Ijtc Vol11 Issue2

INTERNATIONAL JOURNAL OF TRADE & COMMERCE-IIARTC
CHIEF PATRONS:
• Prof. SANGEETA SHUKLA., Vice-Chancellor, C.C.S. University, Meerut, U.P., India
• Prof. RAJENDRA PRASAD YADAV, Ex. Vice-Chancellor, Magadh University, Bodh Gaya, Bihar, India
• Sri VIKRAM CHANDRA GOEL IPS, (Ex-Director General of Police), Ex. V.C., C.C.S. University, Meerut, U.P., India
• Prof. S.K. KAK, Former Vice-Chancellor, C.C.S. University, Meerut, U.P. India
• Prof. R.D. SHARMA, Ex. Vice-Chancellor, University of Jammu, Jammu, India
• Prof. H.K. SINGH, Former Vice-Chancellor, B.H.U., Varanasi, U.P., India
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• Dr. S.K.S. YADAV, Principal, National [P.G.] College, Bhongaon, District Mainpuri, U.P., India (Former Associate
Professor, Faculty of Commerce & Business Administration, Meerut College, Meerut, U.P., India)
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• Prof. NAWAB ALI, Head of Commerce Department, • Prof. P.K. SAXENA, Dayalbag Deemed University,
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Association, Agra University, Agra, U.P., India
INTERNATIONAL JOURNAL OF TRADE &
COMMERCE-IIARTC
ISSN-2277-5811(Print) & ISSN- 2278-9065(Online)
ISRA JIF: 7.249, COSMOS JIF: 5.135, ISI JIF: 3.721
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Professor (Dr.) S.K.S. Yadav

Editor-in-Chief,
Principal, National [P. G.] College, Bhongaon, District Mainpuri, U.P., India
[Dr. Bhim Rao Ambedkar University, Agra, UP, India]
Former Associate Professor
Faculty of Commerce & Business Administration,
Meerut College, Meerut, U.P., India, (C.C.S. University, Meerut, India)
INDIAN INSTITUTE OF ADVANCED RESEARCH IN TRADE AND

COMMERCE (IIARTC), MEERUT, U.P., INDIA
SOCIETY FOR GLOBAL STUDIES & RESEARCH(SGSR)

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• Prof. N.U.K. SHERWANI, Department of Commerce & • Dr. SUDHANSHU SHARMA, Department of
Business Studies, Jamia Millia Islamia University, New Commerce, Hindu College, Amroha, U.P., India.
Delhi, India • Dr. YUDHVIR SINGH Ex. Principal, Meerut College,
• Dr. RAKESH KUMAR YADAV, Prof. & Head, Meerut, U.P., India
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• Prof. M. MUSTAFA KHAN (Retd.), Department of • Prof. R.K. AGARWAL, H.N.B. Garhwal University,
Commerce, Jamia Millia Islamia University, Delhi, India Tehri Garhwal, U.K., India
• Prof. KAKASAHEB D. SHINDE, Secretary Shree • Prof. DEEPAK BABU MISHRA, Siddarth University,
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INTERNATIONAL EDITORIAL BOARD

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• Dr. NASSER S. AL-KAHTANI, Salman Bin Abdulaziz University, Thailand
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Institute, Gurgaon and Fellow University of Liverpool, • Prof. KAMAL NAYAN AGARWAL, School of
Liverpool, U.K. Business, Howard University, Washington- DC, U.S.A.
• Md. ZAHIR UDDIN ARIF, Jagannath University, • Dr. KUSUM YADAV, Department of Information
Dhaka, Bangladesh System, Prince Sattam Bin Abdulaziz University, Alkharj,
• Dr. S. SARANGAPANI, Ibra College of Technology, Kingdom of Saudi Arabia
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DEPUTY EDITOR-IN-CHIEFS
• Dr. NGBOAWAJI DANIEL NTE, Novena University, Ogume, Nigeria
• Dr. DHARMENDRA YADAV, Department of Mathematics,Vardhaman P.G. College, Bijnore, U.P., India
NATIONAL EDITORIAL BOARD: EDITORS

• Dr. S.K. RASTOGI, Faculty of Commerce, Hindu • Dr. SANJAY KUMAR, Department of Defense Studies,
College, Moradabad, Affiliated to M.J.P. Rohilkhand Meerut College, Meerut, U.P., India & Professorial
University, Bareilly, U.P., India Fellow, India Studies Centre, Bangkok, Thailand.
• Prof. K.K. VERMA, Department of Commerce, HNBG • Dr. ALKA CHOUDHARY, Principal, Kanohar Lal P.G.
University, Tehri Garhwal, Uttarakhand, India College, Meerut, U.P., India
• Dr. K. SIVACHITHAPPA, University of Mysore Post • Dr. RAJIV KUMAR, Deputy Registrar, Y.M.C.A.
Graduate Centre, Tubinakere Campus, Mandya, University, Faridabad, Haryana, India.
Karnataka, India • Dr. R.S. MEENA, Department of Commerce, B.H.U.,
• Dr. SUBHASH CHAND, Department of Chemistry, Varanasi, U.P., India
Meerut College, Meerut, U.P., India • Dr. RAJAN YADAV, Head of Delhi School of
• Dr. ASHOK KUMAR, Department of Mathematics, Management, Delhi Technological University, Delhi,
Meerut College, Meerut, U.P., India India
• Dr. SOMESH SHUKLA, Professor & Head, Dept. of • Dr. A. KOTISHWAR, Department of MBA, CMR
Commerce, Lucknow University, Lucknow, U.P., India College of Engineering & Technology, Hyderabad,
• Dr. MOHD. RIZWAN, Department of Defense Studies, Telangana, India
Meerut College, Meerut, U.P., India • Prof. H.K. SINGH, B.H.U., Varanasi, U.P., India
• Prof. RAIS AHMAD, A.M.U., Aligarh, U.P., India • Dr. PANKAJ YADAV, Department of Commerce,
Bareilly College, Bareilly, U.P., India
NATIONAL EDITORIAL BOARD: DEPUTY EDITORS
• Dr. M.P. VERMA, Department of Law, Meerut College, • Dr. HARI OM GUPTA, Departmentof Commerce, J.V.
Meerut, U.P., India Jain College, Saharanpur, U.P., India
• Dr. JYOTI KHARE, Department of Commerce, Govt. • Dr. RAJEEV KUMAR AGARWAL, Department of
Degree College, Raipur, Dehradun, U.K., India. Commerce, SRK (P.G.) College, Firozabad, U.P., India
• Dr. M.K. SIRAS, Department of Commerce, M.M.H. • Dr. MANOJ KUMAR AGARWAL, Principal, N.A.S.
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India College, Meerut, U.P., India
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• MISS ANUSHKA YADAV, Esmode, Paris, France
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FROM EDITOR'S DESK
Rahul Gandhi, the most well-known opposition politician in India, is travelling the length of the
country, from its tropical south to its icy north, to campaign against the country's growing
intolerant culture. The so-called "journey to bring India together" is the Bharat Jodo Yatra. It is the
nation's biggest mass communication campaign to date.
A march that would span 24 days, 385 kilometres, and end with a pinch of salt was started by a
60-year-old man 92 years ago. The beginning of civil disobedience would be symbolised by this,
and the impact of it would be so powerful that it would upend the colonial government. Of
course, the person was Mahatma Gandhi, and the occasion was the Dandi March.
On 6 September 2022, Rahul Gandhi launched a March he called the Bharat Jodo Yatra, which is
to last 150 days and cover 3,500 km approx. Rahul claimed that his goal is to mend the nation's
broken heart by using language of harmony and tolerance instead of the hate speech that has now
become the trend. He has been accompanied by thousands of individuals who share the Yatra's
message. The entire path is being walked by members of the Indian National Congress and
activists from numerous civil society organisations, including participation by local activists at
various points. A few fearless journalists, filmmakers, and celebrities have also joined despite
knowing that doing so could harm their careers.
It seems illogical that there would be no political agenda at a time when the Congress party is at
its lowest point ever. It seems to be cut off from the realities of vote banks and electoral tactics.
Yet, it makes one pause. Take into account the fact that the BJP has stolen the religious platform,
which in India has such strong appeal that it overrides concerns about hunger, unemployment,
and economic deterioration. What equally powerful idea can the Congress unleash that could
overshadow religion?
Rahul seemed to think such notion might promote harmony. He is not promoting it as an election
tactic because it seems weak in comparison to the strong rhetoric of hatred. He seems to be
saying, “Let me simply walk and connect; the rest will follow.”
We will release the Second issue of Volume Eleven of the International Journal of Trade &
Commerce-IIARTC. The Journal establishes an effective communication channel between
decision and policymakers in Industry, trade, business, government agencies, academic and
research institutions to recognize the implementation of important role effective systems in
organizations. IJTC-IIARTC aims to provide creative, innovative concepts, practical research
methodologies, and emerging technologies for effective business management. We want to
remind you that our Journal's success depends directly on the number of quality articles
submitted for review. IJTC-IIARTC provides authors with high-quality, helpful reviews shaped to
help authors improve their manuscripts.
Professor (Dr.) S.K.S. Yadav, Editor-in-Chief,

International Journal of Trade & Commerce-IIARTC,
Double-Blind Peer-Reviewed/ Refereed/ Internationally Indexed Journal
Dated: 31st December, 2022
(Double Blind Peer Reviewed/Refereed & Internationally Indexed Research Journal of Social Science & Humanities)
ISSN- 2277-5811(Print) & ISSN- 2278-9065(Online)
Volume-XI | Number –II | Jul-Dec, 2022
CONTENTS
S. No. Title Authors Page No.
1. Deepening Ties of India-UAE Relations: Role Zakir Hussain 258-277
of CEPA
2. Impacts of Competitive Price Reduction Policy Mohammed Saiful 278-307
on Consumers’ Trust in the Supermarket Islam, Md. Zahir Uddin
Industry Arif
3. Small and Medium Enterprises (SMEs) Nawazeesh 308-351
Financing Through One Semi-Formal Sector Muhammad Ali ,
Bank and Five Formal Sector Banks to Create Wanakiti Wanasilp
Entrepreneurs: An Empirical Study
4. Roles of Immigrants on Communities’ Esther Baroi 352-375
Livelihood in Sunamganj Area: An Empirical
Analysis
5. An Analytical Study of Foreign Direct Mohd. Mohsin Qureshi, 376-387
Investment (FDI) & Its Impact on Indian Gross S.K.S. Yadav
Domestic Product (GDP)
6. An Analysis of India’s Security Perspective: Mohd. Rizwan, Z. 388-395
Implications for Stability in South Asia Bhatnagar
7. China’s Military Fault Lines Sanjay Kumar 396-411
8. Impact of Profitability on Capital Structure of Md. Irshad Ali Tanwar, 412-423
NSE Listed Pharmaceutical Indexed Akhil Kumar Mittal
Companies
9. Challenges Faced by the Women S.K.S. Yadav, Arushi 424-440
Entrepreneurs in the E-Commerce Sector in Jain
India
10. Northern Coalfields Limited and Its HRD Pankaj Kumar Bharti, 441-459
Practices: An Assessment Vinay Arya
11. Emergence of Insurance Realm in India Vijay Singh Negi 460-466
12. India’s Skincare Brands and their Preference to Swati Panwar, Megha 467-476
Digital Marketing over Traditional Marketing Sharma
13. Freedom of Trade in India: A Constitutional Shivani Tripathi 477-484
Perspective
14. The Role of Corporate Social Responsibility as S.K.S. Yadav, Vaishali 485-492
a Marketing Strategy Siddhu
15. Prospects of Growth in E-Commerce in India Vijay Singh Negi 493-499
and Security Framework
16. Female Foeticide and Female Infanticide in Sudeshna, Gopi Chand 500-514
India: A Serious Challenge for the Society
17. Bank Micro Finance to Support Creative Muhammad Mahboob 515-531
Entrepreneurship in an Emerging Economy: A Ali
Case Study on Bangladesh NGO Foundation
(BNF)
18. “AGAMI” a Complete Range of Student Raida Chowdhury Zilik 532-539
Banking Services Segment of BRAC Bank
Limited: An Analysis
19. Universal Banking in India: A Comparative Richa Aggarwal, 540-547
Study between ICICI Bank and SBI Shubhra Garg
20. Hospitality and Tourism Distribution System: Rehana Parvin, Kaniz 548-558
A Case Study of Accor Hotel Group Marium Akter
21. Book Review: Environment and Development Razia Sultana 559-562
Economics (Essays in Honour of Sir Partha
Dasgupta)
22. Book Review: Entrepreneurship Development Faharia Parvez 563-568
and International Trade with BIMSTEC
[Double-Blind Peer Reviewed/Refereed Internationally Indexed Research Journal of Humanities & Social Science]
ISSN- 2277-5811(Print) & ISSN- 2278-9065(Online)
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International Journal of Trade and Commerce-IIARTC
July-December 2022, Volume 11, No. 2, pp. 258-277
ISSN-2277-5811 (Print), 2278-9065 (Online)
© SGSR. (www.sgsrjournals.co.in) All rights reserved.
COSMOS (Germany) JIF: 5.135; ISRA JIF: 7.249; ISI JIF: 3.721
Deepening Ties of India-UAE Relations: Role of CEPA

Zakir Hussain*
Indian Council of World Affairs (ICWA), New Delhi, India
E-mail: shahabzakir@gmail.com
Abstract
India and the UAE (United Arab Emirates) have set the ground for a
‘complementary’ model of growth. Their respective resourcefulness and PAPER/ARTICLE INFO
visionary leadership scripts a roadmap of 50 years’ of ‘shared future’, and RECEIVED ON: 19/11/2022
CEPA is the stepping stone to metalize that vision. Side by side, this has ACCEPTED ON: 15/12/2022
also increased India’s footprints in the region, thus paving the way for Reference to this paper
wider market access, building exclusive trade corridors and incentivizing should be made as follows:
companies to relocate in either country. CEPA and I2U2 set good
precedents, especially when the world is plunged into divisive politics Hussain, Zakir (2022),
(Russian-Ukraine war, growing US-Chinese tussle) and protectionism. “Deepening Ties of India-
However, there are some caveats. For instance, both countries should UAE Relations: Role of
avoid carrying the geopolitical burden of other countries. CEPA should CEPA”, International Journal
remain an apolitical body. It should focus on harnessing the joint of Trade and Commerce-
IIARTC, Vol. 11, No. 2, pp:
potential of the two countries and remain benign to include like-minded
258-277.
countries of West Asia and South Asia and expand its reach.
The present paper is divided into following sections:
Section I: Synopsis of Bilateral Economic and Trade Relation
Section II: Key Features of CEPA
Section III: Hopes and Performances of Comprehensive Economic
Partnership Agreement (CEPA)
Section IV: CEPA: A Gateway to Strengthening Regional Partnership-
Some Caveats
Conclusion & Way Forward
Key Words: CEPA; Digital Trade; Minilateral; Middle East Quad;
I2U2.
*Corresponding Author
DOI: 10.46333/ijtc/11/2/1
Zakir Hussain
SECTION I: SYNOPSIS OF BILATERAL ECONOMIC AND TRADE RELATION
Historically, three factors, trade and commerce, people-to-people relations and exchange of ideas
have played key roles in sustaining and deepening India and the United Arab Emirates (UAE)
partnership. The two countries established their formal diplomatic relations in 1970. 1 During the
first decade, 1970s, the volume of bilateral trade remained, approximately USD 180 million (Mn)
per annum. However, in less than five decades it grew to more than USD 72 Bn (billion) (2021-
2022),2 becoming the third largest trade partner of India after the US and China and the second
largest export destination after the US.3
Besides growing volume, side by side the bilateral India-UAE bilateral trade carries two
distinctive features, first, unlike India‟s other energy-exporting partners, their trade gradually
moved towards „balanced trade‟; second, over the period, it became more diversified, reducing
the share of petroleum. This shows the changing hydrocarbon-centric nature of the UAE economy
towards a more diversified one.4
On investment front too, the share of the UAE in India total investment gradually increased,
reaching to around USD 18 Bn, including USD 11.7 Bn in the form of FDI (foreign direct
investment) and rest in the form of portfolio investment, making the UAE the largest investor
among the Arab countries and 8th largest in India. Around 30 companies, including DP World,
Sharaf Group, Lulu Group, Emaar Properties, are doing businesses in India. 5 Their investments
are focused mainly in five sectors, namely Services Sector (15.78%), Transport (8.80%), Power
(8.34%) and Construction Activities (infrastructure, 7.15%) and construction development
(Township, Built-up Infrastructure and Construction Development projects) (7.8%).6 The UAE has
also committed to invest USD 75 Bn in India‟s infrastructure, including building Artificial
Intelligence Bridge. The partnership will generate an estimated benefit of USD 20 Bn in both the
countries.7
Without mentioning the role of Indian expatriates and civil airlines, the relations between India
and the UAE, including deepening trade cooperation, cannot be complete The presence of around
3.5 million Indians who consider the UAE as their second home and remit approximately USD
17.56 Bn every year (2018), have not only uplifted millions of people out of poverty in India, but
1 For detailed discussion see Zakir Hussain, “India and the United Arab Emirates: Growing Engagements”,
Issue Brief, Indian Council of World Affairs, 24 June 2012,
https://www.icwa.in/showfile.php?lang=1&level=3&ls_id=5157&lid=878 , accessed on 12 August 2022.
2 “India UAE Relations”, InvestIndia, https://www.investindia.gov.in/country/united-arab-emirates.
3 “India UAE Relations”, InvestIndia, https://www.investindia.gov.in/country/united-arab-emirates.
4 Zakir Hussain, “India and the United Arab Emirates: Growing Engagements‟, Issue Brief, ICWA,
https://www.icwa.in/showfile.php?lang=1&level=3&ls_id=5157&lid=878, accessed on 14 October 2022.

5 InvestIndia: UAE Desk, https://www.investindia.gov.in/country/united-arab-emirates,
6 InvestIndia: UAE Desk, https://www.investindia.gov.in/country/united-arab-emirates, .
7 “UAE commits $75 billion towards infrastructure development in India: Commerce Ministry”, Business
Today, 30 July 2018, https://www.businesstoday.in/latest/economy-politics/story/uae-commits-75-billion-

dollar-towards-infrastructure-development-in-india-commerce-ministry-108026-2018-07-30 , accessed on 15
October 2022.
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they also work as cultural ambassadors of India in the UAE. Their diligence and non-interfering
habits have often been appreciated and acknowledged, including by the royals, in converting the
desert-Emirate into one of the top trade and investment destinations in the Middle East. Side by
side, the liberal, cosmopolitan culture of the Emirates provided equal opportunity to everyone to
grow and prosper. Hundreds of Indians who went as labourers became big business tycoons and
now they are investing back in India.8
The role of cheap air connectivity between India and UAE has also contributed significantly in
building and deepening a trustworthy relationship between the business communities of India
and the UAE. Per week, approximately, 1050 „to and fro‟ flights take place between the two
countries. Further, the low-cost airlines also helped small and medium class businessmen and
low-paid Indian expatriates to undertake frequent „to and fro‟ visits to the UAE, besides inducing
the common Indians to choose Dubai as their favourite shopping venue. Dubai‟s air connectivity
with the wider world also converted it into an air „transit point‟ to faraway destinations such as
the US, Europe. This promoted tourism. After Chinese, Indians are the second largest tourist in
the UAE.
The regular visits of Indians to Dubai convinced them to own their own apartments there. Today,
more than half of the investments in Dubai‟s real estate are made by the Indians. The UAE also
benefited from this synergy. Dubai‟s Gold Souks emerged as a global gem and jewellery centre,
consuming 80 per cent of India‟s plain and 20 per cent of studded gem and jewellery. Most of
them are purchased by the transit travellers.
Looking at the UAE‟s territorial size, demography and its emergence as the third largest trading
partner of the fight largest economy (India) and second largest export destination after the US,
sets an unparalleled economic partnership in the world.
SECTION II: KEY FEATURES OF CEPA
The journey to CEPA is reached by making haste slowly. After assuming office in May 2014,
Prime Minister Narendra Modi visited the UAE in August 2015. This is marked as an
extraordinary visit that after 34 years any Indian PM visited that country. Last time PM Mrs
Indira Gandhi visited the UAE was in 1981. Thereafter the UAE became the choicest destinations
of PM Modi in West Asia. He has visited the UAE four times so far. During the 2015 visit, the two
countries signed the Strategic Partnership Agreement (SPA). The SPA enhanced the mutual trust
and added strategic angle to their growing partnership, thus paving the way to sign the fastest
FTA in 88 days on 18 February 2022. The 880-page CEPA document is the first FTA (Free Trade
Agreement) signed by the Modi government.
CEPA was implemented on May1. CEPA is a comprehensive trade document, divided into 18
exclusive chapters and 11 Annexes, dealing with trade in goods and services, investment, rules of
origin, technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures, dispute
settlement mechanism, movement of natural persons, customs procedures, government
procurement, protection of IPR (intellectual property right). CEPA focuses on some new mode of
8Zakir Hussain, “India‟s Growing Investment Relations with UAE under the New Government”, View
Point, 17 December 2014, Indian Council of World Affairs, accessed on 15 October 2022.
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conducting trade such as digital trade, exclusive annex on pharmaceuticals, telecommunication,
cooperation on climate issues, use of clean and green energy, role of SMEs in export and economic
development, setting up exclusive committees for evaluating and assisting the core export
sectors.9
Salient Features of CEAP
I. Trade Target: CEPA sets a target of USD 100 Bn merchandise trade and USD 15 Bn of
trade in services by opening around 111 sub-sectors in the 11 sector in the next five years.
II. Trade in Services: Chapter 8 specifically deals with legal provisions to regulate open and
non-discriminatory cross border trade in services. CEPA includes 11 major service sectors
include business services, communication services, construction and related engineering
services, distribution services, educational services, environmental services, financial
services, health related and social services, tourism and travel related services,
recreational cultural and sporting services and transport services.10
III. Duty Concession: The pact provides 5 per cent duty concession to the merchandise
exports to each other. This is set to benefit almost 90 per cent trade, both exports and
import, between the two countries;11
IV. Rules of Origin: Rules of Origin are aimed at preventing the entry of third countries‟
goods in their respective markets. For this, CEPA fixes some „criteria for traded goods
which are eligible for tariff reduction or abolition. The rules are based on „composite
criteria for change in tariff classification (CTC) of the good plus a minimum value added‟.
Provision of „certification‟ and 35-40 per cent value addition to the foreign products with
except to gem and jewellery copper and steel are placed.12
V. Safeguard Mechanism: The agreement provides adequate inbuilt safeguard mechanisms
to protect the domestic industries from sudden „surge‟ in import. Any side can take
special measures either suspend or raise tariff on particular items affecting the domestic
industries.
VI. Sanitary and Phytosanitatry Standards: Sanitary and phytosanitary is one of the
notorious invisible tools countries use to squeeze their trade partners. To avoid any such
9 India-UAE CEAP document is available on Ministry of Trade and Commerce website.

https://commerce.gov.in/international-trade/trade-agreements/comprehensive-economic-partnership-
agreement-between-the-government-of-the-republic-of-india-and-the-government-of-the-united-arab-
emirates-uae/?hilite=%27CEPA%27
10 “India and UAE sign the historic CEPA aimed at boosting goods trade to US$ 100 billion over next five
years”, PIB, 18 Feb 2022, https://pib.gov.in/PressReleasePage.aspx?PRID=1810279

11 Sherya Nandi, “India UAE sings CEPA, deal to cover almost 90% bilateral trade”, 19 February 2022,
https://www.business-standard.com/article/economy-policy/india-and-uae-sign-cepa-deal-to-cover-
almost-90-bilateral-trade-122021900046_1.html, accessed on 12 March 2022.
12 “The India-UAE: Comprehensive Economic Partnership Agreement”, Ministry of Economy, UAE,
https://www.moec.gov.ae/documents/20121/1347101/EN_Ministry+of+Economy+Handbook_FINAL.pdf
, accessed on 21 September 2022.
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„unjustified‟ trade barriers, CEPA establishes a detailed mechanism of sanitary and
phytosanitary measures to protect human, animals and plants, enhance transparency,
developing greater understandings and using science-based international standards,
recommendations and establishes clear rules on Audits, Certificate and Impact Checks.13
VII. Dispute Settlement: Chapter 15 establishes a consultation mechanism to avoid disputes
related to interpretations and implementations of the rules of CEPA. It sets up a Dispute
Panel which would submit its report within 120 days of the date its formation. In case of
non-compliance, all the liabilities and benefits would stand suspended. However, the
panel establishes rules for a mutually agreed solution to be reach by the parties.(Ibid)
VIII. Government Procurement: Hitherto the Indian government has been hesitant to open the
government procurement to foreign entities; however, Chapter 10 in CEPA recognises the
importance of the government procurement in boosting bilateral trade and set the
objectives of „effective, reciprocal and gradual opening of their government procurement
markets‟. This is also viewed as a „tool of furthering the expansion of domestic
production and trade in a transparent, corruption-free and impartial manner‟.
IX. Digital Trade: Chapter 9 is exclusively devoted to „digital trade‟, aims to develop a
framework suitable for the promotion of an enabling ecosystem of facilitating digital
commerce, developing consumer‟s confidence in digital commerce, including e-
commerce amid growing global digitization. The chapter also deals with cooperation in
data protection and cybersecurity in the digital age.
X. Protection of Intellectual Property Rights (IPR): Chapter 11 provides mechanisms to
protect the IPR. It encourages innovation, technology transfer and dissemination; and
ensure that these activities are in line with current laws and regulations of both the
countries and Doha-Declaration on Trade and IPR.
XI. Special Attention to SMEs: Both countries have realised the dynamic role of SMEs in
exporters and development. CEPA arranges a platform for the promotion of SMEs, giving
SMEs access to new customers, collaboration and network, setting up dedicated SMEs
centres, incubators and creating an international network for sharing best practices along
with assisting the SME exporters through training, trade education, trade finance and
identifying commercial partners and exploring capacity building opportunities.
XII. Promoting Mutual Investment: Chapter 12 deals with promoting reciprocal investment
by establishing the „UAE-Indian Technical Council on Investment with the aim of
promoting, facilitating and monitoring investment activities, as well as identifying new
opportunities for investment‟. However, the chapter does not include any other treaty
signed dealing with either investment protection or dispute settlement but it asserts the
right to dispute under the BIT (Bilateral Investment Treaty).
13 “The India-UAE: Comprehensive Economic Partnership Agreement”, Ministry of Economy, UAE,

https://www.moec.gov.ae/documents/20121/1347101/EN_Ministry+of+Economy+Handbook_FINAL.pdf
, accessed on 21 September 2022.
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XIII. Special Reference to Pharmaceuticals, Telecommunication: Looking at the catastrophic
impact of Covid-19 pandemic and the need to maintain a quick supply-line of essential
medicines, the two countries agreed to incorporate a separate Annex (Annex-5A) on
pharmaceuticals. Both sides agreed upon accessing the Indian pharmaceutical products
through automatic registration and marketing authorisation in 90 days 14 for the products
approved by developed country regulators, including the US (USFDA), the UK
(UKMHRA), the EU (EMA) and Japan (PMDA).15
XIV. Setting up Dedicated Committees: CEPA sets three dedicated committees/councils to
promote merchandise trade, setting a technical council on investment and trade
facilitation and committee to evaluate the performances of CEAP annually. The
committee would submit its report to a Joint Committee, headed by ministries which
would meet biennially.
XV. Cooperation in Sectors not Covered under CEPA: CEPA covers those areas as well which
are not covered in the agreement. These are manufacturing industries; agriculture;
forestry and fisheries; human resource development; tourism; ICT; promotion of e-
commerce; trade in environmental goods and services; media and energy. Cooperation in
air services, competition policy, environment and proposal to establish a Committee on
Economic Cooperation (CEC) for effective implementation and operation of the agenda,
are also arranged in CEPA;
XVI. The pact also focuses on human resource development and setting up a campus of IIT
(Indian Institute of Technology) in the UAE and establishing a skill centre in maritime in
Banaras in UP.
SECTION III: HOPES AND PERFORMANCES OF COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT
(CEPA)
Potential and Benefits
CEPA, based on „simpler customs procedures, clear and transparent rules of trading, enhanced
market access, creating equal opportunities to participate in government procurement bids, and
sharing information and guidance for SMES‟16, provides a roadmap of 50 years‟ of partnership
between India and the UAE. Besides maximizing trade and investment potential, CEPA offers a
framework to cover wider areas of both the contemporary as well as the futuristic, including
trade, investment, technology, human resource development, healthcare, renewable energy
(green hydrogen, solar alliance), cooperation in environment, knowledge-based economy and
14 “Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates
(UAE) Unveiled”, PIB, 27 March 2022, https://pib.gov.in/PressReleasePage.aspx?PRID=1810279, accessed
on 17 March 2022.
15 Nasreen Abdullah, “UAE jobs: At least 10,000 highly skilled Indian workers to be employed by next year”,
Zawaya, 2 August 2022, https://www.zawya.com/en/economy/gcc/uae-jobs-at-least-10-000-highly-skilled-

indian-workers-to-be-employed-by-next-year-fzqncdd0, accessed on 20 August 2022.
16 “Comprehensive Economic Partnership Agreement between India and the UAE”,
https://www.moec.gov.ae/cepa_india, accessed on 15 October 2022.
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building a generation of common visions and goals through deep cultural and people-to-people
ties.
While speaking at Economic Times Global Business Summit (GBS) on 10 March 2022 in Mumbai,
UAE‟s Minister of State for Foreign Trade, Thani Bin Ahmed Al Zeyoudi said CEPA is a “win-win
agreement for both the countries as this will create a lot of jobs, Unicorns and enhance exports”.17
Built on three pillars of trust, transparency and talent, CEPA is likely to mutually both the
nations.18
Benefits
CEPA builds an institutional mechanism to achieve the targets of USD 100 merchandise and USD
15 Bn trade is services in the next five years. It covers almost all tariff lines of both the countries.
India deals with 11,908 tariff lines, while the UAE deals in 7,581 tariff lines respectively. 19 The
UAE eliminates duty on India‟s 97 per cent exports in volume and 99 per cent in value, which
covers mostly the products of labour intensive industries such as gem and jewellery, textile,
leatherwear, sports goods, plastics, furniture, agriculture and wood products, engineering
products, healthcare and medical devices, and automobiles. (PIB, 27 March 2022)20 Sector-wise,
food industry, tech start-ups, Artificial Intelligence (AI), education, pharmaceuticals and medical
devices, oil and gas, renewable energy and gem and jewellery are among the top beneficiaries.
Increase in the export of labour intensive products under CEPA is estimated to generate around 1
million jobs in India.21 The UAE has also made a commitment to grant 140,000 visas to highly
skilled Indian workers by 2030.22 Already, India has launched TEJAS (Training for Emirati Jobs
and Skills) scheme to hone the skill competence of 10,000 strong Indian in the first phase.23
Besides, it shall enable a three-year visa for intra-corporate transferees and a 90-day visa for
business visitors and contractual suppliers from India (Deloitte, Sept. 2022). The elimination of 5
17 “CEPA to help new biz, create jobs in India, UAE: Zeyoudi”, Times of India, 11 March 2022,
http://timesofindia.indiatimes.com/articleshow/90157516.cms?utm_source=contentofinterest&utm_mediu
m=text&utm_campaign=cppst
18 “India–UAE Comprehensive Economic Partnership Agreement (CEPA): Overview and Potential”,
Deloitte, September 2022.

19 “Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates
(UAE) Unveiled”, 27 March 2022. https://pib.gov.in/PressReleasePage.aspx?PRID=1810279.

20 “India and UAE sign the historic CEPA aimed at boosting goods trade to US$ 100 billion over next five
years”, PIB, 18 Feb 2022, https://pib.gov.in/PressReleasePage.aspx?PRID=1799439.

21 Gem and Jewellery sector to benefit from India-UAE CEPA: Commerce Secretary”, Business Standard, 19
February 2022, https://www.business-standard.com/article/current-affairs/gem-and-jewellery-sector-to-

benefit-from-india-uae-cepa-commerce-secretary-122021900542_1.html
22 Naina Bhardwaj, “India-UAE Bilateral Trade: Trends and Outlook”, Indian Briefing, 26 September 2022,
https://www.india-briefing.com/news/india-uae-bilateral-trade-trends-and-outlook-
25989.html/#:~:text=In%20FY%202021%2D22%2C%20the,in%20effect%20May%201%2C%202022, accessed
on 30 September 2022.
23 Nasreen Abdullah, “UAE jobs: At least 10,000 highly skilled Indian workers to be employed by next year”,
Zawaya, 2 August 2022, https://www.zawya.com/en/economy/gcc/uae-jobs-at-least-10-000-highly-skilled-

indian-workers-to-be-employed-by-next-year-fzqncdd0, accessed on 20 August 2022.
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per cent duty on Indian exports by the UAE will immediately benefit USD 26 Bn to the Indian
exporters.
Correspondingly, India too allows 90 per cent of UAE‟s exports to India duty-free, benefitting
UAE commodity exporters of petrochemicals, plastic and articles (including paper and
paperboard, carpets and rugs, certain steel articles), glass and glassware, aluminium, iron and
steel, polyethylene and copper ccertain electrical and mechanical products(Deloitte, Sept. 2022).
India also allows imports of 200 tons of gold at 1 per cent duty for five years. These tariff
concessions and access to Indian market is estimated to ass USD 9 Bn, around 1.9 per cent, to the
GDP of the UAE and create approximately 19000 jobs in UAE by 2030.
CEPA also commits to set up a world class IIT (Indian Institute of technology) campus in the UAE
and encouraged the DP World to sign an MoU to establish a Skill Centre for training Indian youth
in maritime in Banaras, UP. This will mutually benefit both the countries. For instance, the IIT
campus in UAE will not only attract students from the countries of West Asia but also encourage
the children of expatriates to enrol there than going back either to India or to the US-West
universities. Similarly, the DP World will produce cheap and good quality trained workers for its
maritime logistics in India.
In a tweet UAE‟s former Ambassador to India Dr Ahmad Al Banna said, “The Comprehensive
Economic Partnership Agreement reflects our comprehensive strategic partnership and aims to generate
opportunities for our business communities. United by friendship, the UAE and India share the
commitment of fostering economic innovation and growth”.24
India‟s gems and jewellery is likely to benefit the most. This is because of two main reasons: first,
CEPA reduces the value addition criteria to gem and jewellery to 3-7 per cent instead of 35-40 per
cent; and second, instead of 12 per cent duty on gold, India offers the UAE to export 200 tonnes of
gold at 1 per cent tariff in five years. This will be a win win game. Dubai would emerge as a major
gateway for Indian jewellery markets in West Asia, North Africa and Central Asia25, while zero
duty on gem and jewellery would attract jewellery operators to relocate their businesses in India
from Singapore, Hong Kong, Turkey. India exports 80 per cent of its plain jewellery and 20 per
cent studded jewellery to the UAE. The Gem and Jewellery Export Promotion Council (GJEPC)
has expressed confidence that exports of plain gold jewellery and gold studded jewellery from
India to the UAE would grow to USD10 Bn in 2023(The Nation, 1 May22) and USD 52 Bn to
overall target.26
CEAP offers warehouse facilities to the Indian exports to stock their products at free ports,
including Jabel Ali. This will help Indian exports to ensure fast delivery of consignments, reduce
24 https://www.mofaic.gov.ae/en/missions/new-delhi/media-hub/image-gallery/cepa, 19 Feb 2022.

