainfully employ its demographic dividend.Modi said fortunately, we have many natural advantages including a big labour pool and vast domestic market. Further heexplained “manufacturing boost will create jobs, increase purchasing power, thereby creating a larger market ofmanufacturers”. Modi also came up with a new definition for FDI. “For Indians FDI is a responsibility, it means to FirstDevelop India, for global investors FDI is an opportunity in the form of Foreign Direct Investment,” he said, addressingIndians and foreign CEOs. “Two hundred and fifty million people are set to join India’s workforce by 2030. As a big chunkof the population shifts into the working age group, the off shoot of that is an increase in disposable income as well asconspicuous consumption. This is the most exciting aspect of India’s demographic dividend.” India a favourabledemography for higher growth and development. India not only supports one the largest populations in the world, but alsoone of the youngest. 50% of its population is below the age of 25 and two-thirds below the age of 35. Also, about 65% ofIndians are in the working age group of 15 to 64 years giving the country a significant edge in terms of cost competitivenessand low lobour costs. Moreover, India’s labour force has a strong knowledge base with a significant English-speakingpopulation, making it a top destination for multinational corporations that are looking to expand overseas.

2. STATEMENT OF THE PROBLEMThe “Make in India” campaign aims to make India the manufacturing hub of the world, challenging China’s dominantposition in the world of manufacturing. Modi has linked this to creation of employment to encash the demographic dividend.Do Indian demographic dividend supplies the required human capital to corporates to make the dream come true is unknown.

3. OBJECTIVES OF THE STUDY1. To know the significance of capitalizing potential demographic dividend.2. Will the campaign be able to live up to the expectations of generating the jobs.3. Do the program will lead to numerous opportunities for betterment of people.4. Do ‘Make in India’ will lead to better and enhance the negotiation power of the employees against companies.5. To understand the changing paradigm on availability of skilled engineering and technical man power.

4. RESEARCH METHODOLOGYResearch Type: Descriptive ResearchData Source used: Secondary Data; present study is based on secondary data. Basically the required information has beenderived from ,Various books, Articles newspapers, Magazines journals and From various related web-sites which dealdirectly or indirectly with the topics related to ‘Make in India’, significance of HR in PM’s Campaign .

Objectives of the present study are set after thorough study of various articles in newspapers, websites and other relevantbooks of study.



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5. LIMITATIONS OF THE STUDY1. The major drawback of the present study is, No Primary data is being collected2. The study is based on published information and other secondary data3. The objectives set, nature and methods used to collect secondary data may not be appropriate to the present situation.4. Secondary data collected may be lacking in accuracy and its not completely dependable5. There may be existence of biasness

6. CHALLENGES BEFORE MAKE IN INDIA CAMPAIGN The government has adopted ambitious targets for growth of output and employment in the manufacturing sector.

Measures needs to be taken for generating nearly one million jobs per month for the next 20 years to absorb itsburgeoning working-age population. India’s manufacturing sector, which is relatively underdeveloped, will have toabsorb a significant part of this workforce.

Problems with Indian higher education need to be addressed; health and education parameters need to be improvedsubstantially to make the Indian workforce efficient and skilled.

A business-friendly environment will only be created if India can signal easier approval of projects and set uphasstle-free clearance mechanism.

To make the country a manufacturing hub the unfavorable factors must be removed.. India should constantly keep up its strength so as to outpace China's supremacy in the manufacturing sector. India must also encourage high-tech imports; research and development (R&D) to upgrade 'Make in India' give

edge-to-edge competition to the Chinese counterpart's campaign.

7. HUMAN CAPITAL OF INDIAN ECONOMYWEF Founder and Executive Chairman, Klaus Schwab quotes “The key for the future of any country and any institution liesin the skills and talent of its people,” India has been placed at a low 78th slot on a global Human Capital Index, which rankscountries on the basis of economic potential of their labour force, while Switzerland has topped the ranking. According tothe list of total 122 countries released by the Geneva-based World Economic Forum (WEF), India has been ranked lowerthan three of its BRICS peers -- China (43rd), Russia (51st) and Brazil (57th), while South Africa is placed at 86th place.While India has scored well on parameters like workforce and employment, it has fared poorly for health and wellness of itslabour force, WEF said.

Demographic dividend notwithstanding the challenges faced in making India a manufacturing hub, the country is poised toreap rich dividend for being one of the youngest nations in the world. According to reports by 2020, India is set to becomethe world’s youngest country with 64% of its population in the working age group. With the Western countries, Japan andeven China aging, this demographic potential offers India and its growing economy an edge that economists believe couldadd a significant 2% to the GDP growth rate annually However, there are many challenges which India needs to overcome toharness the opportunities created by demographic dividend. Since most of the new jobs that will be created in the future willbe highly skilled and lack of skill in Indian workforce is another serious challenge. There are serious problems with Indianhigher education. These include a shortage of high quality faculty, poor incentive structures, lack of good regulation.

According to the Human Development Report (HDR) published by the United Nations Development Programme (UNDP),India is still in the medium human development category with countries like China, Sri Lanka, Thailand, Philippines, Egypt,Indonesia, South Africa, and even Vietnam has a better rank. Therefore health and education parameters need to be improvedsubstantially to make the Indian workforce efficient and skilled. Government has undertaken some measures to impart skillsto the Indian workforce to reap the benefits of demographic dividends. Major challenge of skill development initiatives isalso to address the needs of huge population by providing skills in order to make them employable and help them securedecent work. Government established National Skill Development Corporation (NSDC) to contribute significantly (about 30per cent) to the overall target of skilling / up skilling 500 million people in India by 2022, mainly by fostering private sectorinitiatives in skill development programmes and providing funding. Major objectives of NSDC are:

Upgrade skills to international standards through significant industry involvement and develop necessaryframeworks for standards, curriculum and quality assurance

Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-PrivatePartnership (PPP) models; strive for significant operational and financial involvement from the private sector

Focus on underprivileged sections of society and backward regions of the country thereby enabling a move out ofpoverty; similarly, focus significantly on the unorganized or informal sector workforce.



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Play the role of a "market-maker" by bringing financing, particularly in sectors where market mechanisms areineffective or missing

8. INDIA’S EDUCATION SYSTEMIndia’s education system has long been criticised for its lack of vocational training. According to a FICCI report, India hasaround 5.5 million people enrolled in vocational courses, while the number stands at 90 million in China. Clearly, theeducation landscape has gaping holes in terms of fostering “employability”. The path from academic qualification to workexperience seems broken. Pankaj Kulkarni, director, JSW Cement adds, “In the last decade, the country’s growth was mainlydriven by the service sector and manufacturing had taken a backseat. This has resulted in engineers from the best engineeringcolleges and managers from the best management institutes joining the service sector and not manufacturing. The country onone hand stopped producing skilled technicians, but on the other, is flooded with unemployable university graduates. It ishigh time that our education system is reformed by introducing a dual education system and vocational schools in line withthe German model,” he suggests.

In order to increase the employability of this burgeoning workforce, the emphasis needs to shift towards making soft skillsand value-based training a part of the curriculum. Academic learning should be integrated with industry exposure throughworkshops where students can interact and learn from professionals as well as on-the-job training through internships,apprenticeships, etc. The government needs to play a big role as a facilitator and bring in the right policy framework to buildthis education/skilling infrastructure. Workers will need a different set of skills—indeed, more knowledge-based skills thatmatch global standards.

In India, with its sights set on becoming a manufacturing hub, the unskilled labour market still plays a palpable role. Thecountry can learn from global best practices to make this labour market more productive—identify the areas where jobdemand will go up, ascertain the skills required to feed into this demand and ensure that these reach the workforce in aphased yet timely manner. This can only happen if we have strong collaboration between government, industry andacademia. One vital way forward would be to partner with prominent players within these sectors for skill development andtraining that is relevant and hands-on. For example, while Industrial Training Institutes (ITIs) have traditionally been agovernment prerogative, but how relevant they are in today’s scenario? Are we measuring skilling initiatives fromemployability and employment perspective? Yes, from India standpoint, we need to gear up to handle volume, but whatabout quality? These are serious issues which need due attention as we move forward. The government has set the target toskill 500 million people by 2022 and its message to “Make in India” promises to create better jobs for this workforce. But tomake India a truly global manufacturing hub and world-class business destination, it will need a globally competitive andstrategically trained workforce. While the government builds industrial corridors, it needs to recognize that it is theclassrooms where the leaders will be created to herald these industries. By giving this its due emphasis, India cannot just bedeveloped into an attractive business destination but also a global powerhouse of skilled workers. The next 10 years will becritical towards this. Is India prepared to rise up to the challenge?

9. SUCCESS STORIES AND RESPONSE TO PM’S CALL ‘MAKE IN INDIA’In line with the government’s make in India’ initiative, most companies have announced their plans to build their plants here.Sony Corp: ‘Make in India’ has brought Sony Corp back to India after a decade. The Japanese company will soon startmanufacturing its Bravia line of television in the country Sony Corp has entered into an agreement to manufacture Bravialine at Taiwanese contract manufacturer major FOXCONN’s plant near Chennai.

Foxconn: the manufacturer of Apple’s iPhones has announced plans for creating 10-12 facilities in India, which will includefactories and data centers. Foxconn expects to sign the first contract by the end of 2015. That Foxconn chose India followingvarious issues it faced in its Chinese facilities bolsters the “Make in India” campaign.

ZTE Corporation: another Chinese telecom major, has completed its recce to set up its manufacturing facility in India..

Phicomm : Another Chinese mobile handset maker Phicomm has also committed to invest $100mn in the next 3 years tomarket its products and at the same time, they are exploring to setting up a manufacturing facility here.Gionee: Recently, Gionee also announced to be working towards setting up a fully-owned factory over a three-year horizonin the country as a part of its ‘Make in India’ plan.

Lenovo After drawing inspiration from the Narendra Modi government's initiative of 'Make in India' as well as the hugeopportunity to grab a big slice of the country growing smart phone market, Chinese multinational technology firm Lenovo isnow planning to set up a manufacturing unit for smart phones and tablets in India.



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Mercedes Benz has brought into the “Make in India” program in two different areas. Firstly, in the luxury car segments, ithas decided to manufacture more of its components in India – thus increasing the localization of its new model C220 CDI to60%. Secondly, Mercedes Benz has also decided to manufacture its luxury buses in India, to be exported to Africa and SouthEast Asian markets. The trials have already begun and full-fledged exports will start from early 2016.

Fiat plans for ‘Make in India’: Modi’s call to make in India has had things moving in the automobile sector. Fiat ChryslerAutomobiles has come up with a plan to manufacture a range of C- setment Jeep band premium sports utility vehicles inIndia and export these SUVs to countries such as Australia, South Africa and the United Kingdom.

Hyundai Heavy Industries (HHI) of South Korea will work with Hindustan Shipyard Limited, Vizag to build warships inIndia.

10. FINDINGSPrime Minister Modi has graciously rolled out the red carpet, inviting MNCs and other industrial corporations to considerIndia not just as a market but as a manufacturing hub. Decisions are still being made and investments have just startedtrickling in. Final outcomes regarding job creation, quantum of exports, etc will be known only two-three years later.

The differentiator between developed and developing economies is majorly seen to be the contribution of organizedmanufacturing to the GDP, which is devastatingly low in India as compared to our contemporaries. India’s manufacturingsector accounts for only 16% of GDP, while China is already receiving one third of its GDP from manufacturing.

Countries Mfg as % of GDP Countries Mfg as % of GDP

China 31.83172357 Russian Federation 14.77236942

Malaysia 23.97148467 European Union 14.47161976

Indonesia 23.69660378 Pakistan 13.8916267

Germany 21.82121972 Brazil 13.12952559

Singapore 18.75658579 United States 12.90209314

Japan 18.19274723 India 12.89089674

Sri Lanka 17.70939615 South Africa 11.56

Turkey 17.60114453 United Kingdom 9.830196198

Bangladesh 17.55 Bhutan 9.334657398

Vietnam 17.39063585 Nepal 6.587109852

(Source: World Bank)

Thrust on education and health care will be the key to success of the government’s Make in India programme, helping thecountry’s labour force become globally competitive, the World Bank said. World Bank Country Director in India OnnoRuhl said “I think the key is to focus on quality of primary and secondary education. It is really important that Indiacompetes with the rest of the world because the Make in India means that your labour force has to be competitive with therest of the world,” Indian manufacturing revolves around the FDI and around 8-9 million people join the workforce everyyear. Not all of them can be employed in projects that come through the way of FDI since the process is usually long drawn .

Shock reports have revealed a vast skills gap in India, with several surveys suggesting that half of all graduates are notemployable in any sector based on industry standards. This has sparked growing concern about the mismatch betweenuniversities and the needs of the job market. Among some disciplines the skills gap appears to be staggering – 75% of ITgraduates are deemed ‘unemployable’, 55% in manufacturing, 55% in healthcare and 50% in banking and insurance,



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according to Higher Education in India: Vision 2030, a report produced by international consultants Ernst and Young for theFederation of Indian Chambers of Commerce and Industry, or FICCI.

And despite an increase in education levels, one in three graduates up to the age of 29 was unemployed according to theLabour Ministry’s Youth Employment-Unemployment Scenario 2012-13. The largest pool of graduates in India is generalistswith broad socio-economic knowledge but no specific technical skills, according to a British Council report HigherEducation in South Asia 2013.

With the easing of investment caps and controls, India’s high- value industrial sectors – defense, construction and railways –are now open to global participation.

Policy in Defence sector liberalised and FDI cap raised from 26% to 49%. Portfolio investment in Defence sector permitted up to 24% under the automatic route. 100% FDI allowed in Defence sector for modern and state of the art technology on case to case basis. The Make in India program represents an attitudinal shift in how India relates to investors: not as a permit-issuing

authority, but as a true business partner. Dedicated teams that will guide and assist first-time investors, from time of arrival. Focussed targeting of companies across sectors. 100% FDI under automatic route permitted in construction, operation and maintenance in specified Rail

Infrastructure projects.

11. SUGGESTIONSThrough secondary research and data obtained from various authenticated sources like NSDC Ministry of HRM, Make inIndia Portal Economic Times, Business Standard, and from various websites like, http://profit.ndtv.com, https://en.wikipedia.org/wiki/ reports and various news articles from some of the leading newspapers of India, this paper has been able to identifythe following major challenges in the path of making India a global manufacturing hub and accordingly the study can suggesta few possible solutions to deal with each of the challenges or issues

Improving the employability of general and engineering graduates; invest in R&D; create world-class quality,achieve mastery in technological advancements and develop research-oriented curriculums.

Government has to provide a conducive environment and improving the ease of doing business in India. Measures to overcome Land acquisition challenges Bring in labour reforms and Build the required skills in the workforce and offer strong vocational training and skill-

building; Manufacturing would require free flow of raw materials and finished goods. Infrastructure development of major

roads and highways in the country, Capacity addition in the power sector to meet industrial energy demand,improving logistics infrastructure such as port-to-inland connectivity, cargo airports, etc. would be vital importanceand these developments promise to transform India into a global manufacturing hub.

Crucial factor in manufacturing is ‘Innovation’. Indian manufacturers must lead by innovation in the modes andmodels of manufacturing can be a solution to the surplus of India's labour pool, which is largely unskilled but highlyentrepreneurial.

12. CONCLUSIONThere is a mismatch between employers who do not get people with the requisite skills and millions of job aspirants who donot get employment. This is due to a lot of factors and the major one is lack of skilled labour in the country, which could beemployed gainfully in the factories and shop floors. However, lack of education and training make youth more drawntowards agriculture or unemployed. This, however, is no excuse to not internalize the industrial development and make workopportunities reach people rather than waiting for them to migrate. Without the serious reforms that India needs now morethan ever, I am not sure, if MAKE IN INDIA would become a real success. In order to reap the benefits of the demographicdividend:

The government should initiate appropriate reforms in infrastructure, education, business and labour laws. the industry can take on the responsibility of educating the new generation and upgrading their skill to international

standards as it will benefit both themselves and the nation

REFERENCES1. www.dnaindia.com/india/reports/make/inindia.2. http://m.hindustantimes.com/business news/live coverage. Article1 1268119.aspx.



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3. http://tech.firstpost.com/news-make-in-india-268580.4. http://yourstory.com/2014/09/(make-in-india-narendra-modi/.5. http://www.unfpa.org/demographic-dividend.6. http://articles.economictimes.indiatimes.com/2015-01-10/news/579132787. Article By Sunil Devmurari -Country Manager, Euro monitor.8. http://www.business-standard.com/article/companies/9. https://en.wikipedia.org/wiki/Human_capital.10. http://www.nsdcindia.org/.11. Sanjay Modi- The author is managing director, Monster.com (India, Southeast Asia, Hong Kong, Middle East)12. .http://www.crisil.com/crisil-young-thought-leader/dissertations/13. Demographic Dividend-Its Implications to India -Dr.Nagaraj, V.Gudaganavar Dr.Rajashri S.Gudaganava.14. Can India garner the demographic dividend? PHILIP G. ALTBACH N. JAYARAM (THE HINDU daily dated

1/1/2010).15. http://www.thehindubusinessline.com/opinion/demographic-dividend-is-not-a-given/article7122859.ece.16. https://www.iimcal.ac.in/make-india-academic-perspective-prof-partha-priya-dutta.17. http://www.universityworldnews.com/article.php?story=20140204171742828.18. The Demographic Dividend: Evidence from the Indian States (IMF working paper Prepared by Shekhar Aiyar and

Ashoka Mody)



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THE YELLOW LURE: A STUDY OF CUSTOMER AWARENESS IN GOLD BUYING

Prof. Swetha M.S.* Prof. Kalyanasundaram P.**Department of Management Studies, East Point College of Higher Education, Bangalore.

AbstractTraditionally, India has been the largest market for gold jewelry in the world absorbing over 800 tons a year, while China isshowing a phenomenal growth rate in gold consumption in the recent years. India’s fascination for gold dates back toancient times and culturally too it is ingrained in India and it is expected that every family holds some gold, most notably inthe form of jewelry. Each year during the last day of Diwali festival or during Akshaya Trithiya, Indians visit jewelry storesto buy gold believing that this will bring health, wealth and prosperity to the family. Women in India are the driving forcebehind its historically high level of gold demand. It is estimated that Indian women hold some 18000 tons of gold at theirhomes in the form of jewelry. This is 50% more than what the US holds as its national reserves. In these days of consumeractivism, it is essential for one to be completely aware of the gold standards in terms of quality and price to make aninformed decision during gold jewelry purchases. Though a plethora of advertisements are released by competing goldretailers to build consumer confidence and transparency, the customer is still in deep quagmire when it comes to buyingjewelry. This study is an attempt by the researchers to find out the buying preferences and about the awareness level of goldcustomers in terms of awareness regarding gold standards, market, purity, pricing etc. A cross-section of gold buyers fromEast Bangalore was contacted for the purpose of this study and the findings are presented. The study also presentssuggestions for the development of gold market and improvements for better customer service.

Keywords: Gold Standards, Purity, Pricing. Jewelry Purchase, Ethics, Retailers.

1.0 INTRODUCTIONGold is known to mankind for more than six thousand years. Gold is known as a noble metal. The appeal of Gold is universalacross humankind. Wars have been fought and empires have been toppled for Gold. Gold is a global currency. Gold hasformed the backbone of global economic activities as a reserve currency over the last several centuries. Gold is the mostliquid asset known to mankind and is en-cashable in any form, at anytime, anywhere in the world. In the history of humankind about 1, 25,000 tons of gold has been mined. Apart from investment and adornment gold is also used in variousindustries like dentistry, electronics etc. Major gold producing countries in the world are South Africa, Australia, UnitedStates of America, China, Russia, Peru and Indonesia. Currently a little over 2,600 tons of gold is mined per annum. Themajor gold consuming countries in the world are India, United States of America, Middle East, Turkey, Italy and UK. Gold isutilized in most of the countries across the world.

Mainly 24cts gold in the form of coins and bullion bars is used for investment purposes. Gold jewelry is fabricated in variouspurities like 22cts, 21cts, 18cts, 14cts, 12cts, 10cts and 9cts. India is the largest gold jewelry market consuming about 800tons of gold per annum which is mainly for fabrication of 22cts gold jewelry.

Women in India are the driving force behind its historically high level of gold demand. It is estimated that Indian womenhold some 18000 tons of gold at their homes in the form of jewelry. This is 50% more than what the US holds as its nationalreserves. In these days of consumer activism, it is essential for one to be completely aware of the gold standards in terms ofquality and price to make an informed decision during gold jewelry purchases. Though a plethora of advertisements arereleased by competing gold retailers to build consumer confidence and transparency, the customer is still in deep quagmirewhen it comes to buying jewelry. This study is an attempt by the researchers to find out the buying preferences and about theawareness level of gold customers in terms of awareness regarding gold standards, market, purity, pricing etc. Emergence ofIndia as a global manufacturing hub also calls for transparent marketing practices and therefore to understand the customers’perspective this study was conducted.

2.0 REVIEW OF LITERATUREThe two major sectors of the industry in India are gold jewelry and diamonds. The country is the largest consumer of gold,accounting for more than 20% of the total world gold consumption. Gold jewelry forms around 80% of the Indian jewelrymarket, with the balance comprising fabricated studded jewelry that includes diamond and gemstone studded jewelry. Apredominant portion of the gold jewelry manufactured in India is consumed in the domestic market. The Indian gem andjewelry industry has the potential to grow from the present estimate of $45 billion to $100 billion by 2015, according to awhite paper by the Federation of Indian Chambers of Commerce and Industry (FICCI). The domestic gem and jewelrymarket is estimated to be in the $18- to $20 billion range. The industry is expected to grow at around 13 per cent annually



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and could reach $35- to $40 billion by 2015. Gem and jewelry exports are expected to grow at a compounded annual growthrate of 15 per cent to reach $58 billion by 2015 from the current level of $25 billion. Balaji and Maheswari (2014) state thatthe consumer buying behavior is taking a paradigm shift and consumers are interested in branded jewelry rather thanunorganized sector of the past. According to CARE 2013 Report, India is the fastest growing branded jewelry market in theworld which expected to account for 10 percent of the country’s total jewelry retail market by 2016, up from the current 4 -6percent. Several organized players are foraying into Tier-II and Tier-III cities as almost 60 – 70 % of the gold sales isattributed to rural India. With the changing lifestyle patterns and mall culture fast catching-up in Tier-II & Tier-III cities,transformation from family owned to professionally managed businesses is happening. The other contributing factors to thegrowth are young population, increase in per capita income, changing fashion trend, increasing awareness about brand, mediaexposure, financing option and entry of large number of national and state level organized retailers. Hundal, Grover andBhatia (2013) conclude that parameters like profitability, tax aversion, future prospect, time value of money etc. motivates aretail investor to purchase gold as an investment.

Gold is a symbol of prosperity and appeals to both younger and older generations across social strata within the country. Ithas a unique position in the minds of Indians and is considered a source of social security for a large section of the society.Indians also attach a high emotional value to gold. It is often considered a social requirement for ceremonies and weddingsand bestows a sense of pride and social status to its owners. The demand assessment for gems and jewelry in India needs todistinguish the investment and consumption demand due to the significant importance of gold as an investment asset. Theconsumption demand accounts for around 55 percent of the total market demand. This demand is led by the need for gold andnon-gold jewelry that caters to specific wear occasions and is essentially similar to that of a luxury product.

3.0 METHODOLOGYThe objective of the study was to find out the level of consumer awareness in terms of gold purity, weight, price etc and theirpreference levels in terms of purchases. This was necessary as there is opaqueness in the industry with regard to productquality and pricing. Convenience sampling method was adopted to select respondents for this study. A sample of twenty fiverespondents was selected for the purpose of this study. Primary data was collected from survey and secondary data wascollected from journals, magazines and industry reports.

4.0 DISCUSSIONThe Gems and Jewelry market in India has been witnessing the new players in jewelry retail stores. The key vendorsdominating this market space are Tata Gold Plus., Gitanjali Gems Ltd., Reliance Jewels, Tanishq at national level with themarket share of 5-6%. With other regional retailers like Kalyan Jewelers, Malabar Gold, PC Jewellers, Shubh Jewelers, GRTJewelers, P N Gadgil, Bhima Jewelers, Joy Alukaas, etc, the contribution from organized sector rises to 16-18%.India’s gemsand jewelry industry is likely to double in the next five years, according to a study titled ‘all that glitters is gold: IndiaJewelry Review 2013’ by the global consultancy firm AT Kearney. The study forecasts the sector to reach Rs 500,000–530,000 crore (US$ 81.63 billion-US$ 86.52 billion) by 2018 from Rs 251,000 crore (US$ 40.96 billion) in 2013. In FY2012–13, industry exports touched Rs 227,000 crore (US$ 37.04 billion), topping textiles and apparels by a substantial 25 percent.

It is with this background and intense competition that prevails in the domestic retail jewelry sector this study was conductedto understand the consumer preferences about traditional retail jewel stores, designer jewels, online jewel retailing etc. Theirawareness levels about purity of gold, weight, making charges etc. were solicited from twenty five respondents during thecourse of this study in East Bangalore. The results of the survey are presented as below.

Table 1: Age Versus Marital Status16-25 26-35 36 & above All

Single 3 3 1 7Married 0 11 7 18

The table shows that a majority of respondents were married (72%). Among the respondents majority were in the age groupof 26-35 years (56%) followed by the age group of 36 years and above (32%)

Table 2: Age versus Jewelry Purchase SourceTraditional Designer Others All

16-25 3 0 0 326-35 5 5 4 1436 & above 4 3 1 8



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All 12 8 5 25% 48 32 20 100

As seen from the table, majority (48%) of the respondents prefer to buy from Traditional jewelry stores, no one sought to buyonline. Also only 20% of the respondents bought jewelry from family goldsmiths. 32% of respondents bought jewelry fromDesigner Jewelry stores.

Table 3: Awareness about BIS HallmarkCA A SA NA All

16-25 0 1 1 1 3

26-35 3 5 5 1 14

36 & above 5 2 1 0 8

All 8 8 7 2 25

% 32 32 28 8 100

CA: Completely Aware; A: Aware; SA: Somewhat Aware; NA: Not AwareThe table shows that about 64% of the respondents are aware about BIS Hall mark and 36% are not aware of this. This isreally a matter of concern as this may lead to consumers getting taken for a ride by the unscrupulous retailers.

Table 4: Marital Status Vs Criteria for Choosing the JewelerBrand Offers Relationship Quality All

Single 2 0 2 3 7

Married 2 1 2 13 18

All 4 1 4 16 25

% 16.00 4.00 16.00 64.00 100.00

As it is seen from the table a majority of the respondents vouch for the quality with regard to choosing the jeweler. About64% of the respondents opined that quality is the parameter that they consider while choosing the jeweler. Brand name andrelationship with the jeweler come next to this.

Table 5: Marital Status Vs Frequency of Purchase1 2 >2 times All

Single 6 0 1 7

Married 13 4 1 18

All 19 4 2 25

% 76.00 16.00 8.00 100.00

As seen from the table, with regard to frequency of purchase, a majority of respondents (76%) make only one purchase a yearand only 8% of respondents make purchases more than two occasions a year.

Table 6: Marital Status Vs Awareness about wastagesCA SA A NA All

Single 0 4 2 1 7

Married 4 9 4 1 18

All 4 13 6 2 25

% 16 52 24 8 100

As seen from the table only 16% of the respondents were completely aware about wastages and that too only the marriedpeople have this knowledge. A majority of the respondents (52%) fall under the somewhat aware category which reveals theopaqueness in the area. This is a matter of concern for the industry.



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Table 7: Marital Status Vs Awareness about making chargesCA SA A All

Single 1 4 2 7

Married 4 8 6 18

All 5 12 8 25

20 48 32 100

CA: Completely Aware; SA: Somewhat Aware; A: AwareAs seen from the table only 20% of the respondents are completely aware about making charges. Though awareness level isthere among the respondents, it is not up to the mark and not all are completely aware of making charges. A majority of therespondents possess only marginal knowledge about making charges (48%). This again shows the opaqueness in the industry.

Table 8: Usage of CaratmeterCategory Used Carat Meter Have not used Carat Meter

Single 2 5

Married 6 12

From the table it is evident that a majority of the respondents (68%) have not used the carat meter. Among the marriedrespondents 66% have not used carat meter to check the purity of gold. Only 32 % of the total respondents have used caratmeter.

Table 9: Transparency in Gold Weight in the preferred storeCategory Completely

TransparentTransparent Somewhat

TransparentNotTransparent

Single 1 3 1 2

Married 5 5 2 6

% 24 32 12 32

From the table it is evident that only 56% of the respondents feel that the gold weight declared by the store is transparent.44% feel it is somewhat transparent or not transparent. This too adds to the opaqueness of the industry.

Testing for significant differences with regard to marital status: Hypothesis testing was done to check whether the meanrating of with regard to gold price, wastages and purity differed significantly between single and married respondents.Independent samples T-test was carried out. Results show that for a test with regard to mean rating on gold price opinion ofsingle respondents (M = 3.39, SD= 1.38) did not significantly differ from that of married respondents (M=3.44, SD=1.29), t(23) =0.27, p=0.789. With regard to mean rating on opinion about the wastage charges among the respondent groups it didnot significantly differ between single respondents (M=3.00, SD=1.00) and married respondents (M=2.78, SD=1.06), t (23)=0.48, p=0.638. As for purity of gold there was no significant difference in the opinion between the single (M=3.86,SD=1.07) and married respondents (M=4.11, SD=1.23), t (23)=0.48, p=0.637

MAJOR FINDINGS OF THE STUDY & CHALLENGES OF THE INDUSTRYPerception of opaqueness: The study revealed that awareness about BIS Hall Mark, making charges and wastages amongconsumers is limited. This is due to the opaqueness of the industry. It could be because people continue to buy from theunorganized sector. The industry is fragmented with MSME-sector dominance. Over the last decade, there has beenconsiderable increase in share of organized sector and corresponding transparency. However, there is still a perception ofopaqueness, particularly due to the fragmented nature of the industry. As we have seen over last five years with share ofnational and regional chains increasing from 3 to 5 percent and 7 to 17 percent respectively, this perception is improving. Weexpect this perception to change and further improve positively in long run.

Limited financing options: The industry faces difficulties in availing financing options. Further, the unavailability of Gold(Metal) Loans has increased the cost of financing for domestic jewellers. Traditional financing is costly due to high input



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costs. Even from the customer side financing options for purchase of gold jewelry is limited as it is seen from the surveyonly 33% have availed of a savings scheme.

Risk of talent shortage: The industry’s on-the-job training model leads to longer training time and creates gaps inavailability of industry best practices and standardization, mainly for the fragmented part of the industry. This is coupled withgaps in infrastructure, lower demand for institution-trained workers in the fragmented part of the industry, and lowattractiveness of the industry to the younger generation of employees. Good talent and skill development will lead to moredesigns being produced and will foster market development.

High import dependence & Limited Recycling: One of the biggest challenges faced by the industry stems from itsdependence on gold imports. Compared to an average of about two tons of domestic production of gold, roughly 1,000 tonsof gold was imported in 2012–2013. India has the world’s largest above-ground stock of gold. However, there is limitedrecycling. This is evident from the fact that the supply of gold from old gold scrap was only around 13 percent of totaldomestic consumer demand for gold in 2012, which is less than 1 percent of the above-ground stock of gold in India. Incomparison, the supply of old gold scrap in Turkey is around 60 percent of total domestic consumer demand for gold. This isdue to the unique positioning of gold in the minds of the Indian consumer, whereby the sale of family gold is seen as a socialtaboo and to be considered only in the case of acute financial crisis. As a result, there is a hoarding tendency by individualsand institutions such as temple trusts. There is also a lack of incentive to sell household gold, since there is a loss in value onthe sale of gold jewelry and the buyback price provided by jewelry retailers for old gold is lower (up to 10 percent) than thegold selling price to account for impurities in the used gold.

Customer protection: While there has been a significant increase in adoption of hallmarking (BIS) on jewelry, the practiceis currently limited primarily to organized players, thereby exposing customers to risks related to quality and under-caratage.Hallmarking needs to be implemented widely to protect the interests of customers, with nationwide rollout in the next threeyears. In addition, reducing the procedural complexities involved in the process of hallmarking pertaining to wholesalerstamping, need for separate stamping across different branches would encourage more players to opt for hallmarking.Alternatively, jewellers may be mandated to compulsorily indicate the gold purity and their own label on each jewelry pieceso that that cases of under-caratage are easily traced back to the jeweller. Further, to ensure proper implementation, strictpunitive measures, including loss of license in cases of proven reported under-caratage, could be undertaken.

5.0 SUGGESTIONSBased on the primary data and secondary data collected the following suggestions are presented.

Role of industry: Develop infrastructure and the skills to cater to specific needs of consumption demand: The industry will need

to increase focus on collaboration and the creation of shared facilities in the major jewelry manufacturing hubs ofJaipur, Surat, Mumbai, Coimbatore, Trichur, Hyderabad, Nellore, Kolkata, Delhi, and Amritsar in order to takeadvantage of modern technology. Skill development should also be a priority, and the industry should ensure theavailability of infrastructure to provide vocational training to around 1 lakh students over the next five years. Goodtalent and skill development will lead to more designs being produced and will foster market development.

Remove perception of opaqueness: The industry has made progress in this regard with significant increase in shareof organized sector. However, it still needs to play an important role in increasing the enhancing the transparency inthe industry. Also, strict implementation of know-your-customer norms and hallmarking will help improvetransparency on the customer end. Regional Chains like Kalyan Jewelers and Lalitha Jewelers have made someprogress in consumer education. Others should follow suit.

Enable use of better financing options: The industry needs to ensure a strong credit rating and repayment trackrecord to enable financing from banks or other financial institutions. A continuous movement toward higherorganized trade will further help the industry in this regard. Finally, the industry needs to work with financialsystems to increase credit penetration of the sector. Consumer finance options for gold jewelry purchases too wouldnurture the growth of the industry.

Encourage recycling of gold: The industry may educate the customers about schemes such as the gold depositscheme to improve recycling. It should work toward achieving a target of 40 to 45 percent recycling from a currentvalue of around 20 percent.



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Role of the Government Support industry in infrastructure and skill development: The government will need to play the role of enabler

by providing adequate thrust for skill and infrastructure development through incentives, subsidies, facilitation ofland allocation, and supply of utilities.

Enable transparency improvement for the industry: The government will need to provide incentives for highertransparency.

Provide differentiated regulation for consumption and investment demand: The government will need todifferentiate between consumption demand and investment demand. While it will need to enable the consumptiondemand by reducing restrictions on gold supply (removal of 80-20 regulation and high import duty), focusing onquality control (ensuring nationwide implementation of hallmarking in three years), and enabling easy financing, itwill also need to develop systems to cater to the investment demand through better regulations.

Enable alternatives to investment in physical gold: The government will need to take proactive measures toenable investment in alternative options for gold through better financial access and education, and supportingindustry in the development of m-banking and UID-based platforms. In the long term, it may consider limiting thesale of bars and coins in jewelry shops.

6.0 CONCLUSIONAs discussed above supporting recycling, improving and widening hallmarking and by increasing customer awareness themarket can be improved. One concern of the government is that this asset class has become an unproductive investment. Tochange this perception, recycling should be supported. Better access to gold should be made available through banks such asmobile banking and through gold based financial products such as gold-linked accounts and gold pension accounts. Industryassociations and academia also should contribute in creating customer awareness, policy formulation and skill building toensure a vibrant market.

REFERENCES1. Balaji K and Maheshwari R. (2014), A paradigm shift in the buying behavior of Indian towards gold jewellery – A

theoretical approach with reference to the growth of branded retailers, Indian Journal of Applied Research, 4(2), 11-13

2. Hundal B.S., Grover S., & Bhatia J.K. (2013), Herd Behavior and Gold Investment: A Perceptual Study of RetailInvestors, IOSR Journal of Business and Management, 15 (4), 63-69

3. AT Kearney –FICCI Report (2013). All that glitters is Gold: India Jewellery Review4. ONICRA Credit Rating Agency (2013). Changing Trends: Gems & Jewellery Industry



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“MAKE IN INDIA” – ISSUES AND CHALLANGESSTUDY OF HUMAN RESOURCES BEST PRACTICES IN INDIAN IT INDUSTRY

S. Rajamohamed* Dr. P. C. Sekar***Research Scholar in M.K University, Madurai.

**Professor, Department of Management Studies, M.K.University, Madurai.AbstractTo create best work place for high potential IT employees is an All-time Challenge and Human resources practices areplaying Key role to keep this high potential IT employees. This paper collates the Human resources best practices followed inIT Industry which help the organization to engage the employees to the maximum provide happy environment, cross culture,diversity, and commitment to the work and acquire leadership skills.

INTRODUCTIONIndia’s software industry presents the case of an internationally competitive high-tech industry from a developing economy.IT resources are highly potential resources and retaining them is a Challenge and also attrition rate is high in Indian ITindustries when compare to other sectors in India.

Human capital is a key, and by all accounts increasingly important, part of the resource-base of firms. Human resources havebeen called the “key ingredient to organizational success and failure” (Baron and Kreps, 1999), including success and failurein company innovation performance. Many researches have indicated the Best HR practices stimulate Organizationscommitment of the employees. In our study, we considered six HR Practices Recruitment, Employee Engagement,Performance Management, Compensation and Benefits, Learning and Development, CSR activities etc..

RECRUITMENT, ON BOARDING AND INDUCTION Joining Bonus for the new joiners, who agreed to join the company within short time ( i.e. 2 weeks to 4 weeks ) Career Counselors for new joiners to know the process of organizations/project/portfolio as well as cultural changes. Follow up session one year after joining Probation Confirmation within 6 months after joining the company Meeting with Executive management during the on boarding/Induction programs to know about the organizations

achievements and the future plan. Project Orientation/Induction programs is organized for new joiners for establishing a successful relationship

between employer and employee. Explains about the company policies and practices Accommodation provided to the employees for 2 – 4 weeks if they are not resident to that place. Social Recruiting Strategy. Integrate with LinkedIn to get right people at right time. Turnover of new joiners is higher when they follow up closely after releasing the offer letter.

EMPLOYEE ENGAGEMENT Building innovation into job descriptions: '20 percent times'. Technical employees are required to spend 80% of

their time on the core search and advertising businesses, and 20% on technical projects of their own choosing.(Google).

Cultivating a taste for failure and chaos Schmidt encourages it: “Please fail very quickly—so that you can try again.He had praised an executive who made a several-million-dollar blunder: “‘I’m so glad you made this mistake.Because I want to run a company where we are moving too quickly and doing too much, not being too cautious anddoing too little. If we don’t have any of these mistakes, we’re just not taking enough risk. (Google).

Supporting inspiration with data - making extensive, aggressive use of data and testing to support ideas according toa Harvard case study people aren't allowed to say 'I think' but instead must say 'The data suggest...' (Google).

Flexi timings. ( U.S, Europe, India ) Work from home options. ( U.S, India, Europe) Mandatory 10 days vacations should be taken per year of all employees. ( India) Mandatory/Optional holidays (Birthdays/Wedding Anniversary). Increase in the Paternity Leave ( from 2 weeks to 2 months) and Maternity Leave (3 months to 6 months) Providing counseling sessions during pregnancy/maternity to Female employees Providing counseling session for Parental Guidance for both Father and Mother. Providing crèche facility in discounted rates to the employees. Job Rotations within the project/portfolio/domains after 18 months of project.



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Compensation off if they work on weekends with allowance. Q12 Gallop survey ( Measure Employee Engagement ) Technical Forums/ blogs are used to share the knowledge of the employees. Career Development. Providing training to Hot Technology in the Market to enhance it in their product/applications Software.

PERFORMANCE MANAGEMENT Setting individual Objectives towards company’s objective. Appraisal conducted twice a year (Mid-year review, Final review). 360% of appraisal systems. Global policies for data management, performance management, compensation, education, and development. (

Company globally located ) If Performance is not up to the expectations, the employee will be given a chance to participate in Performance

improved plan program. Performance based pay (80% of fixed salary, 20% of variable pay,) & Bonus for Top performers. Top Performers are listed in the intranet, display boards to make visible for all employees. It will encourage others

to put in their best, thereby creating competitive environment within the company. Publicize Good Performances ( During Town hall Presentations by the senior executives ) Performance Awards -- ( Team level & Individual Levels )

• Celebrating Performance Awards• On the Spot Awards (surprising Awards)• Employee of the week/month

Thanking a colleague to their team members as well as to other teams by sending ‘Thank you’ greetings throughintranet. This will make dependent teams to work together.

A founders award, up to millions of dollars (literally), for new program ideas and designs. (Google )

COMPENSATION AND BENEFITS A flexible compensation package - Such a structure gives employees the option of maximizing their tax-advantage

to suit the demands of their individual lifestyles. ( Europe ) Internal Job reference (Referring a colleague or friend) and get paid for referral Bonus. Free Medical Insurance for Self and Family. Extended Maternity Leave if any major surgery with pay. Some organizations are giving stock options. ( Infosys ) Vacation Donation Program is a social gesture for employees. The program allows employees to donate their unused

leaves either to other employees (who may want leaves for any emergencies) or for a social cause (where they candonate their leaves and organization can in turn donate the amount in lieu of the leave for a social cause). Employeeswho may require extra holidays because of medical emergencies can request for these in the prescribed rules andprocess.

Cafeteria Model ( Secondary Benefits ) - Managers• Car Lease option or Car loan for Managers & above.

Other Benefits• Sabbaticals - (for 3 months) (Extended absence in the professional to achieve something.)• Medical/GYM facilities & Having Company wise Competitions - Carom, Cricket, etc.• Free meals from 11 on-site gourmet restaurants and snack rooms all over, complete with cereal, candy,

fresh fruit, cappuccino makers, and the works. ( Google )

LEARNING AND DEVELOPMENT (LEADERSHIP DEVELOPMENT & TALENT MANAGEMENT): 3 weeks training period after joined the company Mandatory 80 hrs. of training has to be completed per year by the employees irrespective of the position. Assign a buddy in the project for about a month in joining period. Having discussion with them before joining the

organization. This is to make comfort ride in the project, process and people. For Managers, need to do mandatory process and leadership skill and career counselor training. Mentoring the team technically and also grooming the team members to take up the next level (Set as an Objective

for Mid-Level Managers).