25 Ramola Talwar Badam, “UAE-India trade pact: Dubai's gold sector to get boost from tax cut”, The Nation, 1
May 2022, https://www.thenationalnews.com/uae/heritage/2022/05/01/uae-india-trade-pact-dubais-
gold-sector-to-get-boost-from-tax-cut/ , accessed on 15 October 2022.
26 “CEPA to help gems, jewellery sector achieve USD 52 bn exports target in FY23: GJEPC”, Times of India, 25
Feb 2022,
http://timesofindia.indiatimes.com/articleshow/89827598.cms?utm_source=contentofinterest&utm_mediu
m=text&utm_campaign=cppst , accessed on 15 October 2022.
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damages and spread e-commerce network in the region. The digital trade will be of great
assistance as both countries are also experimenting with Central Bank Digital Currency (CBGC).
Already, India has launched UPI (Unified Payment Interface) and RuPay Card in Bahrain, Saudi
Arabia, Oman and the UAE.27
The UAE„s unique geo-economic location, connecting West Asia, North Africa and Europe, and
its extended reach to Arab world through the membership of regional economic blocs, for
instance, the GCC and GAFTA (Gulf Arab Free Trade Agreement) comprising 14 Middle East
countries, allows the Indian exporters to use the UAE as a „Springboard‟ to establish a wide
supply chain network in three continents. Besides, Dubai‟s connectivity with 240 global cities28
offers logistics facilities to access the global market. India has set a target of USD 1 trillion exports
by 2030. Dubai‟s wider air and sea cargo reach will help the Indian exporters to supply their
goods.
India and the UAE are on a fast track of signing FTAs with around half a dozen countries and
some counties are common such as Israel. India is on an early harvest of FTAs Israel, the UK,
Canada and the EU, while the UAE has signed FTA with Israel and is negotiating with Turkey,
Indonesia, Kenya and Colombia. A common policy to connect with all FTA partners would help
create a huge trade creation; build an exclusive trade and technology corridor; dedicated logistics
services for supplying raw materials and finished goods to their respective markets.
CEPA provides favourable conditions for UAE‟s investors who are eyeing India‟s sunrise
industries, including retail, telecommunication, pharmaceutical, agriculture and building food
parks. While launching India-UAE Start-up Bridge with the UAE‟s counterpart in Mumbai on 13
May 2022, India‟s trade minister said, “the UAE has committed investment of USD100 Bn in
manufacturing, infrastructure, services” in India.29
How CEPA is Revolutionary or Different from India’s Previous FTAs
The CEPA signed between India and the UAE differs or includes some news features which
distinct it from the previous dozens of FTAs India signed, including Japan, South Korea and
ASEAN. These are:
■ Carefully Crafted the Rules of Origin: CEPA introduced two innovative tools to prevent the
entry of the products of third countries, first, provision of „certification‟ of the products to be
issued by the concerned departments/ministries. India has nominated 17 agencies to issue the
certificates of origin, while the UAE has nominated its Ministry of Economy; the second
27 “PM Narendra Modi launches RuPay card in UAE”, Business Line, 24 August 2019,
https://www.thehindubusinessline.com/money-and-banking/pm-narendra-modi-launches-rupay-card-in-
uae/article62244685.ece#:~:text=Prime%20Minister%20Narendra%20Modi%20launched,and%20multilateral
%20system%20of%20payments, accessed on 18 August 2022.
28 Mediawire,” Dubai: Serving the Logistics Needs of the World”, The Economic Times, 25 March 2022,
https://economictimes.indiatimes.com/news/international/business/dubai-serving-the-logistics-needs-of-
the-world/articleshow/90443975.cms?from=mdr, accessed on 03 April 2022.
29 “UAE Committed Investment of US$100 billion in India”, The Economic Times, 13 May
2022, https://economictimes.indiatimes.com/news/india/uae-committed-investments-of-100-billion-in-
india-says-goyal/articleshow/91549636.cms?from=mdr.
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provision carries 40% value addition to foreign products. However, gem and jewellery carries
only to 3-7 per cent.
■ Protection of Domestic Industries: The agreement allows both countries to protect their
domestic industries from sudden „surge‟ in imports, either by raising tariffs or fixing quota on
that particular item. CEPA divides tariff concessions into four categories, namely Immediate
Elimination, Phased Elimination, Phased Reduction, including Phased Reduction with Quota
(PRQ) and the Exclusion List. Phased Reduction, including PRQ and the Exclusion List give 5-
7 to 10 years‟ time to gradually reduce „basic custom duty to zero‟, while the Exclusion List
does not allow trade in the listed items.30
■ Movement of Natural Person: Annex 8D in Chapter 8 of CEPA, dealing with „trade in
services‟, allows the movement of natural persons between India and the UAE. CEPA sets a
target of USD 15 Bn trade in services in the next five years in 11 sectors, which automatically
allows the movement of professionals between the two countries.
Perhaps these two clauses, protection of domestic industries and movement of natural
persons, were missing in the RCEP (Regional Comprehensive Economic Partnership), forcing
India to opt out the bloc despite being one of its founding members.
■ Digital trade, government procurement, separate annexes on Pharmaceutical (Annex 5A)
Telecommunication (Annex 8C), SMEs (Chapter 13) and special “melt and pour‟ clause on
steel, are some other new features of CEPA.
Performances
Regarding the performance or the assessment of CEPA, the statement of an Indian official of the
commerce department seems apt,
“India-UAE CEPA has been brought into force only recently. It‟s not advisable to
draw any inference or conclusion about business direction or trends prematurely
from one month‟s data, although bilateral trade has been put on a high-growth
trajectory through the India-UAE CEPA. Data from many months would be
necessary for a meaningful analysis. Needless to say, both sides are expected to gain
from different aspects of India-UAE CEPA over a period of time”.31
However, some recent studies have analyzed the trend in India-UAE trade post-CEPA and found
that compared to USD 730 Mn previous year India‟s exports to the UAE has registered 16.22 per
cent growth, around USD 837.14 Mn, during May-June 2022.32 This is a breakthrough as India's
exports to UAE which were in negative growth trajectory post the outbreak of Covid-19 to April
30 https://commerce.gov.in/wp-content/uploads/2022/05/FAQs-on-CEPA_For-Uploading-on-DoCs-
website-05-May-2022.pdf
31 Dilasha Seth, “India‟s trade gap widens with as oil imports rise”, Mint, 10 August 2022,
https://www.livemint.com/economy/indias-trade-gap-with-uae-widens-as-oil-imports-rise-
11660070471363.html, accessed on 12 August 2022.
32 “India's exports up 16.22% during May-June to UAE after FTA implementation”, Business Standard, 15 July
2022, https://www.business-standard.com/article/economy-policy/india-s-exports-up-16-22-during-may-
june-to-uae-after-fta-implementation-122071500774_1.html.
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2022 have witnessed a rebound since May 2022, that is, post the signing of the agreement. (Ibid)
During this period the shipments of plain gold jewellery increased by 62 per cent and 59 per cent
to USD 135.27 Mn and USD 185.78 Mn, respectively. (Ibid) The data analysed by the Economic
Times outlines that the gem and jewellery is among the highest gainer post-CEPA. Plain gold
jewellery exports surged 72 per cent year-on-year in May to around INR 1,048.40 crore (US $134.4
Mn @$1=INR 78)) and 68.65% in June to around INR 1,451.58 crore (around US $186.1 Mn). Total
gem and jewellery exports to the UAE in the June quarter grew 10.09 per cent to INR 9,802 crore
(US $ 1.26 Bn), from INR 8,904 crore (US$ 1.14 Bn) a year ago.
However, in August data released by the ministry of commerce and industry underlined that
India‟s trade gap with the UAE “ballooned” fourfold in May-June, driven by the jump in oil and
gold.33 India‟s export to the UAE rose 17.5% to USD 5.4 Bn, while imports grew 67% to USD 9.3
Bn on the spike of oil shipments, thus widening India‟s trade deficit with the UAE to USD 3.92 Bn
in two-month period compared to USD 900 Mn the earlier year. In the month of May alone, India
imported USD 4.9 Bn worth of goods from the UAE of which oil accounted for 59 per cent to USD
2.9 Bn.
Item-wise, exports of footwear from India to UAE surged 73%; gems and jewellery 33%, tea,
coffee, and spices by 50%, ready-made textiles by 42% and Pharma 52% while automobiles by
192%, and vegetable 147% witnessed big jump of 192% and 147% respectively. The import of
pearls and gold from the UAE increased 28% and 248% during May-June.
In September, the ministry of commerce and industry released fresh trade statistics, underlining
that during June-August 2022, compared to 3 per cent of global non-oil exports, India‟s non-
petroleum exports to the UAE grew 14 per cent, almost 5 times the global exports. The ministry
noted,
“India‟s non-oil export growth of around 14 per cent on year-on-year basis comes in
the context of significant macroeconomic headwinds such as conflict in Ukraine,
COVID-19 related lockdowns in China, rising inflationary pressures, expected Policy
tightening in advanced economies, global growth slowdown and consequent
reduced demand, reduction in global merchandize trade (growth slowed down to
3.2% in Q1 2022 vis-a-vis 5.7% in Q4 2021) etc”.34
The two sets of data, May-June and June-August, dominated by petroleum and non-petroleum
items, show two distinct features of India-UAE bilateral trade. Trade comprising petroleum
products tilts towards the UAE, while without petroleum products, it goes to India‟s favour. This
shows that although bilateral trade between India and the UAE have diversified over the period,
it is still dominated by petroleum products. Under CEPA, India waives off duty on petroleum
products, thus benefiting the UAE exporters.
33 Dilasha Seth, “India‟s trade gap widens with as oil imports rise”, Mint, 10 August 2022,
34 “India-UAE CEPA makes significant positive impact on India-UAE trade”, PIB, 25 September 2022,
https://pib.gov.in/PressReleasePage.aspx?PRID=1862136, accessed on 26 Sept 2022.

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Is India’s Trade Gap with the UAE Bad?
Experts do not count India‟s fall in export to the UAE as a problem. India‟s trade gap with the
UAE has been because of the rise in the import of raw materials, especially oil and gold which is a
positive sign of pushing up the Indian economy. For instance, India‟s gold import from the UAE
rose by 248 per cent, while oil 59 per cent. Increase in oil imports is a sign of increase in economic
activity, while rise in gold import at 1 per cent import duty under CEPA lowers the
manufacturing cost, boost jewellery exports and incentivize other exporter to relocate in India in
medium-term and finally help India to achieve the target of USD 10 Bn export to the UAE this
fiscal year. Since gem and jewellery comes under labour intensive industry, its rise in export will
generate more jobs, boost gold demand and contribute to the growth of both economies.
The Indian exporters are optimistic to achieve the target of USD 100 Bn even before five years.
Latest data shows that India-UAE bilateral trade is set to surpass USD 88 Bn.35 Ajay Sahai,
director general and chief executive of the Federation of Indian Export Organisations (FIEO) said,
„the first month is very impressive despite the fact that many sectors are still preparing to exploit
their potential. We should look for exports of USD 35-40 Bn this fiscal year‟.36 This performance
can be better if the exporters of both countries are sensitized towards CEPA. The Indian side
observed, „The Indian exports are likely to increase further in the coming months with increasing
use of the CEPA by the exporters and with dedicated efforts from Department of Commerce, in
association with Indian Mission in the UAE, through organization of a series of trade promotion
events in the UAE during the current Financial Year‟.37
Some following measures may be helpful to achieve the desirable results of CEPA, including the
target of USD 100 Bn: (i) sensitize the exporters through a wide media and publicity campaign of
doing trade through CEPA. As pointed out by one Indian diplomat, “against the tariff lines
eligible for reduced FTA tariff, only about 20-30 per cent of the Indian exports are using the FTA
route because of time and costs involved in getting a certificate of origin. This is especially true for
the smaller exporters”. Focus on suitability of the initial benefits is critical factor and its
momentum should be enhanced;38 (ii) the UAE needs to pursue active economic diplomacy;
engaging both the medium and small scale traders as well as the local chambers of trade and
commerce, besides big trade bodies located in metro-cities like CII, FICCI. (iii) Abu Dhabi also
needs to identify trade pockets in Tier II and III cities in India as well and establish active
connectivity, including online. For this, Abu Dhabi may establish an IT hub at identified export-
35 “India-UAE Trade to surpass $88 billion after signing of the free trade deal”, The Hindustan Times, 22
November 2022, https://www.hindustantimes.com/india-news/indiauae-trade-set-to-surpass-88-billion-
after-signing-of-free-trade-deal-101669122288088.html, accessed on 28 November 2022.
36 Dilasha Seth, “India‟s trade gap with UAE widens as oil imports rise”, The Mint, 10 August 2022,
11660070471363.html , accessed on 12 August 2022.
37 “India-UAE CEPA makes significant positive impact on India-UAE trade”, PIB, 25 Sept 2022,
https://pib.gov.in/PressReleasePage.aspx?PRID=1862136, accessed on 26 Sept 2022.

38 Dilasha Seth, “India‟s trade gap with UAE widens as oil import rise”, The Mint, 10 August 2022,
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import hubs in India and connect the potential traders as has been planned with the Indian
farmers; (iv) Since the UAE is a „re-export hub‟, connecting three regions, West Asia, North Africa
and Europe, the UAE needs to educate Indian producers to connect with UAE‟s online stream
and sell their products to poor African countries at better prices. The facility of digital trade and
use of UPI (Unified Payment Interface) will better facilitate online trade; (iv) India and the UAE
need to handle their bilateral trade differently in 2023 as most of the agencies like IMF
(International Monetary Fund) have predicted global recession this year. During recession, trade
in „income‟ sensitive goods declines, while trade in „price‟ sensitive goods grows. Both countries
should focus on boosting price sensitive exports. Besides, Indian currency has also declined more
than 10 per cent against the US dollar this fiscal year. Thus making the price-sensitive goods more
attractive and cheap in the international market; and (v) Moreover, both countries are on a binge
of signing FTAs. This would create a cobweb of both „trade creation‟ and „trade diversion‟ as both
sides are purposefully selecting their FTA partners to get raw materials from one country and
supply finished goods to the other. So, these countries need a detailed cross-country study,
assessing the positive and negative impacts of the multiple FTAs on their bilateral trade.
However, there are some positive aspects of the multiple FTA partners as well. This will help
develop an exclusive trade corridor and exclude the countries like China; help develop local
supply chain networks which are in vogue in the world after the Pandemic and the Ukraine war.
Rise in digital trade would increasingly support the use of digital currency and UPI payment
platforms.
SECTION IV: CEPA: A GATEWAY TO STRENGTHENING REGIONAL PARTNERSHIP- SOME CAVEATS
CEPA transcends bilateralism, paving a wider spectrum of multilateral engagements in the Gulf
and beyond. On 18 October 2021, the foreign ministers of four countries, India, Israel, the US and
the UAE held the first virtual ministerial meeting, incentivizing the heads of the four countries to
hold another virtual meeting on 14 July 2022 and issue a joint statement, asserting that it would
address shared challenges through „a particular focus on joint investments and new initiatives in
the field of economy, clean energy, water, transport, space, health, and food security‟ and „these
are only the first steps in a long-term strategic partnership‟.39 However, as of now the I2U2 has
focused mainly on two issues, food security and clean energy. The UAE has committed to USD 2
Bn to develop a series of integrated food parks across India, while the I2U2 will advance a hybrid
renewable energy project in India‟s Gujarat state consisting of 300 MW of solar and wind capacity
complemented by battery energy storage system.40
The idea of clubbing the four countries at one platform was to utilise their combined economic
potential for the growth and welfare of the people of two Asias –West Asia and South Asia. For
instance, Israel‟s technology and security; UAE‟s investment capital and wide connectivity
39 Hasan Alhasan and Vijay Solanki, “The I2U2 minilateral group”, IISS, 11 November 2022,
https://www.iiss.org/blogs/analysis/2022/11/the-minilateral-i2u2-group , accessed on 13 November 2022.
40 “Joint Statement of the Leaders of India, Israel, United Arab Emirates, and the United States (I2U2)”, The
White House Statement, released on 14 July 2022, https://www.whitehouse.gov/briefing-room/statements-

releases/2022/07/14/joint-statement-of-the-leaders-of-india-israel-united-arab-emirates-and-the-united-
states-i2u2/, accessed on 17 August 2022.
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through smart logistics; India‟s vast market and skilled workforce and super-imposing presence
of the US, have enough to set an example of cooperation and free trade in a conflicting world,
heading towards protectionism. The success of the minilateral or the Middle East Quad (MEQ) will
definitely attract more countries to join the platform, including the current focus on Jordan and
Egypt. A healthy MEQ would potentially form a big regional trade corridor and companies from
other regions to relocate here. This would also induce other regional economies to join the forum.
The CEPA has also opened the scope of trilateral partnership. Recently, India, France and the
UAE held the first trilateral ministerial meeting on the sideline of the 77th UN General Assembly
meeting in Washington. All three members agreed on two major issues, first, discussing a new
way of doing diplomacy through an „active exchange‟ of ideas 41, second, since Rafael fighter jets
are the common element of trilateral strategic partnership, the three are keen to form a trilateral
Rafael Forum, assigning India a key role in the manufacturing of the spare parts of Rafael jet. 42
However, there are some caveats. Both India and the UAE should avoid tilting towards
geostrategic and political affairs of the region, including giving more preference to the I2U2 than
it deserves.
Experts call the I2U2 as “the Biden administration‟s broader effort to elaborate its US Indo-Pacific
Strategy and reframe US engagement with the Middle East/West Asia”.43 Obviously, this is
nothing but to counter China in the Middle East. However, the geostrategic and political profile of
the Middle East is quite different from the Indo-Pacific. In the Middle East region, China is not
considered a regional bully. Rather, their interests, both economic and geostrategic, are diversely
associated with China. For instance, the interest of the US and India though suits to counter
China, Saudi Arabia which is the largest economy in the region, may not like to join the anti-
China cavalcade. Saudi Arabia needs China‟s large oil market; their economic partnership,
including trade, investment, defense and security are increasingly on a fast track. While within
I2U2, the interests of the member countries are diverse. Israel and the UAE want better economic
relations with China than India and the US. Thus, missing the „unity of purpose‟ to form an anti-
China front in the region.
The I2U2 needs to be cautiously expanded. Although, I2U2‟s principal objective is to utilise the
potential of four countries for enhancing environment-friendly growth and welfare of West and
South Asia, its tilt towards geostrategic and political factors make the forum suspicious. In fact,
41 Dipanjan Roy Chaudhart, “India-UAE-France hold their maiden trilateral meet”, The Economic Times, 28
July 2022, https://economictimes.indiatimes.com/news/india/india-uae-france-hold-their-maiden-trilateral
meet/articleshow/93194890.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst,
accessed on 30 July 2022.
42 Dipanjan Roy Chaudhary, “India, UAE, France keen on Rafale forum: key role for New Delhi”, Economic
Times, 21 September 2022, https://economictimes.indiatimes.com/news/india/india-uae-france-keen-on-

rafale-forum-key-role-for-new-
delhi/articleshow/94336385.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst;
accessed on 12 October 2022.
43 John Calabrese, “The US and the I2U2: Cross-Bracing Partnerships Across the Indo-Pacific”, MEI,
Washington, 27 September 2022, https://www.mei.edu/publications/us-and-i2u2-cross-bracing-

partnerships-across-indo-pacific, accessed on 22 October 2022.
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Zakir Hussain
both CEPA and I2U2 are two different platforms, carrying two different objectives. For instance,
the former is set to provide a roadmap of 50 years‟ of economic and inter-generational
partnership between India and the UAE, while the latter lacks any such sustainable long-term
roadmap. The acronym Middle East Quad (MEQ) foe I2U2 carries more suspicion than creating
confidence among the business community and more such Quads or minilaterals are likely to be
formed in North Africa and other parts of African continent, especially targeted to counter China.
It is in the interest of India and the UAE that the politico-strategic agenda of the CEPA should be
toned down or make the forum apolitical grouping. The platform should not be used for geo-
strategic and political purposes such as building exclusive trade corridors, countering China and
the BRI (Belt and Road Initiative) project, dwarfing Russia in the region or intensifying anti-Iran
stance.
Diversification is another reason that may not support another round of geo-strategic tussle in the
region. Most of the economies, including Saudi Arabia, are aggressively diversifying their
economies; promoting investment friendly-ecosystem in the neighbourhood to face the post-oil
challenges. They may not like to repeat another fiasco as happened during the Gulf War I and
Gulf War II. Saudi Arabia may not like to continue tussle with Iran if the US-Israel Axis fails to
checkmate Iran from its nuclear ambitions. However, if the forum takes up or mixes the objectives
of I2U2, this may provoke China, Russia, Iran and its asymmetric forces to form a parallel forum
like I2U2 and limit the CEPA to harness its full potential.
Regarding India: CEPA and I2U2 has increased India‟s footprint in the Gulf and wider West Asia.
However, it would not be in India‟s interest to juxtapose CEPA with I2U2 as its stakes are too
high to join any divisive politics in the Gulf. The region is vital to India‟s energy security; it
unfailingly remits approximately USD 40-45 Bn every year which bails out millions of families in
India. Besides, the region is India‟s third largest trade zone after the US and Europe, while
nowadays, New Delhi is looking at boosting its trade and investment partnership with major Gulf
economies, including restarting the GCC FTA negotiation. The two largest economies, Saudi
Arabia and the UAE are working on conducting trade in local currencies, Riyal and Dirham and
Indian Rupee. The central banks of India and the UAE are „discussing a concept paper on
promoting bilateral trade in rupee and dirham‟.44 Both are urgently seeking to start trade in
Rupee-Dirham. This will bring multiple benefits to both sides, including reducing the cost of
transaction, ease to hard currency and minimizing the impact of the „weaponsiation of dollar‟ on
their respective economies and foreign policy independence. Digital trade will soon promote the
use of central bank digital currency (CBDC) through bilateral payment platforms. Besides,
security, defense, maritime, and counterterrorism are other areas where both sides share common
concerns.
44 India, UAE central banks discuss rupee, dirham trade”, The Indian Express, 26 November
2022, https://indianexpress.com/article/business/india-uae-central-banks-rupee-dirham-trade-8289951/ ,
accessed on 28 November 2022.
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CONCLUSION & WAY FORWARD
CEAP sets a complementary model of growth; it sets the ground for mutual cooperation and
growth for the next 50 years by opening the prospects of free trade, reciprocal investment,
partnership in sustainable technology and innovation. The virtual summit that took place just
signing the CEPA between the leaders of the two countries, underlines the areas and issues that
may be relevant for cooperation in the next 50 years, including covering economic, culture, energy
security, climate change and renewable energy, cooperation in emerging technologies, skill
development, food security, health, education and defense. Both the countries have also agreed to
work together in the international arena on common issues.45
CEAP also generates the prospects of a „minilateral‟ in West Asia. The participation of four
countries, Israel, India, UAE and the US and pooling of their resources can accelerate growth and
development and enhance welfare in two Asias, South Asia and West Asia. However, there are
some caveats that CEPA should avoid mixing its objectives with political and geostrategic
ambitions of the I2U2. This will neither be sustainable nor effective to maximize CEPA. China,
Russia, and regional countries like Iran, Syria, Lebanon and asymmetric forces may not take it
kindly and start forming a parallel grouping to I2U2, while the regional countries too have
diverse interests, mainly with China as they have their agenda of „de-addicting‟ and diversify
their economies from oil to meet the post-oil challenges and legitimise their regimes. They need
an investment-friendly ecosystem in their neighbourhood to foster growth the development.
45 Joint Statement of the Leaders of India, Israel, United Arab Emirates, and the United States (I2U2)”, The
White House Briefing Room, 14 July 2022, https://www.whitehouse.gov/briefing-room/statements-
releases/2022/07/14/joint-statement-of-the-leaders-of-india-israel-united-arab-emirates-and-the-united-
states-i2u2/
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Zakir Hussain
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Impacts of Competitive Price Reduction Policy on Consumers’

Trust in the Supermarket Industry
Mohammed Saiful Islama, Md. Zahir Uddin Arifb*
a&bDepartment of Marketing, Faculty of Business Studies, Jagannath University, Dhaka-1100, Bangladesh
E-mail: saiful.jagannath2019@gmail.com a, mjarif2006@gmail.comb
Abstract
Purpose- The leading purpose of this study is to examine in what way
competitive price reduction policy influences purchasers’ trust in the PAPER/ARTICLE INFO
supermarket industry of Bangladesh. Discounts, price cuts, and the RECEIVED ON: 11/10/2022
promotional wars among retail supermarkets especially in Bangladesh are ACCEPTED ON: 16/11/2022
very competitive and these supermarkets maintain low product prices in Reference to this paper
order to get maximum market share. The low-priced product makes should be made as follows:
customers confused about their desired product qualities.
Methodology- Descriptive research design has been used to conduct the Islam, M.S. & Arif, M.Z.U.
study. The target population is shoppers aged 18 years old and over (2022), ―Impacts of
including both males and females. The sample size for the study was 200 Competitive Price
shoppers selected through a non-probability sampling technique based on Reduction Policy on
convenience sampling. A self-completed questionnaire has been used and Consumers‘ Trust in the
Supermarket Industry‖,
a necessary pilot study has been done. Shop at supermarkets for a variety
International Journal of Trade
of reasons, including price, quality, availability, and location. Cross and Commerce-IIARTC, Vol.
tabulation, frequency distribution, and the Chi-square test for hypothesis 11, No. 2, pp: 278-307.
testing have all been used in the statistical study.
Results- The degrees of freedom (df) are 2, the probability value (P) is
0.000, and the Chi-square value is 66.064. The alternative hypothesis,
that price cuts have an adverse impact on product quality and consumer
trust, is supported by the test of hypothesis. The result of the study
showed that price reductions have an impact on product quality, which in
turn affects consumer trust. The literature review also validated the trust
factors in supermarkets concerning relationship marketing.
Originality/Value- The study will be valuable for retail marketers,
particularly for supermarket owners, managers, executives, salespeople,
and customers, in developing their pricing strategies. As a result, the
problem definition and research goals can be supported in that the price
reductions have an impact on Bangladeshi consumers' trust in
supermarkets, which is a key element in developing a lasting relationship
with customers.
Key Words: Consumer trust, Pricing Strategies, Relationship
Marketing, Supermarket.
DOI: 10.46333/ijtc/11/2/2
Impacts of Competitive Price Reduction Policy on Consumers’ Trust in the Supermarket Industry
Mohammed Saiful Islam, Md. Zahir Uddin Arif
1. INTRODUCTION
1.1 Background of the Study: In order to become a market leader or compete with rival
supermarkets, or maintain consumer satisfaction, supermarkets employ a variety of marketing
strategies (Khan et al., 2022). Utility leads to consumer satisfaction. Customers anticipate quality,
such as durability or other attributes, from a product for which they are willing to pay a price.
When prices exceed their expectations, customers won't be satisfied with the product since the
greater price relative to the product's quality lowers the value of the client (Arif et al., 2020; Khan
& Sharma, 2020). (Arif et al., 2020; Khan & Sharma, 2020). Alternatively stated, Quality-Higher
Prices = Negative Value for the Customer. The greatest positive value is likely to be accepted by
customers. Therefore, if companies raise quality while lowering prices, they will create positive
value because Higher quality-Price that buyers are ready to pay = positive value). Companies can
raise product quality or lower product pricing to produce this surplus for customers (Khan, 2020).
In recent years, companies have opted to decrease prices rather than raise product quality in
order to maximize customer value. Here, ‗pricing‘ is one of the important marketing mix
components, and ‗trust‘ is a significant relationship marketing component (Arif et al., 2020; Arif,
2017; Arif, 2016). Both are connected to one another. When prices are decreased concurrently with
diminished customer trust, both are damaged.
1.2 Problem Definition: Price is a component of marketing efforts that has both a significant
and weak impact on consumers' purchasing decisions (Roy et al., 2016). When a product is
unique, consumers are less-price sensitive, less aware that alternatives exist, or they find it
difficult to compare the quality of alternatives, However, there are many substitutes available in
Bangladeshi supermarkets, and shoppers can compare the quality of the substitutes. According to
Arif (2016), the super shops charge various pricing for their products. Furthermore, they do not
mention that on their websites. As a result, the price lists of products cannot take place. However,
they set their prices using a variety of strategies at different times for their varied products, such
as, i) cost-plus pricing- including a standard markup to the product cost, ii) break-even pricing
(target profit pricing)- setting price in order to be equal on the costs of making and marketing a
product; or setting the price in consideration of create the desired profit, iii) value-based pricing-
determining price based on consumers‘ perceptions of value alternatively on the sellers‘ cost, iv)
value pricing- offering just the right blend of feature, quality and good service at a plausible price,
and v) competition-based pricing- fixing prices established the competitors‘ accused prices for
similar goods.
The retail model makes it easier to make decisions, whereas the wholesale model relies on open
communication. According to Rashid & Barnes (2018), decisions in wholesale marketing must be
made with open communication in order to determine whether or not they are appropriate for the
company. Distributors and retailers buy in bulk from wholesalers, who get their goods from the
companies in bulk. The dealer endure guarantee that the channel and marketing area are
favorable in consideration of guarantee a bargain through marketing procedure (Li, 2018).
According to Lim (2020), the channels of marketing concede possibility not pay attention the
conclusive consumer cause they target distributors and retailers. Some of these approaches
involve imposing upon discounts on size purchases. The supply chain guarantees customer
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dependability and repeats purchase because wholesaler models are territorial. According to Quix
& Van der (2019), tailoring marketing approaches guarantee that retailers achieve highest in rank
from the supply chain, even though they may not have any influence over the entire supply
chain.
Therefore, buyers are extra anxious about price and their utility. Cutting prices helps to get
highest surplus (Khan et al., 2015). Supermarkets follow various types of exercises to influence the
customer to create a purchased product from those particular supermarkets. Examples of these
exercises from supermarkets are-
▪ BOGOF- buy one or two gets one free; ▪ Pairing/Coupling- money off next
▪ Bonus/Free product- 35% extra; purchase coupon pack;
▪ Eid, Puja, savings card; ▪ Cross-union/Cross-coupling- money or
▪ Different Gift cards; cash off subsequent purchase coupon/
▪ Loyalty points of Agora, and Shawpno; voucher on the pack for different
▪ Allowance cards; /Discount cards; products;
▪ Concession/Discount prices- 10 Tk. off or ▪ Cash off/Money off coupon/card as prior
15% off; to purchase delivered to door-to-door,
▪ Link saves/Tie saves- buy shampoo get newspapers, loyalty mailing;
one pack of conditioner or one soap-free ▪ Offers- Dhamaka offer, big offer
These types of assertive offers generate turmoil in customers‘ minds. Individual could urge- Are
the supermarkets lowering the price or reducing a portion of products features by means of this
price-cutting? Or, are the supermarkets genuinely reasoning about consumers‘ value or their
rivals? Do the supermarkets certainly be going to maintain their consumers satisfied or be going
to be a retail leader or uphold their competitive position? This somewhat topic bears existed
examined currently as. Datta (2018) found a positive relationship between service quality, trust,
commitment, and customer loyalty retention. According to Chowdhury et al. (2014), anticipated
service condition; trust, perceived price, and perceived products variety have a positive
relationship with customers‘ satisfaction in super shops in Bangladesh. Price is the main factor
influencing clients' experience in general stores followed by responsiveness and item quality
(Rana et al., 2014, Bhakat & Arif, 2021). The estimation of happiness in stores in Bangladesh relies
upon the various segments like age, sexual orientation, schooling level, pay and use, month-to-
month visit recurrence to the grocery store, item combination, cost of the items, quality, comfort,
cleanliness, and climate (Azad et al., 2011). Another investigation found that the variables
incorporate accessibility, quality, comfort, cost, area, and air of the grocery store outlets (Hossain
et al., 2009). Manez (2006) examined the belongings of a low-price guarantee (price-beat
guarantee) on the way of pricing of three supermarkets utilizing micro-level price data and
resolved the capability of reduced-price guarantees to experience anti-competing prices. As a
result, this appears expected puzzling to consumers about pricing actions that have a definite
connection accompanying consumer satisfaction, and loyalty in retail. Thus the problem
description concerning this study is defined as the price battle/pricing strategy or price-cutting
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contest among supermarkets in Bangladesh to generate value for customers, but this causes more
confusion for the customers.
2. LITERATURE REVIEW
Retailers have been struggling to retain their existing customers in the face of severe competition
in their business operations (Hossain & Khan, 2016; Bhakat & Arif, 2021). By expanding the
service quality (Arif, 2015c), retailers will be able to stand out among the other businesses and
create the opportunity to strengthen customer loyalty, particularly among the younger generation
(Alam, 2018). In order to keep a long-term relationship with buyers, the largeness of the
supermarkets in Dhaka undertake the consecutive green logistics practices: submissiveness to
environmental a rule that applies to a place or group, proof of certificates concerning preservation
of natural resources arrangement, awareness of material a rule that applies to a place or group
concerning supply and depository of merchandise, composition of conference and studio to
create the suppliers informed about latest trends greening, systematizing seedling plantation
actions in addition to a normal conference of the staff members approaching the conservative of
the surroundings (Salim et al., 2019). At the same time, pricing strategies in supermarkets, which
play a very important and sophisticated part in relationship marketing, This is cause marketing
strategies are devised to regulate the marketing mix over period to systematically create and
build well relationships accompanying customers. Its intention search out develop the
interrelationships between product features or qualities and consumer necessities so that attain
better customer satisfaction (Dorward, 1987).
Therefore, the objectives of this study are to understand the relationship between marketing and
its attractive components and the relationship between consumer and marketer, especially lower
price setting by the marketers that influence consumers‘ trust in the supermarkets industry.
2.1 Relationship Marketing
There has been much debate on the relationship between consumer marketing campaigns and
consumer culture. While some theories contend that marketing activities significantly influence
cultural norms and values, others contend that marketing activities simply reflect prevailing
cultural norms and values. For instance, it can have argued that the tendency toward extravagant
spending in our species is the outcome of the domination of marketing activities in society,
inasmuch as the excessive consumption of goods and services in our species is the effect of
marketing activities (Graham, 2003). To reassure their customers, marketers use a variety of
exchange-method policies. Concerns about the positioning of their products are shared by
marketers. Various tactics have been proposed for placing goods or services, claim Aaker &
Shansby (1982). For positioning goods or services, a number of approaches have been put forth,
including placement by attitude or benefit, quality/price, usage or application, and use/user.
Additionally, the quality/price strategy can be viewed as a continuum ranging from high
fashion/quality and high price to good value (as opposed to low quality) at a low price. For
instance, ‗Agora‘ in Bangladesh was able to increase its price premium by making its items more
appealing over time. Customers paid more for its food items because they thought they were
more exciting, fresher, and of greater quality. Additionally, relationship marketing promotes
customers' trust. Building trust is the cornerstone of every transaction every customer enters into.
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Without trust, a buyer will not purchase a thing. Customers should be confident that a company
will offer and deliver the best products conveniently at a fair price, and treat them humanely
(McKean, 2003).
Retail service quality is obviously a great factor for relationship marketing but there are other
several factors like trust, and commitment in major factors through pricing policy, and
promotional activities implied by supermarkets that affect customer loyalty.
2.1.1 Relationship Marketing and the Eight Pillars of the Marketing Mix
The eight Ps—product, pricing, place, promotion, people, positioning, process, and
performance—play significant roles in the interactive process between the buyer and seller.
Together, these 8Ps supported the exchange process. Product, price, promotion, place, and other
Ps will always be important and have their role in relationship marketing, but their role changes
(Gummesson, 2011). These Ps symbols represent actions that are managed and persuaded to
purchase by the supplier. Marketing will always require some amount of persuasion and
influence. But rather than taking the lead, the Ps should play a supporting role. Palto et al. (2018)
developed a conceptual model by incorporating seven constructs, such as service quality, bonds,
customer satisfaction, trust, commitment, loyalty, and customer retention in order to understand
relationship marketing and its relationships with customer retention.
2.1.2 Relationship Marketing Relies Heavily on Trust and Commitment
Trust and commitment are undoubtedly two of the most important qualities in any successful
marketing partnership. In relationship marketing, some other authors have emphasized the
importance of commitment and trust. When commitment and trust are present, they also lead to
outcomes that improve viability, competence, and efficiency.
2.1.3 The Significance of Relationship Marketing
The key to effective loyalty programs is maintaining pleased customers. Relationship marketing
aids in a company's comprehension of its customers. The development of successful relationship
marketing depends on both commitment and trust. Morgan & Hunt (1994) have claimed that the
effectiveness of relationship marketing is supported by the empirical data that demonstrates the
importance of commitment and trust. First, they clarified that acquiescence and an inclination to
leave stem directly from commitment in a partnership. Second, trust is a direct cause of functional
conflict and ambiguity. Finally, trust and relational commitment both directly contribute to
cooperation.
2.1.4 Pricing Relationships
One of the most significant factors in the dialogue between the buyer and the seller is money or
price. Additionally, it is one of the key ‗Ps‘ in the marketing mix. It is typically very noticeable
and used as a benchmark in more competitive marketplaces. It may serve as a potent indicator of
the worth or quality of a thing. Therefore, it significantly influences image, acceptance, or
trustworthiness. It can be characterized as middle-ground transactions when the vendor can turn
a profit and the customer is prepared to pay for goods or services. In this method, both parties
will benefit from price setting or a ‗stay in middle‘ position between the vendor and the buyer.
But it is quite challenging for both parties if the price is not at a balance position. The customer
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cannot or will not pay more for the same goods. Additionally, if the price is cheaper, people are
willing to pay that amount even when it leaves them in the dark about the features and product
quality.
2.1.5 Price Positioning
The product's quality and price are related. Products with superior quality cost more. In a same
vein, cheaper goods have lower prices. Other impacting factors include things like product or
brand perceptions (Hossain et al., 2020), brand or market circumstances like highly competitive
environments or the company's internal objective, etc. Collier (1995) asserts that when it comes to
market positioning, businesses can adopt various positioning that are related to the general view
of price/value or price/quality
2.2 Price as One of the Components of the Retail Marketing Mix
Price is one of the components of the retail marketing mix. Retail marketing mix includes
location, merchandise assortment, advertising and promotion, shop design and visual
merchandising, retail selling, and customer service (Levy & Weitz, 1996). The retail market is
influenced by a combination of pricing and other factors. The main issue, however, now is pricing
in the retail industry, particularly in supermarkets. Customers are confused about supermarket
pricing, product quality, and promotional activities due to the price war between supermarkets.
There will undoubtedly be a consequence for all of these customer trust violations in the near
future.
2.2.1 Elements that Affect how Retail Prices are Set
Price is a further element in the rapid expansion of supermarkets (Arif, 2013). Due to
supermarkets' fixed price policies, there is no opportunity for haggling or negotiating the price of
the product. Supermarket marketers can provide goods at lower costs since they make large
purchases. However, they occasionally provide their consumers with special offers and discounts
throughout certain seasons. Improvements in food freshness and quality are also crucial
elements. By adopting quality controls, improved hygiene, and appropriate storage conditions
like cooling and refrigerating, supermarkets are attempting to achieve these. All of these expenses
are connected to a supermarket's ability to provide the quality that customers want at a cheaper
cost. Bulk purchases give supermarkets a competitive advantage over conventional local retail
stores, but it becomes challenging when competition develops across supermarkets.
Cram (1994) identified three stages in the pricing determining process. Costs incurred by the
business are the first, competition comparisons are the second, and consumer capacity to pay is
the third. Price determination is also influenced by the company's profit margin, the attributes of
the product, and promotional efforts to outperform rivals, such as ‗beating price‘ selling. A
corporation can minimize its expenses by using better technology or global sourcing (finding
cheaper labor, raw materials, and other relevant costs). This enables the company to establish a
lower price (Rahaman & Arif, 2018). It is also possible for rival businesses to set their prices
similarly. As a result, supermarkets or businesses compete to lower their prices. The product's
price consequently decreases from one level to another. The consumer has more than enough
money to buy these things in this situation, but do they live up to the customer's expectations (in
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terms of desired characteristics and other features)? Or are these products causing the buyer any
confusion?
It is impossible for a company to provide a high-quality product at a low price because a
manufacturer of superior quality items would not have the incentive to maintain that quality
unless the transaction price exceeded his extra expenditures. According to Klein and Leffler
(1981), if the price were only high enough to cover the additional expenses, he would be
motivated to deceive and degrade quality in order to increase profits up until buyers had enough
experiential information to learn the truth.
2.3 Competition as a Price-Setting Factor
Another important element for pricing is the expansion of businesses and increased rivalry
among supermarkets. The battle for a dominant or market-leading position as well as profit
maximization affects pricing practices of supermarkets.
2.3.1 Competition for the Position of Market or Cost Leader
The major supermarkets are lowering their pricing or offering inexpensive products due to
competition, whether or not customers want it. Porter's generic business strategy of cost
leadership is comparable to Bangladesh's price-cutting or reduction strategy. Porter (1990) created
a framework of so-called generic company strategies based on low cost and differentiation as two
sources of competitive advantage. Four generic strategies are produced by combining two
sources that fall into the categories of cost leadership, product differentiation, focused
differentiation, and cost focus. These sources can be either narrow or wide depending on the
target market served or the product mix width.
The firm must make decisions in order to implement generic strategies that aim to achieve
competitive advantage. The options relate to the market size or product mix range within which
competitive advantage will be gained, as well as the position it intends to achieve from which to
offer distinctive value (based on cost or differentiation). In order to be able to set its price lower than
its rivals, the company focuses on having the lowest possible cost of manufacturing and
distribution. But consumer happiness is what ultimately drives the company's mission (Arif, 2015b).
This fulfillment results from the demands and desires of the clients. These businesses out perform
their rivals who can offer their clients in accordance with their needs and wants in terms of success
in accomplishing their objective.
A ‗market leader‘ business outperforms other businesses in terms of pricing adjustments, new
product launches, distribution reach, and promotional fervor. It is difficult to maintain dominance
unless a corporation has a legal monopoly. Recently, pricing has been the key factor in
competition. The other businesses change their prices after the market leader (Shwapno) does.
Shwapno, Daily Shopping, Meena Bazar, and Agora are well-known supermarket brand names in
Bangladesh, and they all compete with one another mostly on pricing. By using revenue from its
more lucrative products to subsidize lower pricing for some products, the market leader company
(Shwapno) is attempting to annihilate rivals. As a result, these stores' product pricing are
competitive. They are lowering their pricing every day to compete. This price-cutting strategy has
an impact on consumer values, which are the differences between all the advantages a client
receives from a complete product and all the prices associated with these advantages.
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2.4 A Few Consequences of Price Reductions
There are many negative repercussions of this price-cutting tactic, but this study is primarily
concerned with ‗promotions‘, ‗supermarket pricing approaches‘, and ‗quality items‘, all of which
directly affect consumer trust.
2.4.1 Uncertainty Regarding Supermarket Promotions
No potential cause of materialism has drawn as much attention or as much criticism as
advertising, and Graham (2003) claims that even in the lack of any evidence to the contrary, the
majority of researchers and observers concur that advertising contributes to a rise in materialism.
Consumers believe that advertising promotes materialism, according to Graham's (2003)
investigation into consumer perceptions of the relationship between advertising and its effects.
Consumers who agreed with these perceptions highlight the importance of advertising as a social
phenomenon because of its capacity to model particular values, such as materialism.
To lower costs and promote multi-use, which is a component of advertising, the majority of
supermarkets use various promotional formats or different combinations of them. Other
activities, such as link savers and bonus loyalty cards, vary nationally rather than locally or
between individual stores. In addition to advertising and product sample, supermarkets also use
point-of-sale impact, direct mail, new packaging, new recipes, and product testing (for example,
for various types of cosmetics). Some concerns, such as loyalty cards, may make it more difficult
for customers to switch providers, may result in unnecessary costs that may be covered by
increased grocery prices, or may prevent price transparency. However, other promotions are
viewed as a desirable competitive strategy because it is extremely challenging and thus unusual
for competitors to respond to promotions, especially temporary ones. A promotion typically
entails a significant boost in sales that is very challenging for other supermarkets to counter and is
typically prepared several months in advance in collaboration with suppliers. A major sale of an
item at a very low price or selections of products that have possibly been in the store for a while
are occasionally promoted by supermarkets. If they offer 20% off during in-store deals, it usually
applies to a limited number of items rather than all of them.
For a few product categories, Kumar & Leone (1988) and Walters (1991) demonstrated
considerable cross-store impacts at the brand level. Logistics planning is encouraged by
wholesale and retail promotion methods. Promotional tactics assist a business in converting
excellent leads into customers and keeping its current customers (Chen et al., 2018). Marketing
determines and communicates down the supply chain the constantly shifting consumer
expectations, which are transmitted through promotion. The business model's use of promotion
tactics has an impact on branding as well. To meet important supply chain requirements, the
wholesale and retail business model must adopt an all-encompassing strategy. A crucial
component of the marketing strategy is distribution (SUH, 2021).
Cram (1994) claims that consumers consistently regard price promotions, such as price reduction,
discount, or added value, as the most alluring. Although they draw in new customers, these deals
do not foster loyalty. Moreover, according to Cram (1994), a price promotion approach has four
risks including the fact that- i) it attracts more defectors than loyal customers, ii) price promotions
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instruct consumers to base purchases on price, iii) price reductions frequently skew the
relationship between volume and time, and iv) price reductions may irritate current customers.
2.4.2 The Supermarkets' Ambiguous Pricing
Do they have a price strategy in place? Choudhary et al. (2005) have conducted analytical
research on a firm's pricing, quality differentiation, and consumer welfare for personalized
pricing. The pricing strategies for two companies with asymmetric costs and varying market
strength were examined (i.e. big-box retailer versus smaller local merchant) by Anderson et al.
(2005). Price impacts may be asymmetric, meaning that consumers may react differently
depending on whether they believe a good is overpriced or underpriced. They arrive at analytical
conclusions about the best prices and demonstrate through a number of numerical examples the
conditions under which businesses pick various pricing methods. They also discuss the profit
implications for businesses with varied expenses.
2.4.3 Customers are more confused about Product Qualities in Supermarkets
Customers are more concerned about the quality of products, not only organic food but also other
items when they buy from supermarkets. Consumer behavior is entangled with health-related
issues and lifestyle, environmental benefits, perceived price, trust, perceived quality, and
marketing strategy (Chowdhury et al., 2021, Arif, 2015a). Better quality needs a higher price. It
does not mean that other supermarkets like Shwapno, Meena Bazar, and Daily Shopping are
selling only low-quality products in order to keep the price low. According to Manez (2006), more
than 95% of the permanent unbeatable are poor-quality store brands. However, in a few instances,
where Shwapno does not carry a poor-quality store brand for a certain item category, it uses the
good store-brand product as a permanent unbeatable. The distinction between temporary and
permanent unbeatable was fairly clear in the supermarket- only the temporary unbeatable had
end-of-aisle displays, and their price labels merely indicated when the sale would stop. On the
other hand, the original placement of permanent unbeatable remained unchanged. Shwapno
employs the low price guarantee as an advertising tool to communicate cheap pricing intended to
entice customers into the store because it is aware of its price advantage for a certain group of
products. Due to price-cutting competition, Daily Shopping and Meena Bazar responded by
lowering their pricing, which led to lower prices for consumers overall. As a result, buyers are
purchasing these low-quality products at these low prices.
2.5 Developing Hypothesis
The literature analysis suggests that customers are perplexed by price reductions when they
purchase at supermarkets in Bangladesh's retail market. Numerous researches support the idea
that price-cutting directly affects the quality of products or competitive marketing attitudes,
which in turn affects consumer trust. Nevertheless, the level of investment capital and retailer
competitiveness determines whether price reducing is appropriate for one retailer and
inappropriate for another. Therefore, this study can be presented in the following null and
alternative hypotheses to evaluate the effect of price reducing on consumer trust in retail
supermarket industry of Bangladesh:
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Hypotheses (1)
Null hypothesis- H0: Price reductions have an impact on product quality, but they have no
impact on consumer trust.
Alternative hypothesis- Ha: Price cuts have an impact on product quality, which in turn affects
consumer trust.
2.6 Research Gap
In a competitive market, retailers are employing pricing techniques like price reduction, which
may retain customers with them in the short term. However, merchants must forge solid
relationships with customers over the long term in order to compete with others. Retailers can
add value for their customers in a variety of ways, including ―production efficiencies, resource
use, economies of scale, value engineering, and constant attention to driving down costs will
enable suppliers to lead market pricing and, if necessary, beat those who erode the key customer
base by price-cutting without necessarily selling cheap goods or forgoing their own added-
values.‖ The objective is to supply goods and services of acceptable quality at the lowest
delivered cost possible while using cost effectiveness to discourage competitors from using price-
cutting penetration techniques (Burnett, 2001). Additionally, he made several recommendations
for developing a value-driven strategy, in which value superiority is attained through providing
superior customer service to rivals. Customer perceived value in this case refers to advantages
that increase gross profits by a) enhancing performance, b) boosting sales, c) reducing costs, d)
reducing working capital requirements, and e) reducing risk; or, lowering the investment cost of
product over its lifetime by a) lowering purchasing prices, b) lowering purchase prices, c)
lowering maintenance costs, d) lowering financing costs, and e) lowering disposal costs.
Companies will easily accomplish their objectives if they are able to manufacture goods of a
reasonable quality at a reasonable cost that satisfy customers.
Price reduction may produce a good profit for a brief period of time. However, businesses must
establish a long-lasting bond of trust with their customers. Retailers won't be able to compete with
others in the future if this doesn't change. If a current market leader is unable to forge a solid
bond with their customers, it may happen to them. Thus, it is crucial to comprehend the insight
consequences and various strategies in order to use the price reduction in certain retail
enterprises. Price reductions directly affect the product (quality), price (personalized pricing),
promotion (pricing promotion), and place components of the marketing mix. Before choosing a
pricing strategy, it is necessary to evaluate each of these factors separately. The retail market
sector is influenced by pricing as well as other components of the retail marketing mix. However,
this research will only be concerned with pricing strategies, particularly price-cutting strategies,
and how they affect consumers‘ trust in the supermarket industry. As a result, this literature
review aims to comprehend the price-cutting approach and investigate the crucial factors that
influence a customer's decision to stick with a specific retailer.
3. RESEARCH METHODOLOGIES
3.1 Purpose of the Research
One of Bangladesh's largest retail segments and a significant contributor to the country's
economy is the supermarket industry. However, all big supermarkets are engaged in price war,
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which is another way of saying that they have a price-cutting program, as a result of competition
in this competitive market. The competition is causing some issues for the customers. Therefore,
the purpose of this investigation is to find out how consumers' trust in Bangladesh's supermarket
industry is affected by a policy of competitive price cuts.
3.2 Development of Hypothesis
The objective of the research and the literature review, which concentrate on the key issue of how
a competitive price reduction policy affects consumer trust in the supermarket industry of
Bangladesh, serve as the foundation for the research hypothesis. Therefore, claim (1) reads as
follows: Price reduction has an impact on product quality but has no bearing on consumer trust,
according to hypothesis (1), the null hypothesis. The alternative hypothesis is that product quality
is impacted by price reductions, which affects consumer trust.
3.3 Research Design
While both descriptive and diagnostic research are thought to be viable ways to address this
issue, descriptive research design has been primarily employed in this study to do so (Al Ahad &
Khan, 2020; Al Ahad et al., 2020).
3.4 Sampling Design
The sampling design process consists of the following stages:
3.4.1 Target population
The majority of people in Bangladesh under the age of 18 years old do not like to go shopping for
large or regular family necessities. Therefore, participants in this study must be over 18 years old
and be able to purchase for anything at a supermarket. As a result, the target population is the
customers who are at least 18 years old and reside in Dhaka city of Bangladesh in the year of
2022.
3.4.2 Sampling Frame
Dhaka, the capital of Bangladesh, is a developing city in South Asia (Ahmed et al., 2015; Khan et
al., 2018; Hossain et al., 2018). Compared to all other business sectors, the retail industry is the
most dominant. The market is fiercely competitive, and this city is home to a diverse population.
Patriotism won't have an impact on this study. Additionally, there are many grocery stores
nearby. Dhaka thus appears to be the sampling frame that best matches the target demographic
defined in this research challenge. There are four major supermarkets that were used to gather
data for this study. These supermarkets are Agora, Meena Bazar, Shwapno, and Daily Shopping.
These supermarkets‘ locations are all within 2-4 miles of one another. The facilities at each of
these branches are essentially the similar.
3.4.3 Sampling Technique
In this study, convenience sampling technique has been used as a non-probability sampling
strategy (Rahman & Arif, 2021; Rahman & Arif, 2020).
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Table 1: Sampling Plan
Supermarkets Totals
Shwapno Meena Bazar Daily Shopping Agora (25%)
(25%) (25%) (25%)
Age % Male Female Male Female Male Female Male Female
18-25 3% 4 1 0 0 1 0 0 0 6
26-30 48.5% 6 9 12 15 8 16 14 17 97
31-35 46.5% 14 15 12 9 16 9 10 8 93
36-40 2% 1 0 1 1 0 0 1 0 4
over
Totals 100% 25 25 25 25 25 25 25 25 200
Totals 50 50 50 50 200
Source: Adopted from Malhotra & Brirks (2003), Marketing Research: An Applied Approach, p. 365
3.4.4 Sample Size
According to Bangladesh Supermarkets Owners‘ Association (BSOA), there are 30 companies
with over 160 outlets currently operating in Bangladesh.
Figure 1: Number of Top Brand Retail Stores in Bangladesh
Source: Light Castle Partners Primary Research (2019)

The average number of outlets for 4 companies (Shawpno, Agora, Meena Bazar, Daily Shopping)
is (160/30) X 4= 21 Outlets. Market leader Shawpno operates 60 outlets and serves 35000
customers. Average serves (35000/60) = 583 customers.
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According to Yamane (1967), the suggested formula for sample size is
Here, N is the population's size, n is the sample size, and e is the degree of precision. The
population size in this study is (21x583) = 12,243, and the level of precision is assumed to be 0.07
These values are entered into the equation above, and the result shows that 200 sample sizes are
needed. Ullah et al. (2022) investigated the element that influences the brand image of
supermarkets in Bangladesh using a non-probability convenient sampling method and a sample
size of 120. In another study, 200 customers who usually shop in Bangladeshi supermarkets were
questioned. The sampling units were chosen using a convenience sampling technique, which took
into account the customers' accessibility and willingness to participate in the survey (Malhotra,
2007; Pervin & Khan, 2022; Rahman & Arif, 2021; Rahman & Arif, 2020). The sample size for this
study is divided into 50 equal subgroups. Similar to this, Palto (2018) conducted a study of 202
grocery food retail customers who were chosen at random from a sample of four supermarkets.
The outcomes validate the model-based linkages that have been hypothesized. The results show
that good customer loyalty, which leads to customer retention, depends on service quality, trust,
bonding, and customer happiness.
3.5 Survey Instrument
To collect data on the concerns, this research used a survey technique based on structured
questionnaires (Hossain et al., 2020) and face-to-face interviews (Malhotra, 2019) with
supermarket patrons (Khan et al., 2019; Khan & Roy, 2022). When compared to alternative
methods like mailing, calling, or using the Internet, face-to-face interviews need less time to
complete questionnaires. In order to get a better response, we can either explain the questions to
the customers for their comprehension or ask related questions as needed.
3.5.1 Questionnaire Design
For this study, a questionnaire with fifteen questions was broken up into three pieces. In the first
segment, respondents' personal data, including name, gender, age, as well as some details on
their grocery store spending, were collected. These questions' responses aid in identifying the
respondents' traits (Khan & Rammal, 2022). A literature review forms the foundation of the
second segment. It contains elements like pricing, how it affects a customer's decision to buy at a
supermarket, the supermarkets' perspective on a price-cutting strategy, which aspect of price and
goods has the highest priority with customers, and the degree to which customers are satisfied
with the supermarkets. The final portion deals with customers' perceptions of the price reduction
program going forward, their trust in the items, and any product return experiences. The final
query solicits ideas or alternative practices that supermarkets might implement in place of price
reduction. This is an open-ended inquiry to learn more about consumer preferences.
3.6 Pilot Study
A thorough pretest is required for a survey to be successful (Rahman & Arif, 2021). In order to
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pre-test this questionnaire, it was given to 15 participants in this study. It is evident from their
responses that the questionnaire is appropriate, simple to grasp, and unambiguous. In case it
wasn't clear to the responders, it has been explained to some customers whose primary language
is not English.
3.7 Generalizability, Validity, and Reliability
As a result, it's crucial to confirm that each scale is accurate with a specific sample. The
Cronbach's alpha coefficient, which is the most crucial number in terms of reliability, should be
above 0.7 in order to be regarded as reliable with a sample (Pallant, 2020; Khan et al., 2018).
Table 2: Reliability by using SPSS
****** Method 1 (space saver) will be used for this analysis *****
RELIABILITY ANALYSIS- SCALE (ALPHA)
Mean Std. Dev Cases
1. AFFECTION 1.0750 .2641 200.0
2. SATISFAC 2.7650 .6178 200.0
3. TRUST 1.6150 .5988 200.0
4. REFUND 1.0900 .2869 200.0
5. AGREE 1.0450 .2078 200.0
Statistics for Mean Variance Std. Dev N of Variables

SCALE 7.5900 2.2130 1.4876 5
Item-total Statistics
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
AFFECTION 6.5150 1.7586 .5493 .6769

SATISFAC 4.8250 1.0898 .5748 .6558
TRUST 5.9750 1.1300 .5690 .6526
REFUND 6.5000 1.7186 .5478 .6714
AGREE 6.5450 1.8774 .5134 .6996
Reliability Coefficient
N of Cases 200.0 N of Items = 5 Alpha = .7216
=
Source: Field Study
Implementing this concept to this research gives an Alpha value is 0.7216, that is above 0.7. In
light of the sample, Cronbach's alpha coefficient of this research tool is regarded as credible.
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3.8 Data Collection and Analysis Methods
In this study, data are gathered by questionnaire surveys, and data are analyzed using statistical
techniques such the mean, cross-tabulation, frequency distribution, and chi-square test. For
statistical calculation and measurement, utilize the SPSS application (Hossain et al., 2020). Also
mentioned is the fact that this research was carried out with a 95% degree of confidence. With an
alpha of 0.05, there is a 5% chance of Type I error (alpha error). Therefore, this level of confidence
serves as the foundation for all statistical measurements.
4. DATA ANALYSIS AND FINDINGS
In this article, the survey data are presented along with explanations of how they were
interpreted, along with any significant correlations and patterns that were discovered using
various statistical and mathematical methods. Three sections containing the data have been given.
The features of this sample are examined first, after which the dimensions of several variables that
are affected by price-cutting are examined, and effects on trust are hypothesized.
4.1 Sample Characteristics
The sample in this study includes individuals from four different stores—Meena Bazar, Shwapno,
Daily Shopping, and Agora—as well as a range of ages and genders.
Table 3: Frequencies of Various Supermarkets
Supermarkets Frequency Percent Valid Percent Cumulative percent
Shawpno 50 25.0 25.0 0
Meena Bazar 50 25.0 25.0 25.0
Daily Shopping 50 25.0 25.0 50.0
Agora 50 25.0 25.0 75.0
Total 200 100.0 100.0 100.0
Source: Field Study
Table 4: Frequencies of Age
Age Range Frequency Percent Valid Percent Cumulative percent
18-25 yrs 6 3.0 3.0 3.0
26-30 yrs 97 48.5 48.5 51.5
31-35 yrs 93 46.5 46.5 98.0
36-40 yrs 4 2.0 2.0 100.0
Total 200 100.0 100.0
Source: Field Study
Table 5: Frequencies of Sex (Gender)
Frequency Percent Valid Percent Cumulative percent
Male 100 50.0 50.0 50.0
Female 100 50.0 50.0 100.0
Total 200 100.0 100.0
Source: Field Study
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Each supermarket accounts for 50% and 25% of the total. Table 4's breakdown by age indicates
that consumers between the ages of 18 and 26 make up 3, 48.5, 46.5, and 2% of the total, while
Table 5's breakdown by sex (gender) reveals that both men and women make up 50% of the total
respondents. There are a total of 200 respondents in this sample.
Table 6: Case Processing Summary
Cases
Valid Missing
N Percent N Percent N Percent
Sex*Age 200 100.0% 0 0% 200 100.0%
Source: Field Study
Table 7: AGE * SEX Cross Tabulation
Count Age
Sex 18-25 Years 26-30 Years 31-35 Years 36-40 Years Total
Male 5 40 52 3 100
Female 1 57 41 1 100
Total 6 97 93 4 200
Source: Field Study
Assessing Normality
Table 8: Tests of Normality
Kolmogorov-Smirnov1
Sex Statistic df Sig.
Stores Male .172 100 .000
Female .172 100 .000
Source: Field Study
The significant value .000 for each group is shown in table 8. Despite being below the non-
significant value (significant value over .05), it suggests that the assumption of normality has been
violated (Pallant, 2020).
The Measure of Statistical Significance
Table 9: Statistical Significance
Descriptive Statistics
N Mini Maxi Mean Std. Skewness Kurtosis
mum mum
Statis Statist Statist Statist Statist Statist Std Statist Std
tic ic ic ic ic ic Error ic Error
Sex 200 1 2 1.5 .59 .000 .172 -2.020 .342
Age 200 1 4 2.48 .59 -.049 .172 -.440 .342
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Valid N 200
(List
wise)
Source: Field Study
In table 9, negative skewness values show a concentration of high-scoring scores, whereas
kurtosis values below zero indicate a categorization that is, in other words, relatively flat (Pallant,
2020).
Table 10: CHOICE * TRUST Cross tabulation
TRUST
Less Trust Confused Trust Total
Count 3 12 8 23
Price
Expected Count 10.2 11.4 1.4 23.0
Choice
Count 86 87 4 177
Quatily
Expected Count 78.8 87.6 10.6 177.0
Count 89 99 12 200
Total
Expected Count 89.0 99.0 12.0 200.0
Source: Field Study
In this table 10, consumers who make a status-based purchase are less likely to trust supermarkets
(86 actual compared to 78.8 predicted if there were no connections), are more likely to be
perplexed (87 physical compared to 87.6 a few differences), and place more value on character (4
actual, 10.6 anticipated). There is undoubtedly a big difference.
4.1.1 Chi-Square Tests
In this analysis, a Chi-square test is used to assess the mathematical significance of the
intersection of two independent variables— consumer trust ratings and price and quality.
Table 11: Chi-Square Tests
Value df Asymp.sig (2-sided)
Pearson Chi-Square 66.064a 2 .000
Likelihood Ratio 35.042 2 .000
Linear-by-Linear Association 32.803 1 .000
N of Valid Cases 200
a. 1 cell (16.7%) has expected count less than 5. The minimum expected count is .90.
Source: Field Study
According to this chi-square test, there is a substantial difference between the respondents'
choices and their level of trust in supermarkets as places to shop (chi-square = 66.064, df = 2, P=
0.000).
4.1.2 The measure of effect size- Phi
However, because the strength of the link, effect, or differences is largely dependent on the
sample size, the significance level or lower P-value does not accurately reflect their strength. The
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effect size mentioned above resolves this issue. By taking the square root of the computed value
of the chi-square and dividing it by the total sample size, the effect size for the chi-square test,
also known as Phi, is determined. Effect size is quantified between 0 and 1, with 0 denoting no
relationship and 1 denoting an ideal positive relationship. Therefore, the closer to ‗1‘ the link is,
the stronger it is. Sometimes, the cut-off values of <0.1 Weak, <0.3 Modest, < 0.5 Moderate, < 0.8
Strong >0.8 very strong (Muijs, 2004).
Tests between Subjects Effects
Table 12: Dependent Variables Affect on Quality
Source Type III Sum df Mean F Sig Partial Eta
of Square Square Square
Corrected Model 4.583a 2 2.292 48.585 .000 .330
Intercept 133.528 1 133.528 2831.001 .000 .935
TRUST 4.583 2 2.292 48.585 .000 .330
Error 9.9292 197 4.717E-02
Total 245.000 200
Corrected Total 13.875 199
a. R Squared = .330 (Adjusted R Squared = .324)
Source: Field Study
According to table 12, the following is the effect size: The sample size excluding all the missing
values is 200, and the Pearson Chi-square is 41.700. The Chi-square value is divided by the sample
size, which is 66.064/200, yielding a result of 0.2085 and a square root of 0.33032. Therefore, the
research's association is 0.5, which is moderate (close to ‗Modest‘).
Table 13: Dependent Variable REFUND
Source Type III Sum df Mean F Sig Partial Eta
of Square Square Square
Corrected Model 5.788a 2 2.894 53.821 .000 .353
Intercept 141.027 1 141.027 2622.873 .000 .930
TRUST 5.788 2 2.894 53.821 .000 .353
Error 10.592 197 5.377e-02
Total 254.000 200
Corrected Total 16.380 199
a. R Squared = 353 (Adjusted R Squared = .347)
Source: Field Study
According to Muijs (2004, p-195), an effect is small if Eta Squared is 0–0.1, modest if it is 0.1–.03,
moderate if it is 0.3–0.5, and large if it is >0.5. As a result, the Partial Eta Squared for the two tests
is .33 and .35, respectively, which is a moderate effect. Over the course of these experiments, the
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refund variable had a greater impact than the individual's perception of price reducing and its
impact on product quality.
4.2 Trust-Related Factors
In this section, I've looked into all the survey data as well as the various elements that can either
directly or indirectly affect a customer's level of trust. Specifically, question 13 assesses how much
customers trust supermarkets. Then, question 9 asks about an individual's opinion on price
competition and product quality, and question 13 (which is a subset of the main question) deals
with customers' experiences receiving refunds within a month. The answers to a few additional
questions are relevant to the primary one. Finally, verses 14 and 15 deal with preference and
belief.
Table 14: Trust Related Factors
TRUST
Frequency Percent Valid Percent Cumulative Percent
Valid Less Trust 89 44.5 44.5 44.5
Confused 99 49.5 49.5 94.0
Trust 12 6.0 6.0 100.0
Total 200 100.0 100.0
Source: Field Study
Table 14, It demonstrates that only 6% of customers have confidence in their supermarkets, while
49.5% are unsure or have no other options, such as a store's proximity to a residence or a
convenient location. And 44.5% of consumers have no faith in supermarkets. The price-cutting
approach has an impact on 47% of customers, who primarily shop at supermarkets for the low
costs. The availability of goods, such as a larger selection of products and 40.5% longer operation
duration, is another important factor. And only 3% of shoppers who shop at supermarkets believe
the goods there are of higher quality. The customer's perception of the price-cutting policy is the
only additional significant variable. According to 92.5% of consumers, price competition
undoubtedly affects product quality. Only 7.5% of consumers believe it has no impact on the
product's quality. There is a big disparity in their perspectives on this.
89.5% of consumers believe the price is too high for the projected product quality, while 88.5% of
customers are interested in product quality rather than product price. Their anticipated product
quality needs to be a little better than the going rate for the goods. Another important
consideration for the customer is the refund experience. Trust in supermarkets is eroded by
refund experiences. The majority of customers (91%) have had negative refund experiences,
particularly when it comes to product qualities like ‗damaged‘, ‗not durable products‘, ‗cannot
use‘, ‗out of date products‘, etc. Because of this, 84.5% of consumers think they will not gain from
future price-cutting efforts. 95.5% of customers concur that supermarkets should maintain their
prices while raising the standard of their goods.
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Table 15: Factors Influencing Consumers' Trust
Trust Total Total
Less trust Confused Trust
Price 18.0% 25.0% 4.0% 47.0%
Q7 Quality 1.5% 1.5% 0% 3.0% 100%
Main Available 19.0% 19.5% 2.0% 40.5%
reasons
Location 6.0% 3.5% 0% 9.5%
Q9 Yes 44.0% 46.5% 2.0% 92.5%
Affect on 0.5% 3.0% 4.0% 7.5% 100%
No
quality
Q 11 Price 1.5% 6.0% 4.0% 11.5%
Choice Quality 43.0% 43.5% 2.0% 88.5% 100%
Q 11 Yes 0.5% 5.0% 5.0% 10.5%
Right price No 44.0% 44.5% 1.0% 89.5% 100%
Average not satisfied 23.0% 10.5% 0% 33.5%
Q 12 Satisfied 21.0% 34.0% 1.5% 56.5% 100%
Satisfaction Average satisfied .5% 5.0% 4.5% 10.5%
Q 13 Yes 44.0% 45.5% 1.5% 91.0%
Refund No 0.5% 4.0% 4.5% 9.0% 100%
Q 14 Yes 2.0% 8.0% 5.5% 15.5%
Future No 42.5% 41.5% .5% 84.5% 100%
Q 15 Yes 44.5% 47.5% 3.5% 95.5%
Agree No 0% 2% 2.5% 4.5% 100%
Source: Field Study
4.3 Testing hypotheses
The following is the hypothesis of the study:
H1: Price reductions have an impact on consumers' trust in traditional supermarkets.
Null Hypothesis- H0: Price reductions have an impact on product quality, but they have no
impact on consumer trust.
Alternative Hypothesis- Ha: Price cuts have an impact on product quality, which in turn affects
consumer trust.
Table 16: Testing Null Hypotheses (Chi-Square Test)
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 66.064 a 2 .000
Likelihood Ratio 35.042 2 .000
Linear-by-Linear Association 32.803 1 .000
a. 1 cell (16.7%) has expected count less than 5. The minimum expected count is .90.
Source: Field Study
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Table 17: Case Processing Summary
Cases
Valid Missing Total
Affect on Quality* TRUST 200 100.0% 0 0% 200 100.0%
Source: Field Study
4.3.1 Statistical Independent
By determining how likely it is that the sample's level of statistical independence is not merely the
result of chance. The null hypothesis is thus disproved. Since there are less than 5 chances in
10,000 that the correlation will occur, the likelihood ratio of.000 does not accurately depict the
relationship between the effect on quality and trust. The null hypothesis can therefore be rejected.
4.3.2 Chi-square test
The value of the chi-square test is influenced by the degree to which two variables are reliant on
one another, even though it is not a measure of connection. The Chi-square value in this study's
SPPS Table-4.9 (B) is 66.064, the degrees of freedom are 2 and the probability value is 0.000. P-
value for this study is .000. Where P.0005 because SPSS rounds up to the nearest thousand if the
fourth digit of the P value is five or greater (P =.001). There are 5 chances in 1000 that the outcome
is the result of chance, which is the critical chi-square value of 10.597. The chi-square values in
this study, however, are substantially higher than the critical value.
Table 18: Critical Value of Chi-Square
The Chi-square distribution
Degree of freedom (Alpha α)
0.90 0.10 0.05 0.005
1 0.016 2.706 3.841 7.879
2 0.211 4.605 5.991 10.597
3 0.584 6.251 7.815 12.838
Source: Adopted from Bluman, A. G., 1992, p. 542, table G, (Cited from Donald B. Owen,
Handbook of Statistics Tables, 1962, Addison-Wesley Publishing Co., Reading. Massachusetts)
The critical value of Chi-square is connected to a 0.05 alpha level, where 5 chances in 100 that the
statistical dependencies in the sample are accidental are required to reject the null hypothesis.
Therefore, the crucial Chi-square value at.05 is 5.991 (Bluman, 1992). The outcome of this study
goes much beyond a value of.5991. Therefore, there is sufficient data to rule out the null
hypothesis.
The alternative hypothesis is accepted and the null hypothesis is rejected in the case of the
relationship between the effect on product quality and consumer trust in retail supermarkets. The
correlation between the influence on product quality and consumer trust in the sample is
extremely likely to reflect a connection between these variables in the consumers of the
supermarkets since there is enough evidence to rule out the assumption that the association
observed in samples is the result of chance.
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4.4 Findings Synopsis
The features of the sample in this study are indicative of the populations, distributed as
consumers and stores, according to all data gathering and survey results. However, because older
age groups have greater shopping experience at supermarkets, their levels of trust vary. Those
over 30 years old have significantly more experience than those under 30 years old. Additionally,
according to the survey, the majority of customers are unclear about the pricing policies of
supermarkets as well as other internal elements that should be considered.
Shopping at supermarkets is occurred for a variety of reasons, including cost, value, accessibility,
and location. Only 47% of people purchase at supermarkets for the cheaper prices, yet 25% of
those 47% are unsure what lower prices mean. 92% of respondents to this study's key attribute,
effect on quality, said they believed price reductions would have an impact on product quality. A
little less than half of the 92% of customers are perplexed. This figure is in the middle, where it
can shift to a more or less trusted position depending on how they feel about the caliber of their
goods or services.
88.5% of customers want high-quality products. It indicates that consumers demand goods of a
respectable quality. The majority of clients lack trust or are perplexed among those seeking
quality. Therefore, supermarkets have failed to provide their clients with products of a
satisfactory quality. The poor refund experience, which is also a fact to the trust, is another
important reason. Most of them have had horrible luck with refunds due to poor product quality.
91% of customers have had this experience, which will undoubtedly have an impact on their
future grocery store purchases.
Some customers argued that price reductions lead to more waste. One may be required by
customers, but the other won't be needed for a while (Buy one and get another one at a lower
price.). They become irresponsible toward both buyers and sellers as a result. The majority of
customers (about 84.5%) think that price reductions will not help them in the long run. And 95.5%
of customers concur with my ideas regarding a different approach that supermarkets may use to
maintain prices while enhancing quality.
Between the refund experience and personal view of price cutting effect on product quality effect
by the effect size (Eta Squared) both have a moderate effect on trust. Finally, it can be concluded
that their personal view of a product's quality (affected by price cutting) is one of the main factors
in the consumers' trust. In light of this analysis, the test of hypothesis reveals that the alternative
hypothesis, according to which the influence of price cuts on product quality and on consumer
trust, is accepted.
5. MANAGERIAL IMPLICATIONS
This study informs marketers by illuminating the connection between competitive price-cutting
tactics and consumer trust. The findings of this study will aid marketers in setting prices in the
Bangladeshi retail industry. Retail supermarkets should benefit from this research's
recommendations for better pricing strategies.
This study will assist the marketer in deciding on the price of their product due to the recent
growth in supermarket branch locations and increased supermarket competition. The
development of product features requires further research, which is expensive and requires
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additional money. Therefore, marketers must carefully balance the value provided to customers
with profit or return on investment.
6. CONCLUSION
Particularly in Bangladesh, retailers (supermarkets) have significantly boosted the nation's
economy. In this industry, employees and store expansion are both rising. The cultures and
relationships between merchants and customers are impacted by their competitive marketing and
expansion initiatives. Competition is another reality. There is continual competition among the
supermarkets to seek cost leadership by reducing product prices. And the level of
competitiveness is rising daily. To keep the customers, many marketing methods are used. By
lowering prices, retailers are adding value for customers.
The current top priority for supermarkets is price reduction rather than product attributes. The
majority of them market branded and items with diverse labels. However, their own label
products, where there may potentially be a quality variation, have prices that are nearly identical
across supermarkets for branded goods. In addition to price and product quality, the ‗offer‘ also
includes a variety of advertising tactics, service, and availability. Together, they give the customer
more value. Therefore, all different kinds of prices, including supplier costs, distribution costs,
seasonal availability, sales rates, and own retailing costs, have an impact on pricing. The pricing
strategy also heavily depends on promotional activities. The majority of supermarkets offer the
products in a variety of methods, including full allowance for all promotions, partial allowance
that directly results in lower prices, and no allowance at all for promotions.
This price cut degrades the quality of the product. The majority of clients have had negative
return experiences, which shows that they are dissatisfied with the caliber of the goods. Bad
incidents of this nature are becoming more prevalent every day. Thus, based on the quality of the
goods, trust is also diminished.
According to the assessment of the literature, relationship marketing for merchants requires a
high level of trust. The necessity to establish a long-term relationship between customers and
supermarkets is supported by a variety of theories and factors connected to relationship
marketing. Although other elements also affect the supermarket's capacity to keep customers and
keep them satisfied, trust is not the sole factor in retaining customers for a long time. In order to
operate the business and maintain their place in the market, supermarkets must turn a profit.
However, as customers are a company's greatest asset, it is crucial that they comprehend their
wants and properly incorporate them into the supermarket brand.
It is abundantly obvious from this study that price competition has an impact on product quality.
Customers desire fair prices and products of acceptable quality, but they don't believe they are
getting those products. Therefore, their trust is impacted by this. To accomplish the goals of this
project, the research method began with a survey of 200 Bangladeshi retail customers. The
questionnaire is created using the literature study and the data analysis techniques' estimate
of.7216 for the reliability of the research questions. The following findings were obtained from the
collected data using frequencies, cross tabulation, a measure of effect, and a chi-square test to test
the validity of the hypothesis:
Null Hypothesis- H0: Price reductions have an impact on product quality, but they have no
-300-
impact on consumer trust. And, Alternative Hypothesis- Ha: Price cuts have an impact on product
quality, which in turn affects consumer trust.
The null hypothesis was disproved in this case. Most respondents to customer surveys concurred
that lowering prices has an impact on product quality or other aspects. Customers believe that
price reductions should damage the quality and, as a result, have less faith in supermarkets. The
effect on quality is a rather high 92.5%, accounting for 44% of this high score. It would follow that
price reductions play a significant role in influencing customer trust. As a result of increased price
reducing tactics brought on by supermarket competition, this supports the idea that daily price
cuts undermine consumer trust.
By lowering product prices, competition amongst supermarkets, particularly in Bangladesh, adds
value for the consumer. However, their rivals, such as other companies like branded apparel
stores or tiny neighborhood retail stores, are also having difficulties. These supermarkets may
provide employment prospects through business expansion, but other local retailers and their
staff are losing jobs as a result of their strong rivalry. As a result, while rivalry among these
supermarkets in Bangladesh will benefit them financially, it won't benefit customers, which will
have an impact on the entire economy.
Finally, the examination of the data showed that price reductions have an impact on product
quality, which in turn affects consumer trust. The literature review also validated the relationship
marketing trust aspects in supermarkets. Because trust in Bangladeshi supermarkets is a key
component in developing a long-term relationship with the client, the problem definition and
study objectives can be supported.
7. LIMITATIONS OF THE RESEARCH