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Encouraging the employees to go for certifications. (For Managers: PMP Certifications, leadership skillcertifications internally and externally. For Developers, Technical certificates like Java, Oracle…)

Team Building activities Available resources to study 4 foreign languages: Madarin, Japanese, Spanish and French ( Google ) People connect: Innovative ideas (implemented at the work place) are good to be posted on these knowledge sharing

platforms. Soft skills are crucial to our employees’ success so we provide them with a series of soft skill courses called Career

Builders. Career Builder topics range from building trust to effective communication to diversity to timemanagement to leadership.

We want to create an environment where individuals are encouraged to reach their potential. This is done by payingfor continuing education through our Education Assistance Program (up to $2000/year for all employees to takecontinuous education); and by providing continuous training for all employees to help them develop and grow. Wealso take this 1 step further by investing in the development and growth in not only our employees, but ouremployees’ children who are getting ready to or are attending University by awarding a $1500.00 scholarshipprogram through our parent company. (Sims Recycling Solutions )

Most organizations provide pre-departure training for expatriates, but relatively few provide a process for managingthe expatriate’s re-entry to his or her home country.

Providing Journals access to famous Journals like HBR etc. Technical Forums and Innovative Code programs

CSR ACTIVITIES Special leave for participation in CSR activities. Financial Support and sponsorship of various programs. Active participants in social/charity events (E.g. Go Green, Educating a child)

MISC Open House Discussions for the junior levels with HR. Allowed local cultures to maintain their identity in the context of the corporate culture in global presence. Diversity: Google's People Programs are geared to anticipate the demands and meet the requirements of the

company's rapid expansion throughout the world. We help Google's recruiting and HR processes work effectively,extol Google's many virtues as an employer, engage in ongoing dialogs with university students and professors, anddevelop programs to promote and celebrate Google's culture of diversity

Open Book Management Style: Sharing information such as contract and financial information with employees(Managers and above) so that they understand the decisions that are made and the ramifications of those decisions.Through this process, employees also learn about the business, which is more than just the creative endeavor. Itinvolves making strategic decisions to bid or pass on contracts that are aligned with business and strategic businessmodels. Through this Employee better understands the business and move their focus from just their job to lookingat the company as a whole.

Quarterly/Half yearly / annual revenue or profits are published in intranet to make the employee aware of theOrganizations position in the market and future road maps.

Exit Interviews: To know the reason of employee separation. After exit interviews, more and more companies will be forced to use aggressive counter-offer tactics to keep their

people. Doors open to hire the former employees back to the company. Creating Alumni networks and keeping great relationships with former employees. Skip level connect to Junior resources from Managers to understand the employees concerns and to address the same Entertainment (Like Carom, chess, TVs) in the work area to relieve the stress.

CONCLUSIONThese Best HR practices in all the areas makes the employees feels engaged, Job secureness, Happy Environment which inturns shows commitment toward the organization.

REFERENCES1. European HR Best Practice Report 2011 - Full Report A CRF Institute Benchmark Study on Top Employers in

Europe



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2. The Globalization of Human Resource Practices By Sheila M. Rioux, Ph.D., Paul R. Bernthal, Ph.D., and Richard S.Wellins, Ph.D.

3. HR Practices in IT companies by Dr.S.G. Chapke,Principal Smt.L.R.T. College of Commerce,Akola4. IGDA Business Committee - Best Practices in Human Resources - Prepared by: Leah Rubin – Radical

Entertainment, Clarinda Merripen – Cyberlore Studios5. ECO Canada’s HR Best Practices Report 20126. http://www.employwise.com/hr-best-practices/376-prioritizing-tasks-for-increased-productivity.html7. http://www.123helpme.com/hr-practices-in-google-view.asp?id=1654678. http://www.asaptalentservices.com/2012/02/exit-interviews-practices/9. http://www.leadingforloyalty.com/measuring_employee_engagement.html10. http://thestrategist.in/?page_id=23511. Human Resource Management Practices and Innovation

KeldLaursen/ Nicolai J. Foss



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GREEN COMPUTING IN INDIA: A STUDY OF SELECT COMPANIES

Ms. Shruthi.R* Ms. Namratha.K.S**East Point College of Higher Education, Bangalore.

AbstractThe growing concern of people towards the healthy environment has triggered a hunt for an option that could play a role inmitigating the impact of climate change. Environmental pollution is a buzz word in today’s technical environment.Consumers are also aware of the environmental issues like; global warming and the impact of environmental pollution. Toaddress what is increasingly being perceived as a crisis, there is a growing global movement to implement moreenvironmentally friendly computing. “Green computing” is the name attached to this movement, which represents anenvironmentally responsible way to reduce power and environmental waste.

There are many industries who are now become more conscious about to be environmentally safe and eco-friendly withrespect to their products and products utility (in case of technically sound products) and the reason for going to be green ofthe industries are, by doing this they are helping to make the world more Greener and safer for future and up to some extentthey are delivering their CSR (Corporate Social Responsibility) by producing Green products for welfare of the environmentand the for the customers as a whole..

The Paper aims at finding out what actually impact of Green computing in various Indian companies. Top IT Companies areleading the way forward with their green policies and this green re-branding trend is fast catching up. Informationtechnology and computer hardware companies across the country are helping to alleviate our global climate crisis. Sometech companies are even building cutting edge green data centers, constructing next-generation energy smart grids andimplementing hyper-efficient recycling programs.

Keywords: Green Computing, Green Technology, Economic Sustainability, CSR, It Company.

INTRODUCTIONThese days, the number of people and the number of institutions that utilize the computing resources are ramping up very

fast. Not only is this being felt in the computing industry but in the use of all resources both natural and synthetic. Every bigand small project that is being initiated by either private companies or by the government institutions geared towards tappingall possible technologies as part of a modernized industrialization is equal to the massive use in the resources that we have.Due to the seemingly nonstop project developments that are being initiated, the resources that we have are naturallydepleting. It is for this reason that the concept of green computing was conceived.

Green computing is a phenomenon which has developed particular importance in the IT industry and has emerged as animportant concept in India as in other parts of the developing and developed world, and is seen as an important strategy offacilitating sustainable development.

MEANING OF CORPORATE SOCIAL RESPONSIBILITYBusiness dictionary defines CSR as a company’s sense of responsibility towards the community and environment (bothecological and social) in which it operates.

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns intheir business operations and interactions with their stakeholders. CSR is generally understood as being the way throughwhich a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”),while at the same time addressing the expectations of shareholders and stakeholders. In this sense it is important to draw adistinction between CSR, which can be a strategic business management concept, and charity, sponsorships or philanthropy.Even though the latter can also make a valuable contribution to poverty reduction, will directly enhance the reputation of acompany and strengthen its brand, the concept of CSR clearly goes beyond that.

LITERATURE REVIEWWhat is Green Computing?Green computing is the term used to denote efficient use of resources in computing. It Is also known as Green IT . GreenComputing is “Where organizations adopt a policy of ensuring that the setup and operations of Information Technologyproduces the minimal carbon footprint”



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Green computing is not a relatively new practice in the industry. In fact, for so many years after this study has been officiallyrolled out to the public and to the computing industry, people from the computing industry have widely accepted this theory.However, because the information drive regarding this study has not been sustained after its launch, the incoming experts inthe computing industry have thought that this theory is a long-by-gone story. For this reason, the green computing theorymust re-live its advocacy and this time, the need for other people to help propagate that the practice is still existing, a moreexperienced and reliable set of people is needed – computer consultants and practitioners.

ADOPTION OF COMPUTINGNow the question arises why the firms are using green computing. The literature cited several reasons for it. The five possiblereasons are:

1. Opportunity: Organization perceives environmental computing to be an opportunity that can be used to achieve itsobjectives (Keller, 1987; Shearer, 1990).

2. Social responsibilities: Organizations believe they have a moral obligation to be more socially responsible (Davis,1992; Freeman and Liedtka, 1991).

3. Government pressure: Governmental bodies are forcing firms to become more responsible (NAAG, 1990).4. Competitors: Competitors environmental activities pressure firms to change their environmental computing

activities (NAAG, 1990).5. Cost factors: Cost factors associated with waste disposal or reductions in material usage forces firms to modify

their behavior (Azzone and Manzini, 1994).

MEHODOLOGYThe study adopted secondary data collection from various sources. Data collected was presented accordingly.OBJECTIVES OF THE STUDY

1. To understand the importance of green computing in the present scenario.2. To focus on green computing in the context of Indian IT companies.3. CSCI design of objectives:

There are four known industries that support the green computing. This is the practice or study on how to utilize variouscomputing resources more efficiently through reducing the use of harmful materials, promoting recyclability andbiodegradability, and maximizing energy use of various computing products. The four industries supporting this aims are TheGreen Grid, The Green Electronics Council, Green Computing Impact Organization, Inc., and the Climate Savers ComputingInitiative or CSCI.

DISCUSSIONConcept of Green Computing

Desktop consumption has reached 100 watts. Total Personal Computer(400 million) energy usage in 2000 = 26 nuclear power plants Power is the bottleneck of improving the system performance Power consumption is causing serious problems because of excessive heat.



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POWER CONSUMPTION OF PROCESSOR

The concept of Green Computing revolves around making sure that people are practicing how they can save resources whenthey use the computing technology. Some of the ways where green computing is being manifested are on the following:

a. Recycled materials. There are computer systems that seemingly are no longer functional for a specific process butapplicable to some other things like simple word processing jobs and mathematical calculations. If you no longerfind these systems, you can have these re-purposed or can be donated to other institutions.

b. Virtualization. This is probably one of the most useful technologies in the green computing arena. The capability tovirtualize both the hardware and the software is an amazing wonder that green computing has.

c. Proper use of the system devices like the monitors. Instead of using the CRT or the Cathode Ray Tube monitorswhich emit large amount of electric heat that can damage the environment; you can opt at having liquefied crystaldisplay of the LCD. These are some of the means that green computing can greatly help in propagating maximumutility of the computing resources.

SUSTAINING THE FUTURE“The greatest challenges for businesses trying to be eco-responsible are really understanding what that really means, thenmaking changes that are sustainable over time, while adding business value,” explains Frey. “Another challenge is balancingthe needs of various stakeholders who each have different ideas of what changes should be made.”

Some environmental non-governmental organizations would like certain flame retardants removed from electronic products,while the fire safety community is concerned about removing or changing flame retardants in electronics. One problem is thatthe substitute replacement must be assessed to ensure that environmental and health impacts are lower than the originalmaterial; however, since most replacements are fairly new, they have not been necessarily assessed with the same rigorapplied to the original materials.

Green computing represents a responsible way to address the issue of global warming. By adopting green computingpractices, business leaders can contribute positively to environmental stewardship— and protect the environment while alsoreducing energy and paper costs.

ORGANIZATIONS ADOPTING GREEN COMPUTINGState Bank of IndiaDuring the financial year 2009-2010, State Bank of India undertook a massive rollout of Automated Teller Machines. TheBank was conscious of the need to reduce the carbon footprints as there were more than 10,000 ATMs to be installed allacross the country. Apart from savings of recurring costs to the bank, the project helps in reducing the carbon footprintsimpacting the quality of life of the society at large. The project also supports the cause of the central bank‘s objective ofspreading retail electronic payment culture and reduced dependence on paper based transactions throughout the country, donethrough rapid expansion of ATMs and debit cards. In all the new ATMs, LCD monitors were deployed in lieu of CRTs.LEDs were used instead of tube lights/CFL, 5 star EER 3.1 rated ACs were installed. Specially designed ATMs weredeveloped and installed that consumed low energy and require no air conditioning environment. This project is expected to



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help save a whopping 48508500 KWH per annum. This translates to about Rs 24.25 crores of energy savings per annum.Even solar powered ATMs were developed for rural areas. ATMs were built closer to the customer residences and theirworkplaces, so as to reduce their travel time thus saving time and fuel. More benefits include the convenience of 24x7banking, increased use of e-transactions. Most other banks in India are also realizing the benefits of adopting green practices,and are therefore gradually adopting the same site preparation specifications as used by SBI in this deployment.

WIPRO TECHNOLOGIESWipro takes pride in being a responsible IT organization and actively participating in the green journey. The core mission ofWipro green computing is to work towards clean and sustainable IT products and solutions, which help customers, achievehigh productivity in energy, space and asset management through the lifecycle. Wipro has moved up account of itsperformance on the chemical criterion and for using recycled plastic. Besides, the company’s recently launched Green warerange of desktops is not only 100% recyclable, but also toxin-free.

Wipro Ltd as part of its Eco Eye initiative to achieve ecological sustainability has started a pilot project to harness windenergy. Such projects fetch carbon credits, which in turn fetch a good price in secondary markets. One such project is theaero wind generator in the company’s Electronic City campus. This can power 10 street lights fitted with its LED or CFLlamps of 18 watts each for 10 hours every day. It can lead to reduction in the electricity bill costs and total carbon savings is2.89 tons a year. Wipro is also using food-waste from the cafeterias in its campus to generate bio-gas, which is used forcooking. The plant converts about 1,000 kg of food waste daily into gas comparable to four to six commercial cylinders ofLPG.

CISCOCisco's approach of "Changing the Way We Work, Live, Play, and Learn" extends to its ability to reduce the effects of thecompany's operations and products on the environment. Cisco is planning to minimize the ecological impact by establishingresponsible operation programs aimed to reduce energy consumption across the company, limit the greenhouse gas emissionsimplicated in global warming, closely manage the air quality, water consumption, food procurement and waste and lastly,monitor and ensure proper disposal of hazardous materials.

To help meet its environmental regulations and improve the environmental practices, Cisco has implemented anEnvironmental management System. Cisco’s Connected Workplace concept, which is being implemented in Cisco’sworldwide offices, provides a flexible working environment. This helps in reducing material and equipment costs, saveselectricity and hence lowers the greenhouse gas emissions. The system helps in cutting construction costs and land userequirements.

In the attempts to be eco-friendly Cisco recently partnered with San Francisco’s Department of Energy to announce World’sfirst Urban Eco Map Pilot. This tool provides information on carbon emissions which are caused by transportation, energywaste etc. organized by ZIP codes.

INFOSYS TECHNOLOGIES LTDInfosys says it is focused on green buildings, water harvesting and conservation, better transport management by encouragingcar pool for its employees and increasing bio-diversity in its campuses. The company also has a product lifecycle andengineering solutions business unit that is focused on ‘green engineering’. The unit works on new products as well as onrefurbishing products.

Infosys has also decided to plant a tree for every new employee. Infosys has one of the largest passive solar water heaterscapacities in India, close to 5 lakh liters. Employees have also been urged to use the public transport for commuting and nowclose to 80% of employees based in India use public transport and company buses. There are a host of such measures beingundertaken by the company to reduce its carbon footprint..

ACCENTUREAccenture is committed to reducing its per capita carbon footprint 40 percent by the end of fiscal year 2012 from its 2007baseline. In fiscal 2009, Accenture achieved its initial target of a 25 percent reduction in carbon dioxide emitted per employeeby implementing energy efficiency programs throughout its offices, reducing travel and boosting employee awareness.

Measures included the increased use of interactive technologies and virtual conferences as well as using public transportationwhen possible. The company is also focused on “green” buildings .



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Accenture also conducted a green data center study at many of its facilities across India, and has identified significantsavings, which will help the company design more energy-efficient data centers.

In this spirit of harnessing innovation to improve the way the business functions, Accenture has created the Accenture GreenTechnology Suite, a set of complementary tools to help organizations transform their IT departments to reduce carbonemissions—and better enable new ways of working. The tool helps to assess the current state of a data center’s energyconsumption in terms of both environmental and financial impact. It then helps decision makers create and evaluate strategiesfor cost and carbon savings as tools to reach for high performance.

HCL TECHNOLOGIESThis IT major may be considered as the icon of Indian green initiatives, thanks to the “go green” steps taken in solving theproblem of toxics and e-waste in the electronics industry. HCL is committed to phasing out the hazardous vinyl plastic andBrominated Flame Retardants from its products and has called for a Restriction on Hazardous Substances (RoHS) legislationin India.

HCL has set a target of greenhouse gas (GHG) emission reduction of 20% by 2014 on a baseline of 2007-08. HCL has awell-defined environment management policy called HCL ecoSafe. It is a collection of voluntary standards that assistsorganizations to achieve environmental gains through the implementation of effective environmental management. Thestandards provide both a model for streamlining environmental management, and guidelines to ensure environmental issuesare considered in an effective manner to safeguard the interests of all stakeholders involved.

HCL, under its eco Safe Policy assures its customers to work with an aim to meet all environmental requirements and toreduce/avoid pollution associated with the materials, processes, and practices associated with manufacturing/productoperations.

Challenges Ahead1. Green products require renewable and recyclable material, which is costly.2. It requires a technology, which demands huge investment in R & D.3. Water treatment technology, which is too costly.4. Majority of the people are not aware of green products and their uses.5. Majority of the consumers are not willing to pay a premium for green products

SUGGESTION1. Develop a sustainable green computing plan.

Discuss with business leaders the elements that should be factored into such a plan, including organizational policiesand checklists. Such a plan should include recycling policies, recommendations for disposal of used equipment,government guidelines and recommendations for purchasing green computer equipment. Green computing bestpractices and policies should cover power usage, reduction of paper consumption, as well as recommendations fornew equipment and recycling old machines. Organizational policies should include communication andimplementation.

2. Recycle. Discard used or unwanted electronic equipment in a convenient and environmentally responsible manner.Computers have toxin metals and pollutants that can emit harmful emissions into the environment. Never discardcomputers in a landfill. Recycle them instead through manufacturer programs such as HP's Planet Partners recyclingservice or recycling facilities in your community. Or donate still-working computers to a non-profit agency.

3. Make environmentally sound purchase decisions.Purchase Electronic Product Environmental Assessment Tool registered products. EPEAT is a procurement toolpromoted by the nonprofit Green Electronics Council to:

Help institutional purchasers evaluate, compare and select desktop computers, notebooks and monitorsbased on environmental attributes

Provide a clear, consistent set of performance criteria for the design of products Recognize manufacturer efforts to reduce the environmental impact of products by reducing or eliminating

environmentally sensitive materials, designing for longevity and reducing packaging materials.All EPEAT-registered products must meet minimum requirements in eight areas of environmental impact and beenergy efficient to reduce emissions of climate-changing greenhouse gases. To demonstrate corporate social and



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environmental performance, manufacturers must offer safe end-of-life management and recycling options whenproducts become unusable.

"Developing environmentally sound products has long been a priority for HP's design and engineering teams," saysJeri Callaway, vice president and general manager, Americas Commercial Solutions, Personal Systems Group, HP."We're particularly proud that our business-class products already meet, and in some cases exceed, the basic EPEATstandards without any alteration to their existing design.”

4. Reduce Paper Consumption. There are many easy, obvious ways to reduce paper consumption: e-mail, electronicarchiving, use the “track changes” feature in electronic documents, rather than redline corrections on paper. Whenyou do print out documents, make sure to use both sides of the paper, recycle regularly, use smaller fonts andmargins, and selectively print required pages.

5. Conserve energy.Turn off your computer when you know you won’t use it for an extended period of time. Turn on powermanagement features during shorter periods of inactivity. Power management allows monitors and computers toenter low-power states when sitting idle. By simply hitting the keyboard or moving the mouse, the computer ormonitors awakens from its low power sleep mode in seconds. Power management tactics can save energy and helpprotect the environment.

6. Products The third greening strategy pertains to products. This could take place in the following ways:

Repair – extend the life of a product by repairing its parts Recondition – extend the life of a product by significantly overhauling it Remanufacture – the new product is based on old ones Reuse – design a product so that it can be used multiple times Recycle – products can be reprocessed and converted into raw material to be used in another or the same

product Reduce – even though the product uses fewer raw materials or generates less disposable waste, it delivers

benefits comparable to its former version or to competing products.

CONCLUSIONWith the growing holistic technical concept the IT companies are now are more concerned about the profit, planet and peoplenot just theoretically but many companies are trying to implement it as well. This is evident from the above stated examples.The Indian companies adopting green computing and the preference is shifting the concern for greener environment andtowards green computing, in terms of preens products, environmental protection. The firms are enchasing these by providingthe green products on comparatively high prices. There are many companies who are rebranding themselves keeping in mindthe urge of the time. Like Videocon going for changing the logo. Since "green symbolizes hope and growth"."Green is alsoassociated with regeneration, fertility and rebirth for its connections to nature."It also symbolizes LIFE in its LUSHEST!!The younger, peppy, fresh, flowing, edgeless, green logo is surely a welcome change for the revival of the brand. But whatneeds to be seen is how much this change in logo going be supported by improved product quality.

REFERENCES1. http://en.wikipedia.org/wiki/Green_computing2. http://www.sncllc.com/docs/whitepaper/greencomputing.pdf3. http://www.hcltech.com4. http://www.wipro.co.in5. http://www.accenture.co.in6. http://www.hp.co.in7. http://www.infosis.com8. leadership initiative by Rich Kaestner www.cybernetic technologies.com/GreenComputingPresentation.pdf



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MAKE IN INDIA - BACK TO THE ROOTS

Dr.Cynthia Menezes* Shruthika.N***Associate Professor, Canara Bank School of Management Studies, Bangalore.**Research Scholar, Canara Bank School of Management Studies, Bangalore.

AbstractOn the 25th Day of September 2014 the Prime Minister of India Mr. Narendra Damodardas Modi launched the “Make in

India” initiative to boost economic growth and employment generation. It aims at preventing brain drain, facilitateinvestment, skill development, and foster innovation. Even before the Make in India initiative was announced India began tosee a change in the movement of its human capital, who moved from the developed countries to their homeland. This returnto home country is due to the economic growth, increase in living standards, career opportunities, better family and culturalties. This trend shall pave the way for the Make in India initiative that Government of India has been promoting. Job creationand skill enhancement is the main objective of this initiative for which the intelligentsia of India has to come together to makeit successful. In order to make India a manufacturing hub the human resource shall play an important role.

Key words: Brain Drain, Reverse, Make in India, Human Capital.

INTRODUCTIONBrain Drain term was coined by the Royal Society to describe the emigration of the intelligentsia of the then under developedcountries to developed countries. The Draining in India became gain for many developed countries from USA, UK toEuropean countries. People who thought that the home country shall not give them their worth moved to other countries toexplore and succeed in their lives. In the 1970’s it became very evident that people emigrated in search better prospects.Indians migrated for reasons like

Unemployment Low salaries Political instability Education Lack of opportunities Regulated market

DefinitionBrain Drain: According to Wikipedia, the emigration of intelligent, well-educated individuals for better pay or conditions,causing their places of origin to lose skilled people, or "brains." Typically, such emigrating individuals have learned Englishand have moved to the United Kingdom, the United States or some other English-speaking country.

Reverse Brain Drain: Reverse brain drain is a form of brain drain where human capital moves in reverse from a moredeveloped country to a less developed country that is developing rapidly. These migrants may accumulate savings, alsoknown as remittances, and develop skills overseas that can be used in their home country.

Make in India: An initiative by Government of India, designed to facilitate investment, foster innovation, enhance skilldevelopment, protect intellectual property and build best in class manufacturing infrastructure, there is never been a bettertime to make in India.

OBJECTIVEIn a knowledge economy the need for the brains of the country is more than ever. If the economy has to succeed Make inIndia campaign then the intelligentsia must be be completely utilized. The main objective of this paper is as follows.

Can Reverse Brain Drain have an impact on Make in India Programme.Make in India aims at making India the manufacturing hub. With any kind of infrastructure manufacture is not possiblewithout the human resource. Hence if the human resource is well qualified with all kinds of experience then it is useful forthe nation to be competitive.

RESEARCH METHODOLOGYThe study is a descriptive study. The research is mainly based on secondary data for statistics on the movement of the humancapital. The secondary data is collected from various books, websites, Journals, articles, and newspapers. Primary data hasbeen collected through informal personal interviews with the emigrants who returned from the developed countries.



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LIMITATIONS OF THE STUDY The study is mainly based on secondary data than primary data. Secondary data may be inaccurate, as they may not be completely dependable. There might be bias in certain situations.

CAUSES OF REVERSE BRAIN DRAINMake in India is shift in the attitude towards business.The transformation of India into a hub of World Manufacturing Industry will create more jobs and employment opportunitiesfor its people. Indian brain is immensely intelligent and talented but due to lack of ample and relevant job opportunities,excellent Indian talent is going abroad and working for companies outside Indian borders.

Medha, (2014) From India alone, the U.S. has received close to three million immigrants, almost 1% of the total population.Only two out of five Post Docs are from USA. Khadria (2003) For example, the yearly number of Indian-born getting the‘green card’ for permanent residency in the U.S. increased four-fold in quarter of a century, from 17,500 in 1976 to 70,290 in2001, whereas the corresponding number of Indians who naturalized as U.S. citizens grew nine-fold from 3,564 to 32,378(US, INS, Statistical Yearbook 2001, published Feb. 2003).

Visa for spouse, children and parents Contribute to the economy Better opportunities. Family reasons : aging parents, cultural ties Jobs unavailable for educated spouses

Foreign-born faculty and researchers contribute enormously to America's economic growth, scientific discoveries,technological innovations and most of these scholars come from India. But now a lot of Indians trained in the US arereturning after acquiring PhD or post-doctoral degrees, some of them most successful.

TO MAKE IN INDIAWalt Disney said “You can create, design and build the most wonderful place in the world but it requires people to make thedream reality”.

Indian Diaspora is estimated as 25 million all over the world. It is second only next to the Chinese. Most of the populationthat are returning are academicians, researchers and engineers who are really needed by the nation for making in India. Theaverage age of the population returning to India is between 25 to 35. Hence the young population equipped with foreigndegrees and experiences are here to contribute to the economy as researchers and entrepreneurs and academicians.Consider the below two PIO who returned to India and started their own venture.

1. An entrepreneur in USA of Indian origin returned to India and started a company that drives social change. Hereturned to India not just for his community, but also to make money for which his father left his homeland and wentto USA.

2. The Lady who returned to India to settle her was joked at for making the wrong decision. But today she runs acompany that promotes camping in the weekends a trend that is catching up in India off late. She is equipped with aPost graduate degree and work experience from New York.

India has become a land of opportunities. Jobs are easily available in India for the foreign returned Indians. If not Venturecapitalists encourage aspiring entrepreneurs to start up new ventures. Liberalization and technological revolution provide aconducive environment for the people. The global meltdown in 2008 has added to the reasons to come back to India. Mostresearchers and academicians who have returned have settled in Bangalore, Hyderabad and Kolkatta, However for newventures and entrepreneurship the hot destination remains Bangalore.

Mobility of brains has gained importance in the recent past. The wellbeing of a nation depends on the brains of the country aswe depend on knowledge and innovation in today’s world. India needs its knowledge base much more than ever before. Indiahas turned to become an attraction for investments and talent. Indian diaspora who left for ocean full of opportunities arereturning to the same opportunities that have been created in their own land. This return has made India confident of bettereconomy. Such reverse inflow of the human capital shall help the initiative Make in India.



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Goyal (2015) Make in India wants to lure the investors and turn itself into a manufacturing hub, its human resource will playa vital part in making it’s this dream come true. According to World Bank Data, in 2013 the contribution of IndianManufacturing sector to Indian Economy was merely 13%. The overall contribution of the manufacturing sector to its grossdomestic product (GDP) is just 28%. India also stands at a very low in contributing in the world manufacturing, with itsoverall share standing at a meagre 1.8%. These statistics are the clear indicators that India has not done very well in itsmanufacturing sector. Domestic manufacturers are also looking for markets to setup their manufacturing units outside theIndian borders. Reasons are many for such an attitude of domestic industrial houses. Fewer subsidies, over interference ofgovernment, less availability of financial services etc. are a few to mention among the reason why the attention of industrialhouses is towards other countries when it comes to setting up an industry. When domestic industrialists are behaving in sucha manner, the same can be expected from the foreign players. Merely urging the domestic and foreign investors andindustrialists is not going to make India a Manufacturing hub or revive its health. Developing India as a manufacturing hub isrequired to earn a golden place in the eyes of foreign countries. .

CONCLUSIONThere is hardly anything you can deny about India. India is a large market, India is a small market, India has opportunities,India doesn’t have attitude-almost anything can be viewed at from any angle and argued to be true. In such adversity rises theentrepreneur who paints a wonderful painting for his nation’s economy. India is a fantastic untapped market, open toexperimental and innovative ideas, and the middle classes now have the money and are willing to try new things.

REFERENCES1. Wikipedia: The Free Encyclopedia, 2001, (en.wikipedia.org) .2. Alberto, Mario (2012): “Brain Drain across the Globe, Country Case Studies”Arauz, Torrez, Urszula, Wittchen,

The interest of Research on Brain Drain, 24, October.3. United Nations Development: Human Development Reports.4. Lamont, James, & Munshi, L (2012), Financial Express.5. NASCOM – Mckinsey Report (2005): “Extending India’s Leadership of the Global IT & Business Industry”. 6. Dr.

Sabharwal, Meghna (2013): “A Study Should I stay, Should I Leave, Reverse Migration of Indian Born Scientistsand Engineers, Times of India, September, 16.

6. Medha Gupte (2014) The concept of reverse brain drain and its relevance to India: International Monthly RefereedJournal of Research In Management & Technology Volume III, January’14.

7. Binod Khadria (2003) Brain Drain and Return Migration: Advantage India?.http://www.developmentgateway.org/knowledge.

8. Kelo, M. and Wächter, B. (2004) Brain Drain and Brain Gain. Migration in the European Union after Enlargement,Nuffic, The Hague.

9. Böhning, W.R. (1981) Elements of a theory of international economic migration to industrial nation states. inGlobal Trends in Migration: Theory and Research on International Population Movements, (Kritz, M., Keely, C. andTomasi, C., eds), pp.31–33, Center for Migration Studies, New York.

10. Baldwin, G.B. (1970) Brain Drain or Brain Overflow? Foreign Affairs, 48/170, pp.358–372.11. Saxenian, A. L. (2000) Brain Drain or Brain Circulation? The Silicon Valley-Asia Connection. (http://www.sims.

berkeley.edu/~anno/speeches/braindrain.html).12. Jahr, V., Schomburg, H., Teichler, U.(2002)Internationale Mobilität von Absolventinnen und Absolventen

europäischer Hochschulen (Werkstattberichte 61), Wissenschaftliches Zentrum für Berufs- und Hochschul forschung , Kassel.

13. Davis, G. (2005) Doctors without Orders. Highlights of the Sigma Xi Post doc Survey. American Scientist, SpecialSupplement May–June 2005, 1–14.

14. Bekhradnia, B., Sastry, T. (2005) Migration of Academic Staff to and from the UK. Higher Education PolicyInstitute (HEPI) (http://www.hepi.ac.uk/download/19BrainDrain.doc).



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“SWACHH BHARATH – A STEP TOWARDS ENVIRONMENTAL ENHANCEMENT”

Ms.Roopa Devi G.* Mr.Ashok kumar K G**Assistant Professor, East Point College of Higher Education, Bangalore.

AbstractIt is essential to make the public aware of the formidable consequences of the Environmental Degradation, if not retorted andreformative measures undertaken would result in the extinction of life. We are facing various environmental challenges. It isessential to get the country acquainted with these challenges so that their acts may be eco-friendly. Swatchh Bharath is onesuch concept which has bought certain strategies to clean the environment in various forms to overcome the environmentaldegradation. This article mainly focuses towards awareness of environmental issues and strategies executed by Governmentof India on environmental enhancement through make in India concept.

Key words: Environmental Degradation, Environmental enhancement, Eco-friendly, Awareness.

INTRODUCTIONAll living things on earth, such as plants, animals and human beings, as well as the physical surroundings with whom weinteract, form a part of our environment. All these constituents of the environment are dependent upon each other. Theenvironmental inequity gives rise to various environmental problems. Some of the environmental problems are pollution, soilerosion leading to floods, salt deserts and sea recedes, desertification, landslides, change of river directions, extinction ofspecies, and vulnerable ecosystem in place of more complex and stable ecosystems, depletion of natural resources, wasteaccumulation, deforestation, thinning of ozone layer and global warming. The environmental problems are visualized interms of pollution, growth in population, development, industrialization, unplanned urbanization etc. Environmental pollutionis defined as the undesirable change in physical, chemical and biological characteristics of our air, land and water (DavidBriggs). As a result of over-population, growth of industrializations, and other human activities like agriculture anddeforestation etc., earth became loaded with diverse pollutants that were released as by-products. It is our responsibility totake necessary steps to control the environmental imbalances.

OBJECTIVES To know the issues and challenges related to environment in India. To know the strategies implemented by Swatcch Bharath concept towards environmental enhancement.

SWACHH BHARAT MISSION INTRODUCTIONSwachh Bharat Mission is a great movement that seeks to create a Clean India by 2019. The father of our nation MahatmaGandhiji always puts the emphasis on swachhta as swachhta leads to healthy and wealthy life. With this concept, the Indiangovernment has decided to launch the Swachh Bharat Mission on October 2, 2014 under the leadership of Prime MinisterShri. Narendra Modi, 'Swachh Bharat Mission' or 'Clean India Campaign' from the Valmiki Basti in New Delhi on Thursday.The mission will cover all major areas rural and urban.(http://vikaspedia.in/health/sanitation-and-hygiene/swachh-bharat-mission)

SWACHH BHARAT MISSION1. 1.Swachh Bharat Mission for Urban Areas2. 2.Swachh Bharat Mission (Gramin)3. 3.Swachh Bharat Swachh Vidyalaya Campaign4. 4.Rashtriya Swachhata Kosh

Swachh Bharat Mission for Urban AreasThe programme includes elimination of open evacuation, conversion of unsanitary toilets to pour flush toilets, eradication ofmanual scavenging, municipal solid waste management and bringing about a behavioural change in people regarding healthysanitation practices.

The mission aims to cover 1.04 crore households, provide 2.5 lakh community toilets, 2.6 lakh public toilets, and a solidwaste management facility in each town. Under the programme, community toilets will be built in residential areas where itis difficult to construct individual house hold toilets. Public toilets will also be constructed in designated locations such astourist places, markets, bus stations, railway stations, etc. The programme will be implemented over a five-year period in4,401 towns across India. Total of the Rs 62,009 crore likely to be spent on the programme, the Centre will pitch in Rs



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14,623 crore. Of the Centre’s share of Rs 14,623 crore, Rs 7,366 crore will be spent on solid waste management, Rs 4,165crore on individual household toilets,Rs 1,828 crore on public awareness and Rs 655 crore on community toilets.

Swachh Bharat Mission (Gramin)The mission aims to make India an open defecation free country in Five Years. The Nirmal Bharat Abhiyan has beenrestructured into the Swachh Bharat Mission (Gramin). Under the mission, One lakh thirty four thousand crore rupees will bespent for construction of about 11 crore 11 lakh toilets in the country. Technology will be used on a large scale to convertwaste into wealth in rural India in the forms of bio-fertilizer and different forms of energy. As part of the mission, for ruralhouseholds, the provision for unit cost of individual household latrine has been increased from Rs 10,000 to Rs 12,000 so asto provide for water availability, including for storing, hand-washing and cleaning of toilets. Central share for such latrineswill be Rs 9,000 while state share will be Rs 3,000. For North Eastern states, Jammu & Kashmir and special category states,the Central share will be 10,800 and the state share Rs 1,200. The mission is to be executed on war footing with theinvolvement of every gram panchayat, panchayat samiti and Zila Parishad in the country, besides roping in large sections ofrural population and school teachers and students in this endeavour.

Swachh Bharat Swachh Vidyalaya CampaignThe Swachh Bharat-Swachh Vidyalaya campaign of the Union Ministry of Human Resource Development is beingstructured during 25th September, 2014 to 31st October 2014 in Kendriya Vidyalays and Navodaya Vidyalaya Sangathans.This mission mainly focuses on:

Every day in school assembly discussions by children on awareness of different aspects of cleanliness especiallywith regard to cleanliness & hygiene will bring attention.

Cleaning of the class rooms, laboratories, libraries, drinking water areas, and kitchen sheds stores, playgrounds,toilets etc.

Cleaning of any statue installed in the school and a talk on the contribution of the person whose statue is installed inthe school.

Cleaning and maintenance of school gardens, school buildings including white wash and painting. Conduct/Organise debates, essay writing, painting, competitions on cleanliness and hygiene. Forming children’s voluntary groups to organise supervise and monitor cleanliness drives.

In addition, to reiterate the messages of cleanliness, good hygiene and proper sanitation, the schools will organise film,shows, model activities on hygiene, essay/painting and other competitions, role plays etc. The Ministry also proposes tointroduce half an hour cleaning campaign twice a week in the school involving students, teachers, parents and communitymembers.

Rashtriya Swachhata KoshThe Swachh Bharat Kosh (SBK) has been implemented to facilitate and channelize individual contributions and CorporateSocial Responsibility (CSR) funds to achieve the objective of Clean India (Swachh Bharat) by the year 2019. The Kosh willbe used to achieve the objective of improving cleanliness levels in rural and urban areas, including in schools. Theapportionment from the Kosh will be used to complement departmental resources for such activities. To incentivisecontributions from individuals and corporate, modalities are being considered to provide tax rebates where it is possible.Environmental issues:

(Image Courtesy : en.wikipedia.org/wiki/File:Slum_and_dirty_river.jpg)



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1. Population growthEvery year 2.11 per cent of population over thousands of millions is growing. Increase in populated leads to pressure on itsnatural resources and reduces the gains of development. Hence, the greatest challenge before us is to limit the populationgrowth. Although population control does automatically lead to development, yet the development leads to a decrease inpopulation growth rates.

2. Existence of PovertyIt has been described has India is rich land with poor people. The poverty and environmental degradation have a nexusbetween them. The majority of our people are directly dependent on the nature resources of the country for their basic needsof food, fuel shelter and fodder. About 40% of our people are still below the poverty line. The challenge of poverty andpopulation growth is essentially a function of poverty. Because, to the very poor, every child is an earner and helper andglobal concerns have little relevance for them.

3. Agricultural GrowthThe people must be aware with the methods to sustain and increase agricultural growth with damaging the environment. Highyielding varieties have caused soil salinity and damage to physical structure of soil.

4. Need to Ground WaterFactors like community wastes, industrial effluents and chemical fertilizers and pesticides have polluted our surface waterand affected quality of the groundwater. It is essential of rationalizing the use of groundwater and to restore the water qualityof our rivers and other water sources.

5. Forests and DevelopmentWith increasing demand of water, plan to harness the mighty river through large irrigation projects were made. Forests servecatchments for the rivers.As such, the dams on the rivers have become areas of political and scientific debate. Vast areas thatwere once green, stand today as waste lands, forests in India have been shrinking for several centuries owing to pressures ofagriculture and other uses.

6. Degradation of LandAt Present out of the total 329 mha of land, only 266 mha possess any potential for production. Of this, 143 mha isagricultural land nearly and 85 suffer from varying degrees of soil degradation. Of the remaining 123 mha, 40 are completelyunproductive. The remaining 83 mha is classified as forest land, of which over half is denuded to various degrees. Nearly 406million head of livestock have to be supported on 13 mha, or less than 4 per cent of the land classified as pasture land, mostof which is overgrazed. Water and wind erosion causes further degradation of almost 150 mha.

7. Reorientation of InstitutionsThe people should be roused to orient institutions, attitudes and infrastructures, to suit conditions and needs today. Thechange has to be brought in keeping in view India’s traditions for resources use managements and education etc. Changeshould be brought in education, in attitudes, in administrative procedures and in institutions. Because it affects way peopleview technology resources and development.

8. Reduction of Genetic DiversityAt present most of wild genetic stocks have been extinct from nature. Wilding including the Tiger, Asiatic Lion and otherspecies are facing problem of loss of genetic diversity. The protected areas network like sanctuaries, national parks, biospherereserves are isolating populations. Remedial steps are to be taken to check decreasing genetic diversity.

9. Negative Consequences of UrbanizationNearly 27 per cent Indians live in urban areas. Urbanization and industrialization has given birth to a great number ofenvironmental problems that need urgent attention. Over 30 per cent of urban Indians live in slums. Out of India’s 3,245towns and cities, only 21 have partial or full sewerage and treatment facilities. Hence, coping with rapid urbanization is amajor challenge.

10. Air and Water PollutionA great number of cities and industrial areas that have been identified as the worst in terms of air and water pollution.Majority of our industrial plants are using out-dated technologies and makeshift facilities devoid of any provision of treatingtheir wastes.Acts are enforced in the country, but their implement is not so easy. The reason is their implementation needs



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great resources, technical expertise, political and social will. Again the people are to be made aware of these rules and theirsupport is indispensable to implement these rules.

General strategies for Environmental Enhancement and Role of Individual/Society1. Use organic products and avoid using chemical pesticides or fertilizers in yards and garden. Many fertilizers are a

source of nitrous oxide, a greenhouse gas that contributes to global warming.2. Collect and compost yard waste instead of burning it. Outdoor burning is not advisable, as it pollutes air. Breathing

smoke causes unhealthy for society and surroundings.

3. It would be better to consider switching to another form of heat which does not generate smoke. If used a woodstove or fireplace to heat at home.

4. Be energy efficient. Most traditional sources of energy burn fossil fuels, causing air pollution. Keep the home well-maintained with weather-stripping, storm windows, and insulation.

5. Plant trees and encourage other to plant trees as well. Trees absorb and store carbon dioxide from the atmosphere,and filter out air pollution. During warmer days, trees provide cool air, unnecessary use of energy on airconditioning is avoided, hence the air pollution.

6. Avoid unnecessary or wasteful packaging of products. Waste food material, paper, decaying vegetables and plasticsshould not be thrown into open drains. Start a compost heap or use a compost bin. This can be used to recycle wastefood and other biodegradable materials.

7. Effluents from distilleries, and solid wastes containing organic matter should be sent to biogas plants for generationof energy.

8. Oil slicks should be skimmed off from the surface with suction device. Sawdust may be spread over oil slicks toabsorb the oil components.

9. .Never put any leftover chemicals, used oils down the drain, toilet or dump them on the ground or in water or burnthem in the garden. If do so, it will cause pollution.

10. Don’t burn any waste, especially plastics, for the smoke may contain polluting gases.11. Use unleaded petrol and alternate sources of energy, and keep the engine properly tuned and serviced and the tyres

inflated to the right pressure, so that vehicle runs efficiently.12. Observe World Environment Day on 5th June. Walk or cycle where it is safe to do so – walking is free; cycling can

help to keep us fit.

CONCLUSIONPollution becomes a puzzling phenomenon due to over population. In fact India is the second most populated country. We allmust adapt new methods/strategies to environmental enhancement. Otherwise it will impact negatively to our cominggenerations and end of all this will be nasty. Environment provides the living condition of earth. Global warming andgreenhouse effect are threatening us. We should remember that prevention is better that cure. As a team we all shouldconcentrate and fight against pollution in order to escape from its impact. So environmental enhancement should be givensignificance in our country through Swachh Bharat.

BIBLIOGRAPHY1. David Briggs – “Environmental Pollution and the global burden of disease”2. M.W.Holdgate – “A perspective of environmental pollution”3. Swachh Bharat – https://swachhbharat.mygov.in/4. http://vikaspedia.in/health/sanitation-and-hygiene/swachh-bharat-mission5. Image Courtesy : en.wikipedia.org/wiki/File:Slum_and_dirty_river.jpg



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INDUSTRIAL SICKNESS - ISSUES AND CHALLENGES: A STUDY OF SELECT ORGANIZATIONS INKARNATAKA AND KERALA

Ms. Pallavi K.V* Mr. Sukesh S* Ms. Malathi N*Final Year BBM, East Point College of Higher Education, Bangalore.

AbstractThe growth story in India has been witnessing the entry of many multinational companies setting up shops to utilize thefavorable demographic dividends that the subcontinent is offering. However, home grown industries are facing roughweather and they are struggling for their survival and growth. Despite a few navaratna companies, the great public sectorcompanies and private sector companies as well have suffered and become sick greatly due to political apathy andunfavorable policies. This paper is an attempt by the researchers to present an account of irrelevant policies, political andbureaucratic apathy that has led to closure of industrial units and there by affecting industrial output in the States ofKarnataka and Kerala. Select units in these states have been chosen for the purpose of this study on industrial sickness.Contrary to the campaign by the Central Government, ‘Make in India’, Industrial units are shutting shops in these states. Thestudy highlights policy flaws, lack of political will and bureaucratic delays and the socio-economic and environmentalramifications of decisions of policy makers and suggests remedial actions that need to be followed by the bureaucrats andpolicy makers.

Keywords: Industrial Sickness, Political Apathy, Industrial Output, Bureaucratic Delay.

1.0INTRODUCTIONIndia is one of the highly populated countries where we can find out good market for all kinds of products and services butthis advantage is being utilized by many foreign companies meanwhile many Indian companies are struggling to survive inthe market and are shutting shops as well. Industrial Development is an effective means to further economic growth.However industrial sickness has become a common feature of the Private and Public Sector Undertakings in India. In spite ofthe enactment of the Special Legislations and various steps taken by the Government to deal with the problem, industrialsickness is growing at an alarming pace. The liberalization of the economy resulting into increased competition has added tothe problem of industrial sickness. This study makes an attempt to analyze the cause of sickness and restructuring of sickcompanies into competitive entities.

This research is an attempt to find out various reasons for the failure of such industries. Few selected companies like Coca-Cola, Rayon Industries & Aaranmula Airport project from Kerala and ITI, HMT & BGML from Karnataka are chosen for thestudy.

2.0 METHODOLOGYThe researchers used secondary data for the purpose of this study. They adopted case study method for the purpose of thisstudy. Rayon Industries, Coca-Cola and Aaranmula Airport Project were chosen from Kerala and KGF, ITI and HMT, werechosen from Karnataka. The cases were studied from three perspectives: background of the case, the issues that were, andcurrent status. The socio-economic, political and environmental impacts are presented in the discussion section.

3.0 DISCUSSION3.1 Rayon Industriesa. Background of the CaseThe rayon industry is popularly characterized as causing distress on the health of people and environment. A large number ofrayon industries worldwide have shut down as a result of the people’s opposition upon their continuation. The Globalenvironmental group Greenpeace has been actively functioning to identify such industries and work against them. In India theGreenpeace group has backed for the closure of the Mavoor rayon factory, and has demanded an adequate compensation forthe damage done to the environment and residents around this region. The Gwalior Rayon started production of pulp andfiber for textile in 1960 which caused a rapid change in the life style of native population followed by a tremendous regionaldevelopment. The Chaliyar River which flows near the factory was severely polluted by this industry. The Gwalior Rayonbesides, has created wide spread impact by reduction in agricultural productivity in the region. The overall influence was socritical that it aroused great opposition to the operation and continuation of this industry. With popular opposition both fromthe government and the people the industry ultimately closed in 2002. The primary and immediate impact of the shutdownwas observed by migration of people in search of jobs and the secondary impact was realized on the land use change.



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b. The Issues The basic raw materials for pulp manufacture are bamboo and eucalyptus. The company acquired 30,000 acres of

forest land to raise industrial plantation of eucalyptus. Every year 2,500-3000 acres of natural forests were turnedinto eucalyptus jungle. There was a ruthless exploitation of forests leading to a diminution in the supply of bambooand eucalyptus and as a consequence shortage in the supply of raw material.

After the opening of the rayon industry the land use structure of the region underwent enormous change causinggreat impact on the natural vegetation, and agricultural lands. The industry was also a source of severeenvironmental hitch to the region’s air, and water which lead to the ultimate shutdown.

After shutting down of the shop many became jobless and they migrated to Middle East countries.

c. Current StatusThe Rayon Industry was one of the popular industries and it was popularly characterized as causing distress on the health ofpeople and environment. Actually in Kerala, Chaliyar river which flows near the factory was severly polluted by this Industryand opposition was raised from Government and People which forced the industry to shut down.

3.2 Coca-Colaa. Background of the caseCoca-cola is the one of the famous beverages company in the world. It has the largest soft drink bottling facilities in India.There have been numerous public protests of the Company’s operations throughout India, involving thousands of Indiancitizens and several non-governmental organizations. Protests against the Coca Cola factories have taken place in a numberof districts including: Mehdiganj near the holy city of Varanasi; Kala Dera, near Jaipur, Rajasthan; Thane district inMaharashtra; and Sivaganga in Tamil Nadu and Plachimada in Kerala.

b. The issues In 2003, women from the Vijayanagaram Colony in the village of Plachimada, protested that their wells had dried

up because of the over exploitation of groundwater resources by the Coca-cola plant. They also argued that the little which was left was undrinkable and when used for bathing the water burned their

eyes and lead to skin complaints. Besides these health issues, the depletion of groundwater resources also affected the ability of local residents to raise

their crops of rice and coconuts. In December 2003, the Village Council’s decision was challenged in the High Court of Kerala State. The Court

considered two issues: the question of the over exploitation of ground water, and the justification for the VillageCouncil’s decision to revoke the licence

In August 2005, the plant was closed once again, this time by the Kerala State Pollution Control Board. The Boardhad sought clarification from Coca Cola of the excessive amount of Cadmium in the effluent. In the waste watertreatment sludges they found that contents of Cadmium abnormally high. It goes up to 600 percent above thepermissible limit.

In August 2006, this brought a new twist to the ongoing saga. The Kerala State Pollution Control Board ordered aban on the manufacture and sale of Coca Cola in the State questioning the safety of the product itself, based onallegations that it contained pesticides and harmful chemicals in a report by an NGO, the Centre for Science andEnvironment, New Delhi. However, in September 2006, the High Court of Kerala set aside the orders of theGovernment of Kerala and the State Food (Health) Authority banning the manufacture and sale of Coca-Cola in theState. The High Court observed that the ban could not be justified since it was based solely on a report by an NGO.

c. Current StatusCoca-Cola is one of the huge cola manufacturing companies but in Kerala due to pollution it caused and the water scarcity itresulted in troubled the general public too much and that is why the plant got shutdown in Plachimada in 2007.

3.3 Aaranmula Airport Projecta. Background of the caseKGS Aranmula International Airport is an airport project planned to be built at Aranmula, Kerala in India, at a cost of Rs.20 billion. The airport is proposed to be built on about 700 acres (2.8 km2) of land. It will cater to wide body aircraft likethe Boeing 747 with a runway length of 3,100 x 45 meters. The terminal building is being designed to handle 1,000passengers at a time and the project is expected to generate 1,500 direct and 6,000 indirect jobs. The company plans to havea Special Economic Zone, a multi-specialty hospital, a shopping mall (either Lulu or Phoenix Market City), a luxury hoteland an international school within the airport complex. The airport, which is less than 100 km from Cochin International



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Airport and Trivandrum International Airport.The proposed Airport would provide transport infrastructure to pilgrims whowish to travel by air to Sabarimala, the second largest pilgrim center in India with annual pilgrims of around 60 Million (asper Government data for the year 2011), The airport site is an hour's drive away from the temple town and also close to othertourist destinations such as Kumarakom, the backwaters of Alappuzha, the high ranges of Kumily, and the Thekkady tigerreserve. The airport is expected to serve Central Travancore region, comprising parts of five districts in Kerala statenamely Pathanamthitta, Alappuzha, Kottayam, Idukki and Kollam. Out of the foreign and domestic tourists' arrival to Kerala,these five districts together account for about 21 per cent of foreign tourists and 14 percent of domestic tourists. The projectis being funded through equity and debt. The equity portion accounts for around Rs 10 billion. The debt-equity ratio is 2:1.Three banks including ICICI, IDBI Bank and SBI have funded the debt portion.The Kerala government has a 10% stake inthe company and has nominated one member to the board of the company, while the Government owned oil company IndianOil Corporation is negotiating to pick up a 10% stake.The first phase of the project is expected to cost Rs 7.50 billion.

b. The issues The controversial project faced strong protest from environmentalists and local people as well as the opposition

parties in Kerala. On 2 April 2013, The National Green Tribunal granted an interim stay on the project banning anyconstruction at the site.

The Tribunal had pronounced the stay in response to a petition that stated that the construction of the airport was inviolation of the provisions of the Kerala Conservation of Paddy and Wet Land Act, 2008, the Kerala Land ReformsAct, 1963 the Environment Protection Act, 1986 and the Land Acquisition Act.

Various local social and environmental organisations are leading an agitation against the Airport project saying thatit would destroy many of the characteristics that qualify Aranmula as a heritage village.

The AAP and LDF are against the project but UDF Government was supporting the project.

c. Current StatusAaranmula project was a huge project, but it has faced too many controversies and was not able to survive and currently theproject seems to be suspended.

3.4Indian Telephone Industriesa. Background of the Case

Indian Telephone industries limited commonly known as ITI Limited is a state owned manufacture of telecommunicationequipments in India. It was founded in 1948 and incorporated on 25th January 1950. It is classified as Union GovernmentCompany and is registered at Registrar of Companies, Bangalore. Its authorized share capital is Rs. 12,000,000,000 and itspaid up capital is Rs. 5,880,000,000. Later it had six manufacturing facilities which produce a range of switching,transmission, access and subscriber premises equipment. It is head quartered at Bangalore. It produces information andcommunication technology (ICT) equipment such as network management systems, encryption and networking solutions forinternet connectivity, and secure communications networks for India’s Military. It is also involved in manufacture oftransmission apparatus for radio telephony, radio-telegraphy, whether or not incorporating reception apparatus or soundrecording or reproducing apparatus; fixed transmitter and transmitter-receivers radio-telephony apparatus for transportequipment, radio telephones, facsimile radiotelegraphic apparatus and so forth.

b. The issues ITI Limited’s Annual General Meeting (AGM) was last held on 26 September 2014 and as per records from

Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March 2014. According to that balance sheet the total current assets in 2013 and 2014 are 1505.26 Cr & 2072.07 Cr respectively

and total current liabilities and provisions are 5229.39 Cr & 3392.86 Cr. This reveals that, the total current assets over total current liabilities in both the years are less hence it is understood

the company is incurring losses. ITI reported a net losses for several consecutive years and ITI, in a bid to reduce the workforce, was thinking of

various steps such as VRS, retrenchment, redeployment and lowering of retirement age. Excess staff, lack ofinnovation, lack of government support are some of the reasons for the company’s failure exchanges, and they haveplanned to shut down one of the two plants in Bangalore. The permanent customers of ITI like BSNL & MTNL arenot placing the orders like earlier years.

c. Current status The ITI Limited at Bangalore still exists but it is in a very sick condition. The net loss of the Company for the year

2013-14 is Rs. 344. 26 Cr against the figure of Rs. 182.06 Cr for the year 2012-13, which however, was afterconsidering a grant of Rs. 177.23 Cr by the Government.



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The net loss for the year 2013-14 is the lowest ever loss in the last twelve financial years It still manufactures the telecommunication equipments but its market share is too low. Though there is a demand for ICT equipments and communication networks the ITI has failed as the Government

did not take any steps to improve this company and revive it.

3.5 Bharat Gold Mines Limiteda. Background of the caseGold was first mined in the area around Kolar in the 2nd and 3rd century AD by the digging of small pits. During the Cholaperiod in the 9th and 10th century AD the scale of the operation grew, but large-scale mining only came in the 1850s underthe British with more manpower and sophisticated machinery. In that year 1873 Mr. M.F. Lavelle, a resident in Bangalore,retired from the army, with some knowledge of geology, applied to the Government for the exclusive privilege of mining inthe Kolar District, his thoughts being principally directed to the possibility of finding coal. His request was granted on certainterms. On these conditions, Mr. Lavelle commenced operations by sinking a shaft in 1875, near Oorgaum. But finding thatlarge capital would be required for carrying out the work, the next year, with the approval of Government, he transferred allhis rights and concessions to Colonel Beresford. This officer, with some friends among racing men, formed a syndicateknown as the Kolar Concessionaires, who took up the matter in earnest.

b. The issues According to reports of Times of India Million tons of Tail dumps are lying in the Kolar gold fields. There are 35

millions tons of such dumps and each ton is expected to have one gram of gold. The gold mines of KGF were closed down by Bharat Gold Mines Limited (BGML) due to Reducing deposits,

Increasing costs, and Decreasing price of gold from 1980 to 2001. The irony is hard to escape. The residents of Kolar Gold Fields (KGF) town have to travel nearly 100 km every day

to earn a living even though their homes practically sit over the world's largest and deepest gold mines. The 133-year-old KGF, 110 km from Bangalore, has nearly 200 tons (worth around Rs 60,000 crore at current rate)

of the precious metal left in its depths. Bharat Gold Mines Limited (BGML) had shut operations in March 2001following the recommendation of the Board for Industrial and Financial Reconstruction (BIFR). The governmentbelieved that it was not economically feasible to continue the extraction. The closure of the mines left 3,000 joblessand turned KGF into a ghost town, dotted by vast expanses of mining waste

c. Current Status In 2013 there was a news that Supreme Court bench allowed the Centre to float a global tender to revive the

mines and Some of the largest gold mining companies from Australia, South Africa, Canada and the UnitedKingdom were expected to participate in the bid.

There was also a news that by February, 2014 the final decision will be in and by April, the mines would be ready toroll again. But the revival of kolar gold fields was not happened yet and the dream of watching the golden town inthe same condition as before remained as a dream.

3.6. HMTa. Background of the caseHMT Limited, formerly Hindustan Machine Tools Limited, is a state-owned manufacturing company under the Ministryof Heavy Industries and Public Enterprises in India. The company manufactures tractors, watches under its watch divisionand industrial machines and tools mainly under its Praga division. It had a work force of 2,806 with manufacturing unitslocated at Bangalore,Pinjore, Kalamassery, Hyderabad and Ajmer.

Watch divisionIn the year 1961, HMT set up a watch manufacturing Unit at Bangalore in collaboration with M/s Citizen Watch Co., Japan.The first batch of Hand Wound Wrist Watches manufactured at this factory was released by the then Prime Minister ofIndia, Jawaharlal Nehru. The most popular mechanical hand wound watch is HMT Janata. There are also other mechanicalwatches like HMT Pilot, HMT Jhalak (Semi Skeletal), HMT Sona, HMT Braille.In 1972, HMT expanded its watchmanufacturing capacity with a set up alongside the Bangalore Factory to manufacture additional watches. In 1975, Watchfactory at Bangalore was further expanded to manufacture Main Spring, Hair spring and Shock absorber components.

HMT set up additional manufacturing facilities to produce watch components sets at Tumkur and Ranibagh in the year 1978and 1985 respectively. Watch factory at Tumkur was partially converted to manufacture Quartz Analog Watches incollaboration with M/S Citizen Watch Co, Japan. To cater to the Niche market, a specialized watch case manufacturing



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facility was set up at Bangalore in 1983. Since 1985, HMT Watches has been involved in making Floral Clocks, SolarClocks, International Clocks and Tower Clocks, most popular among them being the Garden clock in Bangalore. In the year2000, HMT Watch Business group was re-structured as HMT Watches Limited, a wholly owned subsidiary of HMT Limited.

b. The issues It was the quartz watches that proved to be its undoing along with the entry of several new players in the 1980s,

which brought in newer designs and more modern production techniques. HMT is said to have been hobbled byslow decision making, often associated with PSUs.

The central government has decided to shut down HMT Watches, a division of HMT Ltd, as it has been consistentlyoperating under loss since the year 2000, and facing an economic crisis under which it is finding it difficult even todisburse salary to employees

In the recent past, losses of the company have been steadily raising, and the central government had to lend Rs694.52 crore by March 2012 end to the company to tide over financial crisis.

In 2012-2013 the other watch manufacturing companies like TITAN introduced the new models and was making aprofit of 1675 Cr meanwhile HMT stuck on their old models and was incurring loss of 242 Cr.

The HMT started to invest the profits earned in manufacturing heavy machine tools in the watch division but theywere not successful.

d. Current Status The HMT Limited was once a successful firm but currently it is running in a very bad condition. In September 2014 the government decided to shut down HMT operations in phased manner. Currently the HMT Limited is in to manufacturing of heavy machinery tools but its watch division is completely

closed. Though there is a good demand for watches in the market the HMT Limited could not survive in the market.

MAJOR FINDINGS OF THIS STUDYThis study had covered two private organizations and four public sector organizations. As far as Kerala is concerned duringthe period August 1991 through March 2014 the state had managed to implement only 81 proposals involving Rs. 1019Crores. At this figure, it is only 0.19 per cent of what has come to rest of India. Despite the growth rate in Gross StateDomestic Product in Kerala and ranking high in monthly per capita consumption expenditure, and high literacy rates, thedegree of entrepreneurship in the state of Kerala is very low. The manufacturing sector in Kerala has grown at a very lowrate at 5.17% during the period 1998-99 through 2011-12 while India grew at 12.18%. No large industrial projects wereimplemented since 2007 (Except for the year 2009). Kerala has attracted only $981 million as FDI equity inflows (April 2000to March 2014) which is only 0.5% of FDI that has come to rest of India. The reasons are:

There has been a huge failure rate in project implementation. The constraints are land, labor, quality of bureaucracy and the attitude of civil society toward the negative

externalities of industrial production such as air and water pollution, harmful consequences on the water table etc. As for labor though the levels of militancy of labor in Kerala has reduced other issues like absenteeism, low labor

productivity, wage issues etc. still exist. While the state claims it has a single window clearance for industrial projects they are not proactive leading to

limited investments. Corruptions issues also discourage entrepreneurs in setting us industries in Kerala.

As for ITI, and HMT, Cash flow from operations was also negative for these companies. And their debt-equity ratios weresignificantly high over the past few years. While debt increased for most, the shareholders’ funds declined because of losses.The reasons are no secret. While some experts point to bureaucratic factors, these companies were not able to cope with thechanging external environment. These companies became sick over the years on account of inadequate job orders, highmanpower cost, lack of finance, technological obsolescence, high input costs and competition from cheap imports. Thesewere hit by the burden of serving macroeconomic objectives, but the common problem for most were poor debt-equitystructure, slow decision-making and weak marketing strategies.

HMT for example, has over the past 61 years diversified into making watches, tractors, etc. For more than 10 years now, thecompany has been reporting consolidated losses after tax. Its reported bottom line was positive (at Rs 17 crore) only in 2005-06. And, since 2006-07, its accumulated losses have been rising — from Rs 770 crore to Rs 3,382 crore in 2013-14.Experts say HMT, which was once a leader in the watch segment, controlling over a fourth of the Indian market, lost out tocompetition over time, especially from Titan. In September 2014, the government decided to close down HMT’s watchdivision in a phased manner. In tractors, too, companies like Mahindra & Mahindra now dominate the market.



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The case with ITI, which provides communication technology products and services, is a little different. Its sales have fallensharply and the company continues to report losses at the next level. Business has dipped but expenses continue to soar. It hasfailed to keep up in technology and has been run over by the private players.

4.0 SUGGESTIONS AND CONCLUSIONWherever the industries are set up they have to face some or the other problems, but in this competitive world, everyorganization, whether private or public, has to be innovative, update themselves, have flexible management and also have toconsider social responsibilities like not polluting the environment, avoidance of over utilization of natural resources etc.Investor friendly policies and development of infrastructure to attract investors is a must for the policy makers. Governmentshould support industrial development by controlling cartelization, provision of land banks for setting up of industries, byspeeding up approvals, reducing bottlenecks that arise through bureaucracy, making natural resources available and materialsrequired for production without causing strain on environment, and by offering suitable packages for revival.

REFERENCES1. Chowdhary F. (2012). Empirical Study on Reasons of Industrial Sickness with reference to Jammu and Kashmir

Industries Limited, IOSR Journal and Business and Management, 5(5), 48-552. Laxmikant Jawahar (2010). A Study of Restructuring of State Level Public Sector Sick Companies in Karnataka,

Fiscal Policy Institute, Bangalore3. Mani S. (2014), Industrial Investments in Kerala: Trends, Constraints and Future Prospects, The Journal of

Industrial Statistics, 3(2), 169-1984. www.moneycontrol.com5. www.newindianexpress.com



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IMPACT OF MAKE IN INDIA ON AUTOMOBILE INDUSTRY – AN ECONOMIC OUTLOOK ANDEMPLOYMENT

Dr. Cynthia Menezes* K. Srinivasan***Associate Professor & Research Guide, Canara Bank School of Management Studies, Bangalore.

**Research Scholar, Canara Bank School of Management Studies, Bangalore.AbstractAutomobile industry makes a significant contribution towards the growth of a nation’s economy. It has emerged as one of thebooming sectors with a contribution of around 7% to the nation’s GDP. Rising income, growing middle-class and apredominantly young population are some of the prime factors that have propelled this growth. The continuation of this trendcan definitely make India one of the top auto producing countries of the world in the coming years. This paper attempts toanalyze the reasons driving the potential, the main reasons of vehicle penetration in India. Auto industry in India is likely tobenefit from this growth as aspirations of the majority of the middle class include owning a car. As the economic prosperityspreads across demographics, mobility will no longer be a luxury but a necessity for Indians. Most importantly, the Make inIndia represents an attitudinal shift in how India relates to investors, and support structure, not as a permit-issuing authority,nor a as a loan providing bank but as a true business partner.

INTRODUCTIONOnly 18 people per 1000 own vehicles in India compared to 809 people per 1000 in USA, 519 people per 1000 in the UK,and 101 people per 1000 in China.

Secondly, the Indian population overall will likely move up the income curve, as the lower-middle class dwindles from 460mto 290m, and the emerging-middle, middle, and upper-middle classes increase in size as the economy move from developingto developed country.

By 2021, India’s emerging and middle-class segments combined will comprise nearly 900m people— and will open up newopportunities for businesses. Thirdly, Indian auto industry is also unique in the way vehicles are purchased by consumers inIndia. Nearly 75 to 80 percent of the new vehicle purchases are done by using bank loans.

While Urban demand is dependent on inflation and interest rates, banks have also tightened eligibility limits for car loans toavoid potential defaults. Thus any negative sentiment in the economy or stringent eligibility criterion will have negativeimpact on overall demand of cars.

On the other hand rural India has always relied on monsoon rains to irrigate more than half of its farmland and if rainfallcomes in below average, it would result in lower incomes for rural households thus indirectly impacting vehicle sales.While there is no doubt that the spotlight of the global automotive industry is on Asia (particularly china and India), it isworth emphasizing on how Indian industry can emulate china and achieve its true potential by 2020 with focus on thefollowing

OBJECTIVE1. To understand the economic outlook of India2. To examine the status of automobile industry & its employability in India3. To analyze and suggest the suitable method for sustainability and growth.

Analysis: Shift to Manufacturing Driven EconomyCurrently Agriculture in India accounts for 17 percent of GDP but employs over 50 percent of the population. Moving tomanufacturing intensive economy has a twofold impact. 10 million workforces enter the market every year, the country needsto focus on labor intensive manufacturing to drive the inclusive growth, the only option is ‘Making in India”.

If we compare on the population front India is almost close to china. The Chinese economy opened up in 1970s and India in1990’s. China was also able to lift more people from below poverty line due to its growth oriented policies and infrastructureInvestment –i.e. both hard and soft infrastructure as well as focus on increasing exports. We need to get right balance here tocreate employment and demand in the country.

Skill development to enhance the skillsetDeveloping special programs and incentives for enhancing the skillsets of its rural population, India can move millionfamilies out of poverty. Once the shift is considerably seen, academia-industry connect should be encouraged to increase



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internship opportunities at all major auto production hubs in the country, to also adopt a collaborative approach to trainingthat is inclusive of manufacturers and dealerships, develop online training resources and focus on increasing practicalcomponents to enhance the hands-on skills.

Over the last decade countries in our neighborhood China and other East Asian countries had developed strong economicmodels that relied more on exports to develop their automotive industry as well as pave the way for their rapid economicgrowth. In India, by contrast, the underdevelopment of the industrial sector has kept the country from realizing its fulleconomic potential.

Infrastructure to sustain the Auto industryIndia has made remarkable progress in building new roads, highways, expressways and support infrastructure like airports,ports, railways and power plants, infrastructure growth has not kept pace with growing demand. It is imperative to recognizethat infrastructure is a major driver of growth for auto industry.

Today, China has provided a huge competitive advantage for their industry by focusing on infrastructure development.India’s remarkable automotive growth has so far been fueled by urban consumers. On the other hand, rural India, home to70% of the country’s population, currently accounts for only a fraction of sales.

The Government’s vision for Economic growth and development in rural India will pave the way for launch of productstargeted at this segment. This will unlock rural demand for vehicles and help India realize its true potential in personalmobility. The automobile segment should also focus on developing Intelligent transportation systems, congestion and roadcharging systems, Alternative fuel vehicles, Car sharing, Smart and connected vehicles targeted at “smart cities” of thefuture.

The Industry has been plagued by high incidence of strikes due to outdated labour laws. A majority of the labour forceconsists of unskilled labour which after implementation of these reforms at national level will pave the way for creation ofnew employment opportunities for a Highly skilled and educated local labor pool. Continued R&D & innovation efforts andby effective implementation of government policies the Indian auto industry will reach its full potential in the next 5 to 15years.

POTENTIAL OF INDIA1. India has an extensive road network of 4.86 Million kms which is the second largest in the world.2. More than 60% of freight and 90% of passenger traffic in the country is handled by road.3. The private sector has emerged as a key player in the development of road infrastructure.4. The length of National Highways is expected to grow from 92,850 kms in 2013-14 to 100,000 kms by the end of

2017.5. Seventh-largest producer in the world with an average annual production of 17.5 Million vehicles.6. 4th largest automotive market by volume, by 2015.7. 4 large auto manufacturing hubs across the country.8. 7% of the country’s GDP by volume.9. 6 Million-plus vehicles to be sold annually, by 2020.

By 2015, India is expected to be the fourth largest automotive market by volume in the world.

Over the next 20 years, India will be a part of the big global automotive triumvirate.

Two-wheeler production has grown from 8.5 Million units annually to 15.9 Million units in the last seven years. Significantopportunities exist in rural markets.

India’s car market has the potential to grow to 6+ Millions units annually by 2020.

Global car majors have been ramping up investments in India to cater to growing domestic demand. These manufacturersplan to leverage India’s competitive advantage to set up export-oriented production hubs.

Tata Nano is a sterling example of Indian frugal engineering and is being positioned as a mobilizer of the young generation.Electric cars are likely to be a sizeable market segment in the coming decade.



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STATISTICS1. Domestic Market Share 2013-14:2. Passenger Vehicles 13.59%.3. Commercial Vehicles 3.44%.4. Three-wheelers 2.60%.5. Two-wheelers 80.37%.

The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly andindirectly.

India is currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, ofwhich 2.3 Million are exported.

The Indian automobile market is estimated to become the 3rdlargest in the world by 2016 and will account for more than 5%of global vehicle sales.

India is the second-largest two-wheeler manufacturer, the largest motorcycle manufacturer and the fifth largest commercialvehicle manufacturer in the world.

India has the world’s 12th largest number of high net worth individuals, with a growth of 20.8%, the highest among the top12 countries.

The presence of a large pool of skilled and semi-skilled workers with a strong educational system.A large number of products are available to consumers across various segments. With the entry of a number of foreign

Players and reduced overall product lifecycle, quicker product launches have become the order of the day.The availability of a variety of vehicle models meets diverse needs and preferences.

FDI POLICY100% FDI is allowed under the automatic route in the auto sector, subject to all the applicable regulations and laws.

Electric Mobility 2020The objective of this body is to encourage reliable, affordable and efficient xEVs (hybrid and electric vehicles) that meetconsumer performance and price expectations through government-industry collaboration, for the promotion anddevelopment of indigenous manufacturing capabilities, required infrastructure, consumer awareness and technology – therebyhelping India emerge as a leader in the two-wheeler and four-wheeler xEV market in the world by 2020, with total xEV salesof 6-7 Million units thus enabling the Indian automotive industry to achieve global xEV manufacturing leadership andcontributing towards national fuel security.

The automobile growth story in India is double-layered: on the face of it, a mere 4-5% sales growth, 45-50% capacityutilization and profit margins under pressure in the previous fiscal.

But the dismal figures mask a leap of faith — car makers, both domestic and foreign, have lined up investments of almost$10 billion or nearly Rs 60,000 crore over the next few years. The expansion plans renew hope in the Indian market's long-term prospects, besides exploiting its potential as an export..

If Suzuki Motor is creating more capacity in India, Honda is looking to enter new segments. Renault, Nissan and Volkswagenon their part are building new capacity for exports while Ford and Fiat have both the domestic and export markets in mind.Foreign investors who are keen to invest in India…Suzuki (Japan) , Nissan (Japan) ,Piaggio (Italy) ,Volkswagen(Germany),Renault (France), Hyundai (South Korea), General Motors (USA), BMW (Germany), Ford (USA)



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CONCLUSIONDoing business in India just got easier – new de-licensing and deregulation measures are reducing complexity, andsignificantly increasing speed and transparency. Process of applying for Industrial License & Industrial EntrepreneurMemorandum made online on 24×7 basis through eBiz portal. Validity of Industrial license extended to three years.

10 car makers have invested around Rs 31,570 crore, two-wheeler companies, nearly Rs 8,555 crore and type companiesaround Rs 7,350 crore in the past 10-12 months to build additional capacity of three million vehicles, according to PwC. Thatworks out to nearly a third of the current Indian automotive market.

Graduates of ITIs, engineering colleges and other institutions are not readily employable and need retraining at substantialcosts in order to become employable. Few companies have already taken a leadership role in ITIs, partnering colleges,establishing their own training centers, and working with NGOs and other training partners to retrain persons who could berecruited.

The differences in the structure of the automotive industry in India and other developed countries (US, EU and Japan) areindeed immense. We can learn from the policy approaches adopted by the industry there. Mechanism or framework to bedeveloped to insulate the Indian industry against future economic shocks. The know-how which exists among a few must bediffused and shared among all so that the entire industry works in the same direction in order to build a business based modelthat sustainability and growth.

REFERENCES1. http://marketrealist.com/2015/01/make-india-impact-indias-industrial-production-2015/.2. http://auto.economictimes.indiatimes.com/autologue/Impact-of-Make-in-India-campaign-on-Auto-sector/339.3. http://auto.economictimes.indiatimes.com/autologue/Key-factors-that-will-propel-growth-in-auto-industry/557.4. http://makeinindia.com/sector/automobiles/.5. http://www.slideshare.net/beabhishek/make-in-india-40576498.6. http://economictimes.indiatimes.com/articleshow/47621633.cms?utm_source=contentofinterest&utm_medium=text

&utm_campaign=cppst.7. http://economictimes.indiatimes.com/industry/auto/news/industry/automobile-companies-are-betting-big-on-india-

investing-in-building-new-capacity/articleshow/47621633.cms.8. https://www.pwc.in/en_IN/in/assets/pdfs/publications/2013/automobiles-the-economic-outlook-and-employment-

situation.pdf.9. http://www.pwc.com/gx/en/automotive/publications/index.jhtml.10. http://www.pwc.com/gx/en/ceo-survey/2015/interviews/olof-persson.jhtml.11. http://www.strategyand.pwc.com/perspectives/2015-auto-trends.



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APPLICATION OF STATISTICAL TOOLS IN MAKE IN INDIA CONCEPT ISSUES AND CHALLENGS INSELECT SECTORS GROWTH & PRODUCTIVITY.

Ms. Shenbagavalli * Padma Priya. L***Research scholar, East Point College of Higher Education, Bangalore.

**Lecturer, East Point College of Higher Education, Bangalore.AbstractStatistical techniques have been used in the manufacturing sectors, quality management process and other sectors forover more than 25 years. To achieve and analyze the business objective and decisions making, statistical methods are used,based on data collected about a product or process. There are a number of practical and managerial issues and challengesrelated to the application of statistical techniques in studies aimed at improving process and product quality. This paper isa summary of the results how the manufacturing sectors are applying statistical techniques to achieve make in India concept.Some results are reached which are based on the discrimination of various statistical skills for Indian companiesimplementing an integrated quality management system with business strategy. Statistical techniques and their role inprocess improvement are first discussed and some issues related to the interpretation are also summarized. The focus willbe on continuous quality improvement using statistical techniques. Statistical techniques have been used in different areas ofManagement in different sectors to analyze and interpret the data. Accurate data analysis and statistical forecasting is usedto predict the future values for trading and business. Future trends, patterns and business drives of data are used to forecastabout future business. Statistical methods are widely used to identify study and solve various complex problems related toeconomy and business.

Keywords: - Statistical Techniques, Different Sectors, Interpret the Data, Tools.

1. INTRODUCTIONThe application of Statistics is the application of mathematical statistical techniques to the real problems of the differentbusiness sectors in the world. In addition to helping the business analyst to organise and describe data, business statisticsallows meaningful comparisons to be made between and among complex sets of data. Business statistics can be applied to awide range of business problems including marketing, operations, quality control, and forecasting. The usefulness ofstatistical analysis, however, depends on the quality of the hypothesis being tested. There are a number of considerations fordeveloping a testable hypothesis that will yield meaningful results when analyzed and for designing a research study that willcontrol extraneous variables while emulating the real world situation to which the results will be extrapolated. Mathematicalstatistics is a branch of mathematics that deals with the analysis and interpretation of data. Mathematical statistics providesthe theoretical underpinnings for various applied statistical disciplines, including business statistics, in which data areanalyzed to find answers to quantifiable questions. Business statistics is the application of these tools and techniques to theanalysis of real world problems for the purpose of business decision making. There are two general classes of statistics thatare used by the business analyst. Descriptive statistics are used to describe and summarize data so that they can be moreeasily comprehended and studied. Among the tools of descriptive statistics are various graphing techniques, measures ofcentral tendency, and measures of variability. Graphing techniques help the analyst aggregate and visually portray data sothat they can be better understood. Included in this category are histograms, frequency distributions, and stem and leaf plots.Measures of central tendency estimate the midpoint of a distribution. These measures include the median (the number in themiddle of the distribution), the mode (the number occurring most often in the distribution), and the mean (a mathematicallyderived measure in which the sum of all data in the distribution is divided by the number of data points in the distribution).Measures of variability summarize how widely dispersed the data are over the distribution. The range is the differencebetween the highest and lowest scores in the distribution. The standard deviation is a mathematically derived index of thedegree to which scores differ from the mean of the distribution. Descriptive statistics are helpful for taking large amounts ofdata and describing them in ways that are easily comprehendible. Pie charts, histograms, and frequency polygons arefrequently used in business presentations and are all examples of ways that descriptive statistics can be used in business.Although such descriptive statistics are useful in summarizing and describing data, business statistics is an applied form ofmathematics and is a valuable tool for helping analyse and interpret data. This can be done through the use of inferentialstatistics, a collection of techniques that allow one to make inferences about the data. Make in India concept the majorobjective behind the initiative is to focus on 25 sectors of the economy for job creation and skill enhancement. Some of thesesectorsare: automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation, leather, tourism and hospitality, wellness,railways, design manufacturing, renewable energy, mining, bio-technology, and electronics.

a. The initiative hopes to increase GDP growth and tax revenueb. The initiative also aims at high quality standards and minimising the impact on the environment.c. The initiative hopes to attract capital and technological investment in India.



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2. OBJECTIVES1.Applying Statistical Tools to improve productivity in the manufacturing Sector ( F- TEST& ANOVA)2.Applying Statistical Tools in Pharmaceutical sectors growth through sales. (Least square method).

3. REVIEW OF LITRATURELet's have a look at five challenges that the 'Make in India' could face.1. Creating healthy business environment will be possible only when the administrative machinery is efficient. India has beenvery stringent when it comes to procedural and regulatory clearances. A business-friendly environment will only be created ifIndia can signal easier approval of projects and set up hassle-free clearance mechanism.

2. India should also be ready to tackle elements that adversely affect competitiveness of manufacturing. To make the countrya manufacturing hub the unfavourable factors must be removed. India should also be ready to give tax concessions tocompanies who come and set up unit in the country.

3. India's small and medium-sized industries can play a big role in making the country take the next big leap inmanufacturing. India should be more focused towards novelty and innovation for these sectors. The government has to chartout plans to give special sops and privileges to these sectors.

4. India's make in India campaign will be constantly compared with China's 'Made in China' campaign. The dragon launchedthe campaign at the same day as India seeking to retain its manufacturing prowess. India should constantly keep up itsstrength so as to outpace China's supremacy in the manufacturing sector.

5. India must also encourage high-tech imports; research and development (R&D) to upgrade 'Make in India' give edge-to-edge competition to the Chinese counterpart's campaign. To do so, India has to be better prepared and motivated to do worldclass R&D. The government must ensure that it provides platform for such research and development.

4. ANALYSISTo improve the quality in the manufacturing sector in world standard the following steps to be considered.

(a) Better infrastructural facilities.(b) Supply of quality raw material.(c) Maintaining the proper ratio of employees and machines(d) Proper promotional techniques for improve sales.

With help of statistics F- TEST & ANALYSIS OF VARIENCE used for maintaining the proper ratio of employees andmachines the following example prove the concept.

EXAMPLE 1. The following table gives the number of units of production per day turned out by four different machines.

Employee Types of machines

M1 M2 M3 M4E1 40 36 45 30E2 38 42 50 41E3 36 30 48 35E4 46 47 52 44

Using Analysis of variance (i)test the hypothesis that the mean production is the same for the fourmachines and (ii) test the hypothesis that the employee do not differ with respect to mean productivity.SolutionLet us take the hypothesis That the mean production does not differ for the four machines and The employees do not differ with respect to mean productivity.

To simplify the calculation from the above data subtract 40, we get



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Employees

Machines

M1 M2 M3 M4 TotalE1 0 -4 5 -10 -9E2 -2 2 10 1 11E3 -4 -10 8 -5 -11E4 6 7 12 4 29

Total 0 -5 35 -10 20

2 2Correction factor= T /N= (20) /16 = 25

2 2 2 2 2= (0) /4 + (-5) /4 + (-35) /4 + (-10) /4 - T /N

= 0+6.25+306.25+25-25= 312. V= (4-1) = 3

Sum of squares between employees:

2 2 2 2 2= (-9) /4 + (11) /4 + (-11) /4 + (29) /4 - T /N=20.25+30.25+30.25+210.25-25 =266 V= (4-1) = 3

2 2 2 2 2 2 2 2 2 2 2Total Sum of squares = (0) + (-2) + (-4) + (6) + (-4) + (2) + (-10) + (7) + (5) + (10) + (8) +

2 2 2 2 2 2(12) + (-10) + (1) + (-5) + (4) – T / N

=0+4+16+36+16+4+100+49+25+100+64+144+100+1+25+16-25= 675

ANOVA TABLE

Sum of squares V Mean squares F

Between Columns 315.5 3 104.17 104.17/10.72=9.72Between Rows 266 3 88.67 88.67/10.72=8.27

Residual 96.5 9 10.72Total 675 15

For 3,9 d.f. F =3.86. The calculate values of F are more than the table0.05

The table value at 5% level of significances. The hypothesis is rejected. Hence the mean production is not thesame for the four machines. Also employees differ with respected to productivity.

EXAMPLE 2.The following are the statistics of pharma industries in Make in India concept The country’s pharmaceuticals industry accounts for about 2.4% of the global pharma industry by value and 10% by

volume. Industry revenues are expected to expand at a CAGR of 12.1% during 2012-20 and reach USD 45 Billion. The healthcare sector in India is expected to grow to USD 250 Billion by 2020 from USD 65 Billion currently. The generics market is expected to grow to USD 26.1 Billion by 2016 from USD 11.3 Billion in 2011.

With help of statistical tool not only the present status of demand & supply but also future position of sales based on demandcalculation also possible. The following flow chart gives the picture about how the statistical method helps in demandforecasting.



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The statistical tool used to forecast to reach make in India “Health care 2020”Least Square Method used. The common technique used in constructing the line of best fits is by the method of least squares. The trend is assumed to be linear. The equation for the straight line trend is: Y=a + bx. Where a is the intercept and b shows the impact of the independent variable. Sales are dependent on variable Y. Since sales vary with time, the time periods will be the independent variable X The Y intercept and the slope of the line are found by making appropriate substitutions in the

following normal equations.