Despite all of the efforts made in this study, some of its drawbacks are as follows:
Location- The research was carried out in the heart of Dhaka city. Supermarkets had all of their
locations, including ones outside of the capital. Although shopping is a universal activity, the
traits, actions, and perspectives of samples from Dhaka city may differ from that elsewhere.
Customers' purchasing power- To shop, one needs to have the means to do so. However, it is not
stated in this study because most buyers can afford the lower product pricing. Typically, it relies
on the kinds of goods people intend to purchase. Nowadays, the majority of supermarkets carry
devices that may be expensive but are not as expensive as brand stores.
Dedication and others - It has been stated that commitment and trust are key elements of
relationship marketing. The scope of this study could be limited by additional marketing cues like
the place factor. However, this study did not compare with other marketing stimuli because of the
word count restriction. Younger customers—It should be noted that the sample characteristics are
from consumers above the age of 18, but those under the age of 18 also buy at supermarkets, with
the majority of them being more focused on cheaper prices than on product quality.
SPSS-The chi-square test and a lower P-value do not suggest a strong link, hence metrics of the
relationship's strength may not be included in SPSS.
Chi-square - When using contingency tables, Chi-square should not be utilized if the frequency for
one or more cells is less than 5.
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Trust facts- Less trust, bewilderment, and trust in supermarkets are used to explain the trust
component in this study. According to the survey, this grade is between ‗1‘ and ‗3‘, but not
higher. Because it's the bare minimal level of trust, customers purchase at supermarkets, ‗less
trust‘ is utilized here instead of ‗no trust‘. Confusion can also be attributed to ‗no choice‘, as these
customers only purchase from stores that are close to their homes and have the things they need
(available products on a shelf), or other factors.
8. FURTHER RESEARCH OPPORTUNITIES

It is advised to include the following additional criteria in order to have a clearer image and
better understanding of consumer trust in relation to Bangladeshi retail supermarkets:
In Bangladesh, the retail supermarket industry is larger than other industries. Therefore, a larger
sample size would provide a clearer picture of the association between price competition and
customer confidence.
Every element of the marketing mix has an impact on consumer behavior or trust (Arif, 2017).
Another crucial marketing mix that needs to be considered in additional research is the location.
This will enable marketers to compare and choose between increasing branch locations and
setting prices based on long-term customer relationships.
Relationship marketing components trust and commitment, which were discussed in the research
review, are also crucial. Therefore, it should be taken into account in further study to better
comprehend the effect of price lowering in order to acquire a clear sense of the effect of price
cutting.
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Small and Medium Enterprises (SMEs) Financing Through One

Semi-Formal Sector Bank and Five Formal Sector Banks to Create
Entrepreneurs: An Empirical Study
Nawazeesh Muhammad Ali a*, Wanakiti Wanasilpb
a&bInternational Political Economy and Development (IPED), Rangsit University, Pathum Thani, Thailand
E-mail: nawazeeshmuhammadali111@gmail.coma, wanakiti@rsu.ac.thb
Abstract
Small and medium enterprises are a pivotal key to the socio-political-
economic development of developing countries like Bangladesh. Today PAPER/ARTICLE INFO
SMEs contribute to lump sum of Bangladeshi exports contributing to RECEIVED ON: 28/10/2022
higher national income. SMEs have also reduced poverties through ACCEPTED ON: 24/11/2022
creating job opportunities in the country. Thus, it is crucial to study the Reference to this paper
financing and investment on the SMEs through both the semi-informal should be made as follows:
sector such as Grameen Bank a non-scheduled bank and formal sector
which includes a number of scheduled commercial banks offering SME Ali, Nawazeesh
banking facilities. Research question of the study is whether Grameen Muhammad & Wanasilp,
Bank and commercial banks through financing SME sector can help to Wanakiti (2022), “Small and
attain financial deepening to create entrepreneurs which in turn reduce Medium Enterprises (SMEs)
poverty in Bangladesh? The study has chosen Grameen Bank and five Financing Through One
Semi-Formal Sector Bank
commercial banks and used quantitative analysis to see their impacts on
and Five Formal Sector
the socio-political-economic development in Bangladesh by creating
Banks to Create
entrepreneurs through SME financing. As such empirical analyses Entrepreneurs: An
through econometric methods are being used. Results were found mostly Empirical Study”,
to be significant, thus both the formal and semi-formal sectors are International Journal of Trade
successful in developing the nation through entrepreneurship creation by and Commerce-IIARTC, Vol.
SME financing. There are wider scopes to develop SME sector in 11, No. 2, pp: 308-351.
Bangladesh through appropriate financing to create entrepreneurs thus
reducing poverty as suggested by the authors.
Key Words: SME Financing, Poverty Reduction, Financial Sector,
Development Economics, Political Economics, Entrepreneurship,
Grameen Bank, Commercial Bank, Women Empowerment, Econometric
Methods, Economic Growth.
DOI: 10.46333/ijtc/11/2/3
Small and Medium Enterprises (SMEs) Financing Through One Semi-Formal Sector Bank and Five Formal...………...
Nawazeesh Muhammad Ali, Wanakiti Wanasilp
1. INTRODUCTION
Financial sectors‟ development is a wide varying and expanding procedure through which
financial organizations can deliver diversities of facilities and tools to the country that aimed at
well-organized conversation of belongings besides existing, innovative and creative facilities.
Todaro, & Smith (2012) described that development economics considers adding to existence of
the well-organized distribution of current unusual fruitful resources and through their
continuous advancement over the time period, its necessity arrangement by the economic, social,
political, and institutional actors, together public and private sector, essential to carry out around
quick and significant enhancements in stages of living for the peoples of multifarious countries.
They also argued that political economy is the effort of combining economic investigation with
practical politics so that opinion of economic movement can be cutting-edge to the condition at an
inflexible situation. This helps to reduce poverty, lowering income inequalities and also provides
assistance to attain social justice which may be earned through growth with equity. As a resultant
factor macro-economic scenario of an emerging economy is meticulously related to the financial
stability of a country for which financial development can lead to transformation through political
economy and economic development. Not only financial inclusion but also it relates to economic
development of a country like Bangladesh. As a subsequent influence, financial sectors‟
development led to economic development as strong and proper utilization of political economy
and to lead to macroeconomic stability of a country like Bangladesh. Macrotrends (2022) showed
that prior to the onset of COVID-19 pandemic, Bangladesh reached the zenith of Economic
Growth in 2019 with an economic Growth rate of 8.15%. Chowdhury, & Salman (2018) depicted
that the service and manufacturing sub-sectors in SMEs in Bangladesh were taking partial entree
to disburse loans through diverse sorts of financial institutions, which sustenance them.
In Bangladesh, banking sector as a whole has expanded its business horizon to diversified areas
of banking and catering demand of clients. Given the importance of the financing SME sector, the
study is focusing heavily to build entrepreneurs through reduction of poverty, women
empowerment and financial inclusion. As a result of financial deepening has been occurring.
Khalily et al. (2019) argued that the government of Bangladesh identifies the character of small
and medium enterprises (SMEs) in economic growth, restructuring of income and job creation
subsequent methods similar the part of expansion method, bunch of expansion method, and
females‟ entrepreneurship expansion method and more than 98 percent of the enterprises in
Bangladesh are SMEs. Khuda(2019) depicted that Bangladesh takes extraordinary development
in falling poverty, maintained by continued economic growth and poverty line of $1.90 per
person per day, poverty declined from 44.2 percent in 1991 to 13.8 percent in 2016/17. He opined
that life expectancy, literacy rates and per capita food production improved meaningfully and
advancement was supported by 6 percent plus growth over the decade and reaching to 7.3
percent in 2016/2017and as such profligate growth allowed Bangladesh to reach the lower
middle-income country rank in 2015.
According to Bangladesh Bank, which is central Bank of Bangladesh (viewed on 10th October,
2022) Grameen Bank of Bangladesh is a semi formal bank like other non-Government
organizations. Moreover, out of 5 non-scheduled banks in Bangladesh, Grameen bank is one of
them for which the study chooses Grameen Bank for the study. Bangladesh Bank (viewed on 1st
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Small and Medium Enterprises (SMEs) Financing Through One Semi-Formal Sector Bank and Five Formal…………
Nawazeesh Muhammad Ali , Wanakiti Wanasilp
October 2022) also noted that in the country presently total 61 scheduled banks are prevailing out
of which the study took 5 commercial banks as a sample size. Both type of scheduled and non-
scheduled banks was considered for their activities and deliveries in the SME sectors of the
country to attain economic development with the framework of political economy of the country.
Financial deepening denotes towards augmented delivery of financial facilities by a broader
optimal facility pitched towards entirely diversified areas of the culture. Although Grameen
Bank was started informally in the village of Jobra, Bangladesh, in 1976 by Dr. Yunus but in 1983
it was established in the semi-formal sector in the year 1983. Grameen bank is a widespread and
foremost prototypical of the country‟s microfinance system. Grameen bank arrangements take be
situated increasing profligate besides talented to spread lowest deprived section of the country.
As such the study shows Grameen Bank on Poverty reduction and Financial Stability: A
conceptual framework has been shown in Chart: 1 below:
Chart 1: A Conceptual Framework of Grameen Bank
Technology transfer, Viability and Beneficiaries

develop human Sustainability of purchasing power may
resources through beneficiaries through rise and accumulation
appropriate training and reducing poverty and towards micro
small-scale credit creating employment foundation of the macro
management. opportunities. economy.
Connecting savings with Requires monitoring Responsibility to the

credit and investment and supervision with whole thing in
channeling. modest and relaxed conceivable to
trails so that guarantee the
borrowing amount organization‟s financial
can be appropriately stability.
used.
Found significances to Confine credit to the Preparing semi-formal

act the beset income generating groups members from
community who is activities to the td similar societal
mostly poverty prone beneficiaries for related people.
people. wellbeing of them.
-310-
Credit officers of the Provide funding to If any sort of

bank tried to the beneficiaries to do misunderstanding arises
disseminate small and medium between Grameen bank
knowledge and skill scale of business and and personnel and
for the beneficiaries. use plan-do-check-act beneficiary, then it
should be solved
mutually.
Creation of Entrepreneurship
Source: Prepared by the authors based on grameenbank.org

Below the study was prepared a conceptual framework of commercial bank‟s SMEs credit model
in Chart 2.
Chart 2: Conceptual Framework of Commercial Bank’s SMEs Credit Models
SME Loan Commercial Banks

Management
Customers (SMEs) System of a
Commercial Bank Dealing Office
Head Office
Branch
1. Apply for 1. Monitoring of 1. Analysis of SME:

SME Loans SME Loan Documents 1. SME loan entry
2. SME Loan Repayment with SME loan 2. Analysis of
Query 2. SME Loan Status proposals. documents
3. SME Loan 3. Change in 2. Provide 3. Credit risk
required Financial Status approvals/san analysis and debt
Documents 4. If SME Loan is ctions burden ratio
4. SME Loan unclassified then it 3. Entry in the 4. Collect CIB
Repayment will not be a database/Entr report for past
Mode burden for y in the CIB credit history of
5. SME Loan Bangladesh report SME loan
Status bank/government
borrower
5. SME financing
by the Commercial
bank
Creation of Entrepreneurship
Source: Prepared by the authors‟
Note: Debt Burden Ratio (DBR) = (Equated monthly installment (EMIs) + Credit Limit)/(Income) x 100
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The Five selected Commercial Banks and their Very Brief Description:
I. Sonali Bank Limited
It was established as a nationalizedstate-owned commercial bank a year post independence in
1972. This is the largest bank of Bangladesh. One of the main issues to develop economy of the
country is through SME banking for poor income stratum. Their mission and vision are as
follows:
Vision:
Socially committed leading banking institution with global presence.
(Source: https://www.sonalibank.com.bd/)
Mission:
Dedicated to extend a whole range of quality products that support divergent needs of people
aiming at enriching their lives, creating value for the stakeholders and contributing towards
socio-economic development of the country.
(Source: https://www.sonalibank.com.bd/)
II. South East Bank Limited
It was established as a private commercial bank in 1995.They also do SME banking in the
Bangladesh. Their vision and mission are as follows:
Vision:
To become a pioneer banking institution of the country and contribute significantly to the growth
of the national economy.
(Source: https://www.southeastbank.com.bd/)
Mission:
To create and generate an environment of trust and discipline that encourages and motivates
everyone in the Bank to work together for achieving the objectives of the Bank. A commitment to
quality and excellence in service is the hallmark of their identity.
(Source: https://www.southeastbank.com.bd/)
III. Islamic Bank Bangladesh Limited
It was established as the first Islamic Bank in South Asia in 1983. Their mission and vision are as
follows:
Vision:
To always strive to achieve superior financial performance, be considered a leading Islamic Bank
by reputation and performance.
Mission:
To establish Islamic Banking through the introduction of a welfare-oriented banking system and
also ensure equity and justice in the field of all economic activities, achieve balanced growth and
equitable development in through diversified investment operations particularly in the priority
sectors and least developed areas of the country.
(Source: https://www.islamibankbd.com/)
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IV. Rupali Bank Limited
It was established as a public commercial bank in 1972.The bank developed as the largest Public
Limited Banking Company on December 14, 1986. Following are the bank‟s vision and mission:
Vision:
To expand their loyal customer base by being known as the financial partner of choice that
constantly exceeds customer expectations.
Mission:
Uphold ethical values and meet banks customer‟s financial needs in the fastest and most
appropriate way and continue innovative works in order to achieve human resource with
superior qualities, technological infrastructure and service packages
(Source:https://rupalibank.com.bd/)
V. Uttara Bank Limited
Though it was established as one of the public banks in 1972 but denationalized in 1983. It has no
specified mission or vision statement.
At present the bank has 245 branches and 21 sub-branches all are under online network. In
addition, its effective and diversified approach to seize the market opportunities is going on as
continuous process to accommodate new customers by developing and expanding rural, SME
financing and offshore banking facilities. Besides these traditional delivery points, the bank is also
very active in the alternative delivery area.
(Source:https://www.uttarabank-bd.com/)
2. L ITERATURE REVIEW
Shaw (1973) observed that the financial sector of an economy doesn‟t matter in economic
development where his theory based on two important factors “Financial repression” and
“financial liberalization”. Galbis (1977) opined that high real interest rates are
development‐ endorsing, smooth if total real savings is interest insensitive since they carry
around an upgrading in the fineness of the capital stock with a sound clear wisdom.
McKinnon, & Pill (1996) argued that better-quality banking rule with higher capital and
reserve necessities might assistance and Controls on cross-border activities of financial
capital are one suitable tool. Morduch (1999) opined that the variety of advanced devices
out their group-lending agreements, the dimension of financial sustainability, the
approximation of economic and social influences, the expenses and assistances of
subsidization, and the possible to decrease poverty over savings plans somewhat than
reasonable advances. Fry (2000) depicted that financial repression is a predominantly
destructive quasi-tax from the viewpoint of economic progress. Quoting Stubbs, & Underhill
(1999) “We need to focus on determining the political constituencies that need to be challenged in
order to correct the balance of costs and benefits of aspects of global economic integration,
particularly the problem of inequality and poverty.” Papa et al. (2006) observed that “The
Grameen Bank implementing the microfinance system by which people were able to take small
amount of collateral free flexible loans and use them for income generation to uplift themselves
from poverty.” Bayulgen (2008) opined that in the Grameen Bank model the prevailing
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microcredit-and extra generally the microfinance-literature to outline the conducts in which
microcredit can subsidize to the political consciousness and involvement of the deprived, i.e.,
their political enablement. Zhuang et al. (2009) argued that financial deepening is usually
referring to an augmented ratio of money supply to GDP otherwise roughly price index and
denotes to liquid money while the extra liquid money is obtainable pioneering an economy,
the further chances happen aimed at continuous advancement. Ahmed, Islam (2010) argued
that there are two opinions: One group observed that similar to any other influences that aid as
an element for economic development, the development of the financial sector is not an essential
ailment but can only justly be graded pari passu with additional many inputs where as other
group commented that the financial system has a slight share to perform e in the expansion of the
general economy and purely allows the group of actors in the private sector to „make‟ and „lose‟
money. Sonne (2010) depicted that a majority of rural poor are landless poor and the sector that
is likely to have the largest poverty alleviating impact is the non-farm sector and its entrepreneurs
and small enterprises. Suzuki et al. (2011) observed that the achievement of the Grameen
Bank(GB) style of microcredit can too be clarified such as the high interest rate composed of
small transaction charges which consequence after the high level of conﬁdence usual amid
group of actors donates toward generate sufficient rent chances aimed at the GB to assum e
collateral-free dangerous microcredit activities. Chowdhury, Azam, & Islam (2013) found
that “Bangladesh SMEs have assumed special significance for poverty reduction
programmes and potential contribution to the overall industrial and economic growth. Thu s
Government, associations of Chambers of Commerce and Industry, credit information
bureau (CIB), Bangladesh Bank and Stock Exchange Commission (SEC) should take
necessary measures to overcome the problems faced by SME sectors and must impleme nt
policies to make SME sector more efficient. Alauddin, & Chowdhury (2015) argued that the
key inputs of SMEs are finance, market information, training, infrastructural expansion,
R&D, management competencies, technologies, skills and links through organizations aimed
at provision facilities. Stokvik et al. (2016) argued that value creation is dominant to the
considerate together entrepreneurship and innovation, since the situation remains the result of
together procedures. Subhanij (2016) depicted that through creation of repetition of
commercial banks' viable benefit, the nation can create an added market -friendly location
aimed at SME capital. This willpower too protections that forward to small-business clients
are not heaviness to the government and are self-reliant in the long-lasting path.
Maniruzzaman (2017) argued that SME deliberates as the apparatus of economic growth
through contribution at significant services and revenue receiving chances on comparatively
low costs, particularly in the rural parts. If the SMEs become the financial funding
continually with comparatively lesser interest rate from Banks and others financial
institutions, the situation remains expected that this segment determination improvement
awakes by fineness and donate a ration fashionable GDP. Yoshino & Aghizadeh-Hesary (2018)
opined that where SMEs represent the main parts of their economies, thus it is necessary to
diversify SMEs‟ channels of financing. Sharma (2018) described that in India Commercial and
specialized banks donate meaningfully and definitely in directing and if advances aimed at the
expansion of enterprises. World Bank (2018) argued that industries collected of minor firms
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produce quicker in nations through a better-developed financial area, signifying that financial
development is mainly significant aimed at the progress of industries that are obviously calm of
small businesses. Hill & Genoni (2019) commented that deprived households take higher rates of
entree to microcredit than non-poor households, reflecting extra prevalent usage of microcredit
facilities amid deprived urban households than non-poor urban households.
Khuda (2019) described that small and medium enterprises (SMEs) has engaged in recreation a
vigorous character in encouraging economic development, poverty decrease, and employment
creation. Mahal & Rahman (2019) argued that micro financial institutions assistance towards
permit female work force to participate, to quicken countryside segment expansion, to
decrease joblessness and to tackle active SME sector of the state.
Qamruzzaman & Jianguo (2019) described that well-functioned SME financing is an
essential form nonetheless there is insufficient scope to exploit the possibilities of SMEs in
Bangladesh therefore the government must boost financial institutions for fetching
innovative behaviors of SME financing through safeguarding cost-effective monetary
facilities by a unvarying charges schedule. Shawaqfeh (2019) described that involvement of
the governments signified by the central banks to perform an additional vigorous character
in backup small and medium enterprises done the creation of a sovereign component to care
and monetary involvement in diversified schemes, then to ask commercial banks to deliver a
bigger quantity of advances at suitable interest rates, stretch them lengt hier grace times,
deliver sensible assurances that appropriate the scope of the schemes, and over the yielding
of tax exclusions to entrepreneurs particularly on the start of the scheme, by way of, the
formation of lawmaking and rules occupied to funding these schemes and removing
hindrances to them. Islam (2020) commented that SME development is implicitly vital for
safeguarding all-encompassing development in addition resulting poverty lessening.
ADB(2020) described that through six ways microfinance can benefit deprived communities:
Supporting microfinance organizations to settle resources for low-income borrowers;
Permitting females through providing money to micro, small and medium-sized enterprises;
Allocating entry to education through backing for rural females; Helping to renovate post-
conflict societies and recover females livings; Leveraging microfinance to contribution
productions and livings outside capital cities; Nurturing small businesses to advantage
differentiate economies. Adhikari (2020) depicted that financial development takes an
encouraging influence on economic growth together in the long-run as well as the short-run,
with a resultant factor that financial development has been a main supplier and a significant
apparatus of growth act in the Nepalese economy. Kayani et al. (2021) described that
Grameen Bank assisted Bangladesh in dropping the income disparities between the rural
and urban parts by arranging self-employment chances to the unskilled and semi-skilled
rural workforce. Rahid (2022) opined that few restraints are connecting with SME financing, such
as higher interest rates, multifaceted documentation, etc. and SME debtors‟ express many
problems before and after the permission of SME loans. Though initiatives connected with SME
financing have been accepted freshly, maximum are not up till now applied while SMEs' current
financing rules are insufficient, ill planned, besides unreliable. World Bank (0ctober 06, 2022)
described that Bangladesh takes a solid path greatest of progress and expansion, smooth in areas
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of raised worldwide ambiguity. World Bank (1st December, 2022) described that In
Bangladesh, the entree to money for Females SMEs schemes purposes towards generate an
allowing atmosphere to enlarge entree to money to females SMEs through being supportive
of the founding of credit guarantee scheme, issue of SME Finance Strategy, and establishing
bulk of the controller and segment. With nearly 10 million SMEs contributing to 23% of the
GDP, 80% of jobs in the industries sector and 25% of the total labor force, the SME Finance
Strategy will show an essential part in improve SME financing.
From the aforesaid literature review, the study observed that though most of the articles
were written in the light of different countries but they did not mostly consider SMEs
financing in Bangladesh through semi-informal sector and formal sector to create entrepreneurs
in turn reducing poverty. As such the study has been undertaken.
3. OBJECTIVES OF THE STUDY

i) To assess how Grameen bank is helping to finance SME sector of the country to create
entrepreneurs;
ii) To investigate how commercial banks are serving finance SME sector of the country to
accomplish entrepreneurs;
iii) To provide some suggestions to achieve generate entrepreneurs to reduce poverty in
Bangladesh.
Research question of the study is whether Grameen Bank and commercial banks through
financing SME sector can help to attain financial deepening to create entrepreneurs which in turn
reduce poverty in Bangladesh?
Plan of the study includes: the introductory section brief discussion relates to the title, conceptual
framework of Grameen bank to create entrepreneur, brief introduction of five commercial banks,
objectives of the study and research questions. In the 2 nd section of the article the study will do the
literature review. Section: 3 depicts methodology of the study while section:4 reports estimated
results. Section: 5 gives discussion while Section: 6 written about Conclusion, Implication and
future research. The above noted is followed by references which are also given in the article.
4. METHODOLOGY OF THE STUDY

In the light of the literature review, the study will use secondary sources of data for empirical analysis
with the assistance of econometric methods. As such annual reports of different years were used. The
study has chosen Grameen bank as non-scheduled bank and also considered five scheduled banks i.e.
Sonali Bank Limited; South East Bank Limited; Islamic Bank Bangladesh limited, Rupali Bank Limited;
Uttara Bank limited to assess the financing of SME sector to create entrepreneurs in turn to reduce
poverty and women empowerment and financial deepening as a positive impact on financial sectors
development. Out of 61 total commercial banks the study choose five commercial banks out of which
Sonali Banks is the largest public limited bank in Bangladesh and do treasury function in absence of
Bangladesh ban where it branches are not available. The study did quantitative research. Time period
of the study is from 1, July, 2022 to 30 November, 2022 with a data set from 2000 to 2022 for the
Grameen Bank. However, for Grameen bank the study did following: Kendall's tau-b (τb) correlation
coefficient; Spearman‟s rho correlation coefficient; Two ordinary regression equations were also done
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with D.W.stat.is being determined to see autocorrelation situation. One equation‟s dependent variable
is Total Number of Grameen Bank (GB) Branches while another equation‟s dependent variable is
Below Poverty. Some graphical representations of the data set of Grameen Bank will be given.
For five commercial banks the study did the following:
ARDL stands for autoregressive distributed lag model. ARDL may have a general form as in the first
equation of this study; other equations are also being determined in a similar way:
Where:
GNIPC = Gross National Income Per Capita converted into Bangladesh Taka considering 2017 PPP in
USD
TNLSMELH = Total no. of SME loan holders
TSMELD = Total No. of SME Loan Disbursed
Other ARDL equations were also estimated.
Kripfganz & Schneider (2016) depicted that ARDL models are frequently used to examine dynamic
relations with time series data in a single-equation outline and present value of the dependent variable
is permissible to depend on its own past realizations – the autoregressive part – as well as current and
past values of additional explanatory variables – the distributed lag part and the variables can be
stationary, non-stationary, or a mixture of the two types.
The more the value of the log-likelihood, the improved a model fits a dataset.
The study also wanted to do some extensive work. As such the work did augmented Dickey–Fuller
test (ADF) to tests the null hypothesis which a unit root is present in a time series sample. Verma
(2021) argued that “Before going into the ADF test, we must know about the unit root test because
the ADF test belongs to the unit root test”. Zhang, Robinson, & Yao (2018) described that a simple,
direct and model-free method for identifying co-integration relationships among multiple time
series of which different components series may have different integration orders and The
method boils down to an eigen-analysis for a nonnegative definite matrix.
Breusch-Godfrey (BG) Test is being used to detect autocorrelation up to any pre designated order
p.
For ARDL and augmented Dickey–Fuller test (ADF) dataset of five commercial banks were from 2004
to 2020 while for Johansen tests for co-integration dataset of five commercial banks were from 2002
to 2020. The Johansen test is applied to exam co-integrating relations among some non-stationary
time series data.
STATA 17 will be used to analyses data of the study.
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5. ESTIMATED RESULTS
Grameen Bank:
The study did Kendall's tau-b(τb) correlation coefficient which result is given in Table: 1.This is a
nonparametric measure of the strength and direction of association that occurs between two
variables measured on at least an ordinal scale. In the table, Correlation of coefficient which is
significant is shown by given “*” symbol.
Table: 1, Kendall's tau-b (τb) Correlation Coefficient
N
T
T et
ot
ot
T al in
al
ot ve
N Tot
N al st
o. al
o. m
N No Re Po
of en
of o. . of pa G p T Tr
t
A Bor y N ul ot Po ad
G of
ss ro m I ati al ve e R
B
M es wi en Bel Pe Un on Po rt (% at
Br e ts ng t ow r em G p y of e(
Kendall's
Ye an m (B (B rat Po C Inf plo ro ul R G B
tau_b
ar ch be D DT e ver ap lati ym wt ati at D D
s es rs T) ) % ty ita on ent h on e P) T)
Total Correla .91
no. of tion 6**
GBBr Coeffic
anche ient
s
Sig. (2- 0.0
tailed) 00
Total Correla .99 .91

no. of tion 8** 4**
Mem Coeffic
bers ient
Sig. (2- 0.0 0.0
tailed) 00 00
Total Correla .95 .87 .95

no. of tion 2** 7** 9**
Asset Coeffic
s ient
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(BDT)
Sig. (2- 0.0 0.0 0.0
tailed) 00 00 00
Total Correla - - - -
no. of tion 0.1 0.1 0.1 0.1
Borro Coeffic 34 98 30 81
wing ient
(BDT)
Sig. (2- 0.3 0.2 0.3 0.2
tailed) 82 18 97 51
Repa Correla 0.0 0.1 0.0 0.0 -

ymen tion 82 34 87 86 0.20
t rate Coeffic 1
% ient
Sig. (2- 0.6 0.4 0.5 0.6 0.20
tailed) 05 20 85 00 6
belo Correla 0.2 0.1 0.2 0.2 0.11 -

wpov tion 15 27 20 44 6 0.1
erty Coeffic 93
ient
Sig. (2- 0.1 0.4 0.1 0.1 0.45 0.2
tailed) 71 41 62 28 8 34
GNI Correla 1.0 .91 .99 .95 - 0.0 0.21

Perca tion 00* 6** 8** 2** 0.13 82 5
pita Coeffic
* 4
ient
Sig. (2- 0.0 0.0 0.0 0.38 0.6 0.17
tailed) 00 00 00 2 05 1
Inflati Correla 0.1 0.2 0.1 0.1 - .37 - 0.1

on tion 43 36 39 71 .472 4* .376 43
** *
Coeffic
ient
Sig. (2- 0.3 0.1 0.3 0.2 0.00 0.0 0.01 0.3
tailed) 52 43 67 77 2 18 7 52
Une Correla .50 .47 .50 .46 0.08 0.0 0.00 .50 -
mplo tion 6** 2** 3** 7** 2 00 0 6** 0.00
ymen Coeffic 4
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t ient
Sig. (2- 0.0 0.0 0.0 0.0 0.59 1.0 1.00 0.0 0.97
tailed) 01 03 01 03 2 00 0 01 8
Popul Correla - - - - 0.00 - - - - -

ation tion .87 .78 .86 .81 4 0.0 0.08 .87 0.11 .515
Coeffic 0 4** 8** 0** 91 1 0** 7
** **
Grow
th ient
Sig. (2- 0.0 0.0 0.0 0.0 0.97 0.5 0.60 0.0 0.44 0.00
tailed) 00 00 00 00 8 66 8 00 6 1
Total Correla 1.0 .91 .99 .95 - 0.0 0.21 1.0 0.14 .506 -
Popul tion 00* 6** 8** 2** 0.13 82 5 00* 3 ** .87
ation Coeffic
* 4 * 0**
ient
Sig. (2- 0.0 0.0 0.0 0.38 0.6 0.17 0.35 0.00 0.0
tailed) 00 00 00 2 05 1 2 1 00
Pover Correla - - - - 0.15 - - - - - .83 -

ty tion .96 .94 .96 .92 2 0.1 0.22 .96 0.17 .466 3** .96
Rate Coeffic 7 8** 5** 7** 18 2 7** 9 7**
** **
ient
Sig. (2- 0.0 0.0 0.0 0.0 0.33 0.4 0.16 0.0 0.25 0.00 0.0 0.0
tailed) 00 00 00 00 2 68 6 00 4 3 00 00
Trade Correla 0.0 0.1 0.0 0.1 - 0.2 - 0.0 .489 - 0.0 0.0 -
(% of tion 65 80 69 52 .377 46 .367 65 ** 0.03 13 65 0.0
GDP) Coeffic
* * 0 81
ient
Sig. (2- 0.6 0.2 0.6 0.3 0.01 0.1 0.01 0.6 0.00 0.84 0.9 0.6 0.6
tailed) 72 66 52 34 4 21 9 72 1 4 33 72 08
Net Correla 0.0 - 0.0 - .342 0.0 0.10 0.0 - - - 0.0 0.0 -
invest tion 04 0.1 09 0.0 * 18 7 04 0.17 0.26 0.0 04 36 0.1
ment Coeffic 23 29 7 4 13 69
rate ient
BDT
Sig. (2- 0.9 0.4 0.9 0.8 0.02 0.9 0.49 0.9 0.24 0.08 0.9 0.9 0.8 0.2
tailed) 78 46 55 56 6 09 4 78 8 5 33 78 20 71
(Source: Computed by the Authors‟)