EY = na + bEx …………………….. (i)2

EXY = aEx + bEx…………………….. (ii)

Estimated growth from 2016 to 2020Substituting the values in the above formula to find out the values of a & b

EY= 303.2 X= 15 X2 = 55 EXY=993.5303.2=5a+15b……………………. (I)993.5=15a+55b…………………... (II)Multiplying equation (I) by 3

Year Growth USD Billion(Y) X2

X XY2008 45 1 1 452009 51.7 2 4 103.42010 59.5 3 9 178.52011 68.4 4 16 273.62012 78.6 5 25 393Total 303.2 15 55 993.5



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909.6=15a+45b……………………. (III)

(II) - (III)993.5=15a+55b……………………… (II)909.6=15a+45b…………………….. (III)(-) (-) (-)-------------------------------------------------83.9=10bb=83.9/10b=8.39

Substituting b in eqn. (I)303.2=5a+15*8.39303.2=5a+125.85303.2-125.85=5a117.35=5aa=35.47

Using this equation, we can find out the trend values for the previous years and estimates of the health care sectors growth for2016-2020. The trend values and estimates are as follows:

Year: 2014 = 35.47+58.73=94.20Y ear: 2015 = 35.47+67.12=102.59Y ear: 2016 = 35.47+75.51=110.98Year: 2017 =35.47+83.90=119.37Year: 2018 =35.47+92.29=127.76Year: 2019 =35.47+100.68=136.15Y ear: 2020 =35.47+109.07=144.54

As per the current economic strength the expected growth of the pharmaceutical sector from the year 2015 to 2020.

As per the make in India concept current economic strength is expected to increase the growth of the pharmaceuticalsector from the year 2015 to 2020.

year 2015 2016 2017 2018 2019 2020

Growth in USD(Billion) 177.4 191.9 206.45 220.96 235.47 250

As per the current economic strength the pharma sector reach the growth in the year 2020 is USD 144.54 Billion. Ifthe pharmaceutical sector follows the make in India concept the expected growth rate is USD250 Billion.

How this would be achieved Skill development programs would be launched especially for people from rural and poor ones from urban cities 25 key sectors have been short listed such as telecommunications, power, automobile, tourism, pharmaceuticals and

others Individuals aged 15-35 years would get high quality training in the following key areas such as welding, masonries,

painting, nursing to help elder people Skill certifications would be given to make training process, a standard. Currently manufacturing in India suffers due

to low productivity rigid laws and poor infrastructure resulting in low quality products getting manufactured. Over 1000 training centres would be opened across India in the next 2 years.

Year 2015 2016 2017 2018 2019 2020

Growth in USD(Billion) 102.59 110.98 119.37 127.76 136.15 144.54



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For companies setting up factories, “Invest India” unit is being set-up in the commerce department which would beavailable 24/7. The main focus of this department would be to make doing business in India easy by making all theapproval processes simpler and resolving the issues in getting regulatory clearances within 48-72 hours so thatclearances are fast. To make this possible, special team would be available to answer all the queries related to helpforeign investors/companies.

The e-biz portal would be soon launched which would be real time and available 24*7

5. CONCLUSONStatistical techniques are widely used not only to find out the market demand and sales percentages but also growth of thesectors. It is a well-known fact that using the obtained statistics about certain parameters, future business strategies can bedecided. By gathering specific information about product and sale via marketing research and statistical analysis, knowledgeof the best marketing practices can be applied to provide ideas that are both based on the feedback of customers and provento work by the experience. This study provides a future growth of the pharmaceutical sectors if they followed make in Indiaprogram. It was stated in the introduction that companies which want to improve their product and process quality need toconcentrate their efforts on the proper exploration of (internal and external) data available in their records. That way, they canbecome more flexible in responding to customer needs and reacting to competitors’ attempts to undermine their marketposition. To achieve this flexibility, companies should improve the quantitative literacy of their employees. Special attentionshould be given to the service sector, which embraced the basic quality improvement ideas simultaneously with themanufacturing sector, but has been neglecting the use of statistical quality control and improvement tools even more than itsmanufacturing counterpart.

REFERENCES1. Frost & Sullivan Financial Services.2. Book sources; Statistical Methods by S.P. Gupta &business economics by Appannaiah,Reddy& shanthi.



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MAKE IN INDIA – A RATIONALE FOR JOB CREATION IN MANUFACTURING SECTOR

Vidya S. Patil* Rashmi R**Assistant Professor, East Point College of Higher Education, Bangalore.

AbstractYouth unemployment and underemployment is prevalent around the world because young people lack skills, work experience,job search abilities and the financial resources to find employment (United Nations, 2003; ILO, 2006; Matsumoto et al.,2012). This is a major challenge confronting developing countries further increasing global competition has provided themanufacturers from around the globe the opportunities of cheap labor, raw materials and potential high profit makingmarkets. Focusing on these major opportunities the 15th and current prime minister of India Mr. Namenda DamodardasModi on September 25th 2014 launched the Make in India initiative with main focus on job creation and skill enhancement,GDP Growth, tax revenue, high quality standards, attract capital and technological investment in India.

Over the last 20 years there is no tremendous change in Indian manufacturing and has by and large grown at the same pace.Share of global manufacturing has grown from 0.9 to 2.0% and GDP share has grown from 1.2 to2.5% number of jobs hasincreased by 1.8% per year in contrast to service sector which has increased by 6.5% per year and hence no change ingrowth of manufacturing sector.

In coming years, India is expected to witness crucial demographic growth and a disproportionate increase in working agepopulation. To absorb much of this labor force, manufacturing sector has a crucial role to play and thereby contribute to theeconomic development. Government is also keen on raising the contribution from manufacturing sector to the 25% of GDPto the current 15% and provides employment to 100 million people. Considering this as a major challenge the government ofIndia has announced many new reforms and policies. This paper mainly highlights on the actions focused by governmentfor job creation and skill enhancement in leading manufacturing sectors, new policies and reforms to address the issues andchallenges in job creation and skill enhancement and to unleash manufacturing growth boom. Thus the paper describeswhether make in India campaign can transform India into a global manufacturing hub.

Keywords: Make in India, Employment Generation, Global Manufacturing.

INTRODUCTION"The mantra of our country's youth should be to at least make 1 product that we import. Don't compromise in manufacturing;Stress on Zero defect, Zero effect (impact of environment). Our manufacturing should have zero defects so that our productsshould not be rejected in the global market. Besides, we should also keep in mind that manufacturing should not have anynegative impact on our environment."

India has the largest young population in the world, with 60% of the population within the working age of 15-59 years. Onefourth of the projected increase in global working age population between 2010 and 2040 is expected to occur in India thuscontributing to the addition of 300 million working age adults. If India has to seize this opportunity and exploit itsdemographic dividend it needs to increase employment for its workforce in a drastic manner than ever before themanufacturing sector which currently accounts for just 12.6% of India’s labor force, has greater capability of generating morejobs per unit of output than the services sector. The creation of large number of industrial jobs made possible by rapidincrease in manufacturing sector significantly enhances prospects of India’s skilled workforce in getting suitable jobs.

Manufacturing holds a key position in the Indian economy accounting for nearly 16% of real GDP and employing 12% ofcountry’s labor force for the FY12 growth in the sector has been strong considering overall GDP growth in the past fewyears. India’s manufacturing sector is characterized by its dualistic structure of organized and unorganized sector. The formalsector is defined by factories act which covers all factories employing 10 or more workers using power and 20 or moreworkers without using power. The unorganized sector is divided into three sub categories own account manufacturingenterprises which are house hold enterprises making use of family member non directory manufacturing establishments anddirectory manufacturing establishments.

The Make in India campaign was launched by Prime Minister Mr. Narendra Modi in India on September 25, 2014. Thecampaign aims to provide domestic and overseas investors with an environment that’s conducive to manufacturing. Thecampaign is expected to create job opportunities for at least 100 million youths in India over time. It is a major new nationalprogram designed to transform India into global manufacturing hub. The manufacturing sector is of two types- a. Labour



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intensive and b. capital intensive. Although investment in this sector leads to the generation of the jobs but number of jobscreated depends on in which kind of manufacturing sector investment is taking place. 30% of the economy is ofmanufacturing sector. Deloitte’s Global Index, 2013, for 38 nations, has ranked India the fourth most competitivemanufacturing nation, behind China, the US and Germany. India currently exports manufactured products worth about $50Billion.

The Make in India initiative is about manufacturing quality products at low costs, irrespective of whether these products aresold in India or abroad.

The study examines the linkages between job growth and manufacturing sector, and discusses how India should reform themanufacturing sector to generate more jobs. For our country job growth is highly essential to reap benefits from demographicdividend and eradicate poverty. Although India has cheap labour, it faces issues which are acting as hurdles as far as jobgrowth is concerned. There is a strong opinion building that India’s attempt to accomplish East Asia style manufacturinggrowth depends largely on the employment generation and output. Experts are taking different sides on the expectedoutcomes, but the air of optimism cannot be denied. “Make in India will create jobs” whether make in India is a strategy forjob creation this paper helps answer the question by describing the key issues and challenges in job creation and the variousreforms and policies framed by the government in addressing them.

OBJECTIVES OF THE STUDY To know the focus of Government on employment generation through Make in India To know and understand the percentage and improvement of job creation in manufacturing Sector focused in Make in India To know about the labor related initiatives for the improvement of manufacturing sector To know the issues and challenges of job creation with respect to manufacturing sector

THE NEED FOR JOB CREATIONOne of the crucial considerations of the Indian government is economic inclusion-i.e. bringing more citizens into modern andproductive economy which is helpful for meeting poverty eradication health and educational indicators. The most effectiveroute to meet this challenge is through formal sector jobs which pay regular and generally higher wages. They provideeconomic stability for families.

Through formal sector jobs china lifted 500 million people out of poverty. The time is right to create an overall high qualityjobs. The job growth in India centers on the potential of manufacturing to provide large scale quality jobs. In the last centurymanufacturing-led growth in Japan, South Korea, and Taiwan was characterized by high investment ratios, small publicsectors, export orientation, labor market competition, and government intervention in economic matters. The strongestargument in favor of pursuing the manufacturing path is India’s labor force. Most the economies that relied on manufacturingfor development began with relatively poorly educated, predominantly agricultural workforces. They started by developinglabor-intensive industries like textiles, toy making, and low-end electronics assembly, which capitalize on the large, cheap,low-skill labor force. Indeed, India’s labor force appears well-suited to manufacturing employment at the bottom of the valuechain. To capitalize on a labor force primed for large-scale, low-value chain manufacturing, labor intensive manufacturingwill need to become much more competitive than it stands today. Manufacturers will need to build large-scale operations tiedinto global supply chains.

REVIEW OF LITERATUREManufacturing industry refers to those industries which involve in the manufacturing and processing of items and indulgein either creation of new commodities or in value addition.

Manufacturing industries came into being with the occurrence of Technology and Socio-economic transformations in theWestern countries in the 18th-19th century. This was widely known as industrial revolution. It began in Britain and replacedthe labour intensive textile production with mechanization and use of fuels.

Official statistics (e.g. National Accounts Statistics) in India distinguish between organised and unorganised sectors indifferent contexts. The organised sector comprises of enterprises, and information (e.g. statistical data) on their activities isavailable or collected regularly (e.g. registered manufacturing units). The unorganised sector comprises of enterprises andinformation on their activities is not regulated under any legal provision or regular account on their activities is notmaintained by enterprises themselves.



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The rising capital intensity of production in India’s manufacturing sector since 1980 is well established in the litera ture (Das& Kalita, 2010, Hasan, 2010 and Goldar 2000). The average capital intensity of production has risen over the last decade too.The increase appears to be steeper over the latter half of the decade Although, rising capital intensity is reflective oftechnological transformation, as countries use more capital intensive techniques as they get richer, it has been shown thatIndia uses more capital intensive techniques of production in manufacturing than countries at similar level of developmentand similar factor endowments (Hasan et al, 2013). It is widely believed that India’s rigid labour regulations and employmentprotection legislation have reduced the incentive of firms to hire workers on permanent contracts and pushed them towardsmore capital-intensive modes of production. However, as pointed by Sen & Das (2014) stringent labour regulations might beable to explain the level of labour intensity, but to explain the decreasing labour intensity over time, labour regulations wouldneed to have become tighter over time.

Employment Generation and Labour Intensity in the Registered Manufacturing Sector of India. The basic idea behindeconomic reforms has been the reduction in the size of the public sector and the lifting of government controls andregulations on production, trade and investment would usher in a more competitive environment, improve efficiency andhence growth. The pattern of industrialisation is expected to be not only internationally competitive but also “sufficientlylabour-intensive” (Chaudhuri, 2002). The lifting of government controls and greater reliance on market forces, what shouldnow become more important are the labour-intensive goods for which labour surplus countries like India are supposed tohave a competitive advantage

Adeyemi, Sidikat Laraba, Dr. Aremu, Mukaila Ayanda, (2011) Small and medium enterprises have been considered asthe engine of economic growth and for promoting equitable development. The major advantage of the sector is itsemployment potential at low capital cost. The labour intensity of the SME sector is much higher than that of the largeenterprises. The role of small and medium enterprises in the economic and social development of the country is wellestablished.

Ayozie Daniel Ogechukwul (2010) Small scale industries have a lot of important contributions to make to the economicdevelopment of the country. By its less capital intensive and high labour absorption nature, SSI sector has made significantcontribution to employment generation and also to the rural industrialization. This sector is ideally suited to build on thestrength of the traditional skill and knowledge, capital and innovative marketing practices. So, the importance of small scaleenterprise is a global phenomenon encompassing both the developing and developed countries.

Banujam K.V. (1998), in his study entitled, “Poverty Alleviation through Rural Industrialization” suggested that appropriatetechnology should be developed to promote the rural small industries.

Jayshri J Kadam, Prof. Dr. V.N. Laturkar, (2011), Small Scale industries encompass vast scope covering activities likemanufacturing, servicing, financing, construction, infrastructure etc. In view of Government of India’s ever increasingimportance given to the small scale industries in the national economy more & more small scale industries are to be set up inthe years to come. By contributing it’s increasing share to the national production, employment & exports, small scaleindustries also contribute to the economic development of the country. However, these industries are also plagued by theproblems of raw material, finance, marketing, underutilization of capacity, etc. cash has become a big problem for small &even big businesses today

RESEARCH METHODOLOGYWith descriptive research methodology and secondary data collection through different research findings, in this article anattempt is made to understand the initiative of Make in India and its contribution for job creation in leading manufacturingsectors, issues and challenges faced in job creation and actions taken to reach the target of creating 100 million jobs andlabour related initiatives for improvement of manManufacturing sector.

FINDINGSProgress in the manufacturing sector holds the key to leveraging India’s demographic dividend of the world’s largest pool ofeducated young jobseekers. India can achieve sustainable and high growth by investment in manufacturing for transition ofworkforce into higher income, higher skilled economic activity. The National Manufacturing Policy (NMP) 2011 aims toincrease manufacturing sector’s contribution to 25% of GDP by 2022 and creating 100 million new jobs by 2022 .



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The Government lays emphasis on these manufacturing sectors which includes: automobiles, chemicals, pharmaceuticals,textiles, ports, aviation, leather, food processing, thermal power, railways, auto components, design manufacturing,renewable energy, mining, pharmaceuticals and electronics etc for job creation.

Further it has set up an investor facilitation cell Invest India, which will act as the first reference point for guiding foreigninvestors on all aspects of regulatory and policy issues and to assist them in obtaining regulatory clearances.It also plans to introduce a single labour law for small industries by December.

Government also wants the students to enhance their employability skills by utilising the opportunities provided by theNational Small Industries Corporation.

Unemployment Rate in India decreased to 4.90 percent in 2013 from 5.20 percent in 2012. Unemployment Rate in Indiaaveraged 7.32 percent from 1983 until 2013, reaching an all-time high of 9.40 percent in 2009 and a record low of 4.90percent in 2013.

Statistics on Unemployment Rate in India as reported by the Ministry of Labour and Employment, India.

Source: http://www.tradingeconomics.com/india/unemployment-rate.

Rate of employment growth in manufacturing sector as a whole, has been reasonably high over the long period. Employmentin manufacturing grew at 4.3 per cent per annum during 1972-73/1983, the growth rate fell to around 2 per cent during 1983-1994, but accelerated to 3.2 per cent during 2000-05. It has declined during 2004-05/2009-10, but still turns out to be around2 per cent during 2000- 2010.

According to Quarterly report released by Minister of Labour & Employment, reveals that employment generation hasincreased 118% as 2.75 lakh new jobs have been created between July and December, 2014. During the same period in 2013,1.26 lakh jobs were created

There are certain labor laws (e.g. Section 10 of Labor regulations Act) that lay down unnecessary obligations onmanufacturing sector while hiring contract workforce. With the reform in such laws, the sector will open up and hire laborwith more freedom, hence creating more job opportunities. The introduction of new policies under this campaign will speedup the land acquisition and the clearance processes.

The Indian Labour Conference has made amendments to the Factories Act to exempt small and micro units from compliance,social security for workers, changes to the Payment of Bonus Act and a status check on earlier decisions with a focus oncontract labour, minimum wages and the tripartite negotiation mechanism. The Payment of Bonus Act may be replaced withsomething more substantive on revisiting several difficult labour laws such as the Industrial Disputes Act of 1947. The labourministry has been fleshing out a plan to merge the Industrial Disputes Act, Industrial Employment (Standing Orders) Act andthe Trade Unions Act into a single code for industrial relations.Issues and challenges of Make in India

Attraction of foreign investors Stringent laws The low skill level of the labour in the country is a cause of concern Lack of comprehensive skill development programs to enhance skills and make youngsters industry ready Old fashioned and archaic labour laws are still prevailing

India Labour Last(2014) Previous(2013)Unemployment rate 4.90 5.20Employed persons 29650.00 28999.00Unemployed persons 44.79 40.17Population 1238.89 1223.58

Retirement persons 60.0 60.0

Labour force participation rate 52.50 50.90

Wages in manufacturing 6.25 6.55Youth unemployment rate 12.90 18.10



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India has weak institutional capacity, weak physical connectivity, huge regulation Recent policy measures and projects toopen up India's manufacturing sector:100 per cent FDI allowed in the telecom sector;100 per cent FDI in single-brand retail;Validity of industrial license extended to three years;For all non-risk, non-hazardous businesses, a system of self-certification to be introduced;Process of obtaining environmental clearances made online.The Government of India is developing the Delhi-Mumbai Industrial Corridor (DMIC) as a global manufacturing and aninvestment destination utilizing the 1,483 km-long, high-capacity western Dedicated Railway Freight Corridor (DFC) as thebackbone.

CONCLUSIONFuture of make in India lies in the success of its different sectors. Creation of high quality jobs is a key to economic growthand one of the major challenges considered by modi government for make in India. There is a need to achieve two objectives:creating new jobs and shifting more workers into high productivity sectors. India has a large domestic market of its own.Close access to the domestic market will make India preferred destination to locate factories for both domestic and foreignfirms, just as China was 15 years ago.

As suggested by the Finance Minister Mr. Arun Jaitley, lowering entry barriers, easing land acquisition procedures, increasedlabor market flexibility, streamlining dispute resolutions, speedy project implementation, a reduction in the cost of capital is akey to make in India success.

To generate more jobs India should focus on low skilled manufacturing. Provide special incentives for such industries. Indiashould use economic diplomacy to attract investment in low skilled industries from foreign investors.

India should liberalise export regime to facilitate easy trade. This attracts investment. Labour intensive industries such asMSME should be provided timely credit Skill India mission and amendments to Apprenticeship Act are right steps to coverthis gap. Academic curriculum must be directed towards industry needs Development of trust between industry and labour islow currently and this should be improved. For eg., government step in providing labour with unique identification numberand easing their access to benefits provided by the government is one good step. GST should be implemented for atransparent and efficient tax regime and policy consistency - avoiding retrospective taxation.

There is a need to update the labour laws, because these laws don’t reflect the requirements of the day. The IndustrialDisputes Act, the Trade Unions Act, Factory Act and all other such acts were enacted in those times when liberalization,globalization or privatization was not even fully understood, let alone practiced. However, it is very challenging to make adelicate balance between the interest of the businessmen and those of the weaker section of the society. Further, reformsshould bring inclusiveness and lead to economic growth along with job creation.

REFERENCES1. Radhicka Kapoor, September (2014) Creating Jobs in India’s Organised Manufacturing Sector, Indian Council for

Research on International Economic Relations.2. Russell A. Green, December 15, 2014, Can “Make In India” Make Jobs? The Challenges Of Manufacturing Growth

and High–Quality Job Creation in India.3. http://www.gktoday.in/blog/current-issues-in-labour-reforms-in-india/.4. http://www.tradingeconomics.com/india/unemployment-rate.5. http://www.ibef.org/download/Role-of-Manufacturing-in-Employment-Generation-in-India.pdf.6. shodhganga.inflibnet.ac.in/bitstream/10603/3534/.../08_chapter%201.pdf.7. http://www.financialexpress.com/article/fe-columnist/the-highway-for-job-creation-and-rapid-growth/24662/.



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“CREATING & MAINTAINING AN EMPLOYEE FRIENDLY WORK ENVIRONMENT FOR SUSTAINABLEORGANIZATIONAL PERFORMANCE IN THE REGIME OF MAKE IN INDIA”

Dr.S.Muralidhar* K.Shobha**Associate Professor & Head, Department of Commerce & Management, Government First Grade College, Kolar.

Assistant Professor, & Head, Department of Commerce & Management, Government First Grade College,Bangaruthirupati, Kolar.

AbstractCreating and Maintaining an Employee Friendly Work Environment for Achieving Sustainable Organizational Performanceis a great challenge and such an act offers several opportunities in the regime of make in India. Hence, an attempt has beenmade in this paper to analyse various issues pertaining to the Creation & Maintenance of Employee Friendly WorkEnvironment for Achieving Sustainable Organizational Performance, and the same has been titled as “Creating &Maintaining a Employee Friendly Work Environment for Sustainable Organizational Performance in the regime of Makein India”

Mere announcement of a concept and launching an attractive scheme, is not enough from the government’s end, instead, theGovernment should take initiative to boost up the domestic firms to engage in the production of high technology goods andservices with global standards. Therefore, it essential on the part of the government to announce and introduce the requiredfinancial, technological, human and other sorts of supports to the domestic firms in order to nourish them and raise to levelof global firms with optimum competitiveness.

Key Words: Make in India, Employee Performance, Work Environment, Organization, Organizational Performance ,Sustainable Growth.

INTRODUCTIONAn ancient nation like India has undergone many evolutionary cycles. A well admired supremacy of ancient India in the fieldof Science and technology requires no mention. But with the advent of modern era many western societies surpassed India interm of advancement in Science and technology. But India is slowly re-emerging to acquire its leadership position. On 24thSeptember 2014, India entered a new era of leadership with its Mars Mission successfully entering the orbit with a cost whichwas one tenth of the cost of Mars project by NASA. This reaffirmed India’s capability to deliver on cost, quality and time.This triad is building block for the success of a country.

India’s manufacturing sector has far lagged behind and it is the opportune time to focus on this sector. What India has tofocus on is to integrate manufacturing operations with IT based services to offer solutions which boost the most criticalsectors of the economy. Shining manufacturing sector is an export driver which is evident from the fact that 40% of China‟sGDP comes through manufacturing.

75% of India's working population is educated only to middle school or below. This staggering figure of approximately 600million1people is not even equipped to benefit from the opportunities in the flourishing service sector. It is only the laborintensive manufacturing sector that has the potential to generate employment in adequate numbers to absorb the larger laborpool. Indian manufacturing sector currently contributes close to 15% of GDP which is almost half when compared to “factoryof the world” China, whereas service sector contributes almost 60% to GDP. This huge mismatch in terms of contribution toGDP makes it imperative for India to focus on manufacturing and bring it close to 25% over next decade.



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STATEMENT OF THE PROBLEMAchieving the Sustainable organizational performance is on the priority list of objectives of any organization. Achieving thegoals of an organization in the long run is more important than earning short term gains. In the regime of make in India,continuous production and marketing of high quality goods of global standard is a compulsion as the domestic firms have tocater to the needs of the global customers. As a pre-requisite for the global market, the products and services marketedshould be of global standard. To produce such high quality products and services, the domestic firms should change itsquality policy and practices such as its system, procedures and legal formalities and the level of commitment of the workforce. In this direction, creating an employee friendly work environment to motivate the employees for an optimum qualityproduction of goods and services is an essential pre-requisite in the changed regime of Make in India. Therefore, Creatingand Maintaining an Employee Friendly Work Environment for Achieving Sustainable Organizational Performance is a greatchallenge and such an act offers several opportunities in the regime of make in India. Hence, an attempt has been made inthis paper to analyse various issues pertaining to the Creation & Maintenance of Employee Friendly Work Environment forAchieving Sustainable Organizational Performance, and the same has been titled as “Creating & Maintaining a EmployeeFriendly Work Environment for Sustainable Organizational Performance in the regime of Make in India”

OBJECTIVES OF THE PAPERThe paper intends to address the following specific objectives:

1. To identify the factors influencing the Employee friendly work environment.2. To Find out the relationship between Employee Friendly Work Environment and Sustainable organizational

performance3. To suggest Strategies to achieve the Sustainable Organizational Performance in the Regime of Make in India.

REVIEW OF LITERATUREDiversity Management (DM) is planning and implementing organizational systems and practices to manage people so thatthe potential advantages of diversity are maximized while its potential disadvantages are minimized (Cox, 1993).

The social security system in India is indeed dualistic in nature where only a very small proportion of the workforce which isin the organized sector are in a relatively privileged position to have access to protective social security benefits whereas theremaining majority remains unprotected due to not being able to organize themselves (Datta, 2001).

It appears that many workers settle for hours that are not their preferred hours, because other options such as absenteeism ortardiness carry a credible risk of discharge (Altman and Golden, 2004).

Working time flexibility is an important subset of “workplace flexibility”. The latter is typically considered to be “the abilityof workers to make choices influencing when, where, and for how long they engage in work-related tasks” (Hill et al.,2008).

Flexible working, on workers’ terms, is actually more often found to carry a positive wage premium (Gariety and Shaffer,2001; Weeden, 2005; Winder, 2009).

Employers may realize savings in compensation costs as some employees may be willing to trade wages or other non-wagebenefits for more leisure time (Kossek and Michel, 2010).

METHODOLOGYFor the Purpose of the study, 100 respondents from among the Top, Middle and Lower level employee are drawn fromselected 10 organizations. These 10 organizations belong to Manufacture & Services sector. Respondents are selected using



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simple random sampling technique. Both male & female respondents are given equal opportunity to be part of the samplesize.

DATA ANALYSISTable showing the Designation of respondents

Designation of respondents

Frequency Percent

Entry Level 25 25

Middle Level 28 28

Senior Level 47 47

Total 100 100

Table showing the distribution of respondents based on AgeAge Group Frequency Percent

18 to 25 Yrs 21 21

25 to 35 Yrs 23 23

35 to 45 Yrs 17 17

45 & above 39 39

Total 100 100

Table showing the Education-wise distribution of respondentsEducation Frequency Percent

SSLC 09 09

PUC 16 16

Diploma 18 18

Graduate 25 25

Post Graduate 27 27

Others 05 05

Total 100 100

Table showing the distribution of respondents based on their work experienceWork Experience Frequency Percent

Upto 2 Yrs 28 28

2 to 5 Yrs 27 27

5 to 10 Yrs 25 25

Above 10 Yrs 20 20

Total 100 100



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Table showing Gender wise-sector wise distribution of Respondents

DISCUSSIONCreating & Maintaining an Employee friendly work environment leads the organizations beyond achieving normalperformance. What the usual employee motivating techniques such as Providing Attractive Pay, Perquisites and WelfareMeasures cannot achieve, the Creation and Maintenance of employee Friendly Work Environment would achieve much moreWith this hypothesis, the researcher has made an attempt to analyse the impact of creation & Maintenance of employeefriendly work environment on the individual performance of the employees and on the overall organizational performance.

The analysis of the data collected through the survey, clearly depicts that the employees of the selected organization arelooking at the concept of Make in India, as a wonderful opportunity for them to prove themselves and contribute to themaximum extent for the overall organizational performance and results. Most of the respondents are very well aware that theRegime of make in India would change their lives as well as the future of this country. They are aware as well that they candefinitely bring a very positive change in the exports position and the Balance of Payments position of this nation. Theemployees are motivated with the new concept and creation of an employee friendly work environment with more flexibilityand autonomy, the work force can be motivated to achieve far reaching results.

FINDINGSThe major findings of the research study are presented in the following paragraphs:

1. Majority of respondents are of the opinion that they have been provided with an employee friendly workenvironment and because of that they are able to achieve higher standard of performance.

2. A chunk of young employees are of the opinion that they are the work environment is not very challenging and thephysical facilities needs to be updated.

3. Most of the respondents expressed that the policies of the organization, especially the HR policies needs to reviewedvery regularly in the light of the change of the policies of the Government. Further, in the regime of make in India,the organizations should revive their existing policies and strategies.

4. The Innovation Mind in the employees should be properly identified and nourished. Majority of the New-Ageemployees are of the opinion that the pragmatic approach towards promotion and career advancement needs a seachange.

5. Most of the employees expressed that they are confident that they can achieve better results and look at the conceptof Make in India as lucrative opportunity for entering the Global Market. They are also highly confident that theycan rise to the expectations of the Global buyers.

Sl.No.

Name of the OrganizationRespondent

TotalMale Female

Public Sector Units01 Bharat Earth Movers Ltd., (BEML) 04 01 0502 Hindustan Aeronautics Ltd., (HAL) 02 02 0403 Bharath Electronics Ltd., (BEL) 03 08 1104 Bharath Heavy Electricals Ltd., (BHEL) 02 08 1005 Karnataka Soaps & Detergents Ltd., (KS & DL) 11 09 20

TOTAL RESPONDENTS FROM PUBLIC SECTOR 22(22%)

28(28%)

50(50%)

Private Sector Units01 Larsen & Toubro Ltd., (L&T Ltd.,) 08 02 1002 BOSCH Ltd., 04 08 1203 Volvo Ltd., 09 03 1204 Wipro Ltd., 07 03 1005 Tata Consultancy Services Ltd., 05 01 06

TOTAL RESPONDENTS FROM PRIVATESECTOR

33(33%)

17(17%)

50(50%)

TOTAL 55(55%)

45(45%)

100(100)



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6. Majority of the respondents are of the opinion that they can better show case their products and services in theregime of Make in India.

7. A few respondents consider that the Make in India poses more challenges than the Opportunities.

CONCLUSIONSMere announcement of a concept and launching an attractive scheme, is not enough from the government’s end, instead, theGovernment should take initiative to boost up the domestic firms to engage in the production of high technology goods andservices with global standards. Therefore, it essential on the part of the government to announce and introduce the requiredfinancial, technological, human and other sorts of supports to the domestic firms in order to nourish them and raise to level ofglobal firms with optimum competitiveness.

SUGGESTIONSThe following suggestions are offered for creation & maintenance of employee friendly work environment in the light of theresearch study conducted:

1. The organizations should make its policies more flexible to provide opportunities for the employees to participate inthe decision making process. More particularly, the routine decisions should be designed with the participation ofthe employees at each level.

2. The employees should be consulted with regard to the convenience of the physical environment and the requiredphysical environment for the various nature of the work. The customized physical environment should be extendedto the unique work force.

3. The management decisions pertaining to production policies, marketing strategies, and accounting proceduresshould be made known to the work force on a continuous basis to create the feeling of belongingness amongthemselves and about the organization.

4. The benefits of the make in India regime should pass on to the employee at the end of the ladder. Everyone in theorganization should take part and put their maximum efforts to gain the benefit of the new concept and en-cash theopportunitiy offered by the make in India programme.

5. Regular interaction with global investors by participating in the Global Investors Summit and participating in Globaltenders and purchases and maintaining cordial relationship with global buyers and the international marketers isanother important suggestion to the domestic manufacturers.

REFERENCE1. Manufacturing policy of India http://dipp.nic.in/english/policies/national_manufacturing2. 2.12th five year plan .3. http://www.doingbusiness.org/data/exploreeconomies/india/ .4. Building India transforming the nation’s logistics infrastructure – Mckinsey & Company.5. Powering India Road to 2019 –Mckinsey & Company.6. Indian Labour and employment report- Institute for Human Development.7. High university enrolment, low graduate employment-Analysing the paradox in Afghanistan, Bangladesh, India,

Nepal, Pakistan and Sri Lanka- An Economist Intelligence Unit report for the British Council January 2014.8. National Health Mission- http://nrhm.gov.in/ .9. National skill development corporation http://www.nsdcindia.org/ .10. 10. Post graduate programme for executives for visionary leadership in manufacturing – https://programslive .iim

cal . ac.in /pgpex- vlm.11. National Manufacturing competitiveness council (NMCC)- http://www.nmcc.nic.in/12. Make in India - http://www.makeinindia.com/ .13. Census India 2011 Report- .14. Millennium Development Goals- http://www.undp.org/content/undp/en/home/mdgoverview.15. Union budget 2014-2015. http://www.undp.org/content/undp/en/home/mdgoverview.html.16. Science, Technology & Innovation policy 2013 - http://dst.gov.in/sti-policy-eng.pdf.



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MAKE IN INDIA – A GROWTH ENGINE FOR SME ADAVANCES IN COMMERCIAL BANKS

Dr.T.P.Renuka Murthy* Mr.Ravisha. N. S** Swetha A****Professor of Management& Course coordinator, Department of MBA, Visvesvaraya Technological University

PG Centre, Sathgalli Layout, Mysore.**Assistant Professor, Department of Management Studies, Jawaharlal Nehru National College of Engineering (JNNCE),

Navule, Shimoga – 577204 (Karnataka).***IV Semester, MBA (Finance), Department of Management Studies, Jawaharlal Nehru National College of Engineering

(JNNCE),Navule, Shimoga – 577204 (Karnataka).

1.1 INTRODUCTIONSmall and Medium Enterprises (SMEs) (micro, small and medium enterprises, as it is called in India) are undoubtedly asignificant global presence. People need them because they speak the common man’s language. Reporting, which meansdocumenting developments, and bringing to the limelight the least known, is often the researcher’s or scientist’s job. Butfrom the society’s point of view, the scientist’s job, even with the best of justice he has done to his work, just begins there.The societal implication of his exercise comes out only when the result his research is communicated. ’India MSME Report’series, at the Institute of Small Enterprises and Development, is such an annual scientific exercise, with a clear socialorientation. Forming part of a larger Programme of theInstitute, called India MSME Communication Programme, the Reportcomes out from the Institute’s specialized Knowledge platform, the ISED Small Enterprise Observatory.

Global TrendsIndia’s MSME scene, as in 2014, need to be understood and analyzed against the global trends in enterprise and technology.

On lines of the ‘Moore’s Law, there has been some remarkable changes in technology that leads to a major paradigm shift inthe global economy. These include, areas such as social smartness, information security, sustainable consumption, the so-called redistributing industrial revolution, the phenomenal explosion of scientific advances, volatility of markets, the globalresource gap, the swelling of the ranks of’ ‘unemployable’ labour etc. The global MSME spectrum itself has been undergoingchanges, marked by such developments as, enhanced utilization of machines against people, the reduction of the realeconomy as against a booming financial economy, the growth of the rental economy, the swelling of ‘necessityentrepreneurship’ as against innovators, the race to the’ local economy’, and the enhanced use of SMEs as contra-cyclicaltool.Overall, the MSMEs around the world, have performed a commendable role of social inclusion, and as a guard againstmassive unemployment, and income inequalities.

India’s ‘Waiting Period’ While the global reality has obvious consequences and impact on the country- level experiences, inIndia, the last about two years happened to be a ‘waiting period’ of political and administrative transition. This transitionalperiod was marked by a sharp fall in entrepreneurial confidence on account of:1) the subjective experience of MSMEentrepreneurs regarding day-to-day business; and 2) their perception on the government’s role that was broadly passive. Theabove MSME experience should be understood against the recent state of the Indian economy. Against the declining trend inexports, investments, and growth, there are major challenges for the MSMEs. ‘Development’, a subject of campaigns for theGeneral Elections, provided space for a discussion on the MSME role, though it did not happen to a significant extent.Despite the challenges of the economy, as above, the MSME sector in India demonstrated its ‘social responsibility’ by allmajor macro-economic indicators. While savings and capital formation in the corporate sector fell drastically during the last 3years, the MSME sector actually expanded it, thereby saving the economy from a major crisis. The Indian economy today ison a revival path, though with serious challenges that linger on. This ‘scissors effect’ of investment offers an opportunity tohave an MSME-led growth strategy. The recent policy perspective of the Union Government implies a significant thrust ondevelopment of MSMEs in two forms: 1) labour market intervention through an integrated skilling approach; and 2); the”Make in India” strategy on a campaign mode. There is need for a strong labor market policy in order to overcome the labourmarket rigidities. Will the new approach lead to a major start-up strategy? The answer seems positive, considering the PrimeMinister’s policy announcements and the thrusts of the Union Budget 2014, which carries the bare outline of a labour marketpolicy, though it has not yet been scientifically articulated. Much homework needs to be done on this.

1.2 Statement of the ProblemAccepting deposits and lending of loans is the primary function of any bank. Loans and advances are granted by banks undervarious schemes and in different quantum. Further, the procedure followed for advancement of loans and terms andconditions of various loan schemes also vary. Thus, the topic for the study is “Make in India – A Growth Engine for SMEAdvances in Commercial Banks”which can help to know the performance of the SME sector advances in branch level toeffectively analyses the impact of make in India concept in ground level.



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1.3 Objectives of the study To know the trends in SME sector advances. To analyze the changes in SME sector advances with the introduction of Make in India scheme. To know the ground level impact of Make in India concept branch level banking. To assess the potential of SME sector advances in regional level.

1.4 Sampling planAs this project work is company-specific, without involving any field survey, no sampling plan has been drawn for thepurpose of data collection

1.5 Limitations of the study The study is limited only to all commercial banks operating in Shimoga. Maximum information is collected through secondary data. The period taken into consideration for this study only 12 months.

1.6 Scope of the studyThe scope of the study is nothing but area of the study or boundary of the study. The scope of the study is limited to the allcommercial banks operating in Shimogadistrict.

1.7 Research MethodologyResearch methodology is a method to solve the research problem systematically. It involves gathering data, use of statisticaltechniques, interpretation, and drawing conclusions about the research data. It is a blue print, which is followed to completethe study. The research method used is descriptive research. The data is collected from all commercial banks which isoperating in Shimoga district the data is collected regarding the SME advances which helps the researcher to analyses theperformance of SME advances in Shimoga District.

Sources of dataThe data has been collected from both primary and secondary sources:Primary data consists of Personal meetings and dialogues with the managers and staff of the bank. Secondary data collectedfrom the bank

1.8.1 Growth of SME in Shimoga DistrictAuto components, Foundry units, engineering units, brick manufacturing, areca processing, and BPO service units arecoming up in Shimoga district. Now Ready made garments units have also been established. In rice mill sector instead of newunits coming up, existing units are undergoing expansion and modernization to catch up w ithcompetition. The followingtable gives us the information regarding the SME sector at Shimoga district.

PARTICULARS NUMBERRegistered Industrial Unit 14711

Total Industrial Unit 14771

Registered Medium & Large Unit 11

Estimated Avg. No. Of Daily Worker 4

Employed In Small Scale Industries 6939

Source: DIC Report

List of the units in Shimoga &Near By Areas1. M/s Pealite Liners Pvt. Ltd., PB No.110, NT Road, Shimoga2. M/s Bhadra Packaids Pvt., Bommenahalli, Bharandur Post, Bhadravathi Tq.3. M/s Malenadu Alloy Castings Pvt. Ltd., 36A, MachenahalliIndl.Area, Shimoga



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1.8.2 FINANCIAL INSTITUTION WHICH IS OFFERING SME ADVANCES IN SHIMOGA DISTRICTSource: Lead Bank Report MARCH 2015

Form the above table it can be identified that the public sector banks occupied major market share with respect to itspresence. It can also analyses that all different types of banks are also working in the Shimoga district it will be an greatopportunity for the financial institutions for promoting the SME sector advances in the eve of the Make in India drive.

ANALYSIS OF GROWTH IN OVERALL ADVANCES DURING MARCH 2015 TO MARCH 2014Particulars 15-mar 14-mar Growth RemarksICICI Bk 7057 3704 90.52 ExcellentIDBI 2427 1435 69.13 ExcellentCentral Bk of Ind 1014 610 66.23 ExcellentKarnataka Bk 35888 26706 34.38 GoodPragatiGr.Bk 43139 32612 32.28 GoodFederal Bk 1382 1074 28.68 GoodLaxmi Vilas Bk 1325 1037 27.77 GoodCanara Bank 123122 99286 24.01 GoodSBI 32308 26196 23.33 GoodCorporation 37946 31722 19.62 AverageVijaya 18555 15582 19.08 AverageSBM 82295 71377 15.30 AveragePNB 1268 1100 15.27 AverageHDFC 8049 7065 13.93 AverageUCO 952 855 11.35 AverageKSFC 2896 2717 6.59 FairAndhra 594 563 5.51 FairSBH 2856 2707 5.50 FairOriental Bk Of 1180 1128 4.61 FairKarurVys.Bk 3840 3672 4.58 Fair

PUBLIC SECTOR BANKS Private sector RRB FIN.INT

NAME Branches NAME Branches NAME Branches NAME Branches

Canara Bank 53 Karnataka 19 LVB 1 KSFC 1

SBM 35 IngVysya 3 Pragati 37 KICB 1Corporation 14 HDFC 3 SDCC 28 IDBI 1Vijaya 16 ICICI 1 PCARD 8

Bank of India 2 Axis 3

Bank of Baroda 2 Indus Ind 1

SBH 1 Federal 1

Andhra 1 Karur 1

PNB 1Central Bk of Ind 1

Dena 1Indian 3

Indian Overseas 5

Oriental of 1UCO 1

Union Bk of Ind 2

Allahabad 1

South Indian 2



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IngVysya 208 199 4.52 FairIndian Overseas 3491 3358 3.96 FairSyndicate 41508 39927 3.96 FairKICB 196 189 3.70 FairBank of India 9628 9344 3.04 FairIndian 4230 4147 2.00 FairAllahabad 1321 1299 1.69 FairSouth Indian 4948 4907 0.84 FairAxis Bk 2770 3769 -26.51 PoorTotal 551631 476325 15.80 AVERAGE

ANALYSIS OF GROWTH IN OVERALL ADVANCES to SSI SECTOR DURING MARCH 2015 TO MARCH 2014Particulars

MSME2014 MSME2015Growth In% REMARKS

SDCC Bk 9168 38557 320.56 EXCELLENT

IngVysya 14 58 314.29 EXCELLENT

PragatiGr.Bk 1025 3804 271.12 EXCELLENT

Indian Overseas 273 861 215.38 EXCELLENT

IDBI 90 178 97.78 EXCELLENT

SBI 1226 2385 94.54 EXCELLENT

HDFC Bk 166 252 51.81 GOOD

Central Bk of Ind 306 464 51.63 GOOD

Laxmi Vilas Bk 146 219 50.00 GOOD

Corporation Bk 4478 6008 34.17 GOOD

Indian Bk 513 644 25.54 GOOD

Canara Bank 21200 26231 23.73 GOOD

Dena Bk 42 50 19.05 GOOD

Oriental Bk Of 218 259 18.81 GOOD

Karnataka Bk 3420 3804 11.23 NORMAL

KSFC 2600 2859 9.96 NORMAL

UCO Bk 317 321 1.26 NORMAL

Allahabad Bk 821 825 0.49 NORMAL

SBH 1478 1485 0.47 NORMAL

ICICI Bk 1267 1256 -0.87 POOR

Bank of Baroda 345 342 -0.87 POOR

Andhra Bk 93 85 -8.60 POOR

Union Bk of Ind 817 734 -10.16 POOR

Syndicate Bk 7186 6357 -11.54 POOR

South Indian Bk 761 644 -15.37 POOR

KICB 36 24 -33.33 POOR

SBM 10593 5562 -47.49 POOR

Vijaya Bk 3889 810 -79.17 POOR

PNB 280 33 -88.21 POOR

Axis Bk 110 0 -100.00 POOR

Federal Bk 69 0 -100.00 POOR

Total 72947 105111 44.09



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ANALYSIS OF GROWTH IN MSME ADVANCES PER BRANCH

ParticularsSSI PERBRANCH

SSI PERBRANCH GROWTH REMARKS

Andhra Bk 3.00 85.00 2733.33 EXCELLENT

IngVysya 4.67 19.33 314.29 EXCELLENT

South Indian Bk 81.00 322.00 297.53 EXCELLENT

SBH 402.00 1485.00 269.40 EXCELLENT

KICB 7.00 24.00 242.86 EXCELLENT

IDBI 73.00 178.00 143.84 EXCELLENT

Indian Overseas 91.00 172.20 89.23 EXCELLENT

Laxmi Vilas Bk 123.00 219.00 78.05 EXCELLENT

HDFC Bk 55.33 84.00 51.81 EXCELLENT

Corporation Bk 324.36 429.14 32.31 GOOD

SDCC Bk 1041.71 1377.04 32.19 GOOD

Indian Bk 171.00 214.67 25.54 GOOD

Dena Bk 42.00 50.00 19.05 NORMAL

Oriental Bk Of 218.00 259.00 18.81 NORMAL

PragatiGr.Bk 90.92 102.81 13.08 NORMAL

Union Bk of Ind 340.00 367.00 7.94 NORMAL

KSFC 2681.00 2859.00 6.64 NORMAL

Allahabad Bk 775.00 825.00 6.45 NORMAL

UCO Bk 308.00 321.00 4.22 NORMAL

Canara Bank 488.37 494.92 1.34 NORMAL

Karnataka Bk 198.29 200.21 0.97 NORMAL

Syndicate Bk 311.29 288.95 -7.17 POOR

ICICI Bk 1417.00 1256.00 -11.36 POOR

Bank of Baroda 290.00 171.00 -41.03 POOR

SBM 424.33 158.91 -62.55 POOR

SBI 793.70 216.82 -72.68 POOR

Vijaya Bk 272.29 50.63 -81.41 POOR

PNB 280.00 33.00 -88.21 POOR

Axis Bk 36.67 0.00 -100.00 POOR

Federal Bk 27.00 0.00 -100.00 POOR

Total 398.49 384.52 -3.50 POOR

ANLAYSIS OF GRWOTH IN THE MARET SHARE OF ADVANCES OF MSME LOANS

Particulars SSI SSI GROWTH REMARKS

Andhra Bk 0.20 0.80 300.00 EXCELLENT

IngVysya 0.01 0.05 288.52 EXCELLENT

South Indian Bk 0.16 0.59 272.80 EXCELLENT

SBH 0.39 1.36 246.42 EXCELLENT

KICB 0.01 0.02 221.53 EXCELLENT

Indian Overseas 0.27 0.79 195.77 EXCELLENT



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IDBI 0.07 0.16 128.67 EXCELLENT

Laxmi Vilas Bk 0.12 0.20 66.97 EXCELLENT

HDFC Bk 0.16 0.23 42.36 EXCELLENT

Corporation Bk 4.43 5.50 24.08 NORMAL

SDCC Bk 28.48 35.31 23.97 NORMAL

Indian Bk 0.50 0.59 17.73 NORMAL

Canara Bank 20.51 24.02 17.14 NORMAL

Dena Bk 0.04 0.05 11.64 NORMAL

Oriental Bk Of 0.21 0.24 11.42 NORMAL

Bank of Baroda 0.28 0.31 10.60 NORMAL

PragatiGr.Bk 3.28 3.48 6.05 NORMAL

Karnataka Bk 3.29 3.48 5.83 NORMAL

Union Bk of Ind 0.66 0.67 1.23 NORMAL

KSFC 2.62 2.62 0.01 NORMAL

Allahabad Bk 0.76 0.76 -0.17 POOR

UCO Bk 0.30 0.29 -2.26 POOR

Bank of India 2.60 2.44 -6.22 POOR

Syndicate Bk 6.38 5.82 -8.80 POOR

ICICI Bk 1.38 1.15 -16.88 POOR

SBM 11.19 5.09 -54.47 POOR

SBI 7.75 2.18 -71.82 POOR

Vijaya Bk 3.72 0.74 -80.07 POOR

PNB 0.27 0.03 -88.95 POOR

Axis Bk 0.11 0.00 -100.00 POOR

Federal Bk 0.03 0.00 -100.00 POOR

Total 100.00 100.00

Overall Ranking of Ranking of Banks Under 3 Points Average Growth MethodBANKS AG MSMEG MSME/B MSME/MG AVG RANKS

ICICI 90.5238 -0.8682 -100.96 11528.65 2879.34 1

South Indian 0.83554 -15.375 -1940.07 12518.72 2641.03 2

IngVysya 4.52261 314.286 6849.21 2079.29 2311.83 3

Bank of Baroda -4.4204 -0.8696 -80.33 9137.74 2263.03 4

Indian Overseas 3.96069 215.385 5338.06 2378.38 1983.95 5

Indian 2.00145 25.5361 1175.88 4504.78 1427.05 6

Syndicate 3.95973 -11.536 -391.34 3292.25 723.33 7

Andhra 5.50622 -8.6022 -256.23 2878.63 654.83 8

KICB 3.7037 -33.333 -1000.00 2900.00 467.59 9

Oriental 4.60993 18.8073 307.97 1537.52 467.23 10



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1.9 FINDINGS OF THE STUDY The above analysis gives an indication that the growth of overall advances of the commercial banks after one

year of launch of Make in India programme reveals that the overall advances of the district grown up by 15.80per cent which is an indication that the Make in India programme helped the financial institutions to boost upthere interest revenue.

Out of 35 different sector banks 3 banks namely ICICI, IDBI and Central Bank of India performed extremelygood in the market recording more than 50 per cent of growth rate 6 other banks performed good in the marketby achieving more than 20 per cent of growth rate. The 5 banks recorded average in the market. Majority of thebanks i.e. 13 banks out of 35 banks performed fairly in the market recording 0-10 per cent of growth. But 7banks out of 35 banks resulted negative growth in advances which can be considered as the poor performedbanks.

The performance of private sector banks are good with comparison of public sector banks ICICI Bank and South Indian banks occupied first and second rank under overall ranking method where as

KICB and oriental Bank stood at last two positions respectively.

1.10 SUGGESTIONSThe following are the main areas which are identified as for the purpose of the slow growth in MSME advances are asfollows.

Lack of Power: Lack of uninterrupted power supply is the major problem faced by industries of this district. Non availability of skilled manpower: Inefficient human factor creates innumerable problems for the survival of

industries. Non-availability of adequate skilled manpower poses problem to Micro and Small Enterprises. Inadequate credit assistance: Need based cash flow for working capital is lacking, which is affecting the smooth

functioning of Micro and Small Enterprises. Absence of adequate infrastructure: Most of industrial estates are not having provision for maintenance of

infrastructure. Absence of adequate infrastructure adversely affects the quality, quantity and production schedule ofthe enterprises which ultimately results in under-utilization of capacity.

Competition from global market: Small-scale units find it very difficult to compete with the imported articleswhich are comparatively very cheap and of better quality.

Lack of Scientific segregation: There is no scientific segregation of Micro and Small Enterprises as per pollutionnorms for the classification of Red, Orange or Green categories.

1.11 CONCLUSIONThe MSME segment in India has traditionally been using the investment in plant and machinery as the metric to define theMSME sector as the investment in assets can be verified and measured. However, we must also appreciate that each sectorhas its own unique capital requirement and standard revenue and growth rates. Hence, in today’s complex businessenvironment, turnover and number of employees are becoming more relevant matrices for consideration of coverage.Globally, annual turnover, headcount and potential export revenues are some of the key metrics being used to define theMSME. Further, the emerging economies have taken a step ahead to constantly revise and raise the turnover and headcountcaps to match the global standards. The analysis of MSME advances during the one year period after the launch of MAKE ININDIA programme it is identified that both public sector and private banks operating the Shimoga District resulted in bettercondition which have taken the MAKE IN INDIA programme has an effective tool to increase its MSME Advances. Butthere is a lot of scope for improvement andIt is essential that in India specific scenario separate consideration be given toagriculture and food processing businesses. This segment requires support and benefits during the current development phaseand creates significant opportunities in the MSME segment for new startups across regions.

1.12 REFERENCES1. Annual Report, 2015-2015, Ministry of Micro, Small and Medium Enterprise.2. Confederation of Indian Industry “Creating Competitive SMEs” October 2015, P-5.3. http://icmai.in/upload/Institute/Press_release/BS-Feb-23-ASSOCHAM.pdf.4. http://pib.nic.in/newsite/PrintRelease.aspx?relid=116242.5. https://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Documents/The%20new%20wave%

20Indian%20MSME_Low%20Res.pdf.



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COMPARATIVE STYDY ON MAKE IN INDIA MODI AND FORMER PRESIDENT DR.A.P.J.ABDUL KALAM

J.HemalathaLecturer in English, East Point Group of Institutions, Bangalore.

AbstractMaking India concept of all , the wider aspects of defense planning and other dimensions , the world economy is recoveringfrom an extended slowdown with all the key economic groups, including the USA, Euro area and BRICS, expected to stagehigher growths over the next few years.

India in turn has recently witnessed the most emphatic election verdict in 3 decades, and is gearing up for growth. Theoverall outlook is positive, with leaders across the Industry expressing confidence in this economic revival. In keeping thetheme of development Prime Minister Mr Narendra Modi has launched the “Make in India “ campaign, targeted totransform India into a manufacturing leader.

Yet the vision, while laudable, is not easy to achieve.

The world is fast changing with a rebalancing of manufacturing weight across the developing economics. China, with itsrising wages and increasing cost of production, is fast losing its cost of production, is fact losing its cost advantage. Russia isfacing challenges in maintaining its competitiveness, with rising wages, increasing factor costs, and geopolitical issues. TheUS and Mexico, on the other hand, are reclaiming their share of the global manufacturing pie on the back of declining factorcosts and rising productivity.

The Indian Manufacturing sector is a classic example of an industry that has had great potential , but one that has beensystematically done in by political ineffective, entrepreneurial myopia and sheer ignorance of what it takes to succeed. Inmany ways, therefore, the stage is set for India to transforms

Its manufacturing and seek global leadership.

Key words: Laudable, BRICS, Aviation, Retrospect.

The Minister Narendra Modi will unveil his ambitious “ Make in India” campaign on Thrusday, with an aim to turn thecountry into a global manufacturing hub. Here are 10 things to the know about the “Make in India “campaign:

The CEOs from India international Industry leaders, ambassadors, ministers and government officials are likely toattend the launch. The campaign will target top companies across sectors

Special arrangements have been made to publicist the event globally in different world capitals and also Indianmission abroad, where officials are expected to engage with investors and consultants.

Business entities will be extended a red carpet welcome. The “Invest India “ unit in the commerce Ministry will actas the first reference point for guiding foreign investors on all aspects of regulatory and policy issues and to assistthem in obtaining regulatory clearances.

The government is also closely looking into all regulatory processes with a view to making them simple andreducing the burden of compliance on investors.

A dedicated cell has been created to answer queries from business entities through a newly created web portal The Government has identified 25 key sectors in which India has the potential of becoming a world leader. The brochures covering sectors like automobiles, chemicals, IT, pharmaceuticals, textiles , ports, Aviation, leather, tourism and hospitality, wellness , railways among others will provide details of growth drivers,

investment opportunities , etc. It aims to attract foreign companies to set up factories in India and invest in the country’s infrastructure. The

government has liberalized defence manufacturing and insurance sectors to attract FDI, but analysts say governmentneeds to do much more to attract foreign capital.

The initiative has its origin in the P.M Modi’s independence Day speech where he gave a clarion call to “Make inIndia” and “Zero Defect; Zero effect” policy.

These ten points are relevant but to implement this we should improve our interpersonal and intra personal skills . In thisway I want to have the characterization of Dr. A.P.J. Abudul Kalam’s views and interpretation . Above mention points areplaying vital role to implement we should improve our goal setting, leadership qualities, Goal setting, and time management.



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Kalam followed two techniques to lead the team. The first is to build our education and skills. The more up to date theknowledge you possess, the more free you are. Knowledge cannot be taken away from anyone. To lead, in a way, is toengage in continuing education. To be a successful team leader, one has to stay back to review the work done and emergebetter-equipped to face a new day. The second way is to develop a passion for personal responsibility.

Work mode should have the flow. Flow is a joyous experience while working. It is a sensation they experience when they actwith total achievement. During flow, action follows according to an internal logic. All those who work on SLV wereexperiencing flow. Though they were working very hard. They were relaxed, energetic and fresh. Who created the flow? Itwas the fact that the difficult targets they had set actually seemed achievable.

A young man said to kalam” There is no big shot in our team, how will we able to break through” Kalam said to him.”A bigshot is alittle shot who keeps on shooting, so keep trying!” Gradually the negative attitudes changed to positive. Many olderscientists were happy by being part of a young team.

These are the saga of Abdulkalam’s , the moto of him is “ Let’s resolve to steer the country to one destination. We have it inus to move in that direction. Come, make India “comes manufacture in India”. “Sell in any country but manufacture here.We have got skill, talent, discipline and determination to do something. We want to give the world a favourable opportunitythat come here,” come make in India “and we will say to the world, from automobiles to agro value addition “ come make inIndia,” paper or plastic,” come, make in India paper or plastic “ come make in India”.

A major new national program. Designed to facilitate investment. Foster innovation. Enhance skill development. Protectintellectual property. And build best-in-class manufacturing.

Infrastructure. Addressing a he gathering consisting of top global CEOs at the event in Vigyan Bhawan in the capital, thePrime Minister said “FDI” should be understood as “ First Develop India” along with “ Foreign Direct Investment “. Heurged investors not to look at India merely as a market. The Prime Minister Said it is important for the purchasing power ofthe common man to increase, as this world further boost demand, and hence spur development in addition to benefitinginvestors. The faster people pulled out poverty and brought into middle class, the more opportunity will there be for globalbusiness, Therefore, he said, investors from abroad.

Need to create jobs. Cost effective manufacturing and a handsome buyer – one who has purchasing power- are both required,the Prime Minister said. More employment means more purchasing power. To the expression “Look East,” the PrimeMinister added “Link west, and said a global vision was essential.

Kalam says, “The life is not just an account of his personal triumphs and tribulations. It tells of the success and setbacks ofthe scientific establishments in modern India, struggling to establishment in modern India, struggling to establish itself on thetechnology forefront. The saga of India’s search for scientific self-sufficiency and technological competence is a parable forall the times.

The concept of Modi is to make India should declare that Indians would built their own India. The whole country shouldfilled with optimism. The optimism affected Kalam also. The concept of Modi and Abdul Kalam is the same going way is apart of growing up . So Modi has invited all of the country’s to contribute their level best for the growth of India. “Our lovewill not bind you nor will our needs hold forever.

REFERENCES: The wings of fire, the website of google, www.brhaddhvani.org,www.sramics.



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A STUDY ON IMPACT OF CORRUPTION IN LOCAL GOVERNANCE ON THE POLICY OF ‘MAKE IN INDIA’WITH SPECIAL REFERENCE TO DAVANAGERE TALUQ

Mr Chethan S* Dr. Roopa T.N***University B.D.T College of Engineering, Davangere, Karnataka.

**Administrative Director, East Point Group of Institutions, Bangalore.AbstractLocal Governance has always been a modest philosophy well accepted by the present day generation. Fulfilling theaspirations of the common man of the country is believed to be the core of the philosophy of local governance.Decentralization of authority and decision making has brought about enormous political, societal and economic strength atthe bottom layer. The general public, in particular, feels empowered and educated. Nevertheless, local governance has failedto prove itself flawless due to certain intrinsic factors specific to rural demography. The present paper attempts to throw lighton factors impeding the smooth functioning of the local governance in its full spirit. The paper aims at analyzing the degreeof corruption in the system and its impact on the policy of make in India.

Key Words: Governance, Corruption, Panchayathi Raj, Directive Principles, Constitutions.

INTRODUCTIONThe Article 40 of Indian Constitution on the Directive Principles of State Policy reads 'the State shall take steps to organizevillage Panchayats and endow them with such powers and authority as may be necessary to enable them to function as unitsof self-government'. However, no significant effort was initiated till 1991. In order to grant a constitutional status to thesePanchayath Raj Institutions (PRI) then Government of India in 1991 introduced the 73rd amendment to the Constitution. Thisinitiative has been done to strengthen the PRI and enable them to work as a True Local Self-Government (1). However, inreality the Govt allocations to PRIs evidence that these institutions failed to work in their complete potential. One of theprimary causes being corruption (2). Estimates suggested that large-scale corruption involving commissions paid in theinstance of public works and procurement deals was around 65 percent of the entire cost of individual projects.

The state of Karnataka introduced decentralization reforms in the 1980s when the Janata government was in power, evenbefore the enforcement of the 73rdConstitutional Amendment. Following the Constitutional Amendment, the KarnatakaPanchayati Raj Act 1993 was introduced. The kind of decentralization adopted in Karnataka charactorised more of politicaldecentralization and less of fiscal and administrative decentralization. Accountability and transparency, the importantdeterminants of governance, did not get adequate emphasis in the Karnataka Panchayati Raj Acts (both 1983 and 1993), orthe subsequent amendments (3) and to ensure the accountability of these PRIs to public, two institutions have beenintroduced, namely Grama Sabha (GS) and Jamabandi. These two institutions include elected members, officials and votersof the Village. Under the governance of these institutions, it is mandatory to have the presence of voters of the GP (4) duringthe selection of beneficiaries or allotment of works or estimations of civil works.

(1) From the development perspective, decentralization can be an effective means through which programs related to poverty reduction arebetter implemented (Bardhan and Mookherjee, 2000). Also find Sea bright, 1996.(2)http://www.yourarticlelibrary.com/india-2/9-defects-found-in-panchayati-raj-system-in-india-1431-words/4823/(3) Karnataka has had a longer history of quotas for women in the institutions of local government. For the first time In the country, 25percent of the total seats in the Panchayats were reserved for women. This was included in the1983 Karnataka Panchayati Raj Act, (TheKarnataka Zilla Parishads, Taluk panchayat Samithis, Mandal Panchayats, and Nyaya Panchayats Act 1983). This provided the design forthe provisions in the 73rd Constitutional Amendment. The first Panchayats based on this Act started functioning in 1987.(4) When the 1983 Act was formulated, the grama sabhas (village assembly) included in the Act were ahead of what then exist

In most of the States, people are apathetic towards local body. It has been noticed that the meetings of the GS end up in amere formality. Decisions are said to be dominated by the local elite, thereby making this body redundant. Meetings areconducted ignoring the quorum. The absence of women and weaker sections of rural society was another feature of the GS.Hence, the entire exercise could not deliver the expected results. The reason for poor attendance was attributed to the fact thatprovisions relating to the GS contain nothing of substance which could attract the masses towards it. The people, particularlythe poor, did not want to lose their daily wages for the sake of attending the GS meetings. If meetings of the GS were held toidentify beneficiaries for various anti-poverty and related programs, there was a good attendance. In fact, no one intends toattend the meetings of the GS unless the benefits are apparent to them (5). Jamabandi is another institution which facilitatesthe public to inspect the books of accounts or any records of the Panchayat. These two institutions are fundamental to insuretransparency in the organization. However they failed to function to the expected level. Hence, corruption is dominating inthe PRI (6).



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(5) EFFECTIVENESS OF THE GRAM SABHA by Dr. Mahi Pal, refer http://pib.nic.in/feature/feyr2000/fapr2000/f030420001.html(6) V. Vijayalaxmi, Consultant Sociologist, Corruption in Panchayats.

OBJECTIVES1. To examine the perception of general public on corruption practices and its impact on the effective implementation

of Development programmes in Gram Pnchayats.2. To assess the effectiveness of the policy of make in India in the light of development programmes in Gram

Pnchayats.

RESEARCH METHODOLOGYStudy AreaThe area of the present study is limited to Davangere Taluq. However the outcome of the research would be applicablebroadly for any other part of the Karnataka.Sources of DataThe present study mainly depends on Primary data. To mobilize primary data, survey, structured questionnaire method wasemployed. Along with this, extensive literature review was done. This includes previous work, related books, official sourcesand other publications.Research DesignThe study is descriptive in nature. Multi Stage sampling method is employed. For instance, at the initial stage, the state ofKarnataka has purposely been chosen. Thereafter, at the second stage Davanagere Taluq was selected considering theconvenience. In the third stage a Gram Panchayath was selected based on the Revenue generation capacity. Then finally atthe fourth stage, 50 samples were drawn randomly in the selected Panchayath and it included elected representatives,officials, contractors and the public. A structured questionnaire was employed with a 5. Likert scale. There were 12 questionswhich represent Ethical Framework, Perception, Institutional and Attitudinal factors.Data Analysis TechniquesInformation gathered from the respondents was processed and examined by employing simple percentage method. Statisticalsoftware Ms. Excel Package is used for tabulating and computing the data.Sampling FrameThe sampling frame for the proposed study is List of Village Panchyaths and List of elected representatives from ZillaPanchayth, Davanagere and List of employees and List of electors from Gram Panchayth. Respondents for the study arebroadly categorized in to two categories. First Category consists (R)

1. Government officials in village Panchyath-PDOs and Secretaries2. D-Group Employees3. Elected Members of the Panchayats4. Contractors

Second category consists general public (P).

Criteria for the Samples1. The lowest Revenue Generated Gram Panchayath.2. Respondents who are 18 years and above.

RESEARCH ANALYSIS/FINDINGS/SUGGESTIONTable 1 (In %)

S.No Parametres

StronglyAgree/Agree NUTRAL

DISAGREE/STRONGLYDISAGREE

R% P% O% R% P% O% R% P% O3%

1Accepting commission is notwrong 25 47 40 0 0 0 75 53 60

2Awarding contracts to kith and kinsis the only option 38 40 39 0 12 8 63 48 53

3Commission and bribes areaccepted to cover election expenses 25 76 60 0 18 12 75 6 28



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4To get the work done,payment ofcommission/mamuli is must 38 71 60 13 6 8 50 24 32

5Overstatement of cost estimates isnecessary 25 59 48 25 24 24 50 18 28

6Beneficiaries are not selected asper Law 0 24 16 0 12 8 100 65 76

7Middleman is necessary tofacilitate the services to rural folks 0 29 20 0 12 8 100 59 72

8Delay in the file movement ispurposefully 13 65 48 13 12 12 75 24 40

9

Whistleblowers,anti-corruptionactivist, investigators are fromlocal region 50 71 64 38 6 16 13 24 20

10Correlation between Job securityand corruption 63 59 60 0 6 4 38 35 36

11

Programmes likeNREGA,ANNABAHAGYAwithdrawn the labor force frommanufacturing units 0 12 8 0 12 8 100 76 84

12

Corruption and red tapisumovershadow the Make in IndiaProject 63 53 56 0 12 8 38 35 36Foot Note1. R%, is Elected Representatives/officials/contractors in percentage.2. P%, is the general public in percentage.3. O%, is Overall Percentage in every segment.

1. Accepting commission is not wrong75% of the Elected Representatives have concurred that accepting commission is amiss. But 25% of therepresentatives/contractors/officials stated that Accepting commission is not wrong. It reveals that majority ofelected representatives are aware that accepting commission is illegal. Interestingly, about 50% of the publicrespondents have approved the practice of accepting commission. Therefore this supports the statement that “takerexist, till giver offers”.

2. Awarding contracts to kith and kins is the only option38% of the Representatives/contractors/officials opined that awarding contracts to kith and kin is the only option topromote corruption. This deduces elected representatives in general did not favor the practice of awarding contractsto their close relatives and friends. The elected representatives who supported the practice arguing that it ensuresmore accountability. 40 % of the Public in general observed that most of the time, contracts are awarded to Kith andKins of elected representatives and bureaucrats. This infers that Nepotism is a major hindrance in the smoothgovernance of local bodies as it is well established and provides space for corruption.

3. Commission and bribes are accepted to cover election expenses76% of Public opined that representatives commit themselves for bribes and commission to cover election expenses.However, 75% of the elected representatives did not concur with the set parameter. Proceeding with the publicopinion, that representative commits for bribes and commission to cover their election expenses. This practice canbe curbed through employing rules strictly and government must ensure that no candidate should be elected throughspending unaccounted money in elections.

4. To get the work done, payment of commission/mamuli is must71% of the public revealed that without the payment of commission/mamuli work cannot be done. It suggests theexistence of Corruption. A sound mechanism must be designed to curtail this practice. More research required in thisdirection to develop and design a strategy.



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5. Overstatement of Cost Estimates is Necessary50% of the Elected Representatives have concurred that Overstatement of cost estimates is not necessary. But 25%of the representatives/contractors/officials supported the set parameter. It reveals that the majority of electedrepresentatives is aware that overstatement of cost estimates should not be done. Interestingly, 59% of the publicrespondents have approved the Oversatment.In practice it happens due to payment of commission to authorities startfrom sanctioning to implementation stage, The public who supported may not be aware that overstatement is illegal.So to avoid such practice, the Government must provide a training program to the public in this regard and socialAudit must be strengthen to figure out the over expenditure on works.

6. Beneficiaries are not selected as per Law76% of the overall respondents disapprove the statement. So this is a positive aspect of the study. It infersBeneficiaries are selected as per law. Hence, there is no corruption in executing the set parameter.

7. Middleman is necessary to facilitate the services to rural folks72% of the overall respondents opined that middleman is not necessary to avail the services. This indicates thatpublic is much aware about their rights to enquire and avail the eligible benefits from the government organizations.

8. Delay in the file movement is purposeful75% of the Representatives haven't agreed that a delay in the file movement is purposeful. But 65% of the publichave stated it happens purposefully. This deduces the existence of Red tapism. Here, the reason for the delay isintentional, seeking undue favors. To curtail this bad practice, the Government of Karnataka has introduced SakalaMission under the dynamic leadership of Dr. Shalini Rajneesh which is a welcome approach, but a long way to go tobe successful.

9. Whistleblowers, anti-corruption activist, the investigators are from the local region64% of the overall respondents accepted that Whistleblowers, Anti-Corruption activist, and investigators are fromthe local region. If it is so, then there should not be any corruption. But earlier answers, express that there is acorruption in the system. This is in contradiction to other answers. It may be because the Activists may not be awareof the latest Anti-Corruption laws like RTI and also they may not know how to escalate the issues related tocorruption to the next level. The researcher suggests that the Government must identify these Activists andeducation and training must be given to them related to laws for taking the issues to higher levels.

10. Correlation between Job security and corruption60% of the respondents approved that there is a relation between Job Security and Corruption. It clearly states that,if somebody has the fear of losing the job, he will not indulge in unethical practices. So the Authorities must use thispsychological phenomenon to control the corruption.

11. Programs like NREGA; ANNABAHAGYA withdraws the labor force from manufacturing unitsThe study shows that 84% of the overall respondents rejected the set parameter. Hence, it deduces that programslike NREGA; ANNABAHAGYA and labor shortage does not have any correlation. Therefore, these programs havenot withdrawn the labor force from the manufacturing sector and further not impacted adversely on Make in India.

12. Corruption and red tapism overshadow the Make in India Project56% of the overall respondents strongly concurred with set parameter. The researcher through the study as provedthat Corruption and Red Tapism overshadow the ‘Make In India’ project. Mr James ‘Chip’ Cottrell, anti-graft expertin Deloitte’s financial advisory in his interview to Forbes Magazine (March 20, 2015) also opines that corruptionand red tapism are two big hindrances to Make In India Project. So in order to make the ‘Make in India’ program tobe successful, the Government of India must design and introduce strategic programs to curtail corruptionsuccessfully.

CONCLUSIONThe government through its various machinery like Panchayati Raj Institutions (PRI) tries to provide the benefits to the needyin the society. Though Government operates through good intention, many a times the benefit will not reach the needy due tovarious hurdles. The study tries to expose the loopholes existing in government machineries.

Accepting commission has become the order of the day in the PRI to execute the work. Commission and bribes are prevalentin these organizations which have to be eradicated to provide better governmece.Elected representatives try to manipulate the



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work orders for personal benefits which have to be arrested immediately. Lot of delay in the file movement which is donepurportedly needs to be curbed.A serious thought should be given to provide education and training to social activists/whistlebowlers/anti-corruption activists. So as to empower them to curtail unethical practices in the government organization. Thepeople popular programs like NREGA/Annabhagya have no impact on the labor market as assumed wrongly by the generalpublic. Though Hon’ble Priminister, Mr Narendra Modi’s pet project Make In India is a big thing still lacks due to corruptionand Red Tapisum which needs to be arrested immediately. If not, this project remains a dream, just on the paper.

Government has to implement various other programs/laws similar to that of Sakala, Panchatantra, RTI to ensure effectivefunctioning of the Government organizations. If programs implemented in the right spirit and good political will, goodgovernance will prevail in the country. Thus realizing the true ‘Rama Rajya”.

REFERENCES1. Bardhan, Pranab and Dilip Mookherjee, 2000.‘Decentralising Anti-poverty program delivery in Developing

countries,’ University of California,Berkeley,Working paper— Web site:http://econ.bu.edu./ dilipm/wkpap.htm/wkbpa phmpg.html.

2. Besley, Timothy and Stephen Coate 1999. “Centralized versus Decentralized Provision of Local Public Goods: APolitical Economy Analysis,” NBER Working Paper no. 7084.

3. Anand and D. V. Gopalappa, 2003. Fixers, patronage,`Fixing’, And Local Governance in Karnataka, SociologicalBulletin, 52 (2);164-185.

4. Tanzi, Vito, 1994, Corruption, Governmental Activities and Markets, IMF Working Paper 94/99.5. Tiebout, Charles (1956). “A Pure Theory of Local Expenditures,” Journal of Political Economy, vol. 64, pp. 416-24.6. Treisman, Danierl, 2000, “The causes of corruption: A cross national study,” Journal of Public Economics, 76(3):

399-457.7. Vijayalakshmi, V., 2003. “Accountability and governance: local government in Kerala and Karnataka”, Working

Paper No. 125, Bangalore. Institute for Social and Economic Change.8. Vijayalakshmi,V 2003. ‘Rent-Seeking and Gender in Local Governance’, Paper presented at the Conference on

Re/constructing Corruption,University of East Anglia, Norwich, April 2003.9. Wade, Robert 1997. “How Infrastructure Agencies Motivate Staff: Canal Irrigation in India and the Republic of

Korea,” in Infrastructure Strategies in East Asia, Ashoka Mody, ed., World Bank.10. Wildasin, David 1995 “Comment on ‘Fiscal Federalism and Decentralization’”, Annual World Bank Conference on

Development Economics, pp.323-328.



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METHODOLOGY TO IMPLEMENT VIRTUAL CLASS ROOM VIA WEB BASED

Mrs.Padmavathi R* Ms.Meenakshi Sundari D**East Point College of Higher Education, Bangalore.

AbstractSince quality of virtual class room and online-learning increasing day by day there square measure some factors that havean effect on virtual category room session like restricted information measure for audio and video, poor transmission quality,poor cooperative work and restricted feedback still have to be compelled to be addressed . This paper presents themethodology to implement of a virtual room system that focuses on cooperative learning between students and teacher atremote locations. the various part of the system permits students to have interaction in cluster activities and collaborate withinstructors during a unremarkably shared on-line text, audio or video.

Keywords: Virtual Classroom, A distance learning, Virtual Environments.

1. INTRODUCTIONEducation is the process through which we can bringing a permanent change in human behavior. It work as a maininstrument to preserve, maintain and update peoples culture, norms and values. n society, education could be a tool fordeterminative technological advancement and spending on to the new generations, the prevailing data of the physicalsurroundings. Education additionally is platform for introducing people to any organization, giving skills for acting daily jobslikewise as inculcating sound morals within the individuals for his or her own profit which of the society. therefore educationis that the platform on that younger generation perceive the past heritage likewise as participate and contribute meaningfullygrowth and development of the society.

Since, education has been practiced across the planet in divided buildings by carefully controlled and standardized categoriesof scholars and lecturers. This features a eventful result on each the learner and therefore the teacher. As an example,education and learning area unit implicitly restricted only to those that can be inside the room and follow the teacher rigidlywith the pace by that he presents his category session. Population explosion furthermore as mass instructional system in eachregion of the planet brought bigger challenges for this technique of education. for instance, there's drawback of inadequaterange of human and material resources to cater for the education of the massive population. The population of college agenational in most places has grown staggeringly to the extent that solely a little share will be offered admission. the student –lecturer and student-classroom ratios have fully grown to the extent that teaching and learning within the room are lesseffective [1]. so the sphere of education provides the foremost fascinating application of ADPS, that has consequentlyattracted wide attention from educationists and policy manufacturers since the late Sixties once computers were introducedinto school rooms. numerous info technologies are applied in learning and teaching, like computer power-assisted Instruction,(CAI), pc power-assisted Learning (CAL), analysis Packages, Project observance, computerized Libraries then on. Theresults of technological advancement in transmission technology, pc networks and therefore the web, computers area unitcurrently being applied in distance learning premised on on-line and real time teaching and instruction [2].

A distance learning comes into the system so education nearer to the people and removes the stress and constraints thatcharacterize the standard room learning system. the most aim of distance learning area unit the separation of teacher andlearner in house and/or time, the management of learning by the scholar instead of the distant educator [3], and non-contiguous communication between student and teacher, mediate by print or some sort of technology [4].At it is mostelementary stage, distance education and learning is really a method through which important variety of teachings is executedsimply by remotely located researchers. There are two categories of distance learning systems exist knows as On-line andOff-line distance learning . On-line distance learning additionally called virtual schoolroom may be a sort of learning systemwithin which students work on their own reception or at the workplace and communicate with school and different studentsvia e-mail, electronic forums, video conferencing and different forms of computer-based communication. Off-line distancelearning on its own may be a multi-campus system wherever a University or engineering school establishes several campusesand every of those campuses is also centrally controlled or decentralized. There’s very little or no distinction between the off-line distance learning and traditional learning in this the off-line distance learning system remains characterized by theoptions of the standard system. lots of establishments, each public and personal, provide university courses for self-motivatedpeople via independent study program. Students work independent, with supplied training course materials, print-basedmedia and postal transmission, some form connected with teleconferencing and/or electronic networking, and learner supportfrom instructors and mentors by way of telephone or E-mail. Virtual classroom platforms provide collaborative learningservice, which is an integral component of training and learning system and also instant feedback along with facilities like e-

mail, wikis and bulletin board on the disposal of teacher along with the students. Virtual classroom also provides two-way



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transmission with faculties to feature many interactive capabilities, for both on-line along with off-line use thereby alleviatingdeficiency of sense of that belong of remote students.

2. CONNECTED WORKSThe particular limitations of a number of virtual classroom systems include not enough interactive response, assignmentmanagement and live streaming. An intranet-based virtual classroom system that enhances the interactions between studentsand teachers is introduced in [5]. The system introduces a brand-new design for e-learning and removes a lot of the problemsof the existing systems along with increase the relationship between teacher and students using the impression of a real lifeclassroom. The system provides live streaming of lectures whilst assignments, questions and answers is usually uploaded.The authors in offered a virtual class system which incorporates several modules with regard to live video spiel, whiteboardtechnology, chat-room and some teacher-students feedback quests. The system is surely an innovative combination regardingsynchronous learning by means of live streaming video clip, audio and chats online. It is blended thoroughly withasynchronous on the web interaction and group works in a manner that mimics real living scenarios. Failure to feature innotifications email and mobile phone through short communication service (SMS) include the main limitations of the system.

A virtual classroom system using reflection creation technique is proposed in [6]. The system contains of three lecture rooms.the primary room is for theory that contains video clips directions for lecture and observe and on-line live lectures whereasthe second room could be a library that connects the e-learning websites regarding picture taking testing. The third and finalroom could be a laboratory for observant experiment results. All the 3 lecture rooms were designed to be virtual mistreatmentlaptop graphic technique. Characters representing learners were also created so as to make interaction between learners andvirtual lecture rooms. The authors in [7] given AN study style for an integrated system for the delivery of lectures during avirtual surroundings. The design and outline of the system parts are given with the techniques and proposals for theimplementation of the designed system. His architecture is multi-tier, modular, scalable along with built for adaptability todatabase middleware collection. All functionalities in the application are supplied with web services, communicate via sectorstandard Extensible Mark-up Vocabulary (XML) messaging along with access is strictly using a web browser. The virtualcollege class application utilizes an computer with facilities intended for providing users web services, data and pre-processor hypertext which has a simple and consistent GUI corresponding to the tiers. With the object-oriented designapproach, three logical classes were identified intended for application objects; namely, objects that cope with presentationaspects on the application, objects that cope with the business guidelines and data, and objects in which accept and translateuser requests and control the organization objects to fulfill the requests.

The authors in displayed a virtual classroom by utilizing Real-Time Messaging Protocol (RTMP) which is a sophisticatedTCP-based real-time marketing protocol that supports the efficient swap of messages, synchronized facts, audio, and onlinevideo. The system helps teachers and students to create streaming audio, video and also other data messages to presentstreaming media using interaction or navigation. On the Net, the system enables students immediate connection with teachersthat has a real classroom effect. A web-based collaborative method that serves being an add-on feature towards learningsystem for just a post class giving of resources because of the teacher and student can be proposed. The web-based exclusiveclassroom system suggested in [8] is based on e-pedagogy with boosted features for relationship among participants(instructors and students) in a web-based learning atmosphere. Instructor, course, student and learning performance formedthe particular major objects utilized in developing the method model, the top features of which include training outline,presentation, assets, assessment/opinion poll, chat, hands-up, students‟ listing, course information as well as collaborate, allharnessed to realize experiential learning amid students.

The authors in presented the planning and implementation of an learning technology project developed to enhance thewireless technologies for building a great ad-hoc classroom to be able to contrive a modern and new learning environment. Awireless platform was made for teacher and students to establish a classroom dynamically no matter what location andoccasion bounds. As backed in traditional class, information technology that delivers teacher with teaching aids was made.The aids consist of blackboard, board silicone, colored chalk, microphone, voice and online video recorders, and etc forcourse teaching and discussions within an ad-hoc classroom. Student was also supplied with electronic school handbagtermed e Schoolbag having electronic packing connected with book, notebook, parents‟ get in touch with book, pencilevent, writing materials, blankets, calculator, address book and so on. In [9], the key steps towards building andimplementing a very good concept of some sort of virtual classroom are usually presented. Information on the assessment,setting up, design, implementation, and maintenance of the virtual classroom in ten simple actions was explicitly divulgedusing a summary that failure that you follow these steps can ultimately bring about poor, incomplete, inadequate andineffective methods to Internet based length education.

Throughout the authors intended a web-based exclusive online classroom system according to learning theories andstreaming media technologies? The major pieces of the system are generally instructional communicating natural



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environment (ICE) and collaborative finding out environment (CLE). ICE provides learners along with learning materials,lecture videos, interactive environment and the like. CLE supports active learning by providing the environment along withlearning tools and materials and contextual dialogue for learners. The environments were built with event-based synchronousapproaches and e-learning technologies standards.

3. Proposed Virtual Classroom SystemThe architecture on the proposed system is actually presented in Figure1 with a number of interrelated modules that isApplication tiers, App objects, Data control and Course.

3.1 Application tiersThe application tiers associated with Client-Tier, (CT), Web-Tier (WT) and Enterprise Information System-Tier (EIST) asshown in Figure 2. The CT application is put in place to provide a Graphic User Interface (GUI) to the end users via a webbrowser, such as Internet Explorer, Opera or Firefox. HTML and PHP with Java applet is used to build the client-side GUIpage. A web server, Apache or Internet Information Server (IIS) which can be bundled with Microsoft Office server researchimplementation, is helpful to serve the GUI page with the web-tier, and to produce dynamic content HTML/PHP web pages.This web-tier holds data type of the business data and presents it for the client through HTML/PHP webpages, accepts andexamines the user's inputs, passes the user's request for the Enterprise tier for processing, and forward response to the client.The WT handles the business enterprise logic and data as well as communicates with your Enterprise Information System(EIS) tier by way of appropriate protocols. MySQL variation 5. 2 (a relational database) along with PHP were utilized tobuild the EIS rate application.The actual web-tier application communicates using the Enterprise-Tier (ET) application through a HTML/PHP Interfaceplus a transparent Internet Process (IP). This application enables a terrific flexibility, modularity and independence fromindependence from the client from the actual server application progress.



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3.2 Data Processing ArchitectureThe proposed system is made for multi-tier applications and offers many flexibility on picking a the method regardingdistributing application functionality through the tiers. There is really a client tier, which is the browser that communicateswhile using web tier. There is possibly the Enterprise Information System (EIS) as well as the database collection, whichholds lingering application data. An option is made on if the web tier accesses the EIS resources directly or goes through anEnterprise Espresso Bean (EJB) collection. This depends on the functionality, complexity, and scalability requirements of theapplication in real life. Since such requirements can alter as the program evolves, one design goal would be to make itamenable to migration a great EJB-centric approach which are the application a new multi-tier. The architecture of anygeneral multi-tier EJB-centric JAVA 2 Enterprise Edition (J2EE) application demonstrating the flow of data with theapplication is revealed in Figure 4.