**. Correlation coefficient is significant at the 0.01 level (2-tailed).
*. Correlation coefficient is significant at the 0.05 level (2-tailed).
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From the table: 1, the study found that total numbers of bank branches are significant with years
at the 0.01 level of significance. Total numbers of members are significant with both year and total
numbers of branches are significant with years and total number of branches at the 0.01 level of
significance. Total numbers of assets are significant with years, total umbers of branches and Total
number of members at the 0.01 level of significance. Gross national income per capita are
significant with total number of branches, total number of members, total number of assets at the
0.01 level of significance. Inflation is negatively significant at the 0.01 level of significance with
total numbers of borrowings while also negatively significant with both repayment rate in
percentage and below poverty line at the 0.05 level of significance. Unemployment is positively
significant with years, total number of branches, total number of members and total number of
assets, Gross national income per capita at the 0.01 level of significance. Population growth rate
are negatively significant with years, total number of branches, total number of members, total
number of assets, Gross national income per capita and unemployment at the 0.01 level of
significance. Total population are significant with years, total number of branches, total number
of members, total number of assets, gross national income per capita, unemployment and
negatively population growth at the 0.01 level of significance. Poverty rate are negatively
significant with years, total number of branches, total number of members, total number of assets,
gross national income per capita, unemployment, population growth and total population at the
0.01 level of significance. Trade percentage of Gross domestic product are negatively significant
with both total number of borrowings and below poverty line at the 0.05 level of significance
while positively significant with inflation at the 0.01 level of significance.Net investment rate is
significant at total number of borrowings at the 0.05 level of significance. Market capitalization is
significant with total number of branches at the 0.01 level of significance while with inflation at
the 0.05 level of significance.
In table: 2, among the variables of the Grameen Bank, the study reported the Spearman‟s rho
measures the strength of association between two variables. In the table, the study shown
Correlation coefficient is significant at the 0.01 level (2-tailed) and Correlation coefficient is
significant at the 0.05 level (2-tailed).
Table 2: Spearman’s rho Correlation Coefficient
Tot Net
Tot al
Inv
al No
Tot est
No . of
al me
Tot . of Bo Re Po
No. Po Tra nt
al As rro pa pul
of Un ver de
No. set wi ym Bel G ati Tot
GB em ty
of s ng ent ow NI on al (% rate
plo
Bra Me (B (B rat Po Per Inf Gr Pop of (B
Spearman's Yea nch mbe DT DT e ver cap lati ym ow ulat Rat GD DT
rho rs es rs ) ) % ty ita on ent th ion e P) )
Tota Correl .965 1.00 .965 .95 - 0.1 0.0 .96 0.2 .65 - .96 - 0.2 -
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l no. ation ** 0 ** 7** 0.0 89 02 5** 50 2** .88 5** .97 37 0.0
of Coeffi 55 3** 5** 94
cient
GB
Sig. 0.00 0.00 0.0 0.8 0.4 0.9 0.0 0.2 0.0 0.0 0.0 0.0 0.2 0.6
Bran 0 0 00 08 01 94 00 62 01 00 00 00 88 77
(2-
ches
tailed)
Tota Correl 1.00 .965 1.00 .98 0.1 0.1 0.0 1.0 0.1 .68 - 1.0 - 0.1 0.0
l no. ation 0** ** 0 8** 26 07 52 00* 30 7** .95 00** .99 02 61
of Coeffi
* 0** 0**
Me cient
mbe
Sig. 0.00 0.00 0.0 0.5 0.6 0.8 0.0 0.5 0.0 0.0 0.0 0.0 0.6 0.7
rs 0 0 00 76 35 19 00 63 00 00 00 00 51 87
(2-
tailed)
Tota Correl .986 .957 .988 1.0 0.0 0.0 0.0 .98 0.1 .65 - .98 - 0.1 -
l no. ation ** ** ** 00 60 93 73 6** 71 2** .92 6** .97 81 0.0
of Coeffi 9** 9** 14
Asse cient
ts
Sig. 0.00 0.00 0.00 0.7 0.6 0.7 0.0 0.4 0.0 0.0 0.0 0.0 0.4 0.9
(BD 0 0 0 97 87 52 00 57 01 00 00 00 34 51
(2-
T)
tailed)
Tota Correl 0.12 - 0.12 0.0 1.0 - .43 0.1 - 0.1 - 0.1 - - .45
l no. ation 5 0.05 6 60 00 0.2 7* 25 .64 63 0.1 25 0.0 .50 7*
of Coeffi 5 54 5** 76 78 1*
Borr cient
owi
Sig. 0.58 0.80 0.57 0.7 0.2 0.0 0.5 0.0 0.4 0.4 0.5 0.7 0.0 0.0
ng(B 0 8 6 97 54 42 80 01 68 34 80 32 18 33
(2-
DT)
tailed)
Rep Correl 0.10 0.18 0.10 0.0 - 1.0 - 0.1 .54 - - 0.1 - 0.3 0.0
aym ation 6 9 7 93 0.2 00 0.3 06 8** 0.0 0.1 06 0.1 67 40
ent Coeffi 54 02 25 19 61
rate cient
%
Sig. 0.64 0.40 0.63 0.6 0.2 0.1 0.6 0.0 0.9 0.5 0.6 0.4 0.0 0.8
(2- 0 1 5 87 54 72 40 08 11 97 40 74 93 59
tailed)
Belo Correl 0.05 0.00 0.05 0.0 .43 - 1.0 0.0 - 0.0 0.0 0.0 - - 0.1
w ation 1 2 2 73 7* 0.3 00 51 .55 15 11 51 0.0 .56 75
pov Coeffi 02 3** 52 3**
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erty cient
Sig. 0.82 0.99 0.81 0.7 0.0 0.1 0.8 0.0 0.9 0.9 0.8 0.8 0.0 0.4
(2- 1 4 9 52 42 72 21 08 48 60 21 19 06 37
tailed)
GNI Correl 1.00 .965 1.00 .98 0.1 0.1 0.0 1.0 0.1 .68 - 1.0 - 0.0 0.0
Perc ation 0** ** 0** 6** 25 06 51 00 33 8** .95 00** .99 99 60
apit Coeffi 0** 0**
a cient
Sig. 0.00 0.00 0.0 0.5 0.6 0.8 0.5 0.0 0.0 0.0 0.6 0.7
(2- 0 0 00 80 40 21 56 00 00 00 62 89
tailed)
Infla Correl 0.13 0.25 0.13 0.1 - .54 - 0.1 1.0 - - 0.1 - .66 -
tion ation 3 0 0 71 .64 8** .55 33 00 0.0 0.1 33 0.1 7** 0.2
Coeffi 5** 3** 03 34 93 61
cient
Sig. 0.55 0.26 0.56 0.4 0.0 0.0 0.0 0.5 0.9 0.5 0.5 0.3 0.0 0.2
(2- 6 2 3 57 01 08 08 56 90 53 56 90 01 40
tailed)
Une Correl .688 .652 .687 .65 0.1 - 0.0 .68 - 1.0 - .68 - - -
mpl ation ** ** ** 2** 63 0.0 15 8** 0.0 00 .70 8** .65 0.0 0.3
oym Coeffi 25 03 5** 5** 42 30
ent cient
Sig. 0.00 0.00 0.00 0.0 0.4 0.9 0.9 0.0 0.9 0.0 0.0 0.0 0.8 0.1
(2- 0 1 0 01 68 11 48 00 90 00 00 01 52 33
tailed)
Pop Correl - - - - - - 0.0 - - - 1.0 - .94 - -
ulati ation .950 .883 .950 .92 0.1 0.1 11 .95 0.1 .70 00 .95 0** 0.0 0.0
on Coeffi
** ** ** 9** 76 19 0** 34 5** 0** 42 77
Gro cient
wth
Sig. 0.00 0.00 0.00 0.0 0.4 0.5 0.9 0.0 0.5 0.0 0.0 0.0 0.8 0.7
(2- 0 0 0 00 34 97 60 00 53 00 00 00 52 32
tailed)
Tota Correl 1.00 .965 1.00 .98 0.1 0.1 0.0 1.0 0.1 .68 - 1.0 - 0.0 0.0
l ation 0** ** 0** 6** 25 06 51 00* 33 8** .95 00 .99 99 60
Pop Coeffi
* 0** 0**
ulati cient
-323-
on 0.00 0.00 0.0 0.5 0.6 0.8 0.5 0.0 0.0 0.0 0.6 0.7
Sig.
(2- 0 0 00 80 40 21 56 00 00 00 62 89
tailed)
Pov Correl - - - - - - - - - - .94 - 1.0 - -
erty ation .990 .975 .990 .97 0.0 0.1 0.0 .99 0.1 .65 0** .99 00 0.1 0.0
Rate Coeffi
** ** ** 9** 78 61 52 0** 93 5** 0** 12 22
cient
Sig. 0.00 0.00 0.00 0.0 0.7 0.4 0.8 0.0 0.3 0.0 0.0 0.0 0.6 0.9
(2- 0 0 0 00 32 74 19 00 90 01 00 00 19 24
tailed)
Trad Correl 0.09 0.23 0.10 0.1 - 0.3 - 0.0 .66 - - 0.0 - 1.0 -
e (% ation 9 7 2 81 .50 67 .56 99 7** 0.0 0.0 99 0.1 00 0.2
of Coeffi 1* 3** 42 42 12 90
GDP cient
)
Sig. 0.66 0.28 0.65 0.4 0.0 0.0 0.0 0.6 0.0 0.8 0.8 0.6 0.6 0.1
(2- 2 8 1 34 18 93 06 62 01 52 52 62 19 91
tailed)
Net Correl 0.06 - 0.06 - .45 0.0 0.1 0.0 - - - 0.0 - - 1.0
inve ation 0 0.09 1 0.0 7* 40 75 60 0.2 0.3 0.0 60 0.0 0.2 00
stme Coeffi 4 14 61 30 77 22 90
nt cient
rate
Sig. 0.78 0.67 0.78 0.9 0.0 0.8 0.4 0.7 0.2 0.1 0.7 0.7 0.9 0.1
($US 9 7 7 51 33 59 37 89 40 33 32 89 24 91
(2-
)
tailed)
Mar Correl .470 .628 .459 0.4 - 0.3 - .47 0.4 0.1 - .47 - 0.3 -
ket ation * ** * 50 .46 45 0.0 0* 27 31 0.3 0* .50 32 0.0
capit Coeffi 1* 10 73 4* 66
aliza cient
tion
Sig. 0.04 0.00 0.04 0.0 0.0 0.1 0.9 0.0 0.0 0.5 0.1 0.0 0.0 0.1 0.7
(2- 3 4 8 61 47 49 68 43 69 94 16 43 28 65 89
tailed)
**. Correlation coefficient is significant at the 0.01 level (2-tailed).
*. Correlation coefficient is significant at the 0.05 level (2-tailed).
In Table:2, total number of branches are positively significant with years, total number of
members, total number of assets, gross national income per capita, unemployment, total
-324-
population at the 0.01 level of significance while population growth rate and poverty rate is
negatively significant at the 0.01 level of significance. Total number of members are significant
with years, total number of branches, total number of assets, gross national income per capita,
unemployment, total population at the 0.01 level of significance while negatively significant with
population growth rate and poverty rate at the 0.01 level of significance. Total number of assets
are significant with years, total number of branches, total number of members, gross national
income per capita, unemployment, total population at the 0.01 level of significance while
negatively significant with population growth rate and poverty rate. Total number of borrowings
are negatively significant with inflation at the 0.01 level of significance while significant with
below poverty line is at the 0.05 level of significance and negatively significant with Trade
percentage of GDP at the 0.05 level of significance. Repayment rate in percentage is significant
with inflation rate at the 0.01 level of significance. Below poverty line is significant with total
number of borrowings at the 0.05 level of significance and negatively significant at inflation and
trade percentage of GDP at the 0.05 level of significance. Gross national income per capita are
significant with years, total number of branches, total number of members total number of assets,
unemployment and total population at the 0.01 level of significance while negatively significant
with population growth rate and poverty rate at the 0.05 level of significance .Inflation are
significant with repayment rate in percentage and trade percentage of gross domestic product at
the 0.01 level of significance while negatively significant are total number of borrowings and
below poverty line at the 0.01 level of significance. Unemployment is significant with years, total
number of branches, total number of members, total number of assets, gross national income per
capita, total population at the 0.01 level of significance while negatively significant with
population growth and poverty rate. Trade percentage of GDP is significant with total number of
branches and repayment rate at the 0.05 level of significance while negatively significant with
below poverty at the 0.05 level of significance. Market capitalization is significant with years, total
number of branches, total number of members ,total number of assets ,gross national income per
capita and total population at the 0.05 level of significance while negatively significant with
population growth and poverty rate at the 0.05 level of significance.
Table: 3
Equation: 1
Dependent Variable Independent Variables
Total Number of GB Branches Total No. of Members
Repayment rate %
Below Poverty
GNIPercapita
Inflation
Trade (% of GDP)
Market capitalization
-325-
Model Summary
R R Adjusted R F stat. Sig. D.W. Stat.
Square Square
.997 .995 .988 138.216 .000 1.59
Variables Coefficient T stat. Sig

(Constant) 1651.793 .675 .521
Total No. of Members 7.85 8.735 .000
Repayment rate % 1.98 -1.014 .000
Below Poverty 174.095 2.961 .021
GNIPercapita -.103 -.441 .673
Inflation 1.723 .507 .628
Trade (% of GDP) 2.725 .565 .590
Market capitalization -1.002 -.499 .633
From the regression equation-1, the study found that total no. of members is significant at 1%
level, repayment rate is significant at 1% level of significance while below poverty is significant at
5% level of significance. This equation gives a very good fit explanation about 98.8% of the
observed variation in the total number of Grameen Bank branches. At level of significance α = .05,
D.W. stat. indicated that no auto correlation prevails.
Table: 4
Equation: 2
Dependent Variable Independent Variables
Below Poverty Total No. of Assets (BDT)
Repayment rate %
GNIPercapita
Inflation
Trade (% of GDP)
Net investment rate (BDT)
Unemployment
Model Summary
R Adjusted R
F stat. Sig. D.W. Stat.
Square Square
.998 .996 455.528 .000 1.05
Variables Coefficient T stat. Sig

(Constant) 65.782 .675 .521
Total no. of Assets (BDT) -4.219 8.735 .000
-326-
Repayment Rate % -.203 -1.014 .000
GNI Percapita -.002 2.961 .021
Inflation -.121 -.441 .673
Trade (% of GDP) -.066 .507 .628
Net investment rate (BDT) .00063970 .565 .590
Unemployment .093 5.424 .001
From the regression equation, the study found that total no. of assets is negatively significant at
1% level, repayment rate is negatively significant at 1% level of significance while Gross national
income per capita is significant at 5% level of significance and unemployment is significant at 1%
level. This equation gives a very good fit explanation about 99.6% of the observed variation in the
Below Poverty., D.W. stat. indicated autocorrelation in the inconclusive region is at 1 % level.
Diagrammatic Explanation:
In Figure: 1, Scattered diagram showing the growth trend of Grameen bank branches over the
years is positive
-327-
In Figure: 2, Scattered diagram showing the growth trend of Grameen bank members over the
years is positive.
In Figure: 3, Scattered diagram showing the growth trend of Grameen bank„s Total Assets over
the years is positive.
-328-
In Figure: 4, Scattered diagram showing the growth trend of Grameen bank„s Total Liabilities
over the years is positive.
In Figure: 5, Scattered diagram showing the growth trend of Grameen bank„s Loan Repayment
Rates over the years is moderately positive.
-329-
For Five Commercial Banks:
Equation: 3
Growth of SME banking has affected poverty reduction in Bangladesh for which result will be
seen below using ARDL equation:
Test Dependent Variable Independent variables
ARDL GNI per Capita, PPP (Constant Total number of (5 commercial
2017 converted to Bangladesh banks) SME loan holders
Taka as per the time period‟s Total amount of (5 commercial
prevailing exchange rate. banks) SME loan disbursed
(In Million Taka)
Here the study found that for Gross national income per capita for lag first period is significant at
5% level of significance. Total no. of SME loan holders is significant in the second and third
period at 5% level of significance. Total amount of SME loan disbursed is negatively significant at
second and third period at the level of significance 5%. Log likelihood ratio is negative and it is -
55.793775 and higher value.
ARDL (4,4,4) regression
Sample: 2004 - 2020 Number of obs = 17

F ( 14, 2) = 3319.90
Prob > F = 0.0003
Log likelihood = -55.793775 R-squared = 1.0000
Adj R-squared = 0.9997
Root MSE = 18.7854
GNIPercapita Coef. Std. Err. t p> |t| [95% Conf. Interval]

GNIPercapita
L1. 2.172164 .4865495 4.46 0.047 .0787109 4.265618
L2. -1.388182 1.028995 -1.35 0.310 -5.81559 3.039226
L3. .1497689 .7891328 0.19 0.867 -3.245595 3.545133
L4. .4140405 .3240644 1.28 0.330 -.9802961 1.808377
noSME
-- -.0001658 .000135 -1.23 0.344 -.0007466 .000415
L1. .0004679 .0002394 1.95 0.190 -.0005621 .0014979
L2. .0010181 .0002389 4.26 0.051 -9.85e-06 .002046
L3. .001895 .0002999 6.32 0.024 .0006045 .0031856
L4. .0012479 .0006928 1.80 0.213 -.0017332 .004229
-330-
Loandistribution
-- -.0000756 .0004524 -0.17 0.883 -.0020222 .001871
L1. -.0027597 .0004553 -6.06 0.026 -.0047189 -.0008005
L2. -.0030595 .0007204 -4.25 0.051 -.0061593 .0000402
L3. -.0032966 .0007159 -4.60 0.044 -.006377 -.0002163
L4. -.0027165 .0011362 -2.39 0.139 -.0076051 .002173
Equation: 4, Using ARDL equation poverty headcount ratio at national poverty live depends on
Total No. of SME loan holders and Total amount of SME loan disbursed by five commercial
banks:
Test Name Dependent Variable Independent Variables
ARDL Poverty headcount ratio at Total No. of SME loan holders
national poverty lines (% of
population)
Total amount of SME loan
disbursed (In Million Taka)
In the equation: 4, the estimated results showed that poverty rate is not significant in any level of
time period. Total amount of SME loan disbursed is significant in the third period of lag at 10%
level of significance. Total numbers of SME loan holders are insignificant. Constant value is also
insignificant. Log likelihood ratio is 33.355353.

F ( 14, 2) = 4238.33
Prob > F = 0.0002
Log likelihood = 33.355353 R-squared = 1.0000
Root MSE = 0.0992
PovertyRate Coef. Std. Err. T p> |t| [95% Conf. Interval]

PovertyRate
L1. 1.375031 .6343827 2.17 0.162 -1.354497 4.104559
L2. .1372548 1.104893 0.12 0.912 -4.616718 4.891228
L3. -1.139693 .7279459 -1.57 0.258 -4.271791 1.992406
L4. .6335194 .512476 1.24 0.342 -1.571487 2.838526
growth
-- -.0002273 .0086469 -0.03 0.981 -.0374317 .0369771
L1. .0138158 .0110907 1.25 0.339 -.0339038 .0615354
-331-
L2. .0123021 .0146753 0.84 0.490 -.0508408 .0754449
L3. 0.163996 .0048032 3.41 0.076 -.004267 .0370662
L4. .014175 .0099144 1.43 0.289 -.0284832 .0568332
noSME
-- 1.16e-06 7.16e-07 1.63 0.246 -1.92e-06 4.25e-06
L1. -2.82e-08 1.44e-06 -0.02 0.986 -6.20e-06 6.15e-06
L2. 2.10e-06 1.49e-06 1.41 0.295 -4.32e-06 8.52e-06
L3. -1.46e-07 1.93e-06 -0.08 0.947 -8.47e-06 8.18e-06
L4. -2.89e-06 2.82e-06 -1.02 0.414 -.000015 9.26e-06
_cons -3.171264 1.8138 -1.75 0.223 -10.97541 4.632885
Equation: 5
ARDL Proportion of population pushed Total no. of SME loan
below the $1.90 poverty line holders
which was converted to
equivalent BDT
Trade (% of GDP)
In the following table, from equation: 5, the study found that below poverty is significant at first
period of lag value at 5% level of significance and constant lag time period :1 at 5% level of
significance. Others are not significant. Log likelihood ratio is 18.588911.

F ( 6, 10) = 17.49
Prob > F = 0.0001
Log likelihood = 18.588911 R-squared = 0.9130
Root MSE = 0.1057
belowpoverty Coef. Std. Err. T p> |t| [95% Conf. Interval]

belowpoverty
L1. .9154261 .2990538 3.06 0.012 .2490926 1.58176
L2. -.2756538 .4193429 -.066 0.526 -1.210008 .6587005
L3. .2144825 .4010105 0.53 0.604 -.6790245 1.10799
L4. -.3132407 .2100339 -1.49 0.167 -.7812254 .1547439
noSME -2.08e-07 2.59e-07 -0.80 0.440 -7.84e-07 3.68e-07
-332-
Trade -.0042313 .0052692 -0.80 0.441 -.0159717 .0075092
_cons 1.867841 .6697423 2.79 0.019 .3755622 3.36012
Equation: 6
ARDL Inflation Total no. of SME loan holders
Total amount of SME loan disbursed
(In Million Taka)
From the table, the study found that for equation: 6, inflation is insignificant. Total no. of SME
loan holders is significant the 1st period of lag at 10% of level of significance. Total amount of SME
loan disbursed is significant 4th period of lag at 1 % level of significance. Constant is insignificant.
Log likelihood ratio is -11.179272.

F ( 13, 3) = 29.57
Prob > F = 0.0087
Root MSE = 1.1118
Inflation Coef. Std. Err. t p> |t| [95% Conf. Interval]

Inflation
L1. .6801844 .410182 1.66 0.196 -.6251977 1.985566
L2. 1.226221 .5918856 2.07 0.130 -.6574234 3.109865
L3. 2.177002 1.11151 1.96 0.145 -1.360318 5.714322
L4. 1.854275 1.107723 1.67 0.193 -1.670994 5.379544
noSME
-- -4.10e-06 8.01e-06 -0.51 0.645 -.0000296 .0000214
L1. .0000841 .0000322 2.61 0.080 -.0000184 .0001865
L2. .0000573 .0000292 1.97 0.144 -.0000355 .0001502
L3. .0000878 .0000565 1.55 0.218 -.0000921 .0002677
Loandistribution
-- -.0001843 .0000713 -2.58 0.082 -.0004113 .0000428
L1. -.0001066 .0000628 -1.70 0.188 -.0003063 .0000932
L2. -.0001337 .0000738 -1.81 0.168 -.0003686 .0001012
L3. -.0002679 .000119 -2.25 0.110 -.0006465 .0001107
-333-
L4. .0001831 .0000346 5.29 0.013 .000073 .0002932
_cons -26.21976 12.39654 -2.12 0.125 -65.67107 13.23154
Equation: 7
ARDL Trade (% of GDP) Total no. of SME loan holders
In equation: 7, Trade percentage of GDP is significant at 5% level of significance. Total no. of SME
loan holders is significant for the period of the lag period: 2 at 5% level of significance. Total
amount of SME loan disbursed is negatively significant for the period of the lag period: 2 at 5%
level of significance. Constant is insignificant. Log Likelihood ratio is -35.123542.

F ( 9, 7) = 9.26
Prob > F = 0.0039
Root MSE = 2.9767
Trade Coef. Std. Err. t p> |t| [95% Conf. Interval]

Trade
L1. .7606055 .2517582 3.02 0.019 .165292 1.355919
noSME
-- -1.33e-06 .0000143 -0.09 0.928 -.0000351 .0000324
L1. 3.95e-06 .0000133 0.30 0.774 -.0000274 .0000353
L2. .0000414 .000014 2.95 0.021 8.18e-06 .0000745
L3. .0000199 .0000111 1.79 0.117 -6.46e-06 .0000462
L4. -.0000143 .000013 -1.10 0.308 -.0000449 .0000164
Loandistribution
-- 3.98e-06 .0000217 0.18 0.859 -.0000473 .0000553
L1. -2.74e-06 .000023 -0.12 0.908 -.0000571 .0000516
L2. -.0000824 .000029 -2.84 0.025 -.0001511 -.0000137
_cons 4.150728 6.100515 0.68 0.518 -10.2747 18.57615
-334-
Equation: 8
ARDL Net investment rate Total no. of SME loan holders
Total amount of SME loan disbursed
(In Million Taka)
In case of equation: 8, the study found that net investment rate is negatively significant during the
lag period of 1 and 2, both at the 10% level of significance. For total number of SME loan holder
lag period of 1 and 2, both are significant at the level of 10% level of significance. Total amount of
SME loan disbursed is significant at l0% level of significance, and lag period 2 it is negatively
significant at 5% level of significance. Constant‟s coefficient value is very low despite negatively
signifcantat10% level significance. Log likelihood ratio is -339.24191.

F ( 12, 4) = 4.40
Prob > F = 0.0823
Root MSE = 2.315e+08
netinvestment Coef. Std. Err. t p> |t| [95% Conf. Interval]

netinvestment
L1. -1.164612 .445152 -2.62 0.059 -2.400552 .0713283
L2. -1.016937 .465002 -2.19 0.094 -2.30799 .2741155
L3. -.313866 .2573952 -1.22 0.290 -1.02851 .4007776
noSME
-- -768.4507 1018.607 -0.75 0.493 -3596.556 2059.655
L1. 2593.697 1028.355 2.52 0.065 -261.4735 5448.867
L2. 4119.542 1684.093 2.45 0.071 -556.2499 8795.333
L3. 2251.053 2238.757 1.01 0.372 -3964.733 8466.839
loandistribution
-- 4130.34 1730.452 2.39 0.075 -674.1649 8934.844
L1. 2381.11 2176.276 1.09 0.335 -3661.201 8423.421
L2. -6713.923 2255.127 -2.98 0.041 -12975.16 -452.6855
L3. -5989.917 4533.693 -1.32 0.257 -18577.47 6597.633
L4. -4006.689 2291.462 -1.75 0.155 -10368.81 2355.43
_cons -1.47e+09 6.85e+08 -2.15 0.098 -3.38e+09 4.28e+08
-335-
Equation: 9 Now the study did general equation for an augmented Dickey–Fuller test (ADF) tests
the null hypothesis that a unit root is present in a time series sample
General Equation
Test Name Variable/s Lags
Augmented Dickey Fuller Total no. of SME loan holders 0
model unit root test
From the equation: 9, the study found that total number of SME loan holders is negatively
coefficient at 1% level of significance. However, for the model, Mckinnon approximate p-value for
z(t) is 0. 1406. No lags in the model was considered.
. dfuller noSME, trend regress lags (0)
Dickey-Fuller test for unit root Number of obs = 20
----------------Interpolated Dickey-Fuller--------------
Test 1% Critical 5% Critical 10% Critical
Statistic Value Value Value
Z (t) -2.970 -4.380 -3.600 -3.240
MacKinnon approximate p-value for Z(t) = 0.1406
D.noSME Coef. Std. Err. t p> |t| [95% Conf. Interval]
noSME
L1. -.7238039 .243686 -2.97 0.009 -1.237936 -.2096714
_trend 1141.296 4344.018 0.26 0.796 -8023.781 10306.37
_cons 280508.3 98756.2 2.84 0.011 72150.98 488865.7
Equation: 10
Here the study considered Total no. of SME loan holders with three lags. The study found that no.
of SME loan during 1st lag period is significant negatively at the level of 5 % level of significance.
Constant is significant at 5% level significance. Mckinnon approximate p-value for z(t) is 0.4832.
Augmented Dickey Fuller Total no. of SME loan 3
model unit root test holders
Augmented Dickey-Fuller test for unit root Number of obs = 17
-336-
Z (t) -2.212 -4.380 -3.600 -3.240

D.noSME Coef. Std. Err. t p> |t| [95% Conf. Interval]
noSME
L1. -1.141758 .5162073 -2.21 0.049 -2.277923 -.0055939
LD. .372917 .4393003 0.85 0.414 -.5939765 1.339811
L2D. .3020669 .399236 0.76 0.465 -.5766456 1.180779
L3D. .2225641 .3681582 0.60 0.558 -.5877466 1.032875
_trend 412.8275 6551.202 0.06 0.951 -14006.27 14831.93
_cons 461665.8 205679.9 2.24 0.046 8967.449 914364.1
Equation: 11
Here the study considered total amount of SME loan disbursed by 5 banks. No lags are taken.
Loan distribution is negatively significant at 5% level of significance. Trend and constant term
both indicate significant at 10% level of significance. Mckinnon approximate p-value for z(t) is
0.2461.
Augmented Dickey Fuller Total amount of SME loan 0
model unit root test disbursed (In Million Taka)
Z (t) -2.676 -4.380 -3.600 -3.240
D.loandist~m Coef. Std. Err. t p> |t| [95% Conf. Interval]
loandist~m
L1. -.6036737 .2255681 -2.68 0.016 -1.079581 -.1277667
_trend 5235.089 2639.1 1.98 0.064 -332.9252 10803.1
_cons 68921.43 34677.65 1.99 0.063 -4242.005 142084.9
Equation: 12 is considering rate of interest of borrowing with 3 trend regression lags. Only trend
is negatively significant at 10% level of significance. Mckinnon approximate p-value for z(t) is
0.9738.
-337-
Test Name Variable/s Trend Regress lags
Augmented Dickey Fuller Rate of interest of 3
model unit root test borrowing
Z (t) -0.690 -4.380 -3.600 -3.240
D.borrowing Coef. Std. Err. t p> |t| [95% Conf. Interval]
borrowing
L1. -.3986381 .5775289 -0.69 0.504 -1.669771 .8724944
LD. -.6428272 .516609 -1.24 0.239 -1.779876 .4942214
L2D. -.5608826 .528398 -1.06 0.311 -1.723879 .6021134
L3D. -.2364469 .5579485 -0.42 0.680 -1.464483 .9915895
_trend -.2147965 .1040436 -2.06 0.063 -.4437949 .0142018
_cons 7.922343 9.296341 0.85 0.412 -12.53877 28.38345
Equation: 13 is considering rate of interest of borrowing with trend regression lag as zero. The
equation indicates that borrowing and trend both is negatively significant at 5% level of
significance while constant is positively significant at 5% level of significance. Mckinnon
approximate p-value for z(t) is 0.3622.
Augmented Dickey Fuller Rate of interest of 0
model unit root test borrowing
Z (t) -2.433 -4.380 -3.600 -3.240
D.borrowing Coef. Std. Err. t p> |t| [95% Conf. Interval]
borrowing
L1. -.7332339 .3013605 -2.43 0.026 -1.369049 -.0974189
-338-
_trend -.1570589 .0658745 -2.38 0.029 -.296042 -.0180758
_cons 12.08266 4.499508 2.52 0.022 1.956589 22.20874
Equation: 14 indicates that rate of repayment is being considered. Here repayment is negatively
significant at 5% level of significance while constant is positively significant at 5% level of
significance. Mckinnon approximate p-value for z(t) is0.5244.
Augmented Dickey Fuller Rate of repayment 0
Z (t) -2.139 -4.380 -3.600 -3.240
D.repayment Coef. Std. Err. t p> |t| [95% Conf. Interval]

Repayment
L1. -.4728664 .2211066 -2.14 0.047 -.9393606 -.0063723
_trend .5649743 .4801863 1.18 0.256 -.4481303 1.578079
_cons 27.19843 11.66127 2.33 0.032 2.595302 51.80155
Equation: 15 considered total number of defaulters in SME banking of five banks with three trend
regression lags for Augmented Dicky Fuller model of unit root test. The study found that
defaulters L1are negatively related to 5% level of significance, in the third lags this is positively
significant at 10% level of significance and trend is negatively significant at 5 % level of
significance and constant is positively significant at 5%levelof significance. Mckinnon
approximate p-value for z(t) is 0.1675.

Augmented Dickey Fuller Total no. of defaulters 3
-339-
Z (t) -2.885 -4.380 -3.600 -3.240

D.defaulter Coef. Std. Err. t p> |t| [95% Conf. Interval]
Defaulter
L1. -1.513955 .5247633 -2.89 0.015 -2.668951 -.3589587
LD. .7403927 .4503925 1.64 0.128 -.2509145 1.7317
L2D. .5836433 .3889063 1.5 0.162 -.2723336 1.43962
L3D. .525165 .2895731 1.81 0.097 -.1121812 1.162511
_trend -5100.222 1984.476 -2.57 0.026 -9468.024 -732.4205
_cons 166719 61396.19 2.72 0.020 31586.94 301851.1
Equation: 16 considers total no. of defaulters. The study found that defaulter L 1is negatively
significant at 1 % level of significance. Trend is also negatively significant at 10% level of
significance. Constant is significant at 1% level of significance. Mckinnon approximate p-value for
z(t) is .0552 which is significant at 10% level of significance.
Augmented Dickey Fuller Total no. of defaulters 0
Z (t) -3.372 -4.380 -3.600 -3.240
D.defaulter Coef. Std. Err. t p> |t| [95% Conf. Interval]
defaulter
L1. -.7703643 .2284533 -3.37 0.004 -1.252359 -.28837
_trend -2541.906 830.0655 -3.06 0.007 -4293.192 -790.6214
_cons 80406.55 24690.54 3.26 0.005 28314.07 132499
Equation: 17 considering growth of SME banking. Here growth L 1is negatively significant at
1%levelof significance. Trend is significant at 5% level of significance. Mckinnon approximate p-
value for z(t) is .0028
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Augmented Dickey Fuller Growth of SME banking 0
Z (t) -4.332 -4.380 -3.600 -3.240
D.growth Coef. Std. Err. t p> |t| [95% Conf. Interval]
growth
L1. -1.08347 .2500913 -4.33 0.000 -1.611116 -.5558231
_trend 2.188973 1.03 2.13 0.049 .0158624 4.362084
_cons 17.66838 10.85861 1.63 0.122 -5.241278 40.57804
Equation: 18 deals with Johansen tests for co-integration. Here constant is trend while Total no. of
SME loan holders, Total amount of SME loan disbursed (In Million Taka), Total amount of SME
loan outstanding (In Million Taka), GNI per capita, Inflation. Granger causality test is beingled to
establish the method of the associations between the variables. The significances for the
stationarity test accessible a mixture of diverse orders of integration. The co-integration test
exposed whether a steady long-run association amongst the variables succeeds or not.
Test Name Dependent Variable Trend
Johansen tests for co- Total no. of SME loan holders Constant
integration
outstanding (In Million Taka)
GNI per capita, PPP (constant
2017 international $ was
converted into the Bangladesh
taka as per exchange rate .
Inflation (annual %)
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Johansen tests for cointegration
Trend: constant Number of obs = 19
Sample: 2002-2020 Lags = 2
5%
maximum trace critical
rank parms LL eigenvalue statistic value
0 30 -827.10255 . 152.1518 68.52
1 39 -795.90434 0.96252 89.7553 47.21
2 46 -770.8678 0.92831 39.6823 29.68
3 51 -754.49192 0.82161 6.9305 15.41
4 54 -751.03848 0.30478 0.0236 3.76
5 55 -751.02666 0.00124
Equation: 19 considers GNI per capita, PPP (constant 2017 international $ was converted into the
Bangladesh taka as per exchange rate. Independent variables are Total no. of SME loan holders,
Total amount of SME loan disbursed, Total amount of SME loan outstanding, Total No. of
defaulters. The study found that total amount of SME loan outstanding and constant both are
positively significant at 1% level of significance. Total No. of defaulters is negatively significant at
1% level of significance. Breusch-Godfrey Serial Correlation LM test indicates that no
autocorrelation prevails.
Regression GNI per capita, PPP (constant 2017 Total No. of SME loan holders
international $ was converted into the
Bangladesh taka as per exchange rate .
Total No. of defaulters
Number of obs = 21
Source SS df MS F (4,16) = 130.94
Model 24852243.2 4 6213060.79 Prob > F = 0.0000
Residual 759218.85 16 47451.1781 R-squared = 0.9704
Total 25611462 20 1280573.1 Root MSE = 217.83
GNIPercapita Coef. Std. Err. t p> |t| [95% Conf. Interval]
noSME 2.28e-06 .0007714 0.00 0.998 -.0016331 .0016377
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loandistribution -.0010637 .002352 -0.45 0.657 -.0060498 .0039224
loanoutstanding .0110573 .0026666 4.15 0.001 .0054044 .0167101
defaulter -.0227355 .0044276 -5.13 0.000 -.0321215 -.0133495
_cons 4145.919 330.2156 12.56 0.000 3445.893 4845.945
Breusch-Godfrey GNI per capita, PPP (constant 2017 Total No. of SME loan holders
Serial Correlation international $ was converted into the
LMtest Bangladesh taka as per exchange rate .
Total No. of defaulters
Breusch-Godfrey LM test for autocorrelation

lags (p) chi2 df Prob > chi2
1 1.154 1 0.2828
H0 : no serial correlation
In equation: 20, Inflation is dependent value. Independent variables are: Total no. of SME loan
holders, Total amount of SME loan disbursed (In Million Taka), Total amount of SME loan
outstanding (In Million Taka), Total no. of defaulters, Poverty headcount ratio at national poverty
lines (% of population). Only constant variable is significant at 5% level of significance. No
autocorrelation prevails.
Regression Inflation Total no. of SME loan holders
Total amount of SME loan disbursed (In
Million Taka)
Total amount of SME loan outstanding
(In Million Taka)
Total no. of defaulters
Poverty headcount ratio at national
poverty lines (% of population)
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Number of obs = 21
Source SS df MS F (4,16) = 1.06
Model 134.776972 5 26.9553945 Prob > F = 0.4201
Residual 381.384769 15 25.4256513 R-squared = 0.2611
Total 516.161742 20 25.8080871
Root MSE = 5.0424
Inflation Coef. Std. Err. t p> |t| [95% Conf. Interval]
noSME -7.56e-06 .0000251 -0.30 0.768 -.0000612 .000046
loandistribution -7.93e-06 .0000545 -0.15 0.886 -.0001241 .0001082
Loanoutstanding -.0000414 .000063 -0.66 0.522 -.0001757 .000093
Defaulter .0001665 .0002304 0.72 0.481 -.0003247 .0006576
PovertyRate -.9491935 .6303541 -1.51 0.153 -2.292762 .3943745
_cons 36.83071 16.58353 2.22 0.042 1.483749 72.17767

Breusch-Godfrey Inflation Total no. of SME loan holders
Serial Correlation
LMtest
Total no. of defaulters
Poverty headcount ratio at national
poverty lines (% of population)
Breusch-Godfrey LM test for autocorrelation

lags (p) chi2 df Prob > chi2
1 1.578 1 0.2091
H0 : no serial correlation
6. DISCUSSION
From the study‟s estimated results, it is observed that both non-scheduled bank Grameen bank
and scheduled five commercial banks are working for the development of small and medium
enterprises through entrepreneurial financing. Starting from the low-income stratum to middle
income stratum works for developing enterprises which in turn helps to reduce poverty and
accelerate economic growth have been undertaken. The government is trying to back the
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microfinance segment through expressing improved strategies and also emerging structure across
the country. SME entrepreneurs of the country are greatly lacking in decision-making assistants
and remain unused to planning in the rural -urban sectors. SME banking can authorize financial
inclusion and financial deepening in the economy to endure regardless of gender, cultivation,
confidence, culture, rigid opinions, etc. done with broader excellent facilities and improved entree
for diverse people of the society. SME segment bears competition and subsequently, it has
competitors. Gross national income per capita is improving due to SME banking as evident from
the estimated results. Women were crudely half of the population of the country. As such the
growth procedures of the country can be faster to safeguard through their vigorous contribution
which has helped women to enable combined advancement to the extremely deprived section of
the people. Shaw (1973)‟s theory is based on two segments out of which one is financial
repression and through SME banking the ultra-poor of the country get a financial dominating
position which creates improvement in the socio-economic structure of the country. As a resultant
factor poverty is also declining and SME entrepreneurs are creating employment opportunities in
the rural and urban areas as well as increasing purchasing power parity of the country. Ministry
of Finance Government of the People's Republic of Bangladesh, central bank (Bangladesh Bank) ,
Palli Karma Sahayak Foundation , Microcredit Regulatory Authority , Small and Medium
Enterprise Foundation , Bangladesh NGO foundation, Bangladesh Academy for Rural
Development, etc .are trying hard to develop entrepreneur through financing in the SME sector of
the country. Besides, the banking sector in the formal sector, semi-formal sector like Grameen
bank and non-governmental organizations are working to improve social justice and reducing
income inequality through various development organizations.
Total number of Grameen bank branches are significantly related to total no. of members repayment
rate and below poverty level in Bangladesh. This indicated that positive financial inclusion has been
occurring through the total number of Grameen bank branches expansion. Financial intermediation
helps in the economy through bridging between surplus units and deficit units. Kayani et al. (2021)s‟
results about Grameen Bank have been found positive in Bangladesh. The study found that total no. of
assets is negatively related to below poverty level which implies that if asset rises then poverty level
decreases. Below poverty level is negatively related to repayment rate which indicates that if one is
poor then he /she cannot pay the amount in due time. Gross national income per capita is related to
below poverty level which implies that as Gross national income per capita rises then poverty level
declines. Unemployment decreases then poverty level will decrease which implies upliftment of the
people. Disregarded and indigent individuals are assumed superior beneficiaries of various schemes
of the Grameen banking. Sharma (2018)‟s findings about commercial banking in India is applied to
Bangladesh‟s commercial banking system.
Commercial banking sector as a whole is providing essential funds to start SMEs and money for
vital schemes and commercial endeavors for the economic development of the country through
creating entrepreneurs which ultimately reduce poverty. For commercial banks, the study
did ARDL and augmented Dickey–Fuller test (ADF) and also Johansen tests for cointegration. The
Johansen test this will have an impact on the poverty reduction of the country and SME loan
creates entrepreneurs. An enormous amount of small and medium enterprises credits has been
further worked as a part of the process, giving banking services of the country a new dimension.
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From the study, it is observed that SME loan holders played a vital role in the economy. Rate of
interest of borrowing is very important for the disbursement of a loan. In order to expand small
and medium businesses, the commercial banks engaged stages to endorse clients' diversified
products. Women are getting priorities in the banking sectors through utilization of SME loans.
To reduce poverty, the banks are helping helpless people who include landless women, lower
income stratum, widowed and divorced women, special children and inactivated people.
However, defaulter loans have a negative impact on the expansion of banking loan giving scope
as loan pricing will rise and non-performing loans will lead to decrease lending capacity of banks.
Inflation rate of the country is related to total no. of SME loan holders, Total amount of SME loan
disbursed, total amount of SME loan outstanding, Total No. of defaulters, Poverty headcount
ratio at national poverty lines. The study found that the broad progress of the SME banking sector
and the situation at the rural and urban areas affect the social, political, legal and economic
development of the country. SME banking too safeguards through financial inclusion individuals
irrespective of gender, marginalized, cast, special person, tribals, religion, pauper and also
unbanked people. SME banking helps the agricultural sector, agro- based industries, small and
medium enterprises, non-farm activities as well as creating employment of unemployed people
along with disguised employed persons. Scarcity of human beings can be decreased by the SME
financing and creating entrepreneurs by the commercial banks. This is relating to financial
relegation of the country on political steadiness, decrease of poverty through innovativeness and
creativities by technology transfer, besides frequently measuring poverty, decrease to originalities
to expand the resilience capacity of poverty decline, increase of domestic and international trade
and to adopt and mitigate problems of resource scarcity through political economic ideologies for
economic development of the country.
7. CONCLUSION, IMPLICATION AND FUTURE RESEARCH
The study with the help of econometric models tried to find out SME financing through
scheduled banks and non-scheduled banks to create entrepreneurs. Entrepreneurs can create
employment opportunities as well as empowerment of women with gender balances. As banks
are related to the financial sector, decent services towards the clients ultimately safeguard the
concentration of the masses. Positive impact on economic growth with fulfillment of basic needs
leads to creating opportunities for the nation to have a better livelihood and lowering Gini index.
Repayment of SME loans with large amounts of loans should be regularly taken from the
borrowers so that funds for advancing can be properly managed by the banking system. Current
democratic stable political conditions are essential for the achievement to generate
entrepreneurship and expansion of the SME sector. For the SME sector, the current interest rate is
okay but if adjusted with inflation rate in future then there is a chance to raise the rate of interest
on advance which may lead to default culture. Training in the SME sector by the banking system
is very much significant so that borrowers can be able to build up their capacity building. The
overall growth of the SME banking sector ought to work without any hindrance and supplement
by the NGOs. From March2020, the adverse effects of the COVID-19 pandemic, aftermath of
COVID-19 and Russia -Ukraine war have hampered the world economy which has also affected
Bangladesh‟s economy. Business environment friendly measures must be taken by the
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government. So that SME‟s entrepreneurs can act without any sort of hindrance and they can
work in the corruption free scenario. Banks should come forward not only providing credit to the
entrepreneurs but also providing consultancy services, business advice, policy advocacies for
arranging technological transfer, marketing, managerial, trading, operational and administrative
efficiencies and effectiveness in lieu of a nominal charge. However, Grameen bank needs to
change their non-scheduled banking behavior towards their beneficiaries as their different types
of services are becoming older with comparatively other NGOs and also non-scheduled banks to
sustain in the long run for which they must take a strategic planning with the changing business
environment of the SME in the country and also all over the world and they need to go for
business process reengineering as well they must execute their new business model for SME
financing and creation of entrepreneurs. Social entrepreneurship ideology and social business
philosophy must work pro-people accessible development framework and to get rid of poverty.
Entrepreneurs of SMEs need to build three types of plans starting from operational plan, tactical
plan and strategic plan to sustain both in the short run and long run. Small and medium scale
business management of credit by the entrepreneurs require appropriate training and knowledge
and skill for which banks should come forward to help entrepreneurs. Banks can also help social
networking and to ease trading business for genuine entrepreneurs of the SME sectors. To
produce quality products subject to the price is very much important for the entrepreneurs for
which global benchmarking may be used and the Ministry of Commerce, Bangladesh may
facilitate them. SME product price should not be below average variable cost rather it should be
price must equal to average cost to sell at the normal price. In the SME sector repatriation of the
exportable fund should be done by the official channel i.e. banking system as a whole.
SME banking has a positive impact on domestic economy and helps to accelerate financial
development of the country which in turn propel the economic development through creating
self-employment, job opportunities, market access, vertical and horizontal coordination between
both import substitution industrialization process and export-oriented growth strategies, rise of
purchasing power parity, poverty reduction, self-esteem and freedom from ignorance. However,
SME sector need to be cautious from the impact of negative market externalities for which
internal and external stakeholders of SME banking must be vigilant and play a significant role
and continuous monitoring and evaluation is being needed. Digitization process should be
mandatory for SME credit borrowers as well as banking sectors so that real gross time processing
can be feasible and fraudulent activities can be checked. Small borrowers of SME sector should
not be punished unless valid reason can be detected. Moreover, under SMEs those entrepreneurs
will export their product at abroad, their sale proceeds must come through the official channel
and when bank will open any letter of credit (except non-scheduled bank) must be careful about
under invoicing and over invoicing and to prevent such type of malpractices. National Board of
Revenue (NBR), Bangladesh should promote SME entrepreneurs for the sake of the nation by
using appropriate fiscal policies and should not limit only SME friendly Tax/Vat rules. Moreover,
hope that in Bangladesh appropriate definition of not only small and medium enterprises but also
cottage and micro enterprises need to be declared by the Finance Ministry of the Government of
Bangladesh which will be same all over the country so that nobody can take any misleading
chances of differences in definition.
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In future a study may be done by considering the competitive advantage‟s scenario of SME
banking and creation of entrepreneurs among Bangladesh, India, Nepal, Sri Lanka, Thailand,
Philippines considering both quantitative dataset and qualitative methods. As such researchers
may take more time to do the research work with the help of grants from any donor agencies to
obtain realistic, thorough and comprehensive study on SME banking and creation of
entrepreneurs.
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Roles of Immigrants on Communities’ Livelihood in Sunamganj

Area: An Empirical Analysis
Esther Baroi*
School of Economics, East West University, Bangladesh
E-mail: 2020-3-94-002@std.ewubd.edu
Abstract
Tahirpur Upazila of the Sunamganj District is a highly significant
location supporting natural and economic resources that entice various PAPER/ARTICLE INFO
communities for interregional migration. The study has applied an RECEIVED ON: 06/12/2022
integrated approach to gathering both qualitative and quantitative data ACCEPTED ON: 30/12/2022
and information from both the primary and secondary sources for Reference to this paper
determining how the immigrant groups contribute to ensure the quality should be made as follows:
of life of local communities. It involved quantitative household surveys,
participatory Focus Group Discussions (FGDs), Key Informant Baroi, Esther (2022), ―Roles
Interviews (KIIs), personal interviews, and case studies. We found that of Immigrants on
farmers require hiring some migrant workers to help them harvest the Communities‘ Livelihood in
standing Boro-Rice sooner for preventing unexpected crop losses due to Sunamganj Area: An
flash floods. This region also draws other communities to move here as Empirical Analysis‖,
practitioners and entrepreneurs. A whole community has also been International Journal of Trade
and Commerce-IIARTC, Vol.
attracted to immigrate here for living permanently. The study suggested 11, No. 2, pp: 352-375.
that the changing flow of labor and capital plays a role in changing the
socio-economic landscape of the source region through changing its
economic activity, the restructuring of local infrastructure, and economic
policies. Mechanization in harvesting Boro-Rice demands more financial
resources than some laborers do. It is, thus, concluded that the present
financial capital is not compatible with the living standards and physical
capital of the local agriculture farmers, because they need to spend
maximum portions of that capital for climate change adaptation and
mechanization process, although the declining immigrant worker flow
results in producing more financial capital through increasing capital
flow among the workers within Tahirpur Upazila. However, it has been
informed that social disputes differ depending on the size and
employment of immigrant populations. Compared to migrant employees,
migrant entrepreneurs can participate in local community activities more
readily. This study also found that the migration of an entire population
can lead to violence.
Key Words: Interregional Migration, Agriculture Farmer,
Entrepreneur, Regional Economics, Sustainable Livelihood Framework,
Climate-Induced Hazards.
DOI: 10.46333/ijtc/11/2/4
Roles of Immigrants on Communities’ Livelihood in Sunamganj Area: An Empirical Analysis
Esther Baroi
1. INTRODUCTION
Immigrants are people who move permanently or temporarily or seasonally from their native
place to another and can be executed within the border or across countries for a variety of reasons
(J. Burtler and B. Whiting, 2022). Interregional migration, often donated as an essential component
of livelihood strategies to shape social changes (I. Rayhan and U. Grote, 2007; Jackson, J. A. 1970),
and associated economic policies have been growing in importance since 1990 as a consequence of
political liberalization and economic reform in Bangladesh. A livelihood can be defined as a set of
capabilities, assets and activities required for a means of living (DFID, 2000).
There are several theories and policies for interregional migration under two contemporary ideas.
Some theories believe that migration between two different regions is usually seen as the result of
individual decisions (economic approach), but according to other theories it is a response to
structural forces (approaches based on micro sociology (Rossi 1955; Holm and 0berg 1984), time-
geography (Oberg 1979a; Hagerstrand 1970) or empirical generalizations (S. Oberg, 1995)).
Theories of the first idea emphasize factor (labor and capital) mobility as an important policy to
achieve a higher economy and living standard (S. Ghatak, et al., 1996; S. Oberg, 1995). On the
other hand, there are some structural dimensions and policies of economic growth and
development that play as the instruments to push the labor migrating from one less productive
sector (like agriculture) to another more productive sector (like the manufacturing industry) for
economic welfare (S. Ghatak, et al., 1996).
Bangladesh is a low-lying river delta with more than 230 rivers and tributaries that are located
between the Bay of Bengal and the foothills of the Himalayas (I. Rayhan and U. Grote, 2007).
Bangladeshi people are particularly susceptible to different climatic hazards and calamities
because of the country's geography, population density, and extreme poverty. For instance,
previous research indicated that regular floods and riverbank erosion are substantial causes for
thousands of people's yearly homelessness, landlessness, and ensuing migration. In 1988, there
were floods in over 60 percent of the country, impacting around 45 million people and resulting
in more than 2,300 fatalities (FAP, 1993). Over 68 percent of the country was under water in 1998,
which led to 2,380 fatalities. Floods impacted almost 20 million people between 2000 and 2002. A
disastrous monsoon flood in 2004 swamped two-thirds of the nation; it affected close to 36 million
people, caused 726 fatalities, and left millions homeless. Floods struck various regions of
Bangladesh once more in 2005, having a considerable impact on people's means of subsistence,
possessions, and activities. Similar losses in human and material capital are being caused by
various climate disasters, such as drought, heat waves, unpredictable rainfall, etc.
However, these disasters vary by hydrological region in Bangladesh. According to the Ministry of
Water Resources, Government of the People's Republic of Bangladesh, there are eight (08)
hydrological regions under four different climatic hazards. These are drought-prone, flood-prone,
salinity-prone, and flash flood-prone areas. These geographically diversified vulnerable
landscapes create a geographical and occupational imbalance in Bangladesh. According to S.
Oberg (1995), inter-regional migration may be necessary for a perfect long-term equilibrium in the
wage level for each occupation. Figure 1 shows how an equilibrium condition between two
regions resulting from the mobility of capital and labor tends to create a labor flow within the
destined region in the long run according to S. Oberg (1995).
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Interregional Migration
Inequal Wage Condition Equilibrium in Wage Condition

Converted High Wage
High Wage Region
Region
Labor
Labor
Labor-Captal
Flow within a
Region
Capital
Capital
Figure: 1
Until recently, however, interregional migration research has focused unilaterally on urban
unemployment and rural-urban labor migration. A growing literature suggests that changes in
rural-rural labor and capital mobility over time are related to social and economic processes in
geographically diverse regions (BRRI, 2020; S. Oberg, 1995). Therefore, it is important to examine
the consequences of interregional immigrant mobility on the local community and emerging
policy implications.
The objectives of the study are as follows:
▪ to identify different types of local community in the study area
▪ to assess the socio-economic condition of the local community in the study area
▪ to identify the major community and assess its socio-economic condition in the study area
▪ to identify different types of immigrant community in the study area
▪ to identify the roles of immigrant play in the study area.
Oberg, S. (1995) believed that migration between local labor markets is usually seen as either the
result of individual decisions or a response to structural forces. The approach in the first part is
mainly economic. It usually means that people are defined as rational in the sense that they are
loyal to their preferences and maximize place utility functions in well-known market economies,
in order to speculate in the outcome of decision processes. Several alternative approaches are
possible based on e.g., micro sociology (Rossi 1955; Holm and 0berg 1984), time-geography
(Hagerstrand 1970; Oberg 1979a) or empirical generalizations. According to S. Oberg (1995),
Economic Approaches and the Approaches in Social Geography are briefly discussed in the
following sections.
Jussibaliyeva, A. K., (2021) argued that migration through crossing borders and within nations
affect not only the lives of the migrants, but also the chances for growth and prosperity in the
places that are moved to and attained. They thought that lack of sufficient incentives at the source
and the availability of superior opportunities at the destination, the strength of necessity in some
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cases, or other causes are the same driving forces behind both domestic and international
migration. Bakth, N., & Hasanuzzaman, S. (2022) stated that parental temporary migration may
be an effective cope-up strategy to reduce domestic enemies brought on by environmental shocks,
while its impact on children's education may be dubious. Pavel, T., et al., (2022) found that
households are moved by both transitory and permanent shocks, although the latter has a greater
impact in increasing migrants' income and expenditure rise in comparison to their counterparts,
suggesting that enabling migration may boost wellbeing in nations with a high risk of disaster.
Mukhopadhyay, U. (2022)demonstrated that although cross-border movement of people is not a
recent phenomenon in the area, its causes and characteristics have experienced a significant
transformation in recent years. Afsar, R. (2003, June) stated that the most frequent type of
migration in Bangladesh is from rural to urban regions. He found that the bulk of economic
migrants to metropolitan areas are young men, however, this has lately changed as more women
are required in the ready-to-wear sector. For migrants, concerns including physical insecurity,
inadequate housing, negative treatment by authorities, and development attempts are frequent.
Afsar, R. (1994) indicated that a significant portion of population mobility results from the
family's survival and adaptive strategies to maximize family income by allocating their labor to a
number of locations involved in diversified income-earning activities. According to Harris, J. R.,
& Todaro, M. P. (1970) migration is prompted by variations in expected incomes between urban
and rural areas, with the urban employment rate serving as an equilibrium force on such
movement.
Chowdhury, Q., et al., (2004) found that communities in the haor region have higher incomes
than other areas in Bangladesh. Chowdhury, R. B., & Moore, G. A. (2017) found one unique
indigenous floating agriculture has sufficient potential to help farming communities in the flood-
prone regions of Bangladesh to sustain their lives and livelihoods during floods and long-term
inundation. This technique has the unique characteristic of providing a wide range of agricultural,
environmental, economic, social, and cultural benefits that ultimately make it an environmentally
sustainable, economically feasible, and socially viable practice. Rayhan, I., & Grote, U.
(2007)indicated that during floods, landless or poor people incur informal debts to moneylenders,
which in turn are accumulated through successive years of flooding, leaving a shadow of
insolvency and liquidation over many vulnerable households. Rural-urban migration allows
potentially vulnerable households to avoid a cycle of debt. Abedin, J., & Khatun, H. (2019) a
vicious cycle of debt, resource loss, and poverty acts as a dynamic force leading to long-lasting
impoverishment and vulnerability that limits haor-based communities‘ ability to prepare for, act
against, and recover from subsequent floods and other disasters. They suggested that the
government should formulate and implement a combined and effective policy for haor
management and flood management accordingly to protect the lives and livelihoods of haor
residents. Islam, M. S., et al., (2014) reported that the main employment is fishing (30.1%),
followed by farming (12.9%), livestock husbandry (8.6%), and business (8.6%). They also found
that more than half of the inhabitants in the haor region utilized hanging latrines (22.6% of them)
and drank shallow tube well water (74.2%), with the remaining 17.2% of individuals choosing to
drink water from rivers or streams. In this region, flash floods are a frequent occurrence brought
on by extreme rainfall and climate change. As a result, people frequently suffer from diseases
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such diarrhea, cholera, typhoid, fever, and cold during the flood (54.8%), after the flood (22.6%),
and before the flood (17.2%) due to agricultural loss, housing damage, animal infections, and
health issues.
Brouwer, R., et al., (2007) demonstrated that households with lower incomes and fewer access to
useful natural resources are more susceptible to floods. Additionally, at greater risk exposure
levels, disparity in income and asset distribution at the community level tends to be larger,
suggesting that vulnerable families individually are also collectively more vulnerable. They
discovered, somewhat ironically, that those who are most at danger from floods are also the least
prepared, both in terms of ex ante home preparation and ex post communal flood aid. Rahman, S.
U. (2014) identified several factors for vulnerability due to flooding, which include building
infrastructure like roads and culverts as well as inadequate drainage brought on by crowded
communities. In addition to fertile agricultural land and cattle, floods have also damaged physical
infrastructures including homes, schools, sub-health posts, hand pumps, and culverts. Seeley, J.
(2003) believed that in order to maintain their familial subsistence with what their adult members
earn irregularly, the uthuli (sheltered after displacement by others without payment) and chukani
(sheltered after displacement by others with payment) households had to endure intolerable
economic hardship.
3. RESEARCH METHODOLOGY
The present study considered an integrated approach to identify role of immigrants on the socio-
economic condition of the local community covering Jamalgar and Niamatpur Mouzas of the
Tahirpur Upazila of Sunamganj District. Two participatory action research tools were applied to
collect information the agricultural farmers (local community) and immigrant groups in the study
area. These include literature review and secondary data analysis, Focus Group Discussion
(FGD), Key Informant Interview (KII) and case study.
A comprehensive literature review was made to understand the basic theories, concepts and
present liquidity of information on livelihood, socio-economic activities, migration landscape, and
different physio-graphic, climatic and economic causes behind the immigrant community and
their impact on the local community. Literatures were collected from different nationally and
internationally published reports, scientific journals, and online sources. Secondary quantitative
data were collected from different published and renowned database, scientific journals and
online sources.
In order to address the objectives of the study, both primary and secondary data are used. The
author collected the primary data through conducting a number of household surveys on
agriculture farmers, FGD, KII and case studies on agriculture farmers, immigrant labors,
immigrant practitioner and immigration community focusing on factors affecting interregional
migration pattern. Secondary data were collected from different sources, such as: online portals of
government institutions, reports and bulletins. Published and unpublished documents were
extensively reviewed to justify relevant secondary information.
The study area included two mouzas (Niamatpur and Jamalgar) of Tahirpurupa zila in
Sunamganj district, which are among the flash flood-prone areas in Bangladesh. Since all the
mouzas in Tahirpur Upazila in a particular region have homogeneity in terms of disaster risk,
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agricultural production system and local agricultural practices, two mouzas were randomly
selected on the basis of dependence on the same haor, the Matian Haor.
In this step, primary data collected from farmers, and immigration labor, entrepreneurs,
practitioners, and other immigrant communities in the study area through household surveys
were analyzed using MS. Excel and STATISTICA statistical software packages to plot variability
and correlation analysis. Based on these analyses, the study identified the roles that an immigrant
community can play in the local agricultural community.
4. HYPOTHESIS TESTING
This study assumes some alternative hypotheses as follows:
▪ Ha1: Single type of community dominate the study area of highly vulnerable to climate-
induced hazards
▪ Ha2: Socio-economic Condition of the local community is highly driven by Single Sector
Income in the study area
▪ Ha3: Agriculture-driven communities dominate the study area because of being supportive
geology, topography, land and soil type
▪ Ha4: Shifting in immigrant types with time and extent in the study area
▪ Ha5: Immigrants play key roles in the study area.
5. ESTIMATED RESULTS
5.1 Socia-Economic Condition of the Tahirpur Upazila
The ability to hire workers for domestic and agricultural tasks depends on possessing a home of
one's own. Thus, the ratios of owned, rented, and rent-free dwellings in Jamalgar and Niamatpur
were compared in the current study. In the Jamalgar and Niamatpur mouzas, which are located
in the unions of Tahirpur and Dakshin Baradal, respectively, about 96% of the residents live in
their homes. This is the largest proportion of persons in any household ownership arrangement.
Similar to this, there is no discernible difference between these mouzas' percentages of rented and
rent-free households. This finding suggests that the ability of the residents in both mouzas to hire
labor is more or less comparable. The present study compared the sex ratio, total households, and
male and female population between Jamalgar and Niamatpur mouzas. Although there is almost
the same number of families overall, Niamatpur has a higher male-to-female ratio than Jamalgarh
mouza. This finding suggests that Niamatpur is more equipped than Jamalgar mouza to address
the labor shortfall in terms of human resources. It was discovered that the largest number of
households in the Niamatpur mouza (about 21%) contain 8 people, compared to the maximum
number of households in the Jamalgar mouza (about 19%). Additionally, it has been shown that
Niamatpur has larger average households than Jamalgar mouza. All populations are classified
into three distinct groups: those under the age of 15 are considered children, those between the
ages of 16 and 55 are called youth, and those over the age of 56 are regarded the elderly. Analyses
show that the youth population, particularly those aged 30-49, makes up the majority of the
population in both of the investigated mouzas. Both mouzas have a balanced percentage of
married men and women, according to the data. Females in both mouzas, however, are more
likely to be widowed than males. However, only a small percentage of the male and female
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populations are divorced or separated. It implies that people of the investigated mouzas have a
lower demand for marriages with those who have migrated from outside of these mouzas. More
residents in Jamalgar mouza (about 4,590) can be classified as illiterate because they are unable to
write a letter. On the other hand, the Niamatpur mouza has been shown to have more male and
female literates than the Jamalgar mouza. It has been observed that the Jamalgar mouza employs
more men and women than the Niamatpur mouza. It has also been revealed that the primary
means of subsistence in the research region is agriculture. In both mouzas, the majority of men are
directly employed in agricultural work and activities. In the Jamalgar mouza, around 5% and 35%
of the male and female population, respectively, are engaged in various occupations, but in the
Niamatpur mouza, approximately 3% and 80% of the male and female population, respectively,
are engaged in service. As a result of seasonal differences in the study regions, the residents of
Niamatpur mouza (approximately 83% of the population, primarily females) choose a variety of
occupations for their living.
Housing structures in the study area are not satisfactory. For example, total 90% of housing
structures are kutcha and 4% are jhuprin the study area. Only 4% of total housing structures are
found as pucka which have concrete structures.In the research region, it was discovered that in
the Jamalgar mouza, over 90% of families used tube well water for drinking purposes, whereas
only over 90% did so in the Niamatpur mouza. Due to the expensive cost of installing deep tube
wells in these mouzas, residents often share tube wells with their neighbors or use other methods
to gather drinking water, such as taps, ponds, etc. The sanitation facility is not satisfactory in the
study area. Very few percentages of households get facilities of water-sealed sanitary latrines in
both mouzas. Moreover, the maximum household in these mouzas has no sanitary facilities. The
availability of electricity is a key indicator of a community's living standards. Approximately 23%
of all houses in Jamalgar mouza and 29% of all households in Niamatpur mouza lack access to
electricity, which is a poor proportion of the standard of life. Although the proportion of houses
with access to electricity varies per mouza, each one still falls beneath the national coverage
(53%). (Source: Household and Population Census, 2011).
5.2 Socio-Economic Condition of the Agriculture Farmer
The present study assessed the socio-economic condition of the agricultural farmers, which have
been directly dependent on immigrant labor for harvesting rice for more than 10 years. A
maximum of five (05) categories have been identified in the research locations. The first three (03)
groups can be categorized as small farmers, marginal farmers (those with 0.51 to 1.0 acres of
agricultural land), and the extremely poor (labor) (having 1.01 acres to 2.5 acres of agricultural
land). The latter two (02) categories can be categorized as medium (farmers with agricultural land
between 2.51 and 5 acres) and big (farmers with agricultural land larger than 2.5 acres). More
farmers (approximately 55%) have been found to fall into the marginal category. Most of the
sample farmers have a minimum of 20 years of experience. The present research reveals that the
least home size is 2, 3, and 10–12 people, while the greatest household size (more than 20%)
consists of 4-5 people. It has been found that maximum sample farmers are married while some
are widowed. About 70% of the farmers was found to have primary education, followed by
secondary and higher secondary education. About 18% of sample farmers are illiterate. Housing
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structures in the study area are non-satisfactory. The floor of about 90% of houses is made of mud
(Kacha), and the walls and roof of tin. In the study area, 98% of homes have access to electricity
on average, which is a significant indication of the standard of life. Only 3% of homes do not have
access to power. The majority of the sample farmers were found to have electric fans, and among
them, around 16% had refrigerators and approximately 23% had televisions. Few sample farmers
lack any electronics. It suggests that the majority of agricultural farmers are members of the
middle class. It has also been found that more than 50% of the sample farmers are husbanded by
natural resources, including ponds (about 13%), and river and tree gardens (about 46%).
Moreover, the present research revealed that due to the presence of community health clinics in
their communities, the majority of the sample farms only had minimal medical help. A small
percentage of them (about 13%) can receive medical assistance at the Tahirpur Upazila hospital.
However, this medical help usually becomes unavailable due to poor communication during the
rainy season. The sample farmers in the study area lack appropriate social support.
Approximately 35% of the sample's farmers are in contact with the local government, and 13% are
with the local government, civil society, and medical professionals. The other farmers have no
network with the government or civil society.
As a result of its susceptibility to flash floods, the study region is predominately low land type.
Three cropping seasons occur in the area each year. These are the Kharif-I (16 March–15 July),
Kharif-II (16 July–15 October), and Rabi seasons (16 October-15 March). The erratic nature of the
alternate dry and rainy spells defines the Kharif-I. The main crops grown in areas are summer
vegetables that are vulnerable to flash floods. Due to inequities in rainfall distribution, flooding
depth, low solar radiation, and high temperatures and humidity, the Kharif-II season is not
conducive to good yields. Farmers in flash flood-prone areas mostly grow transplanted Aman as
a crop. However, due to the research area's relatively low land, this crop cannot be grown there.
The Rabi season, on the other hand, benefits from high solar radiation, little humidity, and a
warm climate. In the study area, boro, mustard, nut, and other robi-vegetables are the major
plants throughout this season (Table 1). As a result of the low land, the sample farmers are only
able to grow one type of crop on it. The household surveys and RRA with various farmer
categories revealed several crop varieties in the study area. The most productive cultivable area is
covered by BRRI-28, followed by BRRI-29 and different local varieties, including Guchi, Lakhai,
Jhalak, and hybrid varieties.
Table 1: Major Cropping Pattern in the Study Area
Kharif-I Kharif-II Rabi Cropping patterns (%)
Fallow Fallow Boro 90
Fallow Fallow Vegetables 3
Fallow Fallow Mustered 5
Fallow Fallow G. Nut 2
Source: Field survey, 2022
Furthermore, Aman and Boro (HYV) suffer the highest production losses in flash flood zones. The
current study revealed that the harvesting time of local variety (130-145) is too long to prevent
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flash flood risk (Table 2). Because of this, the Bangladesh Rice Research Institute (BRRI) created
BRRI-28, a short-duration rice variety during the boro season. However, this rice type is highly
susceptible to damage because of inadequate irrigation, temperature swings, and other climatic
events. To prepare for flash floods and other extreme occurrences, the agricultural farmer
cultivates a variety of rice types on each plot of land. For instance, they grow BRRI-28 for flash
flood adaptation and BRRI-29 and other hybrid types for high output since they are highly
productive. Because local varieties are more resilient than high-yielding and hybrid varieties,
farmers also planted different local varieties on sections of their land to ensure production while
adjusting to other harsh occurrences. Additionally, producers can save the seed rice from the local
varieties for the following year's planting.
Table 2: Variety, Duration and Yield of Crops in the Study Area
Crop Variety Duration (days)
Aus (HYV) BR2, BR26 135, 110
Aus (local) Hashikolmi, Khashiabinni 135, 145
Aman (local) Biroi, Gainja, Paijam 145, 135
BR11,BRRI dhan30, BRRI dhan32, BRRI dhan34, 140-145
Aman (HYV)
BRRI dhan39, BRRI dhan41 and Pajam
Boro (local) Jagli, Lafa, Tapi, Gochi, Borohabji 145
Boro (HYV) BR14,BRRI dhan28, BRRI dhan29 140
Hira, Sonarbangla, Aloron, Jagoron, Raicher, 110
Boro (hybrid)
Moyna
Jute Kenaf, Mesta 150
Potato Hira, Diamond, Kardinal,Lalpakri 85-90
Wheat Protiva, Shatabdi, Sharouv, Gaurov 120-145
Sesame Til-6 100-110
Mustard Tori-7, BARI Mustard-9, BARI Mustard-14 60-70
Pulse BAR Grasspea-1, Local improved 130-140
Ginger Local (improved) 240-2500
Turmeric Dimla, Shinduri One year
Source: Field survey, 2022
Seed, labor, fertilizer, and insecticides are a some of the inputs that come into play. According to
the results of the current study, farmers greatly depend on agricultural labor to safeguard their
goods against production and financial loss. According to the present study, BRRI-28 will
experience the most production loss and financial loss for farmers without laborers, followed by
BRRI-29, Guchi, Hira, Jhalak, and BR-74. The maximum farmers would lose around one metric
ton (MT) of rice output per hectare and the related revenue in the absence of labor. The maximum
quantity (2,500 kg) per hectare per acre of labor and seed is needed for boro rice crops. For Boro
HYV and Boro, the highest amount (1,000 ml/ha) of liquid insecticides is required (Hybrid).
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According to the farmers who responded, the boro rice crop requires the maximum number of
laborers (180Nos) per hectare. However, during the last 15-20 years, the phenomenon of
recruiting workers has altered. Additionally, agricultural growers had been hiring workers for
more than 15 years from several areas, including northwest Bangladesh. Nevertheless, for 15
years, they have been engaging workers from the adjacent upazilas, even from the nearby
mouzas. All farmers relied on such immigrant labor to varying degrees 15 years ago, whereas
only roughly 70% of the sample farmers do so now.
6. ANALYSIS OF THE FINDINGS