3.3 Logical DesignThis application models a web-based student program delivery system and it is application interface is presented towardsstudents through an internet site where students interact with the application using a web browser. The application presentsthe student a catalog involving courses for selection and registration. New students are needed to register using administratorassigned username and password. The system notifies the student of a successful registration by way of confirmation emailusing Java Mail API. There is also room for querying what courses have been registered for while lecture is either inasynchronous or synchronous method.

3.4 Usability SpecificationThe particular usability specification is the major ways of while using application. The following would be the availablefunctionalities on the user interface from the application :

a. A collection of links or navigation bars on each page that supply students with fast access to common navigational



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responsibilities.b. An organized view of your site content through a catalog of courses categorized, which provides students with a

way to locate courses based on keyword descriptions.c. a master of he course catalog listing of student interest consequently the user browsing through a Catalog category

or as a result of a keyword search.d. A more detailed view of the courses.e. A chatting Services.f. Access to a forum where users can exchange ideas on various issues related to a specific course.g. Access to submission and uploading of assignment and subsequent access to the graded result.

The student module creates and maintains information for registration of students on identification, password, name, address,telephone number, e-mail address. The course catalog module returns a list of courses available. The module also returns detailedinformation about the selected course. The customer registration form creates a cart record for the student for the duration of thesession users. The registration-processing module manages interactions whereas the applying determines whether or not the user islogged in and if not, it either calls the coed module to line up a replacement student or initiate login. the applying permits userrevision or cancellation of the course alternatives for registration. Below are the other modules and their responsibilities:

a. Assignment module performs assignment registration process.b. Chat module used for live-time discussions in a very economical manner.c. Wordbook module permits a versatile manner for students to feature or present definitions (and more) which will be

joined through the complete category web site.d. Illuminate module [10] used for synchronous lecture delivery via White board, Video, Audio, Application Sharing,

breakout Rooms, power point Import, Polling, Participant type, Emoticons, close a Session and Hand Raise as tools.e. Lessons module for the addition of lessons that guide the student supported provided answers.f. Wiki module just like a blog (web log or journal), except that everybody will contributes, edit or makes comment and

posting on it isn't approved by the administrator to permit quick operation.g. Workshop module creates a workshop area for the category and facilitates a large vary of review choices.

The relation among the various modules is presented is Figure five showing the standard decomposition of the applying for its high-level modules shown in Figure 5.

3.5 Implementation TechniqueThe planned virtual schoolroom system is standard, climbable and designed victimization the ability of MySQL's suitemiddleware. All functionalities inside the applying were delivered victimization Apache and Java J2EE internet Services andcommunicate via trade normal XML electronic messaging. Access is only via an internet browser and therefore theapplication utilizes the Windows Apache MySQL and PHP (WAMP) facilities whereas providing the users with astraightforward and consistent programme. The MySQL powerful sign-on technology handles application security. TheMySQL's method Manager records and provides a seeable audit of all message transactions between internet services insidethe system. The frontend is delivered as pure hypertext mark-up language to make sure that it's extraordinarily light-weightand browser freelance. The software on that the applying server is put in is Microsoft Windows aspect with WAMP(Windows, Apache, MySQL and PHP) server a pair of.0 installations. The installation of WAMP server mechanically put inmysql_essential_5.0.5la_win32.msi, apache 2.2.8 and php_5.2.5 and created web folder for providing web root directory.The installation of the WAMP server is proceeded by the putting in of Moodle suit by zipping the downloaded Moodle



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zipped file into a Moodle folder and running the Moodle installer script (install.php) to make the config.php file that isemployed by the Administrator to setup the positioning configuration and creation of the house page. to take care ofstraightforward and minimum size development, the subsequent assumptions were created throughout implementation:

a. Application design for the students course registration interaction while administration interaction and the EIS tierdatabase tables were done manually.

b. Only the courses offered in the following semester are stored in the database with no limits to the number ofstudents for enrolment.

c. There is no restriction on courses enroll.d. Instructors are not assigned to specific departments.e. Rejection of a registered course is only performed by the administrator.

when the user requests an application with URL. The following interrelated screens are developed:a. Entry Login Screen for authorize user.b. Course Category Screen for choose the appropriate course for enrolment after successful loginc. Registered Course Screen to access all the chats, assignments, forums and other modules set up by the course

administrator or teachers.d. Virtual Classroom Screen to enter in the virtual classroom in an online meeting with the lecturer in a prescheduled

lectureAfter a successful run of the PHP scripts, the home page for the Virtual Classroom system was created for the Administratorto login and carry out several tasks including the following:

a. Creation and update of users account.b. Course creation and removal.c. Create Administration of Instructor or Teacher accountsd. Creating of the site-wide settings like themes and so on

CONCLUSIONThe design of a virtual class room system that is a learning platform with events primarily based synchronous andasynchronous modes has been conferred. The system consists of many modules that facilitate it to fulfill up with its designedobjectives. The assignments module allows academics to grade and supply comments for uploaded files and assignmentscreated on and off line, the chats module permits participants to own a period of time synchronous discussion via the onlinewhereas the glossaries module allows participants to make and maintain an inventory of definitions in a very manner just likethe lexicon. The modules for lessons, quizzes and wiki are created of contents that build them to perform optimally infascinating and versatile ways that. A whiteboard is additionally conferred as a main presentation window for writing anddisplaying of pictures. The audio options enable participation in conversations throughout a schoolroom sessionvictimization microphones and speakers (or headset) via vocalization web Protocol (VoIP) whereas the video options enablethe transmission and receipt of video broadcasts in world and interactive manners.

The different perspective of a bunch of users has been investigated supported some indices with the results showing vitalrating of the system. The investigation unconcealed that the Chat module outperformed alternative modules in meeting theusers expectations and satisfactions whereas the, Elluminate modules, that is that the core module still got to be greatlyimproved to extend its gift level of performance. this can be the main target of the feature analysis.

REFERENCES1. Benbunan-Fich, R., “Improving Education and Training With IT”, Communications of the ACM Vol.45, Issue 6,

2002.2. O-A.Driscoll, “Designing and Delivering Live, Online Training, COLUMN: E-learning basics: essay”, eLearn

Vol.2001 Issue 10, 2001.3. Gregory, S., Lee, M. J. W., Dalgarno, B., & Tynan, B. (Eds.). (2015). Virtual Worlds in Online and Distance

Education: Cases and Applications. Hauppauge, N.Y.: NOVA: Science Publishers.4. Bannister, B., Cornish, L., Bannister-Tyrrell, M., & Gregory, S. (2015). Creative use of digital technologies: Keeping

the best and brightest in the bush. Australian and International Journal of Rural Education, Vol. 25(1), pp. 52—65.5. A real-time interactive virtual classroom multimedia distance learning system published in Multimedia, IEEE

Transactions on (Volume:3 , Issue: 4 ).6. A virtual classroom approach to teaching circuit analysis published in Education, IEEE Transactions on (Volume:39

, Issue: 3 ).7. Keegan D. (1990), Foundations of Distance Education, 2nd New York: Routledge .8. Barron A. and Orwig G. (1993), New Technologies for Education.CO: Libraries Unlimited.9. Garrison D. R. and Shale D. (1997), Mapping the Boundaries of Distance Education: Problems in Defining the Field.

The American Journal of Distance Education, Volume 1, Number 1, pages 7-13 .



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IMPACT OF FOREIGN DIRECT INVESTMENT IN THE INDIAN RETAIL

Mary Lillian.JPh.D. Scholar, Christ the King College.

AbstractForeign Direct Investment is an investment made by a company based in one country, into a company based in anothercountry. Before independence major amount of FDI came from the British companies. After Second World War, Japanesecompanies entered Indian market and enhanced their trade with India. The policy makers designed the FDI policy whichaims FDI as a medium for acquiring advanced technology and to mobilize foreign exchange resources. Foreign investmentas “necessary” not only to supplement domestic capital but also to secure scientific, technical, and industrial knowledge andcapital equipments. In the early nineties, Indian economy faced severe Balance of payment crisis this led to the introductionof the macro – economic stabilization and structural adjustment program. As a result of these reforms, India opened its doorto FDI inflows and adopted a more liberal foreign policy in order to restore the confidence of foreign investors. This paperdiscusses about the impact of FDI in Retail and presents suggestions for the development of retail industry in India.

Key words: FDI policy, Balance of Payments, Predatory Pricing Policy, Economic Stabilization, Foreign Investors

INTRODUCTIONForeign Direct Investment is an investment made by a company based in one country, into a company based in anothercountry. Is FDI new to Indian economy? No, not at all. It existed even before independence.

The historical background of FDI in India can be traced back with the establishment of East India Company of Britain.Before independence major amount of FDI came from the British companies. After Second World War, Japanese companiesentered Indian market and enhanced their trade with India. Further, after Independence keeping in mind the national interests,the policy makers designed the FDI policy which aims FDI as a medium for acquiring advanced technology and to mobilizeforeign exchange resources.

The first Prime Minister of India considered foreign investment as “necessary” not only to supplement domestic capital butalso to secure scientific, technical, and industrial knowledge and capital equipments.

Infact, in the early nineties, Indian economy faced severe Balance of payment crisis. In this critical face of Indian economythe then finance Minister of India Dr. Manmohan Singh with the help of World Bank and IMF introduced the macro –economic stabilization and structural adjustment program.As a result of these reforms, India opened its door to FDI inflowsand adopted a more liberal foreign policy in order to restore the confidence of foreign investors.

The Sectors into which FDI was implemented then are Telecommunication , Automobiles IT/ITES

At Present, the sectors into which FDI is planned to be implemented are retailing, broad casting and aviation.100% in Single brand Retail, 51% in multi brand retailing, 74% in broadcasting and 49% in aviation.

If FDI existed before, then why is it making news now?

The reason could be that FDI in retailing is the issue concerning the common man which many feel is a threat to Indianmarket. Few threats that would risk the Indian retailing are the survival threat to the small corner shops, loss of employmentfor the intermediaries and predatory pricing policy.

Will FDI have an adverse impact on small corner shops?In a country like ours lifestyles and shopping habits are different unlike the other countries, Indians do not have the habit oftravelling 5 to 10 kilometres just to buy vegetables and households. Indians work more on convenience. Small corner shopsare merely for the convenience of customers, hence fdi is expected not to have any adverse impact on these shops. Studieshave shown that in the last 5 years the small corner shops have added values though there are a lot of organised retail outletswhich co-exists.The other important risk is predatory pricing, which means, due to the size, strength and scale of the investing company, it issuspected that initially it might go for cost cutting to win market share, after winning the market share, it will ramp pricing



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and have complete dominant control over market and pricing. But for a country like India this is highly impossible as ourgovernment has laid ceiling called the MRP, above which the investors cannot price their products.

Another risk that might be witnessed is the loss of jobs for the intermediaries who are in between the farmers and theretailers. But with the inward FDI, farmers are directly dealt with, wherein they have a choice to sell their raw materials. Thiswill definitely reform the farmer’s role in the economy.Though a few feel there are threats to the home country due to FDI inretail, it has more benefits than threats.

BENEFITS OF FDI FDI is a medium for acquiring advanced technology. It facilitates resource transfer, in terms of capital and technical

knowledge. FDI increases the level of competition in the host country which will ensure world class quality products at low

prices. Employees get acquainted with globally valued skills. Also the recipients of FDI often gain employee training in the

course of operating the new businesses, which contributes to human capital development in the host country. For host countries, inward FDI has the potential for job creation and employment, which is often followed by higher

wages. It has the potential to add 3-4 million jobs. Another 4-6 million jobs could be created in logistics, contractlabour, housekeeping and security.

FDI facilitates better back end infrastructure like cold storage, warehousing etc. Nearly half of the investment willbe made in backend infrastructure as warehousing.

With the FDI there is going to be great demand for the raw materials, therefore the farmers have a choice to chooseto whom they could sell their produces. This will reduce the number of intermediaries who are exploitative in mostcases.

For example: the sale of cauliflowers directly to retails without Mandy’s gave 25% increase in the profit level . For investors, FDI provides the benefits of reduced cost through the realization of scale economies.

Thus there is economic development in the country.

SUGGESTIONS Government should regulate frameworks and should closely monitor at regular intervals and ensure transparency. Bureaucratic delays and various governmental approvals and clearances involving different ministries need to be

fastened so as to increase the absorption rate of FDI into the country. Government must ensure consistency of policy so as to improve the business and investors confidence. Pickle is a pickle only when made by an Indian company. This being the attitude of the Indians. FDI in r will not

affect the small kirana or corner shops. Therefore govt should uplift and encourage the small shops which can co-exist to compete with big the giants’ like Wal-Mart and Tesco.

Awareness should be created among the citizens about the importance of FDI in Retailing and its benefits in the longrun.

Time bound, non-discretionary and norms should be simplified making the approval procedures faster to attractinternational investors and build confidence in them.

Government should provide funds and opportunities for the domestic producers and manufacturers so that they canimprovise there product quality to compete with the foreign products.

CONCLUSIONI personally feel FDI should be truly welcomed. It is definitely going to improve the economy of our country by creating jobopportunities, improved quality products with low price and improved standard of competition. It creates a platform for thedomestic producers and manufacturers to compete globally. Instead of opposing FDI we have to come together and find waysto reduce its risk and obtain maximum benefits from it and thus increase the standard of living.

REFERENCES1. DIPP. (2010), Discussion Paper on Foreign Direct Investment (FDI) in Multi-brand Retail Trading, New Delhi:

Department of Industrial Policy and Promotion.2. Guruswami, M., Sharma, K., Mohanty, J., & Korah, T., FDI in India’s Retail Sector: More Bad than Good?

New Delhi: Centre for Policy Alternatives.3. V.N. Prasad and Perumal Koshy, FDI in Multi-brand Retail Trading: MSE Sector Need Level Playing Field.,

DIPP-Discussion Paper.



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BONANZAS OF MAKE IN INDIA – AN EMPIRICAL STUDY OF CITIZEN STAKEHOLDERSIN BANGALORE

Cynthia Menezes, PhDBangalore University.

Abstract"The greater the contrast, the greater the potential….. " Joel Barker.

A major, new National program, the Make-in-India (MII) project seeks to create a strong economic base with a globallycompetitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attainsustainable development. New DMIC Cities will help to meet pressures of urbanisation and also lead India’s economicgrowth for the next 20 -30 years. The project aspires to double employment potential, triple industrial output and quadrupleexports from the region in the next seven to nine years."Nobody can do it alone anymore" (J.R. Houghton of Corning Glass,Business Week, 1993). This not only applies to Small and Medium Sized Enterprises (SMEs) with their relatively limitedresources and capabilities, but to Multinational Enterprises (MNEs) as well. The basic strategic reasons for the increasedimportance of alliances, i.e. close collaboration between independent partners, are well known ( Doz and Hamel, 1998).They stem from increased competitive pressures (hyper-competition, globalization, rapid technological developments) incombination with increasingly efficient industrial markets (among others through TQM and ICT). These factors both forceand enable companies to concentrate on a few core capabilities, which are — and can remain — of world class level and tosubcontract or outsource almost all other inputs to their business. Subsequently, in order to safeguard the uninterruptedsupply and the sustained adaptation of strategic inputs to their needs, companies forge strong relations with the suppliers ofthese strategic inputs. (de Man, et al, 2003).

This paper, using a sample of 54 respondents, elaborates on the envisioning of stakeholders in Bangalore about the outcomesof the MII.

1.1 INTRODUCTIONOn 18th August, 2015, China's Lenovo said that it has started local manufacturing of its smartphones at Sriperumbudur nearChennai, through a contract manufacturer. Lenovo, which also owns Motorola Mobility, has already started rolling out two ofthe 4G variant of Moto E smartphone from the plant, and will start making another 4G device, Lenovo K3 note device, soon.The company said that both Lenovo and Motorola will have separate manufacturing lines at the same facility. The plant willhouse 1500 employees for manufacturing lines, quality assurance, and product testing. The current capacity of the plant is 6million units for the current financial year, the company said. The plant is the only plant outside China, which willmanufacture smartphones for both the brands. Amar Babu, COO, Asia Pacific and chairman of Lenovo India said that thecompany expects its partner to source about 30% components locally. "We are talking to government to improve availabilityof components locally to improve the total value of devices." Chen Xudong, President MBG group, Lenovo and chairmanMotorola Mobility operation board said that Lenovo is bullish on the Indian market and aspires to be the leader in the market.Both Lenovo and Motorola have started integrating the manufacturing and supply chain operations and are working towardsto combining many back-end operations as well.

Whether small entrepreneurial firms form strategies specifically in order to internationalize is debatable. It is likely, however,that the firms that are most successful in internationalizing will develop strategies aimed at forming international linkageswith external bodies, and will spend time and resources on seeking, developing and maintaining these linkages. Firms arelikely to be better at or more active in developing linkages overseas if they are predisposed to internationalize. Smallentrepreneurial firms may be more predisposed to internationalize if their founders have an international orientation (Dichtl,1990), or have experience that enables them to cross the cultural divide between country markets (Reuber and Fischer, 1999).Firms that have founders who are fluent in foreign languages, are themselves foreign nationals or have received education orwork experience overseas will be more predisposed to make contact with organizations or bodies overseas (Wiedersheim-Paul et al., 1976; Cromie et al., 1997; Westhead et al., 2001) and are likely to put more effort into developing those links.Whether firms make economically rational market entry decisions, psychically safe entry decisions or evolve gradually intoforeign markets on the back of existing networks of relationships, it is likely that at some point most will make contact withindividuals or organizations in the foreign market. (McDonald et al, 2002).

Soon after the NDA government took charge at the Centre with Prime Minister Narendra Modi at the helm, an ambitious planwas drawn up to rev up manufacturing in the country. Dubbed as "Make in India", the ambitious plan urged everyone withinthe country and abroad to set up manufacturing base in India. The clarion call to make things in India was not only limited tobig industrial houses, but also for scores of SMEs that form the backbone of manufacturing in the country. While on onehand the plan wanted to make it easier to set up new manufacturing units, it also wanted to make life easier for manufacturers



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to operate their business. Manufacturing has always been considered as one of the most vital cogs in the wheel ofdevelopment and the Industrial revolution was a testament to that. In the modern age, China's accomplishment anddevelopment in manufacturing are well referenced. Beyond that, South Korea's achievements and the role of themanufacturing sector in the country's development are worth noticing. Though our Industrial Production rose by 3% in June2015 when compared to same time last year, what is troubling is that according to the recent Economic Survey, in India itemslike radio, TV, communication equipment & apparatus, accounting and computing machinery have registered high negativegrowth while these very items have shown positive growth in the rest of the world. According to industry projections, Indiawill have to import $300 billion worth of electronics out of the total demand of $400 billion over the next six years. Alarmingas it may sound, this would mean our import bill for electronics will be more than that of oil. This, along with a host of otherissues means "Make in India" as a flagship initiative is the need of the hour. (Economic Times)

1.2 HOW MAKE IN INDIA WILL HELP REVIVE AND BOOST MANUFACTURINGHigh level of productivity: While India is primarily an agrarian society, industrial productivity is low and hence

manufacturing can be the real prime-mover for growth. This will in turn ensure a higher GDP rate for the country. SelfReliance: A strong manufacturing industry is the pedestal for a strong self- reliant country. Indigenous manufacturing isessential for pertinently sensitive sectors like defence and this can only happen when the manufacturing capabilities aresignificantly augmented. Boost to Exports: Make in India would strengthen India's production base and will gradually reduceour country's dependence on imports. Employment: Manufacturing will pave the way for large scale employment of theyouth. This comes especially at a time when rising labour costs in China is threatening to dislodge its advantage and surely acountry like India stands to gain. Skill: China flourished primarily because of the labour arbitrage as low-skilled workersmade a beeline in the country. However, we need to guard against India becoming a sweatshop for the developed world andlay utmost emphasis on skilled manufacturing and human capital sustainability. Infra boost: There are several infrastructuralissues when it comes to manufacturing in the country. From roads, ports, electricity to warehousing &manufacturing, thecountry faces logjams at multiple levels. Reverse Talent Flow: With 'Make in India' rolled out in full throttle, India willactually witness a 'Reverse Talent Flow' whereby not only would the Indian companies offer tremendous growthopportunities for retaining best brains but the Foreign Multinational Companies setting up manufacturing projects in Indiawill also send. More credit flow: According to a recent Economic Survey, the growth of credit flow to the manufacturingsector at 13.3 per cent in 2014-15 was lower than the growth of 25.4 per cent registered in 2013-14, reflecting the tepidenvironment in the sector.

Working in alliance-mode is not without its problems, however. The reason is twofold. Firstly, in stand-alone modemanaging for business results is strongly supported by the "classical trinity" of unity of ownership, power and loyalty. Inalliance-mode, on the other hand, one has to manage under conditions of distributed ownership, power and loyalty (VanAken, Hop and Post, 1998). Distributed ownership can lead to conflicts of interest. In addition, the people involved areusually more loyal to their own company than they are to the combination. Secondly, alliances often have the liability ofnewness (Hannan and Freeman, 1989): the relevant business formula is still to be developed and, as yet, the partners lack acommon "relational infrastructure" which supports communication, understanding, trust and decision-making. Therefore,alliances have a failure rate of somewhere between that of start-up companies and well-established companies (see e.g.studies by McKinsey and Coopers & Lybrand, cited in Business Week, July 21 , 1986). (de Man, et al, 2003).

1.3 LITERATURE REVIEW REGARDING ALLIANCES AND INTERNATIONALIZATION: Penrose (1959) statesthat both an automatic increase in knowledge and an incentive to search for new knowledge are fundamental to the nature offirms that possess entrepreneurial resources. Knowledge is also fundamental to a number of theories of internationalization.In both internalization and transaction costs, information – or knowledge – is seen less as a market imperfection than as anexploitable asset if concentrated in the industry or the firm. The internalization of knowledge and other exploitable assetssuch as technology are what gives the MNE its unique advantage (Hood and Young, 1979; Buckley, 1995; Caves, 1996).Casson (1992) suggests that the uniqueness of international expansion, as compared with domestic growth, might bedemonstrated by emphasizing the difference between technical and market know-how. Kogut and Zander (1992) go furtherand suggest that it is a firm’s ability to ‘re-combine knowledge’ that determines its expansion into new markets. Kogut andZander (1993) reason that knowledge, learning, technology transfer and the ability to recombine knowledge are important tothe theoretical explanation of firms’ competitiveness, growth and internationalization. Internalized knowledge is a self-limiting growth prospect however, and studies of small firm internationalization, have emphasized external links as importantboth to knowledge development and to performance and international growth.( McDonald, et al, 2002).

Behavioural and export process models of internationalization have identified lack of knowledge as a major inhibiting factorin internationalization (Johanson and Vahlne, 1977, 1990; Cavusgil, 1984) and the attainment of experiential knowledge as



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fundamental to international growth and expansion. In general, network approaches support the idea of international growththrough the development of external links and relationships that maximize the opportunities for knowledge exchange.O’Farrell et al. (1998a: 35) suggest that a basic assumption of the network model is that the individual firm is dependent onresources controlled by other firms, and it gains access to those external resources through its network position. They criticizebehavioural approaches for their lack of emphasis on the strategic motivations of firm relations, and specifically the strategicimportance of project-based links with clients. They suggest that a principal asset of small firms be their established patternof external contacts. Contacts and links with the foreign market have been examined as a source of information before exportcommences. Hart and Tzokas (1999) have identified a gap in empirical research that examines the relationship between thecollection of marketing information by exporting firms and their export performance. Despite widespread acknowledgementthat information collection should lead to less risky decisions, links between the use of information and performance areunder-researched. Some studies have examined sources of export information used by exporters, the organization of researchactivities, the data collection methods employed and factors affecting the use of export information (Hart et al., 1994; Cricket al., 1994).

Crick et al. (1994) and Jones (1990) suggest that there might be other reasons for making links and contacts than merely theformal collection of export market information. Informal, interpersonal contacts are thought to be important to theinternationalization of small firms. At present so much quality information is supplied by governments, trade and industrypublications and libraries that personal contact in a foreign market as a means of collecting information seems inefficient andunreliable, to say the least. However as Hart and Tzokas (1999) suggest, the apparent reluctance to use formal sources ofinformation may be due to managements’ lack of appreciation of its usefulness or their inability to collect and utilize relevantinformation. Contacts and links have been examined in relation to firms’ entry into foreign markets. A number of traditionalexport studies suggest that a considerable amount of exporting activity is initiated by the customer (Coviello and Munro,1995). This mode of initiation tends to rely on personal contact between the partners to the agreement. It is widelyacknowledged that small firms may lack the resources needed for international expansion (Buckley, 1989; Lindmark, cited inHolmlund and Kock, 1998). Holmlund and Kock (1998) have established that small Finnish firms gain access to andmobilize external resources through established long-term relationships, but according to Christensen and Lindmark (1993),international value chain linking by small firms through tight relationships is often not taken into account in theinternationalization literature.

Value chain connections have also been identified as important to small firm internationalization by Oviatt and McDougall(1997), Jones (1999) and Jones and Tagg, (2000). Firms whose business contains a service element may rely on existingcontacts and networks during their internationalization (Erramilli and Rao, 1990; Coviello and Martin, 1999). O’Farrell et al.(1998a, p 15) suggests that small service firms’ competitive advantage is defined not only by their internal resources but alsoby their external interactions: ‘the institutional and social networks surrounding small business service firms are essential togather information, mobilise new partners, gain access to other skills and specialised services, sustain their knowledge andclient contacts, and adjust these networks to meet the tasks’.

1.4 RESEARCH METHODOLOGYA questionnaire was administered to 54 respondents considered herein as industry experts, and thereby stakeholder

citizensof various capacities with a base in Bangalore City. The respondents were selected through stratified and convenientsampling methods. The current study used such statements as shown below to find out the opinion if this was true in theminds of the respondents studied:

1. The MII can facilitate investment.2. The MII can foster innovation.3. The MII can enhance skill development.4. The MII can protect intellectual property.5. The MII can build best-in –class manufacturing infrastructure.

The objective of this paper was:To find which among the above positive statements are true as regards MII in the attitudes of respondents in India, based ontheir opinions.

1.5 ANALYSIS AND FINDINGSThe tables below display the profile of the respondents.



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Table One: Displaying the gender of the respondentsGender

Frequency Percent Valid Percent Cumulative Percent

Male 30 55.6 55.6 55.6Female 24 44.4 44.4 100.0Total 54 100.0 100.0

Table Two: Displaying the age of the respondents:Age


Valid

< 30 Years 5 9.3 9.3 9.330 -39 years 19 35.2 35.2 44.440-49 years 25 46.3 46.3 90.7> 50 years 5 9.3 9.3 100.0Total 54 100.0 100.0

Table Three: Displaying the educational background of respondentsEducational background


Valid

< Degree 6 11.1 11.1 11.1Degree 40 74.1 74.1 85.2Post- Graduation 8 14.8 14.8 100.0Total 54 100.0 100.0

Table Four: Displaying the Sector wherein the respondents worked

Sector


Valid

Manufacturing 24 44.4 44.4 44.4

Services 30 55.6 55.6 100.0

Total 54 100.0 100.0

Table Five: Displaying the work experience of the respondents:Work experience

Frequency Percent Valid Percent CumulativePercent

Valid

< 10 years 7 13.0 13.0 13.0Between 10 and 20 Years 21 38.9 38.9 51.9Between 20 and 30 Years 20 37.0 37.0 88.9> 30 years 6 11.1 11.1 100.0Total 54 100.0 100.0

The profile of the respondents above, signify the representativeness of the samples chosen for the study.The analysis regarding the study

Reliability StatisticsCronbach's Alpha N of Items

.965 5



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The Cronbach’s Alpha for the five statements as regards MII, is 0.965. Any value of Alpha above 0.70 is considered reliable,and therefore the data collected herein, is contemplated as reliable for further analysis.High values (close to 1.0) of theKaiser-Meyer-Olkin Measure of Sampling Adequacy indicate the suitability of the factor analysis, which was conductedlater. The KMO Bartlett’s test indicated a value of 0.874.The factor analysis extracted two statements, which are, The MIIcan facilitate investment and The MII can build best-in –class manufacturing infrastructure, as the most important statementsas regards strategic alliances in India.

Hypothesis testingH0: The given statements as regards MII are not true for India.Ha: The given statements as regardsMII are true for India.

The one sample Chi square test was conducted for all the given statements. The Null Hypothesis was rejected for the twostatements selected through the factor analysis and the alternative Hypothesis was accepted for these two statements. TheNull Hypothesis was accepted for the other statements. This means that only the statements, The MII can facilitateinvestment and The MII can build best-in –class manufacturing infrastructureare true as regards MII as per the opinions ofrespondents in Bangalore.

1.6 FINDINGSFor MII in India, the following two statements are true in the minds of stakeholder citizens of Bangalore. Ifextrapolated to the whole country citizen stakeholders believe that:1. The MII can facilitate investment and2. The MII can build best-in –class manufacturing infrastructure

1.7 CONCLUDING REMARKSIn international business negotiations, it is important to learn about the counterparts’ culture and thus ameliorate the

problems that can arise in the course of ..(business). ….However, it is also important not to allow cultural stereotypes todetermine the relationships with the potential business partners. This is because individuals may have their own distinctculture which does not always mirror the country’s perceived culture. (Shimutwikeni). Giving a boost to the Make in Indiaprogramme, Xiaomi on 10th August said it has partnered with Taiwan's Foxconn to set up a mobile phone manufacturing unithere as the Chinese technology major looks at grabbing a larger share of the booming Indian handset market.The company,which started operations in India last year, manufactures devices in China and Brazil.The Memorandum of Understanding(MoU) between electronics manufacturing giant Foxconn and the Maharashtra government, wherein the former has pledgedto invest $5 billion over five years, signifies the first major FDI proposal after the central government launched its “Make inIndia” scheme. Foxconn, the Taiwan-based manufacturer of Apple iPhones and iPads, has proposed to set up manufacturing,research and development operations. More encouragingly, Foxconn chief Terry Gou also envisaged a future where thecompany would set up factories in 12 Indian states and create a million jobs. There seems to be results showing with theefforts put in by the tireless enthusiasts of our country.

REFERENCES1. Culpan, Refik. Global Business Alliances: Theory and Practice. Westport, CT, USA: Greenwood Press, 2002.

ProQuest ebrary. Web. 8 November 2014.2. de Man, Ard-Pieter, Duysters, Geert, and Vasudevan, Ash, eds. Allianced Enterprise : Global Strategies for

Corporate Collaboration. London, GBR: Imperial College Press, 2001. ProQuest ebrary. Web. 7 November 2014.3. McDonald, Frank, Tuselmann, Heinz-Josef, and Wheeler, Colin. International Business : Adjusting to New

Challenges and Opportunities. Gordonsville, VA, USA: Palgrave Macmillan, 2002. ProQuest ebrary. Web. 7November 2014.

4. Ndapwilapo Shimutwikeni, The impact of culture in international business negotiations: special reference to chinaand United States of America. A Thesis.

5. http://economictimes.indiatimes.com/tech/hardware/make-in-india-lenovo-motorola-starts-making-smartphones-at-chennai-plant/articleshow/48525380.cms.

6. http://economictimes.indiatimes.com/news/economy/policy/how-make-in-india-will-help-revive-and-boost-manufa -cturing/articleshow/48437482.cms.

7. http://www.dnaindia.com/analysis/editorial-dnaedit-big-bang-fdi-2113017.



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ROLE OF WOMEN IN 'MAKE IN INDIA'

D.N.P. Prema PonmaniLecturer, East Point College of Higher Education, Bangalore.

AbstractThis article provides a glimpse into the role of women in 'Make in India'. It aims to present an increased awareness ofchallenges and opportunities for women in India. Both Indian and non-Indian audiences will find this information insightful:Indian women considering carrier choices or aspiring to managerial roles, multinational corporations doing business inIndia, Indian corporations seeking a pipe line of talent and those wanting to learn about women managers in the Indiancontext.

INTRODUCTIONOur Indian sub-continent is gradually emerging as a powerful land since women began playing significant role for thedevelopment of the nation. Role of woman in modern India can be called as phenomenal. The transition of woman from thepast to present is worth mentioning. Woman who once considered being the masters in the art of home making are nowconsidered to be the forces that shape a country.

“The hand that rocks the cradle rules the world.” -Albert Einstein

Prime Minister, Shri Narendra Modi launched the make in India initiative with an aim to give the Indian economy globalrecognition. The major objective behind the initiative is to focus on 25 sectors of the economy for job creation and skillenhancement The initiative hopes to attract capital and technological investment in India. It hopes to increase GDP growthand tax revenue. As a result of this job opportunity will be more in India. It has been forecasted that nearly one billionwomen will enter the global economy field in the coming decade and it will definitely bring about a remarkable change anddramatically reshape the world business and economics. While we speak about evolving technology and growingglobalization, urban women contribution is also leading to its development and progress. In current times, a woman canexercise her choice, such as participating in politics, getting education and having an income too. Over the decades muchprogress has been made; however, there is still a lot of space when it comes to women's security, violence and discriminationagainst women and gender equality. It is time for every nation to come together again for women to complete this journey.Look at history that has witnessed women of great stature. May it inspire motivate and energise us to do somethingsignificant in our area of expertise. In India, along with the government, there are various organisations and groups workingto bring healthcare, education, equality and a safe environment for women to fearlessly exercise their rights. Let us togethermake our voices heard for a better world that will translate the vision of make in India to reality.

FAMILY AND EDUCATIONBorn into a family of teachers, Dr. Kumar received constant encouragement from her family on her professional journey. Hermother had a dual master's in Hindi literature and history, and a bachelor's degree in education, and this level of educationwas unusual for women in India at that time. Dr. Kumar says“It is this major influences that continue to guide me and helpme live my life by a certain set of values and principles,” She points out that her husband provided tremendous support, andthrough his encouragement, after moving to the united States, she got a master's degree and then went on to do her residencyin pediatrics and fellowship in pediatric nephrology, and now has a teaching position at a prestigious medical university.

No development tool is more effective than education of girls and empowerment of women. There were times when awoman was considered to be different but the emerging and developing nations have proved, beyond doubt, the economicpotential and corporate stature that women possess. Every woman can have a positive impact not only in her family but alsoon the entire society. She has the power to transform the society. The UN women Organisation had re-energized the visionand picture a world where women have equal rights, freedom and opportunity in every sphere of life. It is quite apparent thaturban women are increasingly assuming leadership in the global economy, as both employees and entrepreneurs. Educationhas indeed given a huge breakthrough to a large number of women to take a lead in enhancing the economy and stimulatinggrowth.

STATUS OF INDIAN WOMANThere was a time when women were just kitchen keepers and house keepers in the Indian society. Gradually women began toget educated, even highly educated and a stage came when some of them came out on the social and political field to rub



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Shoulder with the men folk in these fields. The freedom struggle of India was the opening up of the new horizon forwomanhood in India. In modern India, women have adorned high offices including that of the President, Prime minister,Speaker of the Lok Sabha, etc.

“Let the women reach the sky which is the limit ! ”

THE CHANGING SCENARIOIn those days women faced many Social Problems like Dowry, Child Marriages, Death during Childbirth, Sati and manysocial problems but nowadays the status of women in India has been subject to many great changes over the past fewmillennia. The year 1995, was declared as the International Year for Women throughout the world. The women were madeaware of their status and place in society. Women are now no longer in slumber. They are awake and moving fast.

“The extension of women's rights is the basic principle of all social progress.” -- Charles Fourier

Our farmer President of India, Shrimati Pratibha Devising Patil, showed her strong support of women and their potential tobring about change in society. She pointed out that to ,bring about gender equality, it is necessary to focus on educating andempowering women. Amartya Sen , Indian author and winner of the Nobel Prize in Economics, discusses gender inequalityin his book The Argumentative Indian: Writings on Indian History, Culture and Identity. He points out that the socialmovement for Indian women had been primarily focused on achieving better treatment of women and their well-being:

“In the course of the evolution of women's movement … women are not passive recipients of welfare-enhancing help broughtabout by society, but are active promoters and facilitators of social transformations. Such transformations influence the livesand wellbeing of women, but also those of men and children. This is a momentous enrichment of reach of women'smovement.”

As social values change, Indian women have been entering the workforce in the past couple of decades. Globalization hasbrought an influx of multinational corporations to India, with Western HR practices and concepts such as gender diversity inleadership roles. As opportunities for women in management in India slowly increase, women are entering professionspreviously seen as the domain of men in the corporate world: advertising, banking, civil services, engineering, financialservices, engineering, financial services, manufacturing, police and armed forces, and emerging fields such as IT andcommunications.

PERFORMANCE OF WOMENThere is no arena, which remained unconquered by Indian women. The most important name in the category of womenpoliticians of recent times is Mrs. Indira Gandhi. Kiran Majumdar Shaw is the richest Indian woman. Some of the notableand outstanding women who set examples for others are Mother Teresa, Kalpana Chawla, Kiran Bedi, Sarojini Naidu, etc.Indian women have mastered anything and everything which a woman can dream of. But she still has to go a long way toachieve equal status in the minds of Indian men.

“History looks different when the contributions of women are included.”~ National Women's History Project.

ROLE OF WOMEN IN MODERN INDIAThe status of women in modern India is a sort of a paradox. The modern Indian women have honed their skills and jumpedinto a battlefield of life fighting against social restrictions, emotional ties, religious boundaries and cultural clutches. She cannow be seen working on par with men in every field. As compared with past women in modern times have achieved a lot butin reality they have to still travel a long way. Their path is full of roadblocks. The women have left the secured domain oftheir home and are now in the battlefield of life, fully armoured with their talent. They must avail themselves of theeducational opportunities provided and learn to empower themselves.

"Educate a man and you educate an individual.Educate a woman and you educate a family."

-- A.CrippsIndian women as managers offer key strengths as noted down:

Ability to perceive and understand situations Ability to network with colleagues. Ability to multitask



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Collaborative work style—solicit input from others with respect for ideas crisis management skills Willing to share information [interactive leadership style] Sensitivity in relationships[compassionate, empathetic, understanding] Behaving in a gender-neutral manner.

PERSPECTIVES OF INDIAN WOMEN PROFESSIONSTo learn more about Indian women managers, we can look into the life of Indian women professional Archana Bhaskar, HRDirector, Shell Companies in India. She offers a broad range of experience from her career. Her perspective reflects many ofthe research findings about Indian women managers. She emphasize the importance of family support, her education,mentors, belief in one's capabilities and a strong focus on personal and professional goals. She observes that “there iscertainly positive change for women in India in the workplace. There is a gap in the Indian talent market, with significantlymore jobs than talented people. Today, women are thought of as great managers, often pursued strongly search firms. Infact, several firms have targets to achieve on women numbers”

SUCCESS FACTORSThere are number of factors contribute to success for the modern India women in the workplace. Ms. Varma emphasizes that“ a good education, effective communication skills as well as a very professional attitude toward your work and co-workers,are the key to attain managerial roles. Mentors are also important. Archana Bhaskar says,” I succeeded largely due to myprofessional excellence and intellectual abilities and of course, unstinting support from my husband.

RECOMMENDATIONS FOR INDIAN ORGANIZATIONSIndian society more broadly supports Indian women in managerial positions, organizations need to be more open and makeappropriate changes in their workplace. From the Indian research study Women in Management in the New EconomicEnvironment: The case of India, the following is the recommendations for Indian organisations to promote a supportiveworkplace for women.

Develop policies that create a women-friendly work-place environment. Establish training programs for women such as mentor-ships, career guidance and leadership development. Have a true commitment to hire and promote women and include women in the annual business strategy. Promote awareness initiatives that highlight the value of women managers. Elicit input from women employees regarding policies, promotion and performance review processes.

CONCLUSIONIn today's global economy Indian corporations need talent in order to be competitive. To advance women in managerialroles, support by top management is essential. Women are now no longer in slumber. They are awake and moving fast.They are asserting their rights. Development of our country depends on the empowerment of women. A man and a womanare like two wheels of a cart. The cart can move fast and safely too, when both of them pull it in the same direction and withequal strength. Hence no developing country or society can afford to ignore the role of women, if they are to progress.

“You can tell the condition of a nation by looking at the status of women”-Jawaherlal Nehru.

Look at the history that has witnessed women of great stature. May it inspire, motivate and energise us to do somethingsignificant in our area of expertise. Let us together make our voices heard for a better world that will translate the vision of'make in India' to reality.

WORKS SITED1. Budhwar, P.S., D.S., & Bhatnagar, J. Women in management in the new economic environment: The case of India.

Asia Pacific Business Review,11[2], 179-193.2. President of India.(2009,August 21). Speech by Her Excellency, the President of India, Shrimati Pratibha Devisingh

Patil, at the meeting with the Ladies' Cirle International. Retrieved August24,2009,fromhttp://president of India.nic.in/sp210809.htmi.

3. Sen, A. The argumentative Indian: Writings on Indian history, culture and Identity. New York: Farrar, Straus andGiroux.



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MAKE IN INDIA: A STRATEGIC APPROACH TOWARDS REVIVING INDIAN ECONOMY WITHMANUFACTURING SECTOR

Prof. Nisha Rajan* Ms. LakshmiPriya B***HOD – Department of Management Studies East Point College of Higher Education, Bangalore.

**Assistant Professor, East Point College of Higher Education, Bangalore.

AbstractThe Indian economy is distinctly characterised by the presence of many industries which includes traditional sectors likeagriculture, handicrafts, fishing, and Modern Sectors like IT, construction, electronics and telecommunication, tourism,hotels. Advancement in manufacturing sector is one of the important statistics that affect the Gross Domestic Product (GDP)in India.

This study emphasizes on the impact of the policy of Make in India over the manufacturing sectors of India. The purpose ofthis study is to understand, the opportunities of Make in India concept and to address the prevalent issues and challengesfaced by manufacturing sector. The various benefits of Make in India campaign are increase in exports which leads todevelopment of the Indian economy. Increase in investments creates more job opportunities to both skilled and semi-skilledlabour forces. This helps India in achieving the global competitiveness followed by global leadership. A study from Deloitte’sglobal index for 38 nations indicates that India is the fourth most competitive manufacturing nation, thus the ground is ripeto make India into a manufacturing hub. Mr. Rajiv Raivanshi - Sr .VP Corporate Strategy quoted that the manufacturingsector will have to prepare the ground for other industries to follow suit. But the focus of the government policy should alsobe to priorities and ensure full domestic capacity utilization, especially in all the core sectors, only then can we truly have asuccessful Make in India campaign.

Key Words: Make In India Campaign, Manufacturing Hub, Manufacturing Sectors, Prevalent Issues, GDP, GlobalCompetitiveness.

INTRODUCTION

Indian economy is heading towards recession and Modi’s Government is taking steps to bring Indian Economy on track.“Make in India Campaign” is an innovative step taken up by the Modi Government. This campaign is recognized globallyand it has been featured in “100 Most innovative global projects”. It is an initiative to encourage the foreign investors to startproduction process with in Indian boundaries and facilitate movement of technology, processed goods, capital goods, etc.

Make in India Campaign has been launched by our Prime Minister Shri Narendra Modi on September 25, 2014. Make inIndia is all about creating an environment in India which helps us to compete with the rest of the world and encourage foreignproducers to come to our country and create jobs in India. The Modi Government’ policy is to invite international companiesto make investments in India. Now our Government is giving more importance to create a growth oriented environment. Thedownward growth of manufacturing sector is the main concern. India’s performance was worsening with declining growthfrom 9.7% in 2011-2012 to as low as 1.8% in 2013-14. Our GDP was around 15% which is extremely low when compared toChina (GDP is 34%) and Malaysia’s (GDP is 24%) .

India is the second most populous country in the world. We have approximately around 78 crores of people as our humanresources, which is equivalent to total combined work force of USA, UK and China. Being the most populous country has anadvantage in terms of availability of natural resources and availability of low cost, skilled and semiskilled work force whencompared to other countries. Indian government is making an effort to bring up a developed environment by improving theease of doing business through standardization of procedures and focusing on effective governance. This will attract foreigninvestments and corporate across the world thereby encouraging the people to set up their business in India which will lead tocreation of job opportunities. With the help of these activities we can increase the contribution of manufacturing sector to the



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national GDP by 10% more. The current contribution of manufacturing sector to the GDP is approximately 15%, our aim is25% by the year 2022 and India will become a manufacturing hub. This will steadily increase exports and have a positiveimpact on the current account deficit. This can be a turning point in the growth of Indian economy.

OBJECTIVES OF MAKE IN INDIA CAMPAIGNIncrease in manufacturing activity will generate huge employment opportunities for skilled and semi-skilled workers. Thiscampaign has the capacity of generating millions of jobs. Any manufacturing activity requires services like Banking,transportation, Labour, IT enabled services, etc. So an overall development of different sectors will be resulted in. This willalso benefit the Indian government by way of taxes, there will encourage inflow of foreign exchange. Thus India will beconverted into a manufacturing hub. Developing the Indian economy by inviting businesses not only in India but across theworld to invest and manufacture in India. Initially the objective is to focus on 25 important sectors of the economy. Some ofthese are chemicals, textiles, pharmaceuticals, automobiles, IT, tourism, leather, hospitality. In order to provide skilling needsof the country, the motive is to recognise the already established skilled training institute in India.

The prima facie objective of Make in India campaign is to target top companies sectors globally. It will also identify selecteddomestic companies having leadership in innovation and new technology for turning them into global champions. Innovativesteps have been taken up by the Modi government to widely publicise the Make in India campaign. The government is alsoclosely looking into all regulatory processes with a view to making them simple and reducing the burden of compliance oninvestors. India has to address the competitiven4ess of non-cost factors. In order to gain investors’ confidence, lot ofinitiatives are to be taken to fix its poor infrastructure, access to formal credit mechanism, and the product licensingrequirements. A better management of patent and trademarks are to be initiated in order to encourage innovation. The Makein India campaign is focused to transform the Indian economy from the services-driven growth model to labour-intensivemanufacturing-driven growth. Thus it creates jobs for over 10 million people, who join the workforce every year.

ACTION PLAN TO ACHIEVE THE ABOVE OBJECTIVESVarious skill development programmes will be launched to provide skillful training to rural and poor ones. The trainingprocess will be made a standard one by giving skill certifications. There are plans to open around 1000 training centres acrossIndia. For the companies which are interested to invest in India a commerce department will be setup to render its service24/7. The major function of this department will be to carry out the business in India with ease, by getting regulatoryclearance within 48-72 hours, thereby simplifying the approval processes to encourage foreign investors and companies.

OBJECTIVES OF THE STUDY1. To understand and analyse the emerging opportunities in manufacturing sector as a result of Make in India.2. To know the different challenges with respect to manufacturing sector.

EMERGING OPPORTUNITIES IN MANUFACTURING SECTORThe launch of the innovative campaign by Mr.Narendra Modi, the Prime Minister of India targets at making the Indianeconomy a global one and also to secure a place of manufacturing hub in the world map. In Indian manufacturing sector, thebusiness conditions continue to improve in January 2015. January 2015 is marked as third straight month of expansion on theHSBC sevices. The PMI (Purchasing Managers Index) increased to 52.4 points from 51.1 points in December 2014.The PMIof both services and manufacturing sector rose upto 53.3 points. Due to make in India initiative, Indian government startedreceiving confirmation from top technology firms such as Tejas, Bosch and Panasonic with respect to their decision to investin Medical, Electronic, automotive and telecom manufacturing sectors in India. The Modi government has received around57 investment proposals worth Rs 19000 crores (3.05 billion US $).

INVESTMENTS IN MANUFACTURING SECTORThe Government has received approximately 18000 crores from this Make in India Revolutionary Campaign for the year2015-16, and it is also expected that this may double up by the next two years.India has now become attractive opportunities for investing in manufacturing sectors. The major investment proposals in thissector are as follows:

Mercedes Benz and BMW have specified that their localization effort will be the part of “Make in India”programme. These companies used to depend on overseas plants for supply, if they become the part of Make inIndia campaign, they will have plants here which will give them the supplies. Hence this will benefit both thecompany as well as Indian economy. This initiation by the company will reduce the waiting period for thecustomers and show a progressive result in servicing the cars.



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Mr. Toshihiro Suzuki, Executive Vice President, Suzuki, has made plans for Suzuki Motor Corp to takeprogressive steps to make automobiles for Africa, factory for which will be set up in Hansalpur, nearAhmadabad, Gujarat.

Samsung India Electronics has decided to strengthen its manufacturing infrastructure by expanding itsmanufacturing plant in Noida, Uttar Pradesh. Samsung India Electronics Ltd invested Rs.517 crores forexpansion projects.

China’s Trina solar and US based Solar inc have planned to set up a manufacturing plant in India, therebyincrease investments in India to 7.9 billion US $.

Shantha Biotechnics Pvt Ltd implemented, building a facility to manufacture Inhuman. Inhuman is an insulinproduct which is used to treat diabetics.Thier investment budget is around 460 crores approximately.

The Government of India is initiating local manufacture of 181 products approximately; this initiation will aid infrastructuresectors such as Oil and Gas, Power, Automobiles. India has proved to be an attractive hub for foreign investments, especiallyin the fields of Mobile and Automobiles.

PRODUCTION OF ELECTRONIC ITEMS IN INDIACAGR (Compound Annual Growth Rate) of Production of Electronic Hardware is 10.1 percent during the period 2007 to2015. The reason behind the CAGR percentage is increase in the demand for Computers, Mobile phones and TVs. The valueof production of electronics hardware in India is 31.6 billion US $ in the Financial Year 2015.

INDUSTRY RESPONSES WITH RESPECT TO MAKE IN INDIA CAMPAIGN IN THE YEAR 2015 Hyun Chil Hong, the president & CEO of Samsung South Asia as discussed with Kalraj Mishra (Union Minister for

Micro small and medium enterprises, that they are interested in joint initiative to start a MSME (Micro Small andMedium Enterprise) Samsung Technical Schools, which will be manufacturing Samsung Z1 in its manufacturingplant at Noida.(January-2015)

The Spice Group has initiated to start a Mobile manufacturing unit in Uttar Pradesh, which will need an investmentof 500 crores.(January 2015)

Hitachi has committed to increase its employees(Indian) from 10000 to 13000 and also to increase the revenuesfrom 100 billion yen to 210 billion yen.(Febraruary 2015)

Huawei has opened R&D centre in Bengaluru, they had invested 170 million US$ to establish this research anddevelopment centre. They are in the process of establishing a manufacturing unit in Chennai (Febraruary 2015).

The FDI (Foreign Direct Investment) into the country has witnessed a 48% increase in a seven month period tillApril 2015 as a result of increase in confidence of Make in India campaign.



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Source : 'Make in India' pitch from Sept. 25 - The Hindu

CHALLENGES OF MANUFACTURING INDUSTRIES WITH REFERENCE TO MAKE IN INDIAThe main objective of Make in India is to have healthy business environment. Hard core challenge is to hassle free clearancemechanism. When it comes to procedural and regulatory clearance India has been inflexible. A Business friendlyenvironment is possible only if there is hassle free environment. Manufacturing activities has adverse effects like AirPollution, Water Pollution, Noise Pollution, Radioactive Pollution, Thermal Pollution etc. In order to make India amanufacturing hub, it should fight against these negative or adverse effects in a positive manner.

India’s SME’s (Small and Medium sized enterprises) plays an important role in economic growth of the country. Governmentshould also concentrate on improvisation and strengthening of these sectors, in order to enable them to contribute moretowards economic growth of the country. Make in India is a step taken up by the government to encourage manufacturingactivities in India, in a large scale aspect, hence Government should equal privileges to both Small and medium sizedenterprises and the large companies.

China’s Made in China campaign will always be compared to India’s Make in India campaign. Hence India should show theprogressiveness in such a manner that it will have supremacy in the manufacturing sector. Indian government should ensurethat it provides for “World Class Research and Development” in order to give edge to edge competition with China. India hasalways been good in framing laws, acts and procedures but it has not shown proper implementation of these acts, laws andprocedures. The real challenge is to have young people with ITI (Industrial Training Institute) and the challenge is howfashionable can the manufacturing sector be in order to attract leading manufacturers to invest in India.

India should also be ready to tackle elements that adversely affect manufacturing process. The process needs to be mademore robust and unfavorable factors must be removed. India must also encourage high-tech import opportunities, researchand development (R&D) to upgrade.

CONCLUSIONAn initiative has been made by Modis Government with Make in India Campaign. It is truly a time of great expectations forIndia. The initiative is expected to revive the manufacturing industry and then achieving the Global Competitivenessfollowed by Global Leadership.’ Make in India’ campaign make it capable enough to give edge-to-edge competition to theChinese counterpart’s campaign. To achieve this, India needs to be better prepared and motivated to perform some worldclass research and development. The government must ensure that it provides easily accessible platform for such research and



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development. The government has to select domestic companies having leadership in innovation and new technology. Theidea is to convert these into global champions by promoting green and advanced manufacturing and help these companies tointegrate into global value chain. Moving from services driven model to the labour intensive manufacturing driven growth tocater to the creation of millions of jobs. Manufacturing driven model will directly contribute towards the growth of Indianeconomy.

REFERENCE1. http://www.makeinindia.com/sectors/2. "Focus on 'Make In India'". Business Standard. 25 September 2014. Retrieved 27 February 2015.3. "Spice Group announces Rs 500 crore investment to build mobile manufacturing unit in UP". DNA India. 28

January 2015. Retrieved 27 February 2015.4. "Revealed: Man behind PM's Make in India campaign". DNA India. 18 November 2014. Retrieved 27 February

2015.5. www.quora.com6. www.voiceofnation.com7. www.Allonmoney.com8. www.ibef.org9. www.zeenews.india.com



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IMPLEMENTATION OF MANAGEMENT INFORMATION SYSTEMS, ISSUES AND CHALLENGES – ANEMPIRICAL STUDY

Dr. Cynthia Menezes* Raghunandan G***Associate Professor and Research Guide, Canara Bank School of Management Studies, Bangalore University, Bangalore.

**Research Scholar, Canara Bank School of Management Studies, Bangalore University.AbstractMost of the organizations have substantial pressure on making their operational, strategic process more efficient andeffective. Management Information Systems (MIS) is an assembly of components which amplifies the competitiveness anddecision making process. On the other hand there is a lack of awareness on the number of challenges and issues revolvingaround the course of implementation of MIS. There is also a lack of success issues in MIS which seems to be difficult in theprocess of implementation of MIS. These issues are to be analyzed as it is crucial when an organization implements a newMIS. The focus of the paper is to present the challenges and problems with identifying the issues for the implementation ofMIS in an organization. The analysis is conducted based on collecting data by personal interviews with respondents who areinvolved in MIS related activities and also to find out does MIS implementation affects business process which lead to changein the operational procedure.

Keywords: Management Information Systems, Decision Making, Implementation, Challenges.

1. INTRODUCTIONAn information system can be defined technically, as a set of interrelated components that collect (or retrieve) process, store,

and distribute information to support decision making and control in an organization (Laudon and Laudon, 2006).Additionally, information systems may also help managers and workers to analyze problems, visualize complex subjects, andcreate new products. Three activities in an information system produce the information that organizations need to makedecisions, control operations, analyze problems, and create new products or services. These activities are input, processing,and output. Input captures raw data from within the organization or from its external environment. Processing converts thisraw input into a more meaningful form. Output transfers the processed information to the people who will use it or to theactivities for which it will be used. Information systems also require feedback, which is output that is returned to appropriatemembers of the organization to help them evaluate or correct the stage.

According to Ein-Dor and Segev (1978), an IS becomes a management information system (MIS) when it is applied toimprove management by directors of the organization. This system can increase the performance of the management. MIS isa collection of manpower, tools, procedures and software to perform various business tasks at various levels in theorganization (Tripathi, 2011). Due to a fundamentally changing external environment, several organizations have decided tochange their IS strategies by adopting application software packages rather than in-house development (Hong & Kim, 2002).According to Davenport (1998), the most significant development in the corporate use of IS is the establishment of enterpriseresource planning (ERP) systems.

1.1 DefinitionsMIS serve the management level of the organization, providing managers with reports and (online) access to the

organization’s current performance and historical records. Typically, MIS are oriented almost exclusively to internal, notenvironmental or external, events. MIS primarily serve the functions of planning, controlling, and decision making at themanagement level. (Laudon and Laudon, 2006)

Lewis (1994) indicates that an information system should be seen as a servant-system to the master-system of the wholebusiness organization. “This form of relationship is of particular importance with regard to information systems as this is therelationship between an organizational information-system and the organization that it serves. An obvious consequence isthat it is impossible to analyze the operations of an information-system or design a new one without first having a clearunderstanding of the activities and the objectives of the business system that it serves. One of the failings of the past is thatcomputer professionals, and the logic of the approaches that they employ, have not taken adequate notice of the importanceof this relationship and viewed the creation of information-systems to be an end in itself, rather than as a means to support thebusiness”

In private organizations, IS are important factors in assuring the competitive advantage and eventual profitability of the firm.On the other hand, in governmental organizations IS are just as crucial, but from another perspective, in terms ofresponsiveness, efficiency, and productivity (Beaumaster, 1999).



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1.2. Objective of the StudyThe objective of the study is to present and describe MIS implementation challenges or problems as well as identifying thekey issues to achieve successful implementation in a way that it can deliver the requirements of the organization.

1.3 The Role of Management Information SystemsTwo main roles are played by the decision making of the managers. First it helps the managers to take decision based on theinformation being prepared. Second when the decision making and decisions are fixed and only the input data change, it is asa suitable repeating to support different types of managers’ decisions. It means that MIS is the tool that as the organizationalinformation source provides the required information of the managers and makes them prepared for their decision making.The managers use MIS as a tool to define the problems being faced. As MIS helps the managers to understand the problemsand find the solutions (Shafiie, 2005; Mcleoo, 1998).

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood andMIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including thebrain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood,processes it sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normaland also in crisis. The MIS plays exactly the same role in the organization. The system ensures that an appropriate data iscollected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfillinformation needs of an individual, a group of individuals, the management functionaries; the managers and the topmanagement.

The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, ModelingSystems and Decision Support Systems. The MIS helps in Strategic Planning, Management Control Operational Controland Transaction Processing. The MIS helps the clerical personnel in the transaction processing and answers their queries onthe data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIShelps the junior management personnel by providing the operational data for planning, scheduling and control, and helpsthem further in decision making at the operations level to correct an out of control situation. The MIS helps the middlemanagement in short term planning, target setting and controlling the business functions. It is supported by the use of themanagement tools of planning and control. The MIS helps the top management in goal setting, strategic planning andevolving the business plans and their implementation. The MIS plays the role of information generation, communicationproblems and helps in the process of decision making. The MIS, therefore, plays a vital role in the management,administration and operations of an organization.

1.4 The Benefits Of Management Information SystemsDue to the benefits of MIS, because of the close relation, exact con troll and reliable data collection and rapid data processingand converting them to information, the managers use the management information systems in planning, organizing,leadership and motivation, reporting and control and the management is done by high accuracy and efficiency within shorttime in the organization. To do the management activities, a mediator as the manager of management information system isnecessary to give the services better for the management. The management information system helps by two major ways inproblem solving: An information source is provided in organization area and helps the identification of the problem. The ben-efit of management information system with this aim is to state the problem possibility for the managers. The majordrawback of the management information system is that it cannot meet the special demands of each person. Mostly, themanagement information system doesn’t provide exact information and the concept of decision support system was created inresponse to such need(McLoyd, 1999).

1.5 The challenges and problems of Management Information SystemsIf all the existing barriers are divided into humanistic, organizational and environmental factors, the major drawbacks and thereasons of failure and using MIS in public organizations are as following:

Humanistic factors• The lack of information of the managers and users as they don’t know exactly what they want and what their

information needs are.• The lack of understanding of the needs of the users by designers (the lack of correct definition of the needs and their

analysis)• The lack of information of the managers and users about the collaboration method with the designer team.• The lack of participation of the managers and users in system design.



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• The lack of understanding of the managers of software and information systems.• The lack of information of most of the analysts and programmers (designers) with new system work environment.• The lack of acceptance of the system executers and resistance against the change.• The lack of accuracy in the data collected.

Organizational factors• The lack of good conditions for participation and collaboration of the managers, users and system directors• The lack of consistency and complexity of the existing manual systems.• The lack of existing systems and methods analysis before the system design• The lack of evaluation of the existing power• Bad condition of educating the specialized forces• The lack of human resources with management and computer fields and other required specializations (the problems

of absorbing human resources)• Inadequate education of the users• Inadequate and incomplete documentation• Unsuitable implementation of the system

Environmental factors• The lack of quality criterion of the existing information systems in Iran• The lack of suitable consultants for designing the system and software• The lack of procedures and methodology and stages of creating the system• The lack of evaluation of environmental aspects in management information systems• The lack of suitable use of mass media to develop the culture of using computer and information systems.• The lack of serious consideration and adequate investment in this regard.

1.6 Research MethodologyThe primary data is collected through survey method using questionnaire. 47 respondents have been approached with thequestionnaire, personal interviews and observation.

Chart One depicting the technologies that are a key part of an IT environment:

Source: Primary DataFrom the above data it is clear that 50 per cent of the respondents think that Enterprise Resource Planning is a key part of ITenvironment.Chart Two depicting the systems have been successful in their role of assisting the management of Information:

Source: Primary Data



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Managers agree to the fact that these systems support them in assisting the management of information.

Chart three depicting that managers understand why and how MIS is critical to the organization:

Source: Primary DataIt can be concluded from the above data that MIS implementation is critical to an organization. About 40% of the managerstotally agree with it.

Chart Four depicting that the organization has identified and assessed the risks to its information assets:

Source: Primary DataIt can be determined from the above data that only about 50 per cent of the respondents’ value information and have givenprominence to information.

Chart Five depicting that the organization monitors misfiling and non-filing

Source: Primary DataMajor emphasis should be given to the above point as it is crucial to maintain the data as a useful resource. Steps should betaken to improve filing mechanism in the organization.

Chart Six depicting that people have the right skills to use Management Information Systems:




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Imparting knowledge on how to use the system is very necessary for success of any MIS, 50% of the respondents do not haveknowledge on how the system works.

Chart seven depicting that Information Management training included in corporate induction programs

Source: Primary DataMIS training program has to be provided at the very beginning stage as to familiarize the managers about the system andfrequent development programs have to be initialized.

Chart Eight depicting that the majority of staff understand the benefits of MIS

Source: Primary DataFrom the data obtained by 47 respondents majority of them have not undergone training and this makes them difficult tounderstand the benefits of MIS.

Chart nine depicting the currently unmet needs of managers (of all types) in relation IT

Source: Primary DataIt can be clearly established from the above data that insufficient support, inadequate functionality are major concerns ofmanagers which have to be met.



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1.7 Concluding RemarksThe primary focus of this study was to determine surrounding problematic and success key issues regarding MISimplementation. Management Information systems play the crucial role of providing a wide range of streamlined optionsfrom which decision-makers are able to make their preferred choices Vittal &Shivraj(2008). Vitally, this ensures thatwhatever choices are made by decision makers, the outcome, more often than not, becomes positive. This, as a matter of fact,is the reason why many decision makers tend to prefer using MIS tools when making tough business choices. And asrenowned concept, having good decision choices guarantees viable decisions in our businesses.Vittal&Shivraj (2008),Jawadekar (2006).

1. The Organization should design and develop a Policy for the better implementation MIS.2. Training and development programs have to be conducted in the organizations to extend the culture of the using

MIS. Managers have to train their subordinates to know the importance of maintaining data through informationsystems.

3. The degree of employee involvement in the creation MIS is again to be considered as a major aspect, if employeeparticipation is good then resistance to MIS is less.

4. Absorbing the efficient and skillful employees and creating suitable motivations for the stability of the existingemployees.

REFERENCES1. Inge Alberts, (2013) “Challenges of Information System Use by Knowledge Workers: the Email Productivity

Paradox”. University of Ottawa.2. Mehdi Babaei, JafarBeikzad (2013), “Management information system, challenges and solutions” European Online

Journal of Natural and Social Sciences 2013.3. AsefehAsemi, Ali Safari and AdelehAsemiZavareh (2011), “The Role of Management Information System (MIS)

and Decision Support System (DSS) for Manager’s Decision Making Process” International Journal of Business andManagement, Vol. 6, No. 7; July 2011.

4. ArtitKornkaew (2012), “Management Information System (MIS) Implementation Challenges, Success Key Issues,Effects and Consequences: A Case Study of Fenix System”Jonkopong University.

5. Rajagopal, P. (2002) “An innovation-diffusion view of implementation of enterprise resource planning (ERP)systems and development of a research model”. Information & Management, 40, 87–114.

6. MIS Issues and Challenges, http://www.sa-dhan.net/adls/microfinance/mis/misissueschallenges.pdf.7. Problems in implementing MIS, http://ecomputernotes.com/mis/what-is-mis/problems-in-implementing-mis.8. The Challenges to Develop and Implementing Mis in an Organization, http://theglobaljournals.com/gra /file.php?

val=Jul y_2014_1406537579__67.pdf.



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WHETHER “MAKE IN INDIA” CATCH UP FOR ALROUND DEVELOPMENT OF THE COUNTRY WITH ITSDIVERSIFIED DEMOCRATIC PRINCIPLES- AN ANALYTICAL STUDY.

Dr. Narasaiah B* Dr. Lakshmareddy B***HOD, Dept. of Commerce & Mgmt., Bangalore City College, Bangalore.

**Director, Computer Science, Bangalore City College, Bangalore.AbstractMake in India, a call by the prime Minister of india in 2014, holds an enormous promise to transform radically the Indian

economy. His vision to shape a new destiny with the promise of “ Sabke Sath, Sabka Vikas” kindled new hopes andappreciation. This journey of thousands of miles has begun with determined steps. His initiatives such as skill india, DigitalIndia, Design India, Swachh Bharath, Jandhan Yojana; for which a foundation is being laid for a multiplier impact oninclusive development. Global forecasts suggest that, India is poised to be the third largest economy in the world by 2030. Ina decade from now, india may also emerge as world’s most populous nation with world’s largest working age population,surpassing china. On the other side, more than 300 million people need critical support to move out of endemic poverty. Ifthe country has to emerge a manufacturing hub, then apart from overcoming its shortcomings, domestic companies have tobecome more competitive and learn to protect their domestic market, like in China, Korea, Germany, and otherindustrialized countries. Countries, where industrialization took roots, have emerged as advanced economies while otherswhich aligned their growth strategies with global trends, are emerging economically stronger. These conceptual paperprojects, India’s economic growth in the beginning, and subsequent developments, visualizing enhanced economicadvancements in the coming days along with the challenges that India is going to face.

Keywords: Skill India, Digital India, Multiplier, Competitiveness.

INTRODUCTIONAny government that occupies Delhi Thrown, do spell out certain dreems, aspirations, promises and perceptions like, GareebiHatav, Jai Jawan Jaikisan, Each One Teach One, Each One Plant One are some of the slogans and promises that had flownfrom Delhi through earlier governments. Here is a dream that has come from the present government. “Make in India andskill India”. Make in India set to make the country with the best-in-class manufacturing infrastructure to attract all types ofcompanies from around the world. Skill India aims to train over 500 million youth by 2020 which has more than 5000 skilldevelopment centers and 1500 industrial technical Institutions. By equipping the workforce with the right training andopportunities, a new skilled workforce will emerge, placing India firmly on the path to become a global manufacturing hub.Before we moving further, with our main theme, let us have a review the present government’s one year progress with bothpositive and negative achievements. Present rupee value dipped, inflation up, cost of consumer goods and vegetables raised,Industrial production hit, Delhi University and Chennai IIT rocked, many IIT directors displaced, HRD Minister herself isunder cloud, DRDO chief sacked many governors disturbed, Indo-China boundary became boundaryless, Ghar wapsi,Church attacks, provocative statements by VVIPS, Sushma, Vijayaraje, Chowhan, IPL Scandals, corruptions, moral policingand so on. However, there are some positive aspects also like accepting upto 56% of increase in FDI, brought a law to curbBlack money, initiation of national education policy, Telecom auctioning, 49% in defense sector FDI clearance, JandhanYojana etc, are the achievements of the present government. Since begining of the 5 year plans, till now the developmentsthat have taken place, the laws that have been enacted to safeguard those developments, the accountability that the ruling andthe oppositions have shown towards the Nation, the leakages knowingly or unknowingly that are flooding etc; have to betaken care importantly before any thought, ideas, dreams, concepts, perceptions, that any government proceeds further.

INDIA’S EARLIER ECONOMIC SYSTEMJawharlal Nehru’s dream of modern India has passed through different stages with socialistic pattern of society, concept. Thisthought among 60 other Nations had influenced and followed. India is still adopting mixed economy. The year 1991 hadseen a bursting change with innovative and competing stage at home and global level. Our economy was at bottom upsuccess where as china’s was at top-down trump, orchestrated by a technocrat elite in an authoritarian state. Westerncountries were agonizing over the capitalist system where as a large democratic nation (India) is rising in the east based onpolitical and economic liberty; proving once again that, open societies, free trade and multiplying connections to the globaleconomy, are path ways to lasting prosperity.

POST-LIBERALIZATION EFFECTThe economy was exposed to a high degree of free competition that saw globally competitive. International enterprises andbrands established a dominant presence in expanding India market. The pace of international reforms to make the domesticeconomy competitive was painfully slow. Gradually the high value-added consumptions space, got predominantly capturedby international brands, leaving Indian brands to cater mostly to lower income markets. Many of the global firms also relied



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on their efficient supply chains at overseas to service the Indian markets with the benefit of lower import duties. Thus valuecreation in the domestic economy has not been commensurate with that of higher consumer spend, in our markets.

LATEST GLOBAL ECONOMIC THEORIESAccording to kondratiev theory, global economy experiences long economy waves often called as kondratiev wave or longwaves. Each cycle ranging from approximately 40 to 60 years and driven by a technological invention, goes through 4 distictperiods namely; 1) Prosperity 2) Recession 3) Depression 4) Improvement. Another model developed by Joseph Schumpeterbased on kondratiev theory and further enhanced by the national edge project (TNEP). According to this (TNEP) project, anAustralian based independent think-tank, we are in the deflationary growth phase of 5th wave and entering the 6th (TNEP)one. ‘International keynote speaker Tours’ highlights that the next wave of innovation will be in sustainable development,which includes improvement of resource productivity, renewable energy, integrated system design and such others. Germangovernment’s Federal Ministry and Research, Ministry of economics; prepared a report recommending for implementation ofthe strategic initiative Industry 4.0’ a reference to the coming phase of industrialization. According to this, the Firstrevolution was Mechanisation, the second was Electricity, the Third was Information Technology. Now the Fourthrevolution is Introduction of the Internet of Things (IOT) and services into the manufacturing environment. Germany withrobust manufacturing industry, has high stakes in remaining strong hub.

NOW CHALLENGES TO INDIAThe manufacturing industry has played major role in the growth of advanced countries. However India has taken anunchartered path of moving directly from an Agrarian society to a service oriented economy. For developing countries’ aimis, to maintain growth while, manufacturing countries, sustaining job creation. Those manufacturing offers an opportunitynot only to rebalance the economy towards higher value added sectors and also provide relatively wide employment basewith higher labour productivity. Here, the transition from agriculture to services (especially for lower income countries)offer the opportunity to achieve only the first objective but not the second.

a) To nurture its own championsThere are many Indian patriotic giants who are swimming against the tide and investing in the country by, overcoming themultifarious challenges. These national champions who believe in building the nation’s future. They recognized the need tocontribute to a shared tomorrow. These national champions have created substantial value for their nations. They and theirbrands are jewels in the crown of the countries, they live. They are repositories of intellectual capital and innovative capacitythat ensure profitable and growing economic activities in perpetuity. They have much large ability to contribute to thenational priorities as well as to a gradually substantial future. They are the driving forces, powering their economies.

b) Investment in IndiaMake in India initiative has the opportunity to encourage and setting up of world class enterprises that capture larger valuefor the country, when domestic manufacture is accompanied by ownership of intellectual property in India. The country willmaximize retention of value in the case of foreign ownership, would flow out as royalty with much lower incidence oftaxation. It is welcome that concerted effort is being made at the centre and the state to improve the ease of doing businessand foster an environment where investment is encouraged.

c) Structural transformationIndia will have the unique opportunity reaping the demographic dividend over 25 year horizon. There is no mistaking thisopportunity. A large pool of young people can help shape a new destiny for the nation. In its wake of transformation, Indiafrom developing economy to a developed nation that commands global respect, of course it may take a longer run. SouthKorea, Japan and China are the nations have transformed themselves into global economic powers. A strong leadership,patriotic fervor, robust strategies, flawless execution backed by indomitable spirit of entrepreneurship has marked thisextraordinary transformation. Structural transformation is called for to foster an economic environment that multiplies newopportunities, such as economic opportunities that can spur large scale livelihood. Livelihood creation will provide themarginalized with prospect to earn, save, spend and invest. Thus energizing a virtuous cycle of growth. Economic activityflourishes by nurturing the environment rather than plundering it.

d) Building competitivenessKeeping in mind the larger societal challenges without creating burden and dignity of labour to build reasonablecompetitiveness of the Indian economy. It will create a new model of development that can encourage a new model ofdevelopment.



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e) Skilling IndiaFurther path of India development depends on Make in India as well as skilling India. In this regard the government hasidentified 25 key sectors in which our country has the potential to become a world leader. The total target for the year 2015-2016 is, to train 6.6 million people. But, NSDC won’t train directly through its 303 training partners in 497 districts acrossthe country with relevant quality standards. This will help bridge the gap between industry and skilled people. NSDC isworking with other international partners. For example Switzerland provides training in hospitality & Engineering, Australiain mining sector. The aim is to narrow the gap between supply and demand of growth enabling skilled workers as well asenabling improved livelihood for the people. In this way the innovative firms to be identified it includes substantial growth ofIndia.

f) Job Creation a challengeYouth of this country voted to power this government. Now it is the time to deliver the goods. According to CRISIL, a globalanalytical company, providing ratings, research, risks and policy advisory services has pointed out the following figures.

Year No of youth Jobs created Self employed Job acquired2005 & 2010 5.5 Crore 2.7 Cr 2.5 Cr 0.2 Cr

Growth rate in this period 8.7%. Present government with its slogan Achah Din has to get the growth rate at least 5 to 7%.The idea of making India cannot be with that of frontier manufacturing technologies using robots would be used toreplacement of workers. That is diametrically opposed to providing jobs to the 5.5 Crore workers that will enter theworkforce between now and 2019.

g) Labour ReformsPresent labour policy to impose harsh labour laws on units wherever the employees are there, more than 300. For example-An Agarbathi factory that produces worth Rs 1 crore and cement factory produces goods worth Rs 100 crores, are subject tothe same labour laws if they employee more than 300 workers. To come out of this, to calculate wage payments as share ofvalue added. Industries like Agarbhathies that have of high share of wages in their output, should be exempted from thelabour laws. Then industries will try to employ more members, so that they can come out of the scanner of labourdepartment. The problem here is Modi’s favoritism with the western countries is a big stumbling block. The “look west”policy of Modi leads to giving free play to big industries. Modi is unable to understand that there is a deep dissatisfaction inthe western countries with the present economic model because; India has more economic problems of labour than thewestern countries.

h) Transfer of technologyPrime Minster of India seeking transfer of advanced defense technology from the developed countries. Germany has signedan MOU for strengthening the green energy corridor for transmission of green energy from wind and solar powers into thegrid system. Airbus, the French manufacturing company has expressed willingness to supply planes. French also ready tosupply 36 fighter Jets in flying way condition. French also helps in procurement of nuclear reactors for Jaitapur project.French also builds a high speed rail system between Delhi and Chandigarh. Canada for the joint development of pressurizedheavy water reactor for making nuclear power. Here the deal doesn’t include transfer of technology. It means, it is againstMake in India concept. Again with regard to the FDI issue, the FDI does not automatically lead to transfer of technology.Most transfer of technology, of MNCs only with higher income developing countries. Acquisition of technology bydeveloping countries from MNCs is not automatic. MNCs do not transfer technology of their own product but help theirvendors to upgrade the quality of the product at cheaper cost. The developing countries need to put in place a “carrot andstick” policy for technology transfer.

i) FDI ImplicationMNCs make huge remittance to their headquarters in the form of profit repatriations, royalty payments and purchase of rawmaterials. They transfer large amount of money from the developing countries by tweaking the price at which these transferstake place. For example coca cola India buys concentrate from Coca cola, USA for an actual price of Rs100/= per liter, it isalso possible that this purchase by Coca Cola India, is under taken at 1000/= per liter, instead. This would lead to transfer ofhuge amount of money to their principal where as a reduction of profit India. The Govt of India may be deprived of thecorporate income, tax that would have been collected from the profits, made by coca cola India. As a result, the long termfinancial impact of FDI, is negative.

EMERGING TRENDS OF FUTURE INDIAPresently, there are two emerging trends giving India an opening to ride the wave. One is, the wave of industrial innovation



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that is related to the sustainability trend. The other one is, emerging industrial era, called industry 4.0. If the country candevelop appropriate strategies and work to leverage the emerging trends, then the future is bright for India. The emergingtrends provide India an opportunity to join the group of highly industrialized countries and there by create jobs for themillions of Indians.

INDUSTRY 4.0 AND THE KEY DRIVESThe key drivers ushering in the industrial transformation are the convergence of information and automation technologies,production facility of the future, machines fitted with embedded processors, storage units, sensors, and transmitters that cangenerate data and exchange them with each other to autonomously achieve tightly coupled production operations. Themachines, equipment, materials, products and all entities along the value chain become cyber-physical systems (CPS) orInternet of Things (IOT) devices. This would revolutionize the world of factories. People from the industrial world oftendescribe IOT in the context of manufacturing applications as industrial internet of things (IIOT).

Internet and CPS would become the back bone to network resources, information, objects and people to create the Internet ofThings and services. The decentralized intelligence built into CPS would enable production system to self-configure andinteract with operators more contextually and improve manufacturing, engineering, material usage, supply chain and lifecycle management processes. CPS embedded manufacturing would play a major role in solving current challenges likeresource and energy-efficiency. Such smart systems would free workers to focus on creative, value-added activities insteadof performing routine tasks. Significant investments are taking place in getting ready for the Industrrie4.0 era.

SUGGESTIONSModi should strike a balance between these contradictory impacts of FDI. First, it must be looked at positive aspect of FDItransfer of technology if it takes place. The second is, negative aspect is, remittances-both legal and illegal. The strategy,therefore, should be to ensure technology transfer and reduce outward payments. In this regard, it should be banned all FDIthrough the automatic route. An important aspect is, Modi should put in place a system of technological and social auditbefore approval of govt.FDI proposal. A public hearing must be conducted before a FDI proposal is cleared like grantingenvironmental clearance. It is also advisable / suggested that, those who may be adversely affected by entry of MNC’s, begiven an opportunity to voice their concerns before approval of FDI proposal. Public hearing will make it possible to assessthe impact of FDI proposal and take a decision. This is called “Sabke saath sabka vikas”.

CONCLUSIONEarlier to make in India, there was modern India began soon after India’s Independence along with nation’s 5 year plans.India passed through several stages in its economic developments by adopting socialistic pattern of society principles alongwith other 60 nations due to prevailing situations at that period. As Jawaharlal Nehru then Prime Minister of India marchedwith his dream of modern India. In 1991 India has changed its economic path along with other nations in globalizationeffect. Started inviting multinational companies to invest in India as well as competing with other nations carefully withoutany disturb of its domestic market. Present government with its dream of Make in India started its journey without botheringof its opposition. Now the situation has arised to wait and see situations as its one year progress card is not up to the mark. Itis also doubtful, whether this government would achieve its dream as lot of imbalance is taking place among their colleaguesand the opposition parties. The parliament sessions washed out, the government is adamant and the co-operation from theworld countries has to be wait and see situations, it appears.

REFERENCES1. Address on make in India by Deveshwar. Chairman, ITC Group of Companies on 104th Annual General meeting.

Times of India, Bangalore edition Dt.31.07.20152. Rajbahadur.V.Arcot-Industry analyst/columnist/automation consultant. Article appeared in Deccan Herald Dt..20153. Article byDilip Chenoy, MD & CEO, National skill Development Corp. NSDC. Times of India, Bangalore Edition.

Dt. 29.06.2015.4. Article by Bharath JhunJhunwala, former prof: IIMB, Bangalore, written in Deccan Herald Dt. 07.01.2015.5. Article – Make in India written by Bharath JhunJhunwala, “ Tread cautiously, IIMB. Bangalore.6. Article written by Gurucharan Das “Elusive Trist with Destiny” appeared in Times of India; Bangalore edition.7. The economic survey 2014-15, released by Govt of India, published in Deccan Herald, Dt. 20.02.2015.8. Review of make in India by RBI. Governor written in Deccan Herald Dt. 27.12.2014.9. Article, “ The Challenge Ahead” written by JhunJhunwala,former prof; IIMB, Bangalore.Deccan Herald

Dt.20.05.2015.10. “Transition from Education to Employment”. Article written by Arati Basu of India Management. Deccan Herald,

Dt. February 2014.



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TECHNOLOGY ACQUISITION AS KEY TO SUCCESS OF “MAKE IN INDIA”

Dr. Cynthia Menezes* Prakasha***Associate Professor, CBSMS, Bangalore University, Bangalore.**Research Scholar, CBSMS, Bangalore University, Bangalore.

AbstractAchieving self-reliance and reducing dependence on foreign countries in all sectors is a necessity today rather than a choice,both for strategic and economic reasons. In this modern era of ever increasing, high competition, Technology directlyinfluences operations of business enterprises and economic growth & wealth of nations be it Japan, USA, India or any othercountry. Technological advancement is regarded as a key factor contributing to continued high economic development andrichness of developed/rich countries.

India being a developing country has large industrial base. Gross Domestic Product (GDP) depends on industrialdevelopment and growth. Market has become highly competitive, more volatile and dynamic in nature. It is highly desired tooffer timely the contemporary products to the consumers in order to maintain the growth. Technology required for theseproducts may not be available in time within the country matching to the changing pace. Hence country needs to acquire therequired technology, so that business enterprises and organizations will secure and maintain competitive advantage in anenvironment of constant change to boost economic growth of the country. “Make in India” is an initiative program of theGovernment of India to encourage companies to manufacture their products in India.

This paper reviews the need and importance of Technology Acquisition by India for the success of “Make in India” . Itenumerates the strategies to be adopted by India for acquiring technologies in all areas of its importance. This empiricalstudy also brings out the link between technology acquisition and overall development of India under “Make in India”campaign.

Keywords: “Make in India” success, Technology Acquisition, Benefits, Overall Development.

1. INTRODUCTION

Achieving self-reliance and reducing dependence on foreign countries in all sectors is a necessity today rather than a choice,both for strategic and economic reasons. The Government in the past has created production capabilities in defence in formof Ordnance Factories and Public Sector Undertakings to cater to the requirements of our Armed Forces. The requirement fordomestic production of defence equipment is more than for any other sector because it will not only save precious foreignexchange but will also address the national security concerns. However, there is a need to enlarge the role of Indian privatesector as well to develop capabilities and capacities for production of various defence equipments & various items. “Make inIndia” is an initiative program of the Government of India to encourage companies to manufacture their products in India. Itwas launched by Prime Minister Narendra Modi on 25 Sept 2014.

Government being the only consumer, ‘Make in India’ in defence sector will be driven by our procurement policy. TheGovernment policy of promoting domestic defence industry is adequately reflected in the Defence Procurement Policy,wherein preferential treatment is given to ‘Buy (Indian)’ and ‘Buy and Make (Indian)’ categories of acquisition over ‘Buy(Global)’. In the days to come, import is going to be the rarest of the rare option and first opportunity would be given to theIndian Industry to develop and manufacture the required systems. As Indian companies presently may not have adequatecapabilities in terms of technology, they are encouraged to partner with foreign companies for joint ventures, technologytransfer arrangements and tie-ups. Union Budget proposes measures to make India a manufacturing hub. The objective is totake manufacturing growth to 10% on a sustainable basis and to create 100 million additional jobs by 2022 in manufacturingsector.

2. OVERVIEW OF “MAKE IN INDIA” CAMPAIGN The major objective behind the initiative is to focus on 25 sectors of the economy for job creation and skill

enhancement. Some of these sectors are: automobiles, chemicals, IT, pharmaceuticals, textiles, ports, aviation,leather, tourism and hospitality, wellness, railways, design manufacturing, renewable energy, mining, bio-technology, and electronics.