6.1 Agriculture Dependent Local Community
Supportive landscape, hydro-climatic conditions, and different natural hazards and
anthropogenic interventions (like interregional migration) can promote a society of diverse
populations. These aspects result in developing one production system and the dependent
lifestyle and demographic composition to establish in parallel to physical infrastructures,
knowledge, financial mechanisms, and social networking through coping with different natural
hazards (S. Oberg, 1995).
The present study has found that the study area belongs to the Sylhet Trough, which is a sub-
basin of the Bengal Basin and consists of alluvial and deltaic sediments (MoWR, 2012). The
deformation from the Indo-Burman ranges results in characterizing a series of north-trending
folds. The study area has experienced the highest subsidence at a rate of 21 mm/y. These
physiographic natures of the study area result in creating almost round-shaped tectonically
depressed and marshy lands, locally called Haors, that are vulnerable to river floods during the
monsoon, and flash floods during the pre-monsoon season each year. The study area is in the
deep haor areas among the three haor categories (Foothill and Near Hill Haors, Floodplain Area
Haors, and Deeply Flooded Haors) because the maximum proportion is under the lowland and
very lowland among the five land type classes: F0 (High land), F1 (Medium highland), F2
(Medium lowland), F3 (Lowland) and F4 (Very lowland). The conditions in the study area play a
supporting role in improving agricultural production (Laekemariam F. et al., 2016; Abate A., 2014;
Haor Master Plan, 2012). It is, thus, suggested that the particular physiographic nature and hydro-
climatic conditions are highly supportive for an agro-based production system, which is
bifurcated by a Robi-crop production system for six seasons (November-April) and fisheries
production system for another six seasons (May-October) every year.
Therefore, the present study inferred that an agriculture-dependent community dominates the
study area in which all of the socio-economic activities transformed into their capital based on the
agro-based production system.
6.2 Socio-Economic Condition
The British Department for International Development (DFID) has developed a ‗Sustainable
Livelihood Framework‘ (SLF), one of the most widely used livelihoods frameworks in
development practice, by adapting a version of Chambers Conway‘s definition of livelihoods. The
approach is based on the belief that people need a lot of capital to achieve positive livelihood
outcomes. Therefore, the SLF has identified five types of capital to build livelihoods, including
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human capital, social capital, natural capital, physical capital, and financial capital (DFID, 2000).
However, the present study could not identify natural capital due to a lack of data in the
Population and Household Census (2011). In addition, this study added living standards as an
indicator of sustainable livelihoods. This study shows that socio-economic conditions in the two
mouzas are moderate across all livelihood indicators. According to the laws of migration in
regional economics (S. Oberg, 1995; Alonso, 1976; Quigley, 1972; Wilkinson, 1967; Thomas, 1941),
the current survey considers the study area to be a moderate wage condition that can play as the
pull factor (Jussibaliyeva, A. K. et al., 2021) for interregional labor migration from others regions
in Bangladesh (Figure 2).
Figure: 2
Source: Field Visit, 2022
6.3 Agricultural Impact on Socio-Economic Condition
Agriculture, including agricultural wage labor and self-employed farming, provided most of the
jobs in rural areas occupying more than 54.5 percent of the rural workforce and employing a
significantly higher share of women (Kabir, Md. Jahangir et al., 2020; DAE, 2020; World Bank,
2016). Human is one of the valuable capitals, although it is not self-evident. In our society,
according to the human capital theory, the length of their education and experience in their
working life until the age of 45-65 can promote an individual to increase the magnitude of human
capital (S. Oberg, 1995). Some argue that changes in proportions of older and experienced persons
over time would partly change and indirectly influence the speed of economic restructuring and
thus interregional migration (Klein 1992; Malmberg 1992). They argue that older people are less
attractive in the labor market because their knowledge is not up to date with modern technology,
and they produce much less on average in the physical hard work. However, other studies
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suggested that both attitudes of paying more for the experienced and knowledgeable older
laborers and unwillingness to employ new laborers and train them for high productivity will
lower the migration rates for the aged-experienced laborers. The present study found that an age
group of 30-49 years belonging to the youth group dominates the agricultural workforce in the
study area. This group has experience and enthusiasm for up-to-date knowledge of modern
technologies to produce more than average in the physical hard work.
Some literature argues that accumulated experience is the effective investment in a traditional
environment that is static in technology and relative prices in low-income countries (like
Bangladesh) when the decision-making environment is static (W. Huffman and P. Orazem, 2004;
Huffman, W. E., 1988; Becker, G., 1993; Schultz, T.W., 1972). The present study found that
maximum farmers mainly depend on collective knowledge, among which about 18% of sample
farmers are illiterate, for their production system (agriculture) in the study area. However,
different government and non-government organizations (including World Vision, BRAC, ASA,
etc.) have taken some training initiatives to raise resilience against climate-induced hazards.
Furthermore, the magnitude of human capital depends on how men and women allocate their
time in their occupations (W. Huffman and P. Orazem, 2004). This study has found that
occupational diversity in women is higher than in the case of men. Men are mainly involved in
the agriculture production system, whereas women are equivalently engaged in agriculture and
other sectoral services in the study area. The regression analysis showed that human capital is
highly dependent on the involvement of men and women in the agriculture production system
(Figure: 3- A1 & A2). And this capital has been increased by about 0.007% and 0.006% with an
increasing one person of men and women involvement. A. Bashir et al. (2018) have found a
similar relationship in an agro-based economy in Indonesia, suggesting that increasing
agriculture involvement will push the human capital significantly. These findings are also in line
with the result of the study by Bleakley (2013); and Djomo & Sikod (2012) (refered by Bashir et al.,
2018).
HIES derived key welfare measures between 2000 and 2010 showed that the share of households
with rural farm-sourced income (income from all crops and horticulture, livestock, fisheries, and
agricultural wages) increased marginally through the decade. World Bank (2016) reported that
agriculture production made a noticeable contribution to income growth for poor and vulnerable
households, contributing the largest share of income gains for the poor. However, agricultural
income is small for the non-poor households, and non-agricultural income actually declined
(World Bank, 2016). It is, therefore, assumed that financial capital is highly responsive to
agricultural involvement in the marginalized rural economy. Similarly, the present study found
that the higher the male and female involvement in agriculture, the higher the magnitude of
financial capital (Figure: 3- B1 & B2). This positive relationship depicts that male and female
involvement in agriculture is highly correlated with financial capital.
Increasing male involvement in agriculture have slightly negative relations with the magnitude of
physical capital in the study area. However, female participation cannot affect the physical capital
in the study area (Figure: 3- C1 & C2). It is the reverse relationship of the male and female
involvement in agriculture with the financial capital. It can be expected that financial capital of
involving in agriculture flows in different ways besides the physical capital. It will be happened if
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the farmer faces multiple challenges with his/her financial resources. Several past studies
reported that the study area is highly vulnerable to multiple-climate-induced hazards, input
management (like agricultural labor) for the agriculture production system, and also post-
harvesting loss management actions ( Pavel, T. et al., 2022; Rahman, S. T., & Monjur-Ul-Haider,
M., 2020; Abedin, J., & Khatun, H., 2019; MoWR, 2012). For this reason, the financial capital
earned by agriculture cannot transform into the physical capital of these agricultural farmers.
These farmers need more financial options to increase their resilience in their physical capital
from various sources, like micro-credit loans from different NGOs and other services (like
involvement in industries).
On the other hand, rapid population change with new demands on physical infrastructure, in the
short and medium run, is characteristic of interregional migration to a certain extent (Öberg,
S.,1995.). Some agriculture farmers argued that the decreasing differences in the physical
infrastructure between the agricultural farmers and immigration laborers has decreased the
interregional migration rate of these laborers for about fifteen (15) years.
The current study also discovered that, even though female participation in agriculture does not
affect the living standards of those in the study region who depend on it for a living, growing
agricultural engagement may result in a decrease in the size of living standards (Figure: 3- D1 &
D2). It is also claimed that this association follows the link with physical capital rather than the
relationship between male and female engagement in agriculture with financial capital. As a
result, the money made from agriculture cannot significantly raise the standard of life because of
using in other ways than providing drinking water, sanitary facilities, and other electrical devices.
These farmers require more financial choices, such as microcredit loans from multiple providers
and other services, to raise their financial flexibility and living standards.
0.66
0.64
0.62
0.60
0.58
Human Capital
0.56
0.54
0.52
0.50
0.48
0.46
0.44
0.42
Human Capital = 0.489+7.4959E-5*x
0.40
-200.00 200.00 600.00 1000.00 1400.00
0.00 400.00 800.00 1200.00 1600.00
Male_Agriculture
Figure: 3-A1, Relationship between Human Capital and Agriculture Involvement (Male)
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0.66
0.64
0.62
0.60
0.58
0.56
Human Capital
0.54
0.52
0.50
0.48
0.46
0.44
Human Capital = 0.4952+0.0006*x
0.42
0.40
-20.00 20.00 60.00 100.00 140.00 180.00
0.00 40.00 80.00 120.00 160.00
Female_Agriculture
Figure: 3-A2, Relationship between Human Capital and Agriculture Involvement (Female)
0.80
0.70
0.60
0.50
Financial Capital
0.40
0.30
0.20
0.10
0.00
Financial Capital = 0.0016+0.0004*x
-0.10
-200.00 200.00 600.00 1000.00 1400.00
0.00 400.00 800.00 1200.00 1600.00
Male_Agriculture
Figure: 3-B1, Relationship between Financial Capital and Agriculture Involvement (Male)
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0.80
0.70
0.60
0.50
Financial Capital
0.40
0.30
0.20
0.10
0.00
Financial Capital = 0.0303+0.0037*x
-0.10
-20.00 20.00 60.00 100.00 140.00 180.00
0.00 40.00 80.00 120.00 160.00
Female_Agriculture
Figure: 3-B2, Relationship between Financial Capital and Agriculture Involvement (Female)
0.70
Physical Capital = 0.4406-1.9943E-5*x
0.65
0.60
0.55
Physical Capital
0.50
0.45
0.40
0.35
0.30
0.25
0.20
-200.00 200.00 600.00 1000.00 1400.00
0.00 400.00 800.00 1200.00 1600.00
Male_Agriculture
Figure: 3-C1, Relationship between Physical Capital and Agricultural Development (Male)
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0.70
Physical Capital = 0.4375-1.703E-5*x
0.65
0.60
0.55
Physical Capital
0.50
0.45
0.40
0.35
0.30
0.25
0.20
-20.00 20.00 60.00 100.00 140.00 180.00
0.00 40.00 80.00 120.00 160.00
Female_Agriculture
Figure: 3-C2, Relationship between Physical Capital and Agricultural Development (Female)
0.90
Living Standard = 0.524-3.3464E-5*x

0.80
0.70
Living Standard
0.60
0.50
0.40
0.30
0.20
-200.00 200.00 600.00 1000.00 1400.00
0.00 400.00 800.00 1200.00 1600.00
Male_Agriculture
Figure: 3-D1, Relationship between living standard and agricultural development (Male)
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0.90
Living Standard = 0.5186-2.0794E-5*x
0.80
0.70
Living Standard
0.60
0.50
0.40
0.30
0.20
-20.00 20.00 60.00 100.00 140.00 180.00
0.00 40.00 80.00 120.00 160.00
Female_Agriculture
Figure: 3-D2, Relationship between living standard and agricultural development (Female)
7. DISCUSSION
7.1 Immigrant Labor and Agriculture Farmer Community
Haor area is mainly suitable for Boro rice cultivation because of its physiographic nature.
Although the Boro area under haor was higher (36% of the total Boro area) in Sunamganj, rice
cultivation is frequently affected by flash floods due to heavy rainfalls and onrush of water from
the upstream Meghalaya hills in India (Kabir, Md. Jahangir et al., 2020). Since Boro rice is the
primary food for the haor areas, the flash flood causes a threat to the food security of the haor
people. Kabir, Md. Jahangir et al. (2020) supposed that this condition promotes the agricultural
farmers in the areas to employ a number of migrant laborers to expedite rice harvesting to escape
unexpected crop loss due to flash floods. They observed that wage workers migrated to Sunmganj
from both haor and non-haor areas Faridpur, Tangail, Netrakona, Sirajganj, Pabna, Mymensingh,
Sylhet, and Habiganj (Kabir, Md. Jahangir, et al., 2020; DAE, 2020). But the present study found
two scenarios in interregional labor migration patterns in view of the annual dimension. For
example, about 15 years ago, the local agricultural farmers in the study area could hire labor from
Dhaka, Faridpur, Krishorganj, Madaripur, Mymensingh, Munsiganj, Netrokona, and Tangail, but
the source districts of immigrant labor have been decreasing for fifteen (15) years. They are now
hiring these labors from nearby mouzas, unions, Upazilas, and even districts (like Netrokona). To
cope with this situation, some immigrant laborers come by suspending stone collection from the
Jadukata River. The local Government usually helps them to stop this collection for harvesting
boro-rice during April-May. In recent years, mechanization is promoting the agricultural farmers
to harvest without losing a significant amount of boro-rice against flash flood. The present study
estimated that maximum farmers would lose about one metric ton (MT) of rice production per
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hectare and associated income (about 44,912 BDT) in case of without labor. This condition could
result in decreasing capital flows to human capital, physical capital, and even the living standard
attributes of an agricultural farmer. The local farmer community expressed that an equilibrium
condition of the wage difference between them and the immigrant labor decreasing the
interregional migration of these wage labor. This condition supports the basic law of migration in
regional economics that equilibrium in wage difference can decrease the interregional migration
in the long run. In this theory, capital flows toward the low-wage region, and labor flows toward
the high-wage region. But capital in the study area flows from the high-wage-households to the
low-wage-households during the present condition. In addition, mechanization in boro-rice
harvesting needs more financial capital than some laborers demand (Islam and AKMS, 2018). The
present study, thus, suggested that this results in more liquid financial capital that cannot be
transformed considerably into physical capital and living standard attributes of the agricultural
farmers in the study area. Because the financial capital significantly flows toward boro-rice
cultivation and harvesting management, climate change adaptation, and disaster risk reduction
options. It is also mentioned that women of the local agriculture farmer community never get
married to immigrant labor. Moreover, the overall approach of that local community is
satisfactory for the immigrant labor community.
7.2 Other Immigrant Communities and Local Community
The above discussion indicated that financial capital highly flows within the study area.
Moreover, this area has high natural significance because of the natural beauty of haors (mainly
the TanguarHaor, declared as the Ramsar Site, which attracts many national and international
tourists. Many tourism activities have been implemented in the study area. Therefore, this area
can be considered one of the high-wage regions that can attract other communities for
interregional migration. Shubuj Chandra Borman is one of the immigrant entrepreneurs who
immigrated to this region from the Gazipur District, and became an entrepreneur here. In
addition, Muhammad Ali migrated to this region to practice as a homeopathy doctor. The
immigrant entrepreneurs, like Shubuj Chandra Borman and Muhammad Ali, were reported to get
married to the local community. It has also been reported that the immigrant entrepreneur can
readily be involved with the local community in societal activities than an immigrant laborer can.
There is no critical societal conflict between the local community and the immigrant labor,
immigrant entrepreneur, and even immigrant practitioners.
Nevertheless, interregional migration turns into conflict when entire communities are completely
migrated. For example, an entire community immigrated into the study area from the Bhoirab
Upazila of the Kishorganj District. They were first involved as the labor for the local farms. But
they then decided that this place was more fertile than where they had previously lived, so they
relocated here to farm by themselves. That was not well received by the local community in the
area. This immigrant population has given rise to some critical societal conflicts. But now, they
have managed to comprehend one another.
8. CONCLUSION AND IMPLICATIONS

Interregional migration of different level of immigrants plays an important role in the socio-
economic aspects of local communities, particularly the agriculture community, in rural areas and
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is expected to grow in size, complexity, and diversity. As immigrant labor and capital flows can
be shifted as economic activity, the restructuring of local infrastructure and economic policies will
affect the source region (immigration from the region) and destination region (immigration to the
region, Tahirpur Upazila) continue to improve. These changing flows play a role in changing the
socio-economic landscape of the Tahirpur Upazila. From illiterate to highly educated and from
youth to adults can migrate to maximize the income opportunities that high-income communities
create, supported by the destination social network.
The study area can be considered one of the high-income areas that can attract other communities
for inter-regional migration. Financial capital flows in large quantities within the study area. In
addition, this area is of high natural importance due to the natural beauty of the Haor, which
attracts a number of domestic and international tourists. However, the major production system,
Boro-cultivation, under Haor areas in Sunamganj is highly affected by flash floods. This situation
has led farmers to hire numbers of migrant workers to harvest rice earlier and avoid unexpected
crop losses from flash floods. However, the present study saw a paradigm shift in the way the
farmer employs these wage workers for the 15 years. The tendency for these workers to migrate
across regions from the source districts has been declining for 15 years. It can reduce capital flows
in the characteristics of human capital, physical capital, and even the living standard of farmers.
Limited wage gap between them and migrant workers is, therefore, expected to lead to a
reduction in interregional migration of these wage workers. However, as it stands, capital in the
study area flows from high-income households to low-income households. In addition,
mechanization in boro-rice harvesting requires more financial capital than some labors need. The
study, therefore, suggests that the increased capital flows within the region as a result of the
downward trend in immigrant workers and the mechanization have led to more liquid financial
capital that cannot be largely translated into physical capital, and agricultural living standard
attributes in the study area.
This area also attracts some communities to migrate here as entrepreneurs, and some as
practitioners (homeopathy, etc.). In addition to them, the area has also attracted entire
communities who migrated to live here. However, social conflicts can vary according to the size
and occupation of immigrant communities. Migrant entrepreneurs can more easily engage with
local communities in community activities than migrant workers. On the other hand, studies have
also reported that migration between regions become conflict when entire communities are
completely migrated.
9. RECOMMENDATION AND FUTURE DIRECTION
Like immigrant labor, other immigrant communities are directly related to and dependent on
various socio-cultural and normative factors that determine their role and status in local
agricultural communities. Migration can therefore be seen as a self-help strategy for poverty
reduction and alleviation and should be properly recognized and used appropriately for the
sustainable development of both source and destination regions.
This paper marks a paradigm shift of the process of hiring the migrant workers for over 15 years.
Especially these farmers who have to spend more money and energy to harvest the boro rice
within the stipulated period. Therefore, local government authorities should ensure easy and
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affordable transport of migrant workers, improve their housing and stay, health protection
networks, and a good relationship between harvest, price, and labor wages. Planning well in
advance of the term is recommended. Authorities should work with NGOs and other
organizations working with marginalized groups to extend basic service provision to migrant
workers by adopting a ―user pays‖ approach. To be successful, the immigrant community,
especially social networks of workers, entrepreneurs, and other practitioners, must be involved in
decision-making.
Moreover, the Bangladesh census does not question population migration, despite its significant
demographic, social, and economic impact. Without the 'place of last residence' question with
duration, the 'place of birth' question asked in the BBS follow-up seems meaningless for records of
non-permanent immigrants. Similarly, survey questions about 'household types of institutions'
(BBS 1992b: 7) should include boarding houses or 'mess' on a priority basis. Labor force surveys
conducted by the BBS must include questions on 'place of birth', 'current place of residence' and
'year of immigration'. Also, the census should include ―workplace‖ questions to identify
temporary immigrants. Since people in Bangladesh work multiple jobs, it may be appropriate to
ask follow-up questions about how they use their time at their main job where he spends 6 hours
to 8 hours in a row.
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An Analytical Study of Foreign Direct Investment (FDI) & Its

Impact on Indian Gross Domestic Product (GDP)
Mohd Mohsin Qureshia*, S.K.S. Yadavb
aDepartment of Commerce and Business Administration, Meerut College, Meerut, U.P., India
bNational P.G. College, Bhongaon, District Mainpuri, U.P., India
E-mail: qureshimohsin@rediffmail.coma, sudhiryadavmeerut@gmail.comb
Abstract
Foreign direct investment is essential for the economic progress of any
emerging country. Over the past two decades, FDI has been increasingly PAPER/ARTICLE INFO
prominent in India. Investment and saving are connected by FDI. Many RECEIVED ON: 11/11/2022
developing nations, like India, are experiencing a savings shortage. ACCEPTED ON: 08/12/2022
Foreign Direct Investment can assist in the solution to this issue. Foreign Reference to this paper
investment contributes to lowering the BOP flaw and provides the should be made as follows:
foundation and prerequisite for accelerated GDP development. The
secondary data serve as the sole foundation for this investigation. It is Qureshi, Mohd. Mohsin &
based on publicly available annual reports from the NSE, BSE, SEBI, and Yadav, S.K.S. (2022), “An
RBI for the 10 years from 2012-13 to 2021-22. The results were obtained Analytical Study of Foreign
using statistical methods, primarily correlation and linear regression Direct Investment & Its
analysis. Our analysis leads us to the conclusion that FDI significantly Impact on Indian Gross
Domestic Product (GDP)”,
affects India's GDP.
Key Words: Foreign Direct Investment (FDI), Economic Development,
Gross Domestic Product (GDP). 11, No. 2, pp: 376-387.
DOI: 10.46333/ijtc/11/2/5
An Analytical Study of Foreign Direct Investment & Its Impact on Indian Gross Domestic Product (GDP)
Mohd Mohsin Qureshi, S.K.S. Yadav
1. INTRODUCTION
Every economy must progress through numerous stages of development. The primary driver of
economic activity is investment. For the development, domestic investment is insufficient.
Therefore, there is a huge need for international investment according to the Foreign Direct
Investment model (FDI). Without foreign investment, no nation can reach the highest possible
degree of economic growth on its own. This foreign capital in the form of FDI is sorely needed to
support the country's economic goals. It is the direct investment made by foreign governments or
businesses in the industries of another nation to create a favorable business environment.
Favorable foreign investment causes capital to accrue in the nation, which then improves
productivity, income levels, the effectiveness of demand, accumulated savings, and investment,
ultimately leading to a nation's overall growth and development.
A crucial part in the growth of the country is played by foreign direct investment (FDI). For
developing and underdeveloped nations, it is extremely important. The lack of sufficient income
and savings to cover the necessary amount of investment needed to sustain economic growth is a
prevalent feature of these developing and underdeveloped economies. In such circumstances,
foreign direct investment can help to bridge the gap between available and required resources or
finances. It contributes significantly to a nation's long-term growth not just as a source of capital
but also to the improvement of the local economy's competitiveness through technology transfer,
infrastructure improvement, productivity growth, and the creation of new job opportunities. In
India, FDI is viewed as a developmental strategy that aids in gaining self-reliance in a number of
sectors and the expansion of the economy as a whole. There was a dramatic rise in the flow of
foreign direct investment into India following the liberalization and globalization of the economy
in 1991.
Multinational firms have rapidly increased their foreign direct investment (FDI) since the middle
of the 1980s. This expansion may be ascribed to significant technical breakthroughs, an increase in
the liberalisation of trade and investment regimes, and the deregulation and privatisation of
markets in many nations, particularly developing ones like India. During the years 1991–1992,
foreign direct investment (FDI) began to enter India with the intention of bringing together the
projected investment and the actual savings of the nation. India has become a country that
welcomes investment as a result of trade policy liberalisation. In the context of this liberalisation,
foreign direct investment (FDI) in India attained essential importance. India is one of the ten most
industrialised nations in the world, although it is mostly an agro-based economy, with about 70%
of the population working in agriculture. However, due to their built infrastructure, freely
accessible labour, flexible taxation systems, etc., urban industries received the majority of FDI
during the early stages of liberalisation. Because of these factors, FDI in these sectors has been
very successful.
With the increase in FDI, Indian businesses have more opportunity to advance technologically,
access advanced managerial techniques, make the best use of their human and natural resources,
and compete more successfully on the world stage. Economic officials thus create the way to
attract Foreign Direct Investments (FDI), as a high level of FDI is considered as a catalyst and
accelerator of economic growth in the host country. The two most prominent advantages
connected with FDI inflows for the host country are export promotion and GDP growth.
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2. REVIEW OF LITERATURE
Ahmad & Ahmad (2014) looked into the significance of Foreign Institutional Investors, which
have emerged as a powerful force in the growth of the stock market of India and are now widely
acknowledged as a significant contributor to stock market volatility. The present study made a
modest effort to analyse FII investment and its impact on volatility of stock market in order to
determine the relationship between the two. The research spanned fifteen years, from January
1999 to December 2013, and made use of monthly time series data on SENSEX, NIFTY, and FIIs
activities. The non-stationarity of a time series can be tested with the help of the Augmented
Dickey-Fuller (ADF) unit root test. In the present research, they used the GARCH model to
analyse the affect of FII capital flows on the volatility of stock market. According to the findings of
the GARCH test analysis, the NIFTY and SENSEX, two important indices that represent the
Indian stock market, are much more volatile than they were in the preceding periods and were
also significantly more volatile due to FII investment. Therefore, the findings imply that the
volatility of the Indian stock market and FIIs has grown over the course of the study, but that it
peaked during the financial crisis before normalizing to moderate levels.
Vaibhav Bhansali (2016) looked into whether the liberalisation process that began in India in the
early 1990s had a significant impact on the Indian stock market operated. Globalization,
liberalisation, and foreign investment growth have improved the competitiveness and
effectiveness of the Indian stock exchanges. India, a developing nation, draws a sizable amount of
FII each year. Foreign Institutional Investors (FIIs) are one of the most significant investment
groups that have arisen to play a significant impact in the overall success of the stock market.
Foreign direct investment (FDI) portfolio flows are highly advantageous for emerging markets
since they are growth-oriented and reduce the cost of capital. This research looks at how
institutional investors from other countries affect the Indian stock exchange.
Das, L., and Mahapatra, R. P., (2017) conducted research on the increasing involvement of
Foreign Institutional Investors (FIIs) in Indian stock market. Their impact on the stock market was
a hotly debated topic for a long time. Foreign institutional investors (FIIs) have grown into
important participants and providers of financial services in India's stock market. The author
looked at whether or not the actions of these investors may be attributed to market shifts. Due to
their transient character, FIIs can influence the performance of domestic financial markets in both
directions. For this reason, it is crucial for any developing nation to comprehend the factors that
attract FII, as it has a more significant effect on the home country's financial markets. This study's
objectives were to (1) analyse the factors that attract foreign institutional investors (FIIs) to India
and (2) evaluate the impact that foreign institutional investors have on the stock market and
economy of India.
Jain, V., Nair, K., and Jain, D. (2014) wrote that a country's prosperity and progress can be seen
in its steady economic growth and development, which comes from investments. The authors
claim that Foreign Institutional Investors (FIIs), particularly in emerging nations like India, have
recently emerged as substantial players in the Indian equity market and are steadily ascending to
the position of one of the major contributors to the expansion of the financial markets. The
primary goals were to examine how FII flow affected capital markets, the degree to which FII
flow and capital market growth were caused by Granger causality, and the lead-lag relationship
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between NSE Nifty and FII flow. The study database is made up of NSE Nifty and FII flow
monthly data. The information used was gathered from the websites of the major stock exchanges
and SEBI. Gretl and other pertinent statistical analytic software have been used to compute the
findings of stationarity, causality, and co integration. The study's findings did suggest that there
was no causal relationship between FII investment and NIFTY and that they were both affected
by a number of other macroeconomic elements other than growth.
N. Kedia (2016) investigated how the Indian stock market has been impacted by the shifting
global landscape. FIIs have grown to be very substantial market participants in India, and their
increasing involvement and contribution has been a key factor in the growth of the country's
stock markets. The Indian Stock Markets' new heights and increased volatility have prompted
studies to be conducted in this area to determine the relationship between FIIs and the Stock
Market. Data from the BSE Sensex and FII activities for the time period of January 2003 to
December 2012 were used to conduct the study. The study found that foreign institutional
investors (FIIs) affected the Indian stock market. R = 0.609, which indicates that the beneficial
effect of FIIs on the stock market is over 60%. The data seems to indicate that FII inflows either
contribute to an upward trend in the market or have the reverse effect. Additionally, as the study
concentrated on the Bombay stock exchange, the impact of foreign institutional investors on the
Sensex was stronger.
Mukherjee (2002) looked at the possible causes of FII and came to the following conclusions: (1)
The domestic equities market's performance frequently influences the foreign investment flow
into Indian markets; (2) Inflows of foreign direct investment (FII) are affected by the performance
of the Indian stock market; (3) FIIs' buying and selling habits have a significant impact on the
Indian stock market's overall performance; (4) FIIs do not use the Indian stock market as a means
of diversifying their portfolios; (5) It's possible that FII decision-making is influenced by returns
from fluctuations of the currency rate and the situation of the economy's fundamentals, but this
effect is not significant enough.
Prusty, T., and Vishwakarma, R. (2014) stated that Foreign Institutional Investors (FIIs) have
emerged as major players in the Indian Stock Market in recent years. This study aimed to define
the role of FIIs in the Indian capital market and to identify the factors that impact their investment
decisions. According to the author's research, foreign institutional investor (FII) investments and
the BSE Sensex have a favourable correlation. Foreign institutional investors (FIIs) wield
enormous influence over the outcome of India's stock market. There are a number of variables
that have led to a rise in FII investments in India. These include improvements in infrastructure,
regulation and trading efficiency, the capital expenditure cycle, attractive new issuance markets,
outsourcing, a weak dollar, rising commodity prices, and consolidation. The stock market indices
and FIIs had a positive association.
Qureshi, M.M. & Yadav, S.K.S. (2022) have conducted a study entitled "An Analytical Study to
Examine the Influence of Foreign Institutional Investors on the Indian Capital Market." The
primary purpose of this analysis is to learn how foreign institutional investors (FIIs) have affected
the Indian capital market. They looked for a statistical correlation between FIIs and the Sensex
index in order to achieve this goal and used secondary data from the 10 fiscal years between
2012–13 and 2021–22 for the analysis. The information shows a significant inverse link between
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the Sensex index and FIIs net flow. Since the P-value is significant, they accept the alternative
hypothesis, which states that the net flow of FIIs has a substantial effect on the Sensex. This study
reveals that an increase in the net flow of FIIs into the Sensex index causes other investors to sell
their holdings in order to realise a profit, hence reducing the value of the Sensex index. The
position of domestic investors, the political climate, the rupee and dollar exchange rate, inflation,
and other factors, in addition to the net flow of FIIs, have an impact on the Indian capital market.
Shrivastav (2013) concluded that foreign institutional investors (FIIs) have a considerable impact
on the direction of the Sensex in India because of the correlation between their investments and
the Sensex. Based on his research, he came to the conclusion that FII had a major effect on India's
stock exchange (BSE and NSE). BSE CG, CD, and IT were shown to have a positive association
with FII, whereas BSE FMCG was found to have a negative correlation. In each case, the degree of
the relationship was low. Indicators of Foreign Direct Investment (FII) had a weak linear
relationship with other stock indices. This indicated that their impact on stock prices differed
based on the sector to which it belonged and the overall performance of the various sectors.
Swapna, G. (2018) analysed the effects of FIIs on the Indian capital market with particular focus
on the BSE and NSE indexes. The information was gathered from a variety of sources, including
BSE, NSE, SEBI reports, etc. From 2005–2006 to 2016–17, the twelve year statistics of the NSE and
BSE index average are taken into account. The analysis was conducted by comparing the
purchases, sales, and net investments of FIIs. For the two investigations, there is an unmistakable
connection between the association coefficient between FII and Sensex. This article examines how
these variables affect the BSE and NSE indices. In this study, the average NSE and BSE indexes
over a twelve year period are used. It is obvious that actual drops in the value of securities
exchange were ultimately caused by FII cash withdrawals.

[i] To analyse FDI patterns in India in the 21st century.
[ii] Examining the role of foreign direct investment (FDI) in India's GDP growth.
4. HYPOTHESIS OF THE STUDY

H0: Foreign direct investment (FDI) impact on India's GDP growth is insignificant.
Ha: Foreign direct investment (FDI) impact on India's GDP growth is significant.
Where:
GDP=β0+ β1 (FDI)
A hypothesis has been developed and further tested using statistical tools such as simple
correlation and regression analysis in order to achieve the study's goals. The correlation method is
used to examine the linear relationship between variables FDI and GDP, whereas the linear
regression method is used to assess the impact of an independent variable FDI inflow on a single
dependent variable GDP. Using the data presented, we can write a simple regression model
equation of the type Y=a+bx in where X represents the independent variable FDI (inflows into
India) and Y represents the dependent variable GDP.
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This study's main goal is to determine how foreign direct investment has affected the growth of
the Indian economy in terms of GDP. In this investigation, secondary data have been employed.
FDI Inflow & GDP Size were the two primary parameters chosen for the study. It is based on the
NSE, BSE, SEBI, and RBI's publicly available annual reports for the years 2012–13 through 2021–
22. The information was gathered from the Government of India as well as the Reserve Bank of
India's Bulletins and Fact Sheets. This study looked at a 10-year period, from 2012-2013 to 2021-
2022, based on the data that was available for that time period. For data analysis, a number of
statistical formulas are employed. Calculations of the Growth Rate of FDI and GDP, Mean,
Standard Deviation, ANOVA and Coefficient of Variation are the main statistical approaches
used in this study. The results were also obtained using a linear regression analysis using Karl
Pearson's correlation.
6. DATA ANALYSIS
Analysis of FDI and GDP in India during (2012-13 to 2021-22)
The table below shows FDI inflows and their influence on GDP:
Table No. 1: Growth in FDI Inflow and Size of GDP
Years FDI Inflow (in Growth Rate of GDP (in USD Growth Rate FDI as a % of
USD Million) FDI Inflow (%) Million) of GDP (%) GDP
2012-13 22,423 (-)36% 18,27,638 0.25% 1.23%
2013-14 24,299 (+)8% 18,56,722 1.59% 1.31%
2014-15 29,737 (+)22% 20,39,127 9.82% 1.46%
2015-16 40,001 (+)35% 21,03,588 3.16% 1.90%
2016-17 43,478 (+)9% 22,94,798 9.10% 1.89%
2017-18 44,857 (+)3% 26,51,473 15.54% 1.69%
2018-19 44,366 (-)1% 27,02,930 1.94% 1.64%
2019-20 49,977 (+)13% 28,31,552 4.76% 1.77%
2020-21 59,636 (+)19% 26,67,688 -5.79% 2.24%
2021-22 58,773 (-) 1% 31,76,295 19.07% 1.85%
Source: compiled & computed from the various issues of RBI Bulletin, dpiit, Ministry of Commerce, World
Bank & IMF websites.
The Foreign Direct Investment (FDI) that has been brought into India is outlined in Table No. 1,
which covers the years 2012-13 through 2021-22. According to the table, India had attracted a
significant amount of foreign direct investment (FDI). Because FDI inflow increased from USD
22,423 million in 2012-13 to USD 58,773 million in 2021-22, the results of the study demonstrated
that foreign direct investment (FDI) inflow has increased by more than 2.5 times throughout the
course of the study period. The gross domestic product (GDP) of an economy is a figure that takes
into account both the output and the national income. Gross domestic product also refers to the
sum of all of the costs associated with the production of finished goods and services inside a
nation over the course of a specific period of time. In the table above, the GDP of India is also
shown for the years 2012–13 through 2021–22. According to the table, India's GDP has grown
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significantly. Because the GDP increased from USD 18,27,638 million in 2012–13 to USD 31,76,295
million in 2021–22, it was evident that the size of the Indian economy as measured by GDP had
expanded by more than 1.7 times over the research period. The Indian government has taken
numerous measures to increase FDI due to advancement of technology, access to international
managing techniques and skills, best use of natural and human resources, opening up export
markets, enhancing the international competitiveness of Indian industry, access to goods and
services of international quality and providing forward and backward linkages. The biggest
amount of FDI, totaling USD 59,636 million, was received in the fiscal year 2020–21. The year
2015–16 saw the highest growth rate of FDI inflow, or 35%. Consequently, India has seen an
increase in foreign investment. On the other hand, the year 2021–22 saw the largest GDP in terms
of USD, totaling USD 31,76,295 million. The years 2021–22 also saw the highest GDP growth rate,
approximately 19.07 percent. In a nutshell, FDI has been crucial to the expansion of the Indian
economy in terms of GDP.
Sources of FDI in India
India has increased the sources of FDI during the reform era. In comparison to 135 countries in
2012–13, 177 countries made investments in India in 2021–22. As a result, more nations made
investments in India in the twenty-first century. After economic liberalisation, the top countries
for investment included Mauritius, Singapore, Netherlands, United States, Japan, the United
Kingdom, and many more.
Table No. 2: Share of FDI Equity Inflows from the Top Ten Investing Countries in India
(Financial years 2012-13 to 2021-22)
Amount in US$ million
Countries
from all Countries

Total FDI Inflows
Ranks 1 2 3 4 5 6 7 8 9 10
Netherland
Singapore
Mauritius
Germany
Cayman
Islands
Cyprus
U.S.A
Japan
UAE
U.K.
Year
9,49 2,30 1,08
2012-13 557 1,856 2,237 20 860 180 490 22,423
7 8 0
4,85 5,98 3,21
2013-14 806 2,270 1,718 124 1,038 255 557 24,299
9 5 5
9,03 6,74 1,82 1,44
2014-15 3,436 2,084 72 1,125 367 598 29,737
0 2 4 7
8,35 13,6 4,19
2015-16 2,643 2,614 898 444 986 985 508 40,001
5 92 2
15,7 8,71 2,37 1,48
2016-17 3,367 4,709 71 1,069 675 604 43,478
28 1 9 3
2017-18 15,9 12,1 2,09 2,800 1,633 847 1,237 1,124 1,050 417 44,857
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41 80 5
8,08 16,2 3,13 1,35
218-19 3,870 2,965 1,008 886 898 296 44,366
4 28 9 1
8,24 14,6 4,22 1,42
2019-20 6,500 3,226 3,702 488 339 879 49,977
1 71 3 2
41,6 17,4 13,8 2,04
2020-21 2,789 1,950 2,799 667 4,203 386 59,636
61 19 23 3
69,9 15,8 10,5 1,64
2021-22 4,620 1,494 3,818 728 1,032 233 58,773
45 78 49 7
Cumul
ative
Inflows 1,57, 1,30, 54,1 41,26 36,94 31,9 14,15 13,59 12,22 11,36 5,88,5
(Since 742 967 51 1 2 02 3 1 5 7 28
April
2000)
Total
Inflows
27% 22% 9% 7% 6% 5% 2% 2% 2% 2% 100%
(in %
terms)
Source: Compiled & Computed from the various issues of Economic Survey, RBI Bulletin, Ministry of
Commerce & dpiit.gov.in website
The top investment nations in India from 2012–13 to 2021–22 are shown in Table No. 2. The main
source of investment into India at the moment is Mauritius. About 27% of all FDI in India comes
from Mauritius, which holds the top ranking on the country's FDI map. With 22% participation,
Singapore is the second largest investor in India. United States of America (9%), Netherlands
(7%), Japan (6%), United Kingdom (UK) (5%), Cayman Islands (2%), Germany (2%), United Arab
Emirates (UAE) (2%), and Cyprus (2%) are other big investors in India.
As a result, an examination of FDI inflows over the past 10 years reveals that only six nations
accounted for more than three-fourths (76%) of overall FDI inflows to India. India needs a
significant amount of financial resources in order to move forward with the agenda of
transformation (that is, from a planned economy to an open market), to address the imbalance in
BOP, to increase the rate of economic growth, and to achieve economic growth that is sustained.
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Table No. 3: Sectors Attracting Highest FDI Equity Inflows
Amount in US$ million
Ranks 1 2 3 4 5 6 7 8 9 10
Telecommunica
& Pharmaceutic
(Infrastructure)
Services Sector
Metallurgical I
Development
Construction
Construction
Automobile
(Other than
Software &
Computer
Chemicals
Hardware
Fertilizer)
Activities
ndustries
Industry
Trading
Sector
Drugs
tions
als
*
2012-13 4833 486 304 718 1537 ** 1332 292 1123 1466
2013-14 2225 1126 1307 1343 1517 485 1226 878 1279 568
2014-15 4443 2296 2895 2728 2726 859 769 763 1498 472
2015-16 6889 5904 1324 3845 2527 4511 113 1470 754 344
2016-17 8684 3652 5564 2338 1609 1861 105 1393 857 1440
2017-18 6709 6153 6212 4348 2090 2730 540 1308 1010 372
2018-19 9158 6415 2668 4462 2623 2258 213 1981 266 599
2019-20 7854 7673 4445 4574 2824 2042 617 1058 518 2101
2020-21 5060 26145 392 2608 1637 7875 422 847 1490 1340
2021-22 7131 14461 668 4538 6994 3248 125 966 1414 2272
Cumula 94195 85517 38331 34741 32842 27969 26209 19452 19405 17015
tive
Inflows
(Since
April
2000)
Total 16% 14% 7% 6% 6% 5% 5% 3% 3% 3%
Inflows
(in %
terms)
Note: *(i) Services sector includes Financial, Banking, Insurance, Non-Financial / Business,
Outsourcing, R&D, Courier, Tech. Testing and Analysis;
**(ii) Construction (Infrastructure) Activities (6) included in Construction Development (7) till
2012-13, hence there is no data in that column in 2012-13;
Total 63 sectors that were reorganised in 2013–14 and in which Construction (Infrastructure)
Activities has been split from Construction Development (Townships, housing, built-up
infrastructure and construction-development projects) welcome FDI inflows. According to Table
No. 3 above, the service sector receives 16% of overall FDI, followed by the computer software
and hardware industry (14%), telecommunications (7%), trading (6%), and the automobile
industry (6%). These top five industries bring in almost 50% of all FDI to India.
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Table No. 4: Descriptive Statistics
Mean Std. Deviation N
FDI 41754.70 13005.55 10
GDP 2415181.10 455233.11 10
According to Table No. 4, the average amount of foreign direct investment (FDI) in India is USD
41754.70 million and average size of GDP is USD 2415181.10 million during the study period.
Whereas FDI Standard Deviation is USD 13005.55 million and Standard Deviation of GDP is USD
455233.11 million during the same period.
Regression Analysis
Table No. 5: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .907a .823 .801 203121.800880
a. Predictors: (Constant), FDI
Table No. 6: ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 1535066890793.431 1 1535066890793.431 37.206 .000b
Residual 330067727941.469 8 41258465992.684
1865134618734.900 9
a. Dependent Variable: GDP
b. Predictors: (Constant), FDI
Table No. 7: Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients
B Std. Error Beta t Sig.
1 (Constant) 1089255.953 226667.680 4.806 .001
FDI 31.755 5.206 .907 6.100 .000
a. Dependent Variable: GDP
We discovered the correlation co-efficient (R) 0.907 in the model summary table, indicating a
strong positive association between FDI and GDP. R2 is 0.823, which is the coefficient of
determination. This demonstrates that the explanatory variable (FDI) accounts for roughly 82% of
the variation in the dependent variable (GDP). Adjusted R2 measures the amount of the
dependent variable's variance that may be accounted for by changes in the independent variable.
80% of the variance was explained, according to the adjusted R2.
Beta value 31.755 indicates that the one unit increase in FDI will cause a 31.755 unit increase in
GDP. P Value of the statistics 0.00 is less than the 0.05 acceptable P Value levels, which indicates
that the model is statistically significant. Thus, the null hypothesis (Ho) that the FDI inflow has no
significant influence on the growth of GDP is rejected.
Therefore, at a 5% level of significance, we reject the null hypothesis. As a result, the model's
calculated results show that FDI and GDP in India have a significant relationship.
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7. CONCLUSION
According to the findings of the study, there is a correlation that can be described as both positive
and significant between the amount of FDI that enters India and the size of country GDP.
Throughout the study period, with the exception of 2018-19 and 2021-22, the flows of FDI have
shown a general upward tendency. The government should work on creating a more favorable
environment in order to encourage FDI from other countries. The government ought to encourage
the inflow of foreign capital in such a way that it is practical and advantageous for our country’s
economy, and that it enables us to accomplish our objectives, which include the acceleration of
economic growth, the eradication of poverty, the redressing of regional imbalances in the
development process, and the improvement of our Balance of Payments. Therefore, we demand a
GDP growth rate that is both high and constantly expanding. However, research indicates that
GDP is growing, despite the fact that its growth rate is not stable in terms of percentage.
The majority of foreign direct investment (FDI) entering into India comes from Mauritius, which
accounts for around 27% of all FDI. With a market share of 22%, Singapore is the country with the
second highest level of investment in India. Other large investors in India include the United
States (9%), the Netherlands (7%), Japan (6%), the United Kingdom (UK) (5%), the Cayman
Islands (2%), Germany (2%), the United Arab Emirates (UAE), and Cyprus (2%). As a result, an
examination of FDI inflows over the past 10 years reveals that only six nations accounted for more
than three-fourths (76%) of all FDI inflows to India. In India, FDI inflows are welcomed in 63
sectors and top five sectors attracts round about 50% of FDI inflow. In a nutshell, there has been
an increase in the amount of foreign investment in India, which has assisted in putting the
country's development on a faster track.
REFERENCES
[1] Ahmad & Ahmad, (2014). “Impact of FIIs Investment on Volatility of Indian Stock Market:
An Empirical Investigation”, Journal of Business & Economic Policy, ISSN 2375-0766, 1(2),
pp. 106-114.
[2] Bhansali, Vaibhav. (2016). “Impact of FIIs on Indian Stock Market”,
10.13140/RG.2.2.35690.36806, https://www.researchgate.net/publication/330832645
[3] Das, L., and Mahapatra, R. P., (2017). “Foreign Institutional Investors and India‟s Stock
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An Analysis of India’s Security Perspective: Implications for