The initiative hopes to increase GDP growth and tax revenue. The initiative also aims at high quality standards and minimizing the impact on the environment.



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The initiative hopes to attract capital and technological investment in India. The campaign was designed by Wieden+Kennedy. Under the initiative, brochures on the 25 sectors and a web portal were released. Before the initiative was launched,

foreign equity caps in various sectors had been relaxed. The application for licences was made available online andthe validity of licenses was increased to 3 years. Various other norms and procedures were also relaxed.

In August 2014, the Cabinet of India allowed 49% foreign direct investment (FDI) in the defence sector and 100%in railways infrastructure. The defence sector previously allowed 26% FDI and FDI was not allowed in railways.This was in hope of bringing down the military imports of India. Earlier, one Indian company would have held the51% stake, this was changed so that multiple companies could hold the 51%.

Out of 25 sectors, except Space(74%), Defence(49%) and News Media(26%), 100% FDI is allowed in rest ofsectors.

3. WHAT IS ‘TECHNOLOGY’ AND WHY IT IS IMPORTANT?Technology means different things for different people and is also defined differently by different people. Therefore, it isimportant to define ‘Technology’ in the first place and then look at its importance. The National Academy of Engineering(NAE) defines: “Technology includes all the infrastructure necessary for designing, manufacture and repair of technologicalartefacts - engineering know-how, manufacturing expertise and various technical skills - all or equally important part oftechnology”.

Therefore technology is not just products. It is a combination of Science and Engineering. Science aims to understand the“Why”, Engineering is design “under constraint” with science being the main limiting factor. Therefore, technology is allencompassing. It involves design, drawings, code of practices, engineering standards, data sheets, raw materials,manufacturing processes, software, test procedures, test equipment and above all implicit knowledge resident in humanresources.

“Technology is power and will continue to be so in foreseeable future” says Dr. R. Chidambaram PSA to GOI. Those whocontrol the technologies, control the world. The western world fully understands the power of technology and hence tries tocontrol the flow of technologies through control regimes.

Technology is so important because acquiring critical technologies has following advantages: Enables design, development and production of systems across the platforms. Many related and unrelated applications of some technology can be derived. May trigger development of a set of new technologies. Enables our industries to handle subsequent product upgrades, provide life cycle support indigenously. Enhances technology base in the country.

4. TECHNOLOGY ACQUISITIONTechnology Acquisition is a process by which a company acquires the rights to use and exploit Technology for the growth ofthe company. Many companies rely on Technology advantage to differentiate their product from their competitors.

Kelkar Committee Observations on “International experiences and possible lessons on International experiences inacquisition of Defence Material in some of the major weapon producing countries and possible lessons for India”. Thecountries covered in the report are U.K, Australia, Israel, France, South Korea and USA. Israel, Republic of Korea (ROK orSouth Korea) and Australia are of specific interest to us as USA, UK and France are already militarily developed Nations(Permanent members of UN Security council). These countries have shown tremendous progress in defence preparedness inpast few decades. The relevant excerpts from Kelkar committee reports about these countries are as follows:

Australia: “Defence (Ministry) administers several complementary programmes that encourage participation of Australianindustries in Defence business, promote R&D, facilitate technology and skills transfer from overseas and support defenceexports - consistent with the nation’s interest.”

Israel: Emphasis is on acquisition of Technology and not the product.

South Korea: Government stress is to maximize indigenous production, diversify defence supply and acquire as muchtechnology as possible with priority to military related technologies including state of the art technologies.

From these excerpts, it is evident that these countries are vigorously pursuing to get technologies into their countries throughoffsets.



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Global success stories: Israel, South Korea and China are three major countries which have tremendously benefited fromtheir offset policies.

Table 1 :

It is evident from the above table, that Israel even though has much less number of qualified engineers; it is number one interms of Technological Readiness. It has a large number of successfully fulfilled offset obligations, where the PercentageFulfilment is much more than 100 per cent. As a direct impact of Defence R&D investments in Israel, the country movedfrom a non-entity amongst Defence suppliers 10 years ago with US $ 900 million per annum today.

5. AN ACQUISITION STRATEGY IS NOT A SINGLE ENTITYThe Acquisition Strategy is a comprehensive, integrated plan developed as part of acquisition planning activities. It describesthe business, technical, and support strategies to manage program risks and meet program objectives. The strategy guidesacquisition program execution across the entire program or system life cycle. It defines the relationship between theacquisition phases and work efforts, and key program events such as decision points, reviews, contract awards, test activities,production lot/delivery quantities, and operational deployment objectives. The strategy evolves over time and shouldcontinuously reflect the current status and desired end point of the program.

6. TECHNOLOGY ACQUISITION:INDIA’S PERSPECTIVEIndia being a developing country has large industry base. Gross Domestic Product (GDP) depends on industrial developmentand growth. With the change in policies of the Government, market has become highly competitive, more volatile anddynamic in nature. More foreign products are available at competitive prices in the market. Local industries need to struggleto keep up the momentum and to retain the market share. It is highly desired to offer timely the contemporary products to theconsumers in order to maintain the growth. Technology required for these products may not be available in time within thecompany matching to the changing pace. Hence companies need to look beyond their boundaries for acquiring thetechnology.

Technology acquisition from overseas, technology import plays a more important role at the early stage of economicdevelopment than at the later stages, while domestic technology development increases its importance as an economydevelops. Many developing countries including India largely benefit from importing readily available technologies fromabroad to complement their technological capability. As late comers, they can use already-established technologies existingoverseas. In Japan, the role of technology import was large at the early stage of its economic development and diminished asit developed. In the early 1960s, technology import payment occupied 14 percent of total technology expenditure, which wasthe sum of domestic R&D expenditure and technology import payment; however, it decreased to 7 percent in the late 1970s.

6.1 Past Indian ExperiencesAll the past experiences related to Technology Acquisition actually pertain to Transfer of Technology (ToT) in real terms.Kelkar committee observations regarding the characteristics of Indian ToT model is as follows:



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Confined to only Department of PSUs & Ordinance Factories. Depth of technology transfer not adequate. Essentially transfer of drawings and processes for manufacturing and assembly and no real transfer of technology.

Adopting TOT model for manufacture of imported equipments through License manufacture has not been a successe.g. HAL Fighter Aircraft, BDL Antitank Missile, BEL Fly Catcher Radar, OF T72 and T90.

No flow of Technology as the MK-II versions or next generation systems never came out of these facilities. Dependence on OEMs for upgrades has only increased and not decreased. The above points definitely prove that

ToT model is not suitable for meeting national aim of self-reliance in design, development, Production and life cyclesupport of indigenous defence systems.

7. TECHNOLOGY ACQUISITION FROM ABROADThere are various means to acquire technology from abroad. A comprehensive form of technology acquisition is ForeignDirect Investment (FDI). FDI brings in not only technology but also management skills and market connections as well ascapital. Similar comprehensive means is build-operate-and-transfer (BOT) arrangement. Foreigners build, manage andoperate plant or other large projects until they recover their investment. Means like Original Equipment Manufacturer (OEM)arrangement, Original Design Manufacture (ODM) arrangement and parts production subcontracting also accompanytechnology import. Subcontractors supply technical specification at least. They sometime provide production methods,Know-hows and technical assistance and designate exact types of production equipment and input materials.

In China, a variation of OEM, cooperative production is exercised. Chinese firms receive technology from contractors fromoverseas and produce products for them. Chinese firm also produce products under their brands using the same technologyfor domestic market and a small number of designated countries. They do not pay royalties but provide products at a lowerprice to the contractors under OEM arrangement. Therefore, this is a combination of OEM and restricted licensing.

For a tangible form of technology acquisition, importing turn-key-plants is the most comprehensive. Importers only need tooperate based on manuals. Other tangibles to be imported include capital equipment, products, such as moulds, and parts andraw materials. Based on product import, copying and reverse engineering can be performed.

For an intangible form of technology acquisition, there are forms of licensing, know-how transfer and technology services.Other intangible forms of technology acquisition are consulting service, information service and subscription of journal andthe purchase of other documents. These activities are mostly related to information purchase.

Human exchange also brings in technology. Foreign experts are hired to transfer technology. In the late 19 th Century Japanhired many foreign experts and their salaries were higher than those of ministers in some cases. Studying and trainingoverseas is a good means to absorb technology overseas. Just visiting foreign factories and attending international fairs alsoprovide good opportunities to get to know foreign technology.

To facilitate and promote Technology Acquisition from overseas using various means described above, policy efforts arerequired. Policy instruments used depend on acquisition means. For a comprehensive means, such as FDI, even amacroeconomic policy is important. For a specific means, such as licensing, a particular technology policy, such as IPRprotection, is important.

8. OBJECTIVES1. To study the essence of Technology Acquisition for “Make in India”.2. To analyse the benefits from “Make in India” campaign.

9. RESEARCH METHODOLOGYThe current paper is an empirical study. The empirical research has been carried out to find the importance of TechnologyAcquisition for “Make in India”.

Sample for this study is 80 Technocrats in engineering sector engaged in large, medium and small scale industries. StratifiedRandom sampling technique is used.

Primary data was collected through well structured questionnaire covering key questions. Data collected is presented in theform of graphs and analyzed.Hypothesis has been formulated based on objective and tested.



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10. ANALYSIS AND INTERPRETATIONChart 1: The Respondents Profile

Sample size = 80

Chart 2 : Need for Technology acquisition for Make in India

Source: Primary DataMajority of respondents (76) agreeing to the need of Technology acquisition for Make in India

Chart 3: Requirement of strong action for acquiring technology for Make in India

Source: Primary DataAll respondents agree for strong action for acquiring technology for Make in India.



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Chart 4 : Perception on benefits being obtained through “Make in India”

Source: Primary DataMost of the respondents believe that “Make in India” will lead to more benefits, overall development and growth ofIndia

Chart 5: Perception on relation between Technology acquisition to the success of Make in India




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Most of the respondents believe that technology acquisition will lead to the success of “Make in India” campaign. This is alsosupported by the rejection of Null hypotheses, H0 = There is no significant relation between Technology acquisition & Makein India campaign.

10.1 Hypothesis formulation and testingAs most of the respondents believe that technology acquisition will lead to the overall development and growth of India aspart of Make in India, a hypothesis was formulated to test the significance of technology acquisition to Make in Indiacampaign.Null Hypotheses H0

H0 = Technology acquisition has no significance for Make in India

Calculated value of Chi – Square ‘ ’ is 37.152

Table value of at 0.05 Significance level and d.f. = 1, is 3.841

Since the calculated value is more than the Table value at 0.05 Significance level, the Null hypotheses H0 is rejected.

Hence, Technology acquisition has significant role for Make in India campaign

11. MAJOR FINDINGS1. Technology acquisition is very important for achieving “Make in India”.2. “Make in India” campaign will lead to more benefits, overall development and growth of India3. India need to take action for Technology acquisition (by both internal and external means)

12.LIMITATIONSAlthough, meticulous care has been taken in each and every aspect of the study, certain limitations are likely to be there inthe study.

1. Due to paucity of time, only one sector i.e. engineering industries, who have deep knowledge of the problem areconsidered.

2. Despite the care taken to understand the feelings and opinions of the respondents, some articulation error mayhave crept into the study.

3. Few respondents were hesitant to give details.4. There might be a sense of bias crept in answers given by the respondents .

13. CONCLUSIONThe case presented in this article shows that majority of them will confirm thatTechnology acquisition is very important for achieving “Make in India” and this campaign will lead to more benefits, overall

development and growth of India.

14. RECOMMENDATIONIndia should strongly aim at promoting development and acquiring technologies in all 25 identified techno critical areasrequired for the country.

REFERENCES1. Tarek Khalil & Ravi Shankar, ‘Management of Technology – The key to Competitiveness and Wealth creation’, Mc

Graw Hill Education (India) Pvt. Ltd., 2013.2. Dr. Vijay Kumar Kurana, ‘Management of Technology and Innovation’, Ane books India, 2007.3. Kondo, Masayuki, ‘Technology Strategy for Development,’ DISCUSSION PAPER SERIES DPS No.13,

Development Studies Department, Institute of Developing Economies, Tokyo, Japan, May 1998.4. Dr. Corazon T. Aragon, Ms. Mylah Rystie B. Uy-Anacleto, Leonaora P. Matundan, “Technology Acquisition and

Transfer” CACCI Journal, Vol 2, 2005. Pg. 1-4.5. Hindustan Times, Monday, March 02, 2015.6. The Indian Express, Express News Service | New Delhi | Updated: September 25, 2014 12:38 pm.7. http://wikipedia.



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THE ROLE OF HR IN MAKE IN INDIA

T. A. Mahesh Kumar* Srinivasa.C***Research Scholar – Canara Bank School of Management Studies, Bangalore University.

**Research Scholar – Canara Bank School of Management Studies, Bangalore University.

AbstractIt is Human Capital that drives any project. If there are right people – projects moves very fast. Make in India not possible

without adequate competent dedicated Human Capital. A link strong and unbreakable has to be established from therefinement of the past to the excitement of the present and to the potential of the future. There is a need to think of how tomeet the demand and project India as a nation, a challenge on how to leverage holistically a global presence.

Key Words: Innovation, Skill Development, Protection of Intellectual Property, Empower People, Encourage Risk Taking.

The Former President of India, Dr. A P J Abdul Kalam, identifies India’s human resource base as one of its greatest corecompetencies in a book titled India 2020: A Vision for the New Millennium .Quoting Sir Winston Churchill at the HTLeadership Summit – “India : The Next Global Superpower?” This statement not only recognizes the importance ofknowledge possessed by individuals in determining the destinies of nations, it also subtly hints that the intellectual, cultural,social, economic and political empowerment of these individuals is the basis on which the modern world will be constructed.

The initiative hopes to increase GDP growth and tax revenue. The initiative also aims at high quality standards andminimizing the impact on the environment. The initiative hopes to attract capital and technological investment in India. Astrong Indian economy which is vying to be an economic superpower by the year 2020 means a robust industrial growth,strong pool of foreign capital pooled with RBI, sound infrastructure, better standard of living, better per capita income, betteremployment opportunity for all, mature financial markets,100%financial inclusion, better amenities and hygiene facilities.But it is the HR eco-system that will make the wheels of industry turn. Without it, start-ups can’t get started and establishedcompanies can’t weather the tough times or make the investments needed to gear up for the boom times.

In this paper I am focusing on Five of the most important characteristic necessary to enable India to climb the pinnacle ofsuccess – a right hiring process, effective training programs, motivated engaged workforce, steadily developing global-classleaders, efficiently managing crisis and wholeheartedly undertaking change initiatives .

FOSTER INNOVATION1. Let Every Employee Play Designer.

By making employees feel a part of the idea-creation process, West Paw Design set up a new pipeline of productdevelopment.

2. Provide Lots of Free Time to Think.Note the absence of office from that roster. So, to allow for that crucial "think time," in addition to nearly fiveweeks' vacation, BrightHouse's 18 staff members get five "Your Days," in which they are encouraged to visit a spotconducive to reflection and let their neurons rip.

3. Use New Software to Round Up Staff Ideas.We knew we had people who might be shy about submitting ideas," So. "We should give them a forum thatencourages everyone to share.

4. Encourage Risk-Taking.Each employee is encouraged to do something he or she has never before attempted – say, skydive or give a largepresentation. "If we're known for anything, it's possibilitarianism.

5. Reward Million-Dollar Ideas.6. New Project, New Team.7. Allocate 10 Percent of Time for Invention.



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Nourishment with Vitamins T and DIndia to vision itself as a super power, the corporate must consider recognition and development of human characteristic as akey company asset. Human capital advantage accrues when the enterprises in the economy are able to recruit and retainpeople with high potential. Human process advantage refers to processes such as learning, corporation and innovation thatrelease and build on the potential of people. Both are required to achieve sustained competitive advantage through humanresources. A combination of human capital with human processes for the development of the economy depends on thehuman resource competence of the country as a whole. Proactive approach of Investment in Growth rather than the reactiveapproach of Investment for Growth is truly the essence of employee training and development which can bring aboutflexibility , adaptability and provide career growth .Economic explanations for training and development focus primarily onthe role of the individual and the returns to both individuals and organizations from the investments in training Since thehuman resource yield a potentially inimitable source of competitive advantage, it is imperative to recognize the potential andthe necessary processes must provide the impetus to enable the release of that potential. Training and development are twovitamins for energizing and providing the appropriate repertoire of skills and knowledge to make India “Go, Grow andGlow”.

ENHANCE SKILL DEVELOPMENTYes, if employees engage their mind, body, heart and soul then they have a power that is boundless and priceless , referredto as the “power of employee engagement” which leaves employee satisfaction far behind in the race for getting the most outof employees.

But, attrition is inevitable and hence has to be tolerated. Attrition is necessary to inject fresh blood and bring innovativeideas into an organization. But, alarming attrition is the biggest killer of an economy.

CHAK DE INDIAShifting from the necessity of engaging employees, it has also become imperative that India should be able to produceGlobal-class leaders who are able to work and lead across borders. Since globalization has become multi polar from monodirectional, there are many opportunities to be ceased. It is leadership in every walk of life ( e.g. Leaders for Creative,Healthy, Educated, Innovative and the Women of India) that holds the key to the future . Without leadership all talk ofbeing a global economic leader will be rhetoric. Six Indian companies namely Hindustan Unilever, Infosys, ICICI Bank,Wipro, Tata Consultancy Services and Thermax made it to the elite list in a survey called Top Company for Leaders2007conducted by global human resource consultancy Hewitt, the RBL group, a global leadership grooming consultancy and theFortune Magazine. Five companies out of these found a place among the Asian Top companies while four were adjudged tobe in the premier list of Global Top companies for Leaders that included companies. Says Ajay Soni, Practice Leader,Consulting, Hewitt Associates, “Indian Companies are adopting global leadership practices as they expand on a global basis.They realize that nurturing leadership talent is a key to continuing success.” Besides,” says Soni, “each of these companieshas a maniacal focus on high-potential employees.” Business leaders in today’s borderless global marketplace faceunprecedented challenges. The emergence of the knowledge economy has demanded that business leaders become globalleaders. Successful global leaders are those with strategies for guiding and empowering a diversified workforce operating indifferent countries, cultures, and time zones so that they can maximize the returns from trading in a worldwide market withdistinct local needs.

TEACHING THE CATERPILLAR TO FLYIndia is at the door step of an historical opportunity and can bring about a change in economy, society and human life.Raghunath Mashelkar, former Director Genenral of Council of Scientific and Industrial Research (CSIR) says that there is aconstant battle between the mind which is the engine of problem solving and the mindset which is as a set of beliefs anddogmas. Mindset prevents the mind from taking bold and innovative decisions based on openness to data and facts.According to him only those minds that win the battle will make progress. The leaders in India are taking extraordinaryinitiatives by adapting to changed circumstances and shifting the mindset. The openness is percolating downwards slowlyand positively. This will help to accept challenges and solve problems rather than being in a state of denial. The McKinseyseven ‘S’ framework developed by Tom Peters and Robert Waterman, shows central, interconnected factors that influencethe organization’s effectiveness, especially its ability to change. The soft S’s – Skills, Staff, and Style – are determined bythe people at work in the organization and are difficult to anticipate or to influence. It has been established beyond any doubtthat the past success is no indication of what has to come in future. However, now a days revenue is not the yardstick onwhich corporate are assessed. It is the shareholder value. And this change is happening at such a rapid pace that Indianeconomy will be able to change from a crawling caterpillar to a flying butterfly only if it is able and willing to change andadapt to the future.



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McKinsey Seven ‘S’s framework

CONCLUSIONThe challenge before India is to use modern science and technology to ride the new wave of industrialization. It needs toequip and empower people to take advantage of the opportunities that are rapidly arising across the world. Skilled, confident,healthy workforce with dynamic, creative, enterprising firms, robust institutions which inspire confidence, equitable, caringand just polity, acceptable social order which instills pride in the citizen will help India achieve its goal of becoming a superpower. Indian economy has seen a fairy tale ride since 1991. Post the economic reforms that led to liberalization,globalization and privatization, India has become an attractive business destination for investors the world over. The boomingIT, retail and entertainment industries are being lauded by the Western nations. India will soon create the waves and not ridethem. India is the place where the entire world wants to be.



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MAKE IN INDIA – INNOVATIVE HR PRACTICES OF INDIAN COMPANIES

Dr. Cynthia Menezes* Srinivasa. C***Associate Professor, Canara Bank School of Management Studies, Bangalore.**Research Scholar, Canara Bank School of Management Studies, Bangalore.

AbstractIn the current scenario, globalization has a major impact on the management of human resources in developing Countrieslike ours. With picking up the velocity of globalization, organizations have to adapt the significant changes and new trends inall aspects of management including the management of human resources. An innovative and effective management of humanresources has an imperative role to play in the performance and success of organizations. Moreover, competitive pressureson the organizations have encouraged them to be proactive in diagnosing HR problems and to adopt more innovative HRpractices since these were no longer a matter of trend, but rather of survival. Hence the corporate have started formulatingand adapting innovative HR strategies in the areas such as attracting and accessing the talented, developing and growing thepotential, engaging and aligning the best, transition, etc. In this paper the authors have discussed some of the key HRPractices of Indian Companies where and how innovative strategies need to be developed for ensuring the organizationalexcellence.

Key words: HR Practices, HR Strategies, Innovations.

1.1 INTRODUCTONIndia now becomes a player in the global stage. Everyone wants to do business with us, this change has given lot of

opportunities to our country to grow further but it posed lot of challenges in front of us like Indian companies gainedconfidence to acquire foreign giant companies and try to establish themselves very competitive than the foreign companies atthe same time we have to give emphasis on the various challenges before us like the gap between people in the corporateworld and those in the rural areas is becoming serious concern and the wage differentials between blue collared workers andsenior managers, the candidates having good education and communication skills getting more chance in the job market thanother people lesser than them, attrition levels are all time high in India for example business process outsourcing facingproblems with talent retention.

This paper try to extract the facts to find out how the companies in India facing HR problems and what kind of innovativepractices they are following to recruit and retain their employees and made them feel best place to work and enjoyingworking and made the companies in the great height in their own field of business.

1.2 FOUR CRITICAL DIMENSIONS OF BEST PRACTICESAttract and AccessAttracting and retaining talent is becoming a big problem for every organization, they are following every trick and strategyto recruit and retain the employees.Develop and GrowNowadays organizations try to recognize the aspirations of employees and focus on their growth and development. Indiaprovides job rotation opportunities to high – performing employees from operations division. This gives them broaderunderstanding of the business.Engage and AlignEmployee engagement has retained the focus of organizational leadership and many companies keep launching new practicesto woo employees. They are using innovative practices like “Loyalty Interview”- to find out what is it that makes itsemployees stay on, the feedback from loyal employees often reflects on the leadership style and is seen to work as a greatmotivation.TransitionMovement of talent within the organization and outside of the organization sends strong signals to the employees about theorganization’s care and concern. Right from the induction, which is often the first impression the employees carries, to theexit interview, the sensitivity displayed by the organization has a lasting impact on all employees.

1.3 INNOVATIVE PRACTICES IN HR AREAS Recruitment and selection Learning and development Rewards and recognition



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Career planning Compensation and benefits Performance management Leadership and development Organization structure

1.3.1. RECRUITMENT AND SELECTION1. Google: (i) For recruitment they expect the person has to be comfortable with technology and be optimistic about

the future. “Like someone who you would find interesting on a long train journey”. The company’s recruitmentprocess ensures that it gets the people edge it needs. There is a battery of wiring tests, interviews are rigorous, not inthe sense of being a stress interview, but interviewers try and go deep into what makes the candidate tick. Then thedetailed feedback on the candidate is given to an independent team in charge of hiring. The company’s credo is tohire someone who is better than you.

2. Employee referrals by employees which comprises 50% of all hiring at SAP Labs India, Bangalore.3. Non – standard pool of talent: housewives with a gap in career.4. “Bar Raisers”: The HR department has organized an elite group of 34 employees – who have veto power in a

recruitment decision, if a Bar member feels a potential recruit does not match upto the company’s standards.5. Short stories: The Company compiled 52 short stories, one for each week, the company used to introduce new

recruits. The stories talk about its history and evolution, technology and people who made a difference.6. The company goes beyond its employees and connects with their support group: the family, when an employee

joins, his parents or spouse get a welcome letter.

1.3.2. LEARNING AND DEVELOPMENTSME’s(Subject Matter Experts): HR team identifies the internal subject matter experts to give training to the employeesSending employees for higher studies. EWelcome: When employees join the company, they have to interact withfunctionaries in other regions who assume that the new person in knows the internal systems. Often the new employee isunfamiliar with the systems and is at sea. The EWelcome gateway lists certain universal systems of the company and helpsthem get familiar with such things. A stand – out feature is that if this checklist remains incomplete it sends an automaticnotice to the manager responsible for the employee. Company follows a training policy to have seven days of training everyyear is mandatory for all employees, even this chairman and the directors. GOLD (Godrej Organization for Learning andDevelopment): Web-based learning tied up with UK – based NetG to distribute e- learning modules among the workforce.The company gives equal importance to soft skill training. “ Out of box thinking is more important “, the sponsored theEdward De Bono certification of lateral thinking for two of its managerial employees, so they could teach in – house. Thislearning creates a leadership pipeline.

1.3.3. REWARDS AND RECOGNITION1. MAD (Mutual Admiration): Is an event where every employee is given green cardboard leaves on which they

scribble messages of appreciation and pin them onto the MAD tree in the cafeteria. The leaves are a way of reachingout to colleagues and teams who have mattered. And at the end of the week, the foliage gets thick. Surely, theemployees like being around each other.

2. Smart Work and Smart Reward: It directed towards improving employees productivity. It rewards those whocomplete tasks in fewer working hours than stipulated.” The reward process is well defined and transparent. It hashelped in ensuring better work – life balance.

3. Promotion within.

1.3.4. CAREER PLANNING1. Career Success Centre: An online portal and a one – stop shop for all career related resources. The portal helps employeesplan and develop their careers according to business needs.

1.3.5. COMPENSATION AND BENEFITS1. Paternity leave2. Extra three months maternity leave at half the salary leave3. No attendance monitoring4. unlimited sick leave5. equal privileges for employees across levels: employees at all levels travel in the same class, stay in similar hotels,

work out of standard cubicles, log in their own leave.



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1.3.6. PERFORMANCE MANAGEMENT1. 360 degree feedback system2. “Performance Task Force”: A cross functional team constitutes 20 members and this force keeps track of what needs

to be plugged, and what seems to be working. It goes back to HR every six months to deliver feedback.

1.3.7. LEADERSHIP AND DEVELOPMENT1. Food for thought: Inviting employees in groups to chat with Managing director over lunch in an informal

environment on various issues and topics.2. Succession planning3. Employee empowerment4. Reach out: An initiative to keep a direct link of communication to its employees, the president of the company meets

the employees.

1.3.8. ORGANIZATION STRUCTURE1. Flexi and Part – time2. The companies allow the employees to shift jobs if they wish to, across its different functions.3. Skits: The companies are asking the employees to devise skits to dramatize its values, design screen savers and even

create mascots themed on the values, they would much rather hunker down and design some more.4. The company created new position called “Employee Engagement Manager”: the major task of the manager is to

energize the workplace with fun – filled events and effective communication.5. “People Champions”: Every project team has one facilitator from the HR department. The people champion takes

care of any administrative need a project might have, leaving the project members free to concentrate on their work.6. Orientation along with parents: The Company invites the parents of new recruits for orientation, its good for the

parents to know the kind of organization their children work for, this insight came from campus recruitment, whereparents would stay with their children right till results were parents would stay with their children right till resultswere announced.

7. “People Movement Management Review Committee”: it ensures talented employees were retained by reassigningthem to other groups. The company also hired consultants to assist those who were asked to leave to find jobs inother organizations.

1.4 CONCLUSIONIn the present competitive world, the companies are facing lot of skill shortage, talent crunch and attrition those reachedhistorically height ever, that made the companies feel the internal customer also more important equally with externalcustomers, so every company try to devise innovative HR practices to attract best talent , giving them nice environment towork with, that enables the company to retain talents, the above said practices are conceived and implemented and foundsuccessful by the leading companies in India. It is found that convergence of practices of different companies in different HRareas, if any company wants to apply those practices that will benefit for the company to become more competitive in theglobal market.

REFERENCES1. Dr. Sengupta Nilanjan & Chaudhari Ray Manodip (2002) "Managing Multiculturalism and Diversity In

Organisations",HRM Review.2. Gary Dessler, Human Resource management, Pearson Education(Singapore) pre ltd., Indian branch, 8th

Edition.3. http://www.citehr.com/107855-innovative-hr-practices.html.4. http://www.jigyasaconsulting.com/services/employee_motivation.htm.5. h ttp://Awww.expressindia.com/fe/daily/20000308/faf05055.html.6. http://www.diversityworking.com.7. http://www.indianmba.com.8. http://www.wikipedia.com.9. http://www.ritesite.com/sitemap/sitemap.htm.10. Singh K Manjeesh and Dutta Andrew (2003) "Understanding and Managing Workforce Diversity", HRM

Review.



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“MAKE IN INDIA” – ISSUES & CHALLENGES

Rakesh T NLecturer for Commerce & Management – Indo Asian Degree Co-Ed College, Bangalore.

WHAT’S MAKE IN INDIA ALL ABOUT?Make in India is a major new national program, designed to facilitate investment, foster innovation, enhance skilldevelopment, protect intellectual property and build best-in-class manufacturing infrastructure. It is a program designed totransform India into a global manufacturing hub.

Make in India is an international marketing campaigning slogan coined by the Prime Minister of India, Narendra Modi toattract businesses from around the world to invest and manufacture in India. The campaign has been concentrated to fulfillthe purpose of Job Creation, Enforcement to Secondary and Tertiary sector, Boosting national economy, converting India to aself-reliant country and to give the Indian economy global recognition.

SALIENT FEATURES OF MAKE IN INDIA1. India’s manufacturing sector contributed 13% to its economic output in 2013. That is its worst record in 10 years.

The manufacturing sector’s contribution to gross domestic product (GDP) is even lower than that of Pakistan andBangladesh.

2. Manufacturing is the key to employment and thus growth of the weaker sections of the society.

Table: Sector-wise major contributors to the country’s employmentSectors Employment

(in millions)1999-2000

Employment(in millions)2004-05

Employment(in millions)2009-10

Agriculture 237.67 258.93 244.85

Manufacturing 44.05 55.77 50.74

Mining 2.17 2.64 2.95

Electricity, Gas & WaterSupply

1.13 1.30 1.25

Construction 17.54 26.02 44.04

Services 94.20 112.81 116.34

Total 396.76 457.46 460.22

India’s manufacturing sector contributed 11% to employment as per 2009-2010 census. More the number ofmanufacturing hubs,and factories, more the employment opportunities.

3. India is one of major importers of the world, from arms to everyday electronic items, everything is imported. Thisadds up to the import bills. India has the distinction of being the biggest arms importer of the world. If we startmanufacturing these items in India, not only will they generate millions of jobs and a better infrastructure, but willalso boost our economy and lower the import bills.

OPPORTUNITIES ACROSS THE VALUE CHAIN1. Public Private Partnership

The policy and regulatory frameworks (concession agreements) are well established; substantial scale-up in the last5 years; opportunities for companies to venture as “Project Developers”.

2. Contractors/ConsultantsOpportunities from implementing agencies who will sub contract construction, O&M operators, requirements ofequipment, systems and software.

3. Equipment SuppliersConsistent demand of equipment due to mega infrastructure development across sectors provides a huge businesspotential for overseas players to enter the market.



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4. Rolling Stock SuppliersIncreasing demand for various types of passenger & freight rolling stock; attractive opportunity exists for privateplayers.

5. FinancingAttractive opportunities exist for Financial Institutions, Private Equity firms and private investors.

KEY POLICIES1. Ease of business

Make in India is a policy that combines incentives with easy handling of businesses and a faster redressalmachinery. Only Business, NO harassment is the underlining idea. India lies at 142nd place in the Ease ofDoing Business Index, this is below several African countries and it's a shame.

2. Skill and jobs for the youthSkill endowment and job creation in 25 key industries will be encompassed under this plan for able youthdevelopment and relevant training in certain key areas. These industries include roads and highways, construction,defence development and automobiles among others.

3. Getting away with archaic lawsRaising FDI caps in a controlled manner and parting with the red tape restrictions in decision making is anotherimportant feature of this plan. Archaic laws have become synonymous with our country's business-relatedenvironment and hence this Make in India campaign aims at eliminating them.The problems faced by Walmart in setting up in India paint a gloomy picture and this sets a precedent for others tofollow. Infrastructure is ailing and set up in red-tape and this plan aims at redressing that.

4. 100 smart citiesThis will also help in achieving the target of 100 smart cities and affordable housing schemes by making theinvestors a partner in the plan and investors adopting a city, which will aide in improving the infrastructure,amenities and standard of living for the citizens of the country.

5. Disinvestment of PSUCertain inefficient and loss-incurring PSUs will be disinvested i.e. a certain part of them will be sold off to privateplayers so as to generate revenue and do away with the resource-sucking headaches. Private firms have anunmatched administration and management at times.

6. Making India a manufacturerUrging global investors to make India an industrial hub is the eye-catching feature about which all of us readevery day. The Prime Minister is urging investors to set up industries in India instead of just FDI. This includesmaking India a destination for production of goods and exporting the same to the world over.

India has demand, demography and democracy and we need $$$, technology and exposure.

There's no denying that India, a country with demand, demographic dividends and democracy lagging in 142nd place in theEase of doing business Index is a heart-breaking scenario. What a great sea of opportunities with extraordinary demands butthere are more than one stumbling blocks that are holding us back. What a great land of oozing abundance and startlingscarcity.

To raise the standard of living, to make our country a major hub for industries and to embrace progress leaving behind ouranti-business leanings for good this is the right step ahead. There will be professional training in important sectors, moreemployment opportunities and the business houses will adopt a city to help in the creation of 100 smart cities.

Despite having increase in the share of manufacturing in global GDP, we are far behind the major players such as China,United States who showed immense growth in manufacturing in this decade.

let us take a quick look at the steps taken by the governments and their outcome so far:IncentivesIn August 2014, the Cabinet of India allowed 49% foreign direct investment (FDI) in the defence sector and 100%in railways infrastructure.

The defence sector previously allowed 26% FDI and FDI was not allowed in railways. This was in hope of bringing down themilitary imports of India. Earlier, one Indian company would have held the 51% stake, this was changed so that multiplecompanies could hold the 51%.



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Progress so farRecently India buying 36 Rafale jets from France is a big step as the manufacturing of such planes will be done in India innear future.

1. Defence projects worth Rs.80,000 crores are cleared with the building of six submarines, all in India.2. Cellular companies like samsung, java are likely to start manufacturing in India. (Samsung to make Tizen OS-based

smartphone in India)3. German Firms are also keen to invest in the manufacturing as a result of Prime Minister's persuasion during Europe

visit. (German firms keen to participate in 'Make in India' initiative)

Perceived Drawbacks Indians to purchase the goods produced within the territory of India but by MNCs. More profit to MNCs keeping their plant/s in India Acquisition and grabbing of land in India by MNCs. There have been the suspicion of return of black money to India in the form of FDI through make in India

Challenges Ahead: Let's have a look at five challenges that the 'Make in India' could face.1. Political Ineffectiveness

Considering the past, Indian Manufacturing is a classic example of an industry that has had a great potential. Thesystematic impediment by political ineffectiveness and sheer ignorance has marred it’s success. India has been verystringent when it comes to procedural and regulatory clearances. Creating healthy business environment will bepossible only when the administrative machinery is efficient. India should also be ready to tackle elements thatadversely affect competitiveness of manufacturing by tackling/eliminating the unfavourable factors.

2. Siphoning of billions of dollarsThere are enough evidences of siphoning billions of dollars from developing countries to other developed countriesthrough MNCs.

BBC Radio 4's File on 4 has learned that almost £100bn a year is taken out of Africa through accounting practices -several times what the continent receives in aid. The Ghanian development economist Charles Abugre said thiscapital flight amounted to "the looting of the continent (Africa)".

Developing countries receive about $136 billion in aid from donor countries each year. At the same time, however,they lose about $1 trillion each year through offshore capital flight, mostly in the form of tax avoidance bymultinational corporations. That’s nearly 10 times the size of the aid budget.

India should also be ready to give tax concessions to companies who come and set up unit in the country whileensuring that the tax evasion by the MNC corporate houses is limited/avoided at the same time.

3. Setting higher pricesCorporate houses can maintain setting prices at high levels while still competing to cut costs, advertise, and markettheir products. The actual and potential economic surplus generated exceeds the existing outlets for investment andcapitalist consumption. Private accumulation therefore requires the support of government spending, geared primarilytowards imperialistic and militaristic government tendencies. This is the easiest and surest way to utilize surplusproductive capacity. India's small and medium-sized industries can play a big role in making the country take the nextbig leap in manufacturing. India should be more focused towards novelty and innovation for these sectors.

4. Keeping Global ExpectationsIndia's make in India campaign will be constantly compared with China's 'Made in China' campaign. The dragonlaunched the campaign at the same day as India seeking to retain its manufacturing prowess. India should constantlykeep up its strength so as to outpace China's supremacy in the manufacturing sector.

5. Consistency in Performance Over TimeIndia must also encourage high-tech imports, research and development (R&D) to upgrade 'Make in India' give edge-to-edge competition to the Chinese counterpart's campaign. To do so, India has to be better prepared and motivated todo world class R&D. The government must ensure that it provides platform for such research and development.



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ISSUES RELATING TO HUMAN RESOURCES IN SERVICES SECTOR1. Availability of Skilled Labour.

India has only about 2.3% of its working population classed as Skilled, which is way under par compared to othercompetitive countries like USA which has 52% skilled manpower, Japan which has 80% skilled manpower, SouthKorea which has 96% skilled manpower.

2. Skilled Manpower lack quality to work.They have to be further groomed and qualified to do actual work. Eg : A plumber just knows how to tighten a noseof a tap, but doesn’t know the exact amount of pressure that needs to be exerted to get the perfect fixture . It takeshim lot of time and guidance and repeated failures to master the art.

3. Traditional way of functioningEmotional Labour is rampant in our society and needs to be addressed.

4. Growing discontent between Skilled and Professional class of workers.India has seen off late cases of discontent, riots, and property, life damages due to discontent among labour class andmanagement employees. Areas like soft skills and emotion control need to be exercised.

5. Generating jobs12 million people are entering jobs every year and more than 50% of them are below the age of 25 employmentseekers are going to increase. India faces a huge challenge.

CHALLENGES RELATING TO HUMAN RESOURCES IN SERVICES SECTOR1. To create employment in diversified sectors. So far India has been successful in getting few industries back on track.

If India needs to shine then it has to shine from all quarters of Business. Sectors like Manufacturing, Automobile,Pharma, Services, Legal needs to pull up their work force to the standards of highly skilled levels.

2. Basic level of education is a greater challenge. Countries in Africa are imparting quality and efficient basiceducation clubbing them with technologies. This gives students a hands-on experience in technology from a veryyoung age. India has a poor track record of mixing education with technology. This type of education system needsto be spread all throughout the nation to get the children ready for the next generation of Technocrats.

3. Concentration of Industries in certain states due to political pressure or to amass wealth by Industrialists. Because ofwhich working class people leave their home towns in search of Jobs in different states leading to unrest among theethnic people.

4. Laws relating to Labour needs to be more approachable so that people are not harassed by employers.

GLOBAL REACTION TO THE CAMPAIGNThe international community has reacted very well to this invitation of Make in India. The West is looking towards India asan option and a genuine competition to China. Even though China is way ahead of us, there is a certain discontent in the waythe world perceives doing business in China. This is exactly what Make in India wishes to capitalize on; to be as welcomingand as business friendly as possible, to the investors not just from the international market but also from the domestic market.

INTERNAL CRITICISMA lot of people especially the Leftist parties have criticized this initiative as a clear cut favouring certain business sectorswhich have allegedly put in large sums in the campaign to get the current government elected. Also, they say that the carrotof 'creation of jobs' is but a mask to hide the true intention of the government to sell off India's precious resources to thesebusiness honchos.Environmentalists also blame the government for being loose on the environmental permissions to promote themanufacturing sector through this campaign.

CONCLUSIONA look at various positive responses to make in India scheme recently

In January 2015, the Spice Group announced that it would start a mobile phone manufacturing unit in Uttar Pradeshwith an investment of₹500 crore.

In January 2015, HyunChil Hong, the President & CEO of Samsung South West Asia, met with Kalraj Mishra,Union Minister for Micro, Small and Medium Enterprises (MSME), to discuss a joint initiative under which 10"MSME-Samsung Technical Schools" will be established in India.

In February 2015, Samsung announced that it will manufacture the Samsung Z1 in its plant in Noida. In February 2015, Hitachi announced that it was committed to the initiative. It said that it would increase its

employees in India from 10,000 to 13,000 and it would try to increase its revenues from India from ¥100 billion in2013 to ¥210 billion. It said that an auto-component plant will be set up in Chennai in 2016.



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In February 2015, Huawei opened a new research and development (R&D) campus in Bengaluru. It had investedUS$170 million to establish the research and development center.

In April 2015, Airbus announced that that it will manufacture its products in India and invest $ 2 Billion US dollars. In May, 2015 Tata JLR (Jaguar Land-Rover) announced that it will move its production of the Land Rover Defender

to it's Pune facility in India in 2016.With so much investments and upcoming projects you can well imagine the benefits!!

Stay in India“Come, Make in India’’ offer presupposes quicker resolution to issues related to ‘Three Ls’ (laws, land and labour). ThePrime Minister has indeed rolled the red-carpet out from the ramparts of Red Fort. Caught in the insider-outsider mesh, thegovernment will have to move quickly to remove these ‘L’ hurdles.

Besides addressing the `Three Ls’, we need to conceive a `Stay in India’ package to retain home-grown talent. Microsoft,Google, Apple and other major global players are what they are today because of substantial contributions by Indians in thosefirms. We invite outsiders to ‘Make in India’ but insiders go out to ‘make world class companies’. India would do well toensure that at least a reasonable scale of this talent stays in India as well.