Stability in South Asia
Mohd. Rizwana*, Z. Bhatnagarb
a&bDepartment of Defence Studies, Meerut College, Meerut, U.P., India
E-mail: drrizwanmcm@gmail.coma
Abstract
India is a major country of South Asia, constantly effortful to ensure its
Security and Development on internal forum, on other hand PAPER/ARTICLE INFO
simultaneously it has ever been very sincere to its role and contributions RECEIVED ON: 15/11/2022
towards establishing International peace security and stability, after its ACCEPTED ON: 17/12/2022
independence in 1947. While couping with so many internal challenges Reference to this paper
and threats, having a very huge population of diverse culture and should be made as follows:
adequate natural resources it has great possibilities of comprehensive
national development. India has shown its firm intentions to be very Rizwan, Mohd. &
sincere with flexible practical approaches to ensure its security from all Bhatnagar, Z. (2022), “An
external threats including its hostile neighboring countries China and Analysis of India‟s Security
Pakistan. Perspective: Implications for
The present research paper investigates briefly all the prevailing Stability in South Asia”,
circumstances of South Asia; India is surrounded by including the
internal threats and challenges to its national security. Further it
11, No. 2, pp: 388-395.
highlights all its efforts and intentions to achieve objectives of its vital
national security interests as well as its development. It also reveals how
the adverse and hostile neighborhood of India is responsible to disturb the
peace stability in South Asia.
Key Words: India, South Asia, Security and Development, neighboring
countries.
DOI: 10.46333/ijtc/11/2/6
An Analysis of India’s Security Perspective: Implications for Stability in South Asia
Mohd. Rizwan, Z. Bhatnagar
1. NATIONAL SECURITY PERSPECTIVE
India‟s huge landmass, strategic location, vast natural resources, historical linkages, rapidly
growing economy and technologically trained manpower confers legitimacy to play a leading
role, both regionally and globally. India‟s strategic vision is in natural harmony with our
traditional character as a peaceful, responsible nation that has abjured aggression and played a
constructive, mainstream role in international relations. India‟s security policy flows from two
cardinals i.e. we have no extra territorial ambitions and no desire to transplant our ideology on
others.
India‟s National Security Aim 1 is to ensure a conducive internal and external environment for
unhindered economic progress and socio-political development, towards enabling India to
assume its rightful role in the emerging world order. Therefore, the security objectives 2 that
emerge are
(a) Defence of National territory, to include island territories, off shore assets, maritime trade
routes, exclusive economic zone and the air space;
(b) Creation of a secure internal security environment to mitigate the threats to our unity,
core values and peaceful development;
(c) Possessing an effective contingent capability to prevent destabilization of the immediate
neighborhood and also address security concerns of the extended neighbourhood, when
mandated;
(d) Contributing effectively towards regional stability and international peace-keeping and
(e) as far as NBC capability is concerned, the focal elements of our nuclear doctrine, are
policy of no first use; declaration of no-use of nuclear weapons against non-nuclear states;
a posture of minimum credible deterrence and unilateral moratorium on further tests.
The strategic arsenal in India is fully under political control.
India‟s society is made up of diverse cultures, languages, ethnic groups and religious
denominations. This is both our strength and a challenge. Although India‟s national integrity
remains fundamentally secure; poverty, communalism and religious extremism do throw up
challenges which are at times exploited by inimical forces to create disturbances. With a vibrant
democracy and a spirit of accommodation, we are confident of resolving our internal disputes.
These challenges are however not unique to India but span the entire sub-continental canvas.
India thus is a reflection of entire South Asia.
2. UNDERSTANDING SOUTH ASIA

The South Asian sub-continent 3 bounded by the Hindukush Mountains, the Pamir Knot and the
Himalayas in the North and by the Arabian Sea, the Indian Ocean and the Bay of Bengal in the
South, may be seen as a single strategic entity with terrain contributing to an insular perspective
and a tradition of localism and regionalism. Historically, this part of the world has been the
eternal crucible of human civilisation; accommodating, absorbing dissimilarities and evolving
new cultures, theories and concepts. South Asia is the visible manifestation of what our first
Prime Minister called „Unity in Diversity‟ 4 . If we take India as the hub, we can see a smooth
transition of religion, ethnicity, culture and language in all directions. The geo-strategic
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significance of South Asia is that the region not only serves as a geographical bridge, but also as
cultural and economic linkage between South East Asia, the Indian Ocean Region, Middle East
and the Central Asian Republics.
Home to nearly 4.68 billion 5 people, this populous region is perhaps the most ethnically,
culturally and linguistically diverse. Interestingly, most of the South Asian countries do not share
common borders with regional countries other than India. Today, Asia has become the engine of
growth driving global economy, and South Asia is a part of this resurgence. Tragically, the region
is also host to deeply entrenched ethnic hostility, communal violence and numerous inter and
intra - state conflicts. All the countries in the South Asian region are developing countries and
face internal instabilities that threaten economic progress and peace. However, led by India,
South Asia has the potential of becoming a powerhouse in human development and progress 6.
3. STRATEGIC CHALLENGES AND OPPORTUNITIES

Few places in the world offer as daunting a set of security challenges as South Asia. Bilateral
relations among some neighbours remain defined by animosity and mistrust, while some remain
mired in inter and intra-state conflicts. Non-military challenges are rooted in social, economic,
ecological and political choices made by respective countries and governments. While the region
poses diverse challenges, it also provides tremendous opportunities, provided there is an
understanding of our common concerns and collective approach towards ensuring regional
security and economic development. Some of the challenges and opportunities in South Asia 7 are
articulated in the Succeeding paras.
3.1 Regional Security Dynamics:
Social unrest, political evolution and violence driven by separatist movements in some of the
countries continue to affect the security situation in South Asia. In particular, the security
situation in Afghanistan remains a cause of concern for the entire region. The US, crippled by
Pakistan‟s duplicity, failed to defeat Taliban and withdrew completely on 30 Aug 2021 8.
Today it is under pressure to engage the Taliban for political solutions and ensuring stability of
the country now in Taliban rule. Taliban rule in Kabul has security implications for the region.
Pakistan remains engulfed in serious internal dissensions due to internal hybrid security
challenges like terrorism, sectarian violence, political drift and economic turmoil, with the
situation being extremely precarious. The lingering territorial dispute and animosity between
India and Pakistan continues to cast a shadow in the region. The democratic institutions in the
region remain fragile. Due to porous borders and our historical, cultural and ethno-linguistic
linkages, India cannot remain insulated from the spill-over effects of instabilities in neighboring
countries. Growing Chinese assertiveness and inroads into South Asia further add to our security
challenges. Within India, we have internal security challenges in Kashmir, North East and the
Maoist/ Naxal affected regions. However, the situation has improved considerably under the
present government 9.
3.2 Terrorism
South Asia has witnessed growing spectre of fundamentalism and terrorism in the last decade
with the Afghanistan–Pakistan Region having become the epicentre and fountainhead of global
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terrorism. Terrorism has affected all states and remains the single biggest threat to regional
stability. Non- state and state sponsored terrorist groups like Haqqani Network, Lashkar-e-Taiba,
Al Qaeda and ISIS have cross-linkages 10 and tremendous ability to constantly morph into new
forms to survive. These pose a serious challenge to states, civil societies and security forces. The
prospect of these groups acquiring „Weapons of Mass Destruction‟ is a very serious concern.
States cannot be selective in targeting some terrorist groups, while supporting others as strategic
assets. All countries in the region must act jointly to defend the values of pluralism, peaceful co-
existence and respect for the rule of law. Only a determined „Collective Effort‟ will address this
growing menace.
3.3 Religious Fundamentalism, Regionalism and Divisiveness in Society
Although the national integrity of countries in South Asia remain fundamentally secure,
pressures due to poverty, uneven economic growth, communal tensions and secessionist designs
coupled with ethnic and religious divide pose major Challenges. There is a constant demand for
the sub-division of existing states and carving out of smaller autonomous zones based on ethnic
lines or misinterpretation of history. While smaller administrative zones could arguably deliver
better administration and bring power closer to the people, the trend could also fuel sub-
nationalism and weaken central control. Managing aspirations of various regional and ethnic
groups, while retaining a strong national character is a long term challenge in a number of South
Asian States. Despite various regional differences, the region on the whole has strong religious,
cultural and ethnic affinities. These linkages transcend borders and once developed; have the
potential to bind Nations into lasting relationships. However, creating ethnic cohesion requires
dynamic leadership and strong political resolve to initiate a process for greater regional
integration.
3.4 Economic Disparity
South Asia has large untapped natural resources and is recognised as a potential technological
powerhouse. Overall, economy of the region is growing at a respectable rate. However, the
number of people living below the poverty line is still very high and the lack of equitable and
inclusive growth could create internal instability in Nations. With globalisation, the economies of
neighbouring countries in South Asia are today more interconnected than most other regions. We
have only to see the rapid integration within SAARC / ASEAN and its emergence as an
important regional bloc in Asia to realise the opportunities that beckon South Asia.
Youth Bulge and Lack of Opportunities. World population has grown from 6.1 billion in 2000 to
7.98 billion in 2022. 95 percent of this increase has taken place in the less developed parts of the
world with resultant adverse consequences. Moreover, while the population of countries around
us like China is ageing, countries in South Asia have a large percentage of the population in the 15
to 55 years age group. The creation of employment opportunities to channelise this large work
force will be a formidable challenge in the future. At the same time, correct harnessing of the
„Population Dividend‟ could derive rich economic benefits 11.
3.5 Scarcity of Resource and Debt Crisis
National, economic and energy security are inextricably linked. Increasing competition amongst
various groupings on account of their quest for energy sources, food, water and raw material has
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the potential to fragment and incapacitate regional cooperation. It is anticipated that by 2025,
energy scarcity will be the driving factor in regional and global geo- politics. This, coupled with
water shortages, could lead to „Regional Confrontation and Conflicts‟. We need to pool our
resources to tap renewable sources such as solar energy, hydro-electric power and wind energy,
all of which South Asia has in abundance. However, today the scarcity of resources is also linked
deeply into the debt crisis 12 being faced by certain countries in South Asia which have serious
ramifications on the stability of the country. Sri Lanka and Pakistan are two recent examples.
3.6 Trade Barriers
South Asia has been considered as the least integrated region in the world. This is despite
attempts to liberalise trade using various bilateral, regional and multilateral arrangements. It has
long been argued that the limited success of South Asia to liberalise regional trade was due to
limited tariff reductions and remaining barriers present in trade agreements, namely; less
complementarities in production and consumption and political friction among countries. Recent
studies indicate that smaller trade gains in South Asia are mainly due to the fact that inadequate
attention was paid to trade facilitation measures such as efficiency of customs and other border
procedures, quality and cost of international and domestic transport. South Asian countries are
rich in natural resources. Significant trade gains can be achieved by reducing inefficiencies at the
borders in South Asia. In this context, while focussing on increased export of food and
agricultural commodities; the removal of trade bottlenecks and regulatory constraints at trade
gateways / border crossings with concurrent improvement of transportation and port facilities,
will ensure the true mutual trade benefits to be realised.
3.7 Environmental Degradation
South Asian countries remain susceptible to environmental disasters and humanitarian crises.
Rampant deforestation and melting of the glaciers in the Himalayas, rise in the sea level owing to
climate change and global warming, floods, cyclones and droughts continue to pose catastrophic
challenges.
3.8 Collective Frameworks / Institutions
Bilateral issues and differences amongst Nations continue to hamper regional progress. While
there is a need to develop regional economic and security mechanisms, nations need to use
bilateral forums to resolve all outstanding issues at the earliest. The nations must develop a stake
in each other‟s success and prosperity. This mutuality of interests should be the central driving
force for regional cooperation. The architecture and mandate of such collaborative arrangements
must ensure that the region remains insulated from extra-regional influences. Such forums must
also address common concerns like terrorism, drug trafficking, gun running and security of
„Global Commons‟.
4. INDIA’S ROLE
India is a large, strong, vibrant, secular and multicultural democracy on the path of rapid
economic growth. In years to come, as we grow economically and technologically, get to harness
the demographic potential of our people and spread the soft power of our culture and values;
India will a play a significant role in the emerging world order. With growing aspirations come
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responsibilities and India would be expected to contribute increasingly towards ensuring peace
and stability in the region and beyond. Here I wish to highlight that our national strategic vision
is rooted in our civilizational ethos and that a quest for peace, stability and war prevention,
guides Indian policies.
India‟s geographic location and size makes it a principal stakeholder in the stability of the region.
Our immediate strategic interests range from beyond the Malacca Straits in the East to the Persian
Gulf and Red Sea in the West, and from the Central Asian Republics in the North to the Indian
Ocean Region in the South.
4.1 Engagement of the Neighborhood
Being a major country in South Asia, India has the responsibility to assist its neighbours in
becoming stable, self-reliant and secure. There is a firm belief that all neighbours have a
contributory effect on India‟s economic growth and regional stability. There is therefore, an
increasing willingness to work with all our neighbours for overall development of the region and
our people. Towards this end, a comprehensive collective approach for positive engagement with
our immediate and strategic neighborhood is needed to ensure their benign cooperation. Making
them partners and stake holders will help us achieve mutual economic growth and development
through integrated and inter-dependent economies.
Political Stability: Besides fostering regional efforts to ensure that our neighbours transit towards
stable democracy, India will need to play a more proactive role. Early and appropriate mediation,
at the behest of the affected Nation concerned, will enable our neighbours to reap regional
economic and security benefits.
Free Trade: Being the largest economy in the region, India will need to take the lead towards
opening trade barriers and making free trade possible amongst all neighbours. Economic
cooperation, connectivity and integration; which form the cornerstones of SAARC must be
exploited for mutual benefit of all Nations. India has a rich pool of experience in development
which can be utilised, in concert with our neighbours, to create a model of inclusive and
sustainable regional development.
Leveraging our Military Strength: Defence Cooperation is an effective instrument in soft power
leverages. Participation in UN sponsored peace missions, disaster relief and anti-sea piracy
operations are some activities that project a nation‟s image in the international fora. With our
immediate neighbours, we need to develop a strong military to military cooperation, primarily to
assuage apprehensions of our intent and minimize the growing influence of our potential
adversaries.
5. CONCLUSION
To conclude most of the countries in the region are trying to come to grips with their own
economic, social and internal security challenges. Lack of governance in some areas and porous
borders has resulted in radical forces spreading their tentacles. However, the danger to the
security of the region lies in terrorism emanating from the border areas of Afghanistan and
Pakistan. In spite of India‟s stability and tremendous economic growth, much of the region has
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failed to capitalise on this regional growth model. As a stabilising influence in the region, there
will be demands upon India to play a greater role in supporting peace and promoting economic
growth and development in the region. Due to emerging interdependencies and intricate
linkages, India will have to increasingly involve itself in ensuring stability, prosperity, peace and
nation building in the region as also project the country as a responsible state that is ready and
willing to shoulder this responsibility with élan and pride.
REFERENCES
[1] (2019) “India‟s National Security Strategy” URL: https://idsa.in/askanexpert/difference-
between-south-asia-and-indian-subcontinent
[2] 2 Ibid
[3] (2017) “Sount Asia and Indian Sub Continent” URL:
https://idsa.in/askanexpert/difference-between-south-asia-and-indian-subcontinent
[4] (2022) “Unity in Diversity‟‟ URL: https://www.outlookindia.com/website/story/opinion-
independence-diary-unity-in-diversity-one-of-the-most-powerful-thoughts-india-gave-
world/391519
[5] (2021) “Population of South Asia‟‟ URL: https://statisticstimes.com/demographics/asia-
population.php
[6] (2021) “South Asia‟s Turn: Policies to Boost Competitiveness and Create the Next Export
Powerhouse‟‟ URL:https://www.worldbank.org/en/region/sar/publication/south-asias-
turn-policies-to-boost-competitiveness-and-create-the-next-export-powerhouse
[7] Bhatt, Mahesh (2019), “New Futures For South Asia- Commerce and Connectivity‟‟
Routledge India, Chapter-„Challenges and Oppurtunities in South Asia‟
[8] (2022) “A year later, a look back at public opinion about the U.S. military exit from
Afghanistan‟‟ URL:https://www.pewresearch.org/fact-tank/2022/08/17/a-year-later-a-
look-back-at-public-opinion-about-the-u-s-military-exit-from-afghanistan/
[9] GV Anshuman Rao (2022), “Improved security sets base for India‟s rise as economic giant‟‟
URL: https://thedailyguardian.com/improved-security-sets-base-for-indias-rise-as-
economic-giant/
[10] Marvin G. Weinbaum, Meher Babbar (2016), “The Tenacious, Toxic HaqqaniNetwork‟‟
URL:https://www.mei.edu/sites/default/files/publications/PF23_WeinbaumBabbar_Ha
qqani_web_0.pdf
[11] Kurtis Cooper (2021), “Youth Bulge in South Asia‟‟ URL:
https://www.unicef.org/rosa/press-releases/more-half-south-asian-youth-are-not-track-
have-education-and-skills-necessary
[12] (2021) “South Asia Must Reform Debt-Accumulating State-Owned Banks and Enterprises to
Avert Next Financial Crisis‟‟ URL: https://www.worldbank.org/en/news/press-
release/2021/06/24/south-asia-must-reform-debt-accumulating-state-owned-banks-and-
enterprises
[13] Chilamkuri Raja Mohan (2022), “India and South Asia: The Elusive Sphere of
Influence‟‟URL: https://www.isas.nus.edu.sg/papers/india-and-south-asia-the-elusive-
sphere-of-influence/
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[14] Kumar, Sanjay (2017), “India's Energy Security Challenges and Policy Options”,
[15] Rizwan, Mohd. (2017), “Reforming the Military Institutions and National Security
Strategy”, International Journal of Trade and Commerce-IIARTC, 6(1), pp. 97-106.
[16] Kumar, Sanjay (2020), “Military Intervention in Pakistani-Politics and Indo-Pak Relations”,
[17] Kumar, Sanjay & Gorshi, Anil (2021), “Relevance and Importance of Tibetan Diaspora in
India”, International Journal of Trade and Commerce-IIARTC, 10(1), pp. 73-87.
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China’s Military Fault Lines

Sanjay Kumar *
aDepartment of Defence Studies, Meerut College, Meerut, U.P. ,India
E-mail: drkumarsanjay1975@gmail.com
Abstract
Over a period of time, external threats to China have receded. Internally;
however, China is facing sub-national movements in its non - Han buffer PAPER/ARTICLE INFO
regions i.e., Xinjiang and Tibet. Both the regions are extremely crucial for RECEIVED ON: 18/11/2022
China to shape its regional periphery, energy security, water security, ACCEPTED ON: 20/12/2022
and promotion of commerce and trade. Tibetan dilemma when connected Reference to this paper
with unsettled borders with India poses a security challenge to China. In should be made as follows:
addition to these sub-nationalistic movements, internal stability and
continued support for the party rule is another major concern. The party Kumar, Sanjay (2022),
has an unwritten understanding with the Chinese population that it ―China‘s Military Fault
would continue to provide political stability and economic prosperity in Lines‖, International Journal
return for surrendering some political freedom to the common man. So of Trade and Commerce-
far both ends had held their side of the bargain. The brief outpouring of IIARTC, Vol. 11, No. 2, pp:
396-411.
public resentment in the 1989 –Tiananmen Square incident, was a direct
outcome of spiralling inflation as also unbridled corruption as a result of
economic liberalization. According to the Chinese, if China intends to
become a major power by 2025 and world power by 2050, it should have a
powerful military that can uphold its perceived historical territorial
claims as well as security goals. It has started a highly significant
military modernization program centered on specialized asymmetric
warfare capabilities/disruptive technologies, supported by liberal defence
expenditure that is second only to that of the US. More crucially, China
has repeatedly shown a propensity to use military choices not just against
its neighbours but also against the US and the former Soviet Union.
Key Words: Political Stability, Economic Prosperity, Territorial Claims,
China, Soviet Union.
DOI: 10.46333/ijtc/11/2/7
Sanjay Kumar
Over a period of time, external threats to China have receded. Internally; however, China is facing
sub-national movements in its non - Han buffer regions i.e., Xinjiang and Tibet. Both the regions
are extremely crucial for China to shape its regional periphery, energy security, water security,
and promotion of commerce and trade. Tibetan dilemma when connected with unsettled
borders with India poses a security challenge to China. In addition to these sub-nationalistic
movements, internal stability and continued support for the party rule is another major concern.
The party has an unwritten understanding with the Chinese population that it would continue to
provide political stability and economic prosperity in return for surrendering some political
freedom to the common man. So far both ends had held their side of the bargain. The brief
outpouring of public resentment in the 1989 –Tiananmen Square incident, was a direct outcome of
spiralling inflation as also unbridled corruption as a result of economic liberalization. However,
the economic landscape improved considerably after 1992. The Chinese economy has been facing
turbulence ever since the economic slowdown of 2008. There have been reports of people losing
jobs and livelihoods. This places a direct question mark on political stability and continued
support for the party rule. The party and the government have resorted to desperate measures to
continue the GDP growth by providing monetary stimulus as also diversifying investment
options by launching the one belt one road initiative. The monetary stimulus has however
resulted in massive internal debt thereby necessitating payback of large parts of earnings as
interest repayments. Managing the economic recovery is therefore a key to continued political
and social stability in China. To partially divert attention from these security concerns, China has
whipped up an ultra-nationalist sentiment in the public who increasingly perceive rising China as
the new Middle Kingdom and the 21st century as the Chinese century. According to the Chinese,
if China intends to become a major power by 2025 and world power by 2050, it should have a
powerful military that can uphold its perceived historical territorial claims as well as security
goals. It has started a highly significant military modernization program centered on specialized
asymmetric warfare capabilities/disruptive technologies, supported by liberal defence
expenditure that is second only to that of the US. More crucially, China has repeatedly shown a
propensity to use military choices not just against its neighbours but also against the US and
the former Soviet Union.
CHINA'S MILITARY RE-ORGANIZATION

The development of China as an economic superpower has significantly influenced both its
military modernization plan and pursuit of an active and aggressive international policy. Clichés
such as the ―China Dream‖ and the revival of historic commerce via ―Belt and Road Initiatives‖
and the ―Maritime Silk Route‖ are measures to reenergize the Chinese people.The Chinese
military forces play a significant role in this situation by defending the country's economic and
fundamental interests. This shift was alluded to in China's 2015 Defence White Paper, Military
Policy of China, which explained that ―the goal of CPC is to build a strong military where China‘s
armed forces will unswervingly adhere to the principle of the CPC's absolute leadership, uphold
combat effectiveness, follow the CPC's commands, and can fight and win wars‖. Therefore, the
strategic task of China's modernization drive under President Xi Jinping's leadership is to build a
strong national defence and formidable military forces.
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Sanjay Kumar
STRUCTURE OF RECENT MILITARY REFORMS IN CHINA

Chinese President Xi Jinping presented a long-term restructuring strategy for the People's
Liberation Army on November 26, 2015. The PAPF (―People's Armed Police Force‖), Reserve
Forces as well as China's Militia are also affected by these changes as he is also the President of
the CMC (―Central Military Commission‖). These adjustments will likely cause President Xi
Jinping to further strengthen his control over all state institutions in addition to restructuring the
armed forces. The following are the numerous reforms: -
Reorganize the ‘Military Regions’ – The 5 Theatre Commands—the Central, Northern, Western,
Southern, and Eastern Commands/Zones—replace the seven military areas that were formerly
located in Lanzhou, Chengdu, Guangzhou, Nanjing, Jinan, Beijing, and Shenyang. The CMC
controls overall army operations, Theatre Commands/Zones concentrate on warfare, and other
military services strive to grow within the newly established structure's guiding concept. [1] The
purported goal of this transition is to increase operational cohesion. According to the President,
the establishment of a war-winning plan and improved training for combined operations are the
key goals of these Theatre Commands/Zones. The goal of the military reform is to create a three-
tiered command structure, consisting of ―the CMC- Theatre commands- Troops/units‖, as well as
an administrative structure that passes from the CMC to the units/troops via several services. [2]
For the majority of the novel Theatre, Command/Zonewas formerly in charge of one of the
7military areas. Nevertheless, several were transferred far from their original position of
leadership in order to prevent any commander from being able to sustain a network of personal
devotion superior to Party authority.[3] For instance, Liu Yuejun the ―former commander‖ of the
Lanzhou MR (―Military Region‖), was appointed to lead the Eastern Theatre Command/Zone. In
addition, Yuan Yubai, the former commander of the Northern Shenyang MR was appointed to
lead the Southern Theatre Command/Zone. The Western Theatre Command/Zone was taken
over by ―Zhao Zongqi‖ of the Eastern Jinan MR, while the Northern Theatre Command/Zone
was led by Commander Song Puxuan of the old Beijing MR. It's significant to note that Han
Weiguo, his deputy commander, was given the position of Central Theatre Command/Zone
commander. So that the changes could be carried out without interference, the President used this
to guarantee that his supporters were elevated to positions of authority.
Formation of 2 New Forces specifically, the PLA Strategic Support and the PLA Rocket Force. The
PLA Rocket Force has replaced the Second Artillery Force in China. While the 'PLA Rocket Force'
maintains its previous traits, it is notable because it is now designated China's 4thbranch of the
armed forces, on an equal basis with the Air Force, PLA Army, along with Navy4, and not merely
an expansion of the military caring after land missile capabilities. Second, the traditional missiles
would also fall in the Rocket Force, confirming China's continuance of its ―Dual Deterrence‖
policy, in which China has attempted to integrate its traditional missile force with its strategic
weapons, therefore bolstering its ―Active Defence‖ approach. This ―Active Defence‖ is a
significant indication of China's military philosophy, in which the proclaimed Chinese defensive
stance (of assaulting the opponent only when hit by it first) conceals a violent operational
strategic posture. This force can include a sizable number of traditional cruise &tactical missiles.
In this way, China's nuclear deterrent and counter strike abilities would continue to be
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strengthened by the new Rocket Force. China will eventually become a big power due to
advancements in its capacity to conduct medium and long-range precise attacks. Likewise, the
Strategic Support Force of the PLA will become the 5 th branch of the armed forces. This is an
innovative framework that was developed and will help the other four services perform more
effectively.[4] It will simplify space operations, electronic warfare, etc., as well as provide the
proper cyber and intelligence support during a war. Therefore, it seems that these alterations
involved a lot of thinking.
China has Reorganized the CMC: The previous 4 military departments-General Logistics,
General Armaments, General Political, and General Staff Department were abolished, and the
CMC currently oversees 15 new organizations that share their roles and responsibilities. [5] The
new offices maintain the General Staff Dept while establishing 6 new departments- National
Defence mobilization, Training, Equipment Development, Logistical Support, Political Works,
and Joint Staff. Science and Technology, Politics & Law, and Discipline Inspection are its three
commissions. Additionally, five new departments have been established, including strategic
planning, organizational structure, international collaboration, auditing, and administration.
Extended staff assistance has basically been provided for the CMC. Many experts have attempted
to show that this was done in an effort by President Xi Jinping to increase political power. This
may only be partly accurate, and it appears that the CMC's new structure is intended to improve
functioning. The Chinese military forces are enormous and very effective. The traditional
structures would have become too unwieldy for operational management during wartime as well
as for day-to-day effectiveness. To appreciate this, one simply has to compare the number of
departments inside the headquarters of the Indian Armed Forces. In any event, it did not seem
essential to enhance the party's already total political control of CMC.
The reform includes other measures like decreasing the size of the militia and reducing the
number of troops from 2.3 to 2million. The Chinese military forces were reducing their personnel
size as they advanced in technology. In this light, the projected reduction of 300,000troops could
be viewed.
Time will demonstrate the success of these changes since there was strong resistance to them from
inside the military services. The stability of the armed forces or perhaps the whole society might
be impacted if [reform] is not carried out correctly, according to Han Xiao and Sun Kejia of the
―PLA National Defence University‖. The most powerful leader since Mao and Deng has arisen as
President Xi in the contemporary context, and it appears that he was effective in establishing a
centralized system in which the power of the Party is unquestioned.
AN ANALYSIS OF CHINA'S MILITARY REFORMS

Doctrinal Changes in the PLA Since 1949 – An Ongoing Process: China was profoundly affected
by an era of humiliation, and ever since, it has worked to improve its army might. A culture that
valued a strong military was created as a consequence of both the Japanese occupation and the
civil war that followed the end of the Qing dynasty. Chinese involvement in the Korean Conflict,
Tibet's military annexation, and the 1962 war with India are all examples of Mao's willingness to
use this military might. Due to a lack of technology, Chinese military strategy at first depended
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only on numerical advantage, giving rise to the idea of ―People's War‖. With improved military
equipment, the resolution of border disputes, and generally increased capability, it was
considered throughout the time that battles might be confined to a narrow area or a border with a
particular country. This applied to both the Indo-China War of 1962 and the Vietnam War of 1979.
Consequently, the military plan evolved into local/limited conflict under contemporary
circumstances, local war under Hi-tech situations, People's war under contemporary
circumstances, under conditions of informationization, and local/limited conflicts.
Informatisation was incorporated after seeing the net-centric character of war, as exhibited by
Western countries during the Gulf Conflicts. Another point worth highlighting is that China
always maintained a defensive mindset even as it got more aggressive. As was previously stated,
―Active Defence‖ was essentially an offensive concept while claiming to be the contrary. Global
force projection is the current approach, which is consistent with the country's updated
international status.
The Cause of the Present Change in Doctrine: As evidenced by historical shifts in the
geostrategic landscape of the Asia-Pacific, the global governance system, the balance of power,
and international competition in the fields of economics, science and technology, and military
affairs, China believes that significant changes are occurring in the world order. Intensifying
threats include neo-interventionism, power politics, hegemonies, and global rivalry for the
redistribution of interests, rights, and power.[6] The major countries are updating their national
security policies and defence plans as well as accelerating their military transformation and force
restructure in response to the military revolution, which is presenting new and significant threats
to the military security of China.[7] A comprehensive perspective of the national security system
must be envisioned via balanced internal and external security systems as well as an evaluation of
conventional and non-conventional threats since the national security concerns China is now
dealing with are considerably more varied and complicated.To fulfil its military objectives of
fighting and winning wars, China has been compelled by these new needs to reinvent its military
policy and produce armed forces that continuously modernize its strategic leadership and
operational principles. Additionally, due to the nation's expanding strategic interests, the armed
forces will need to actively participate in future regional and global security cooperation. A
foreign invasion was the main reason for the military changes between 1949 and the 1980s. The
current reforms are intended to represent China as a significant global force in addition to
safeguarding China's basic interests. It was argued that the likelihood of a significant
conventional or nuclear conflict had diminished under Deng Xiaoping's leadership. Thus, it was
necessary for the military to have the capacity to conduct ―local wars under hi-tech conditions‖.
This resulted in the decrease of MRs from 11 to 7, the reduction of the number of field armies at
the time from 37 to 24, and their transformation into corps-level units known as Group Army.[8]
Similar military reductions have also been occurring occasionally, and the PLA's current soldier
strength is at 2.3 million, dropping from 3.23 million in the past. Thus, the new changes are a
synthesis of both new and old measures that have been expertly legislated by the current
administration.
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Senior PLA Officers may have been seen as supporting certain Party factions: "Political power
grows out of the barrel of a gun" and "The Party must control the gun" have described the party-
PLA relationships in China. The Red Army, often known as the PLA, was in charge of
overthrowing the Kuomintang and establishing Communist Party power in China. The PLA has
been essential in fostering both internal cohesiveness and nation-building. However, this also
required the politicization of the rank and file for them to continue defending China's one-party
system. In the past, PLA served as a party tool for internal controls in addition to deterring
external threats. Almost all PLA commanders belonged to a party, and political commissars were
and are still essential parts of any PLA unit with parallel power. There were several prominent
PLA officers who served on the politburo standing committee or the party's central committee.
The reorganization may aim to prevent senior PLA commanders from remaining a member of
different political cliques, which explains the appointments change.
Everything Depend on Modernization: The justifications for the current downsizing and
reorganization of the PLA have been hotly contested. The prevailing opinion is that this is being
done to strengthen the party's control over PLA. Most likely, it requires a different perspective.
The Communist Party as well as the Chinese President already have a firm grip on the PLA, and
this grip has never been loosened. Therefore, there was no requirement to tighten their control
over the PLA. The goals would likely have been dual in nature. First, to lower the nepotism and
corruption levels within the PLA, and second, to improve the PLA as a combat force, in line with
changing national goals and PRC's status in the area and throughout the world. Of course, the
President has been able to increase his authority and place his supporters in important positions
via the process.
Expeditionary role: The Current Central Doctrinal Idea: The 2015 Defense White Paper
anticipates a growing expeditionary role for the PLA, which provides some insight into this
modernization. This is also attributable to the removal of all genuine threats from China's near
borders. Today, China has established boundaries with the majority of countries, and it has no
cause to worry that its frontiers would be attacked. A military battle is still unlikely, even with
rivals like the USA. Thus, the Eastern Seaboard is likely to be the single source of the main danger
to China.
A focus on PLAN and PLAAF: The present reorganization aims to address the improved force
projection, control, joint command, and improved technologies for intelligence & surveillance
demands of an expeditionary capacity. China is transitioning from an ideology of mass
employment to a policy of technological exploitation. The effort to reduce headquarters size,
autonomous brigades in lieu of divisions, theatre commands/zones, and a greater focus on the
PLAAF, PLAN, and the Rocket Force are all signs in the direction described above. The PLAAF
and PLAN being distinct services further solidify the PLA Army's prim and proper standing.
Additional Funds Release for Asymmetric Capabilities: Asymmetric warfare, like cyber warfare
and the militarization of space capabilities, has also been a priority for China. These efforts were
made to both increase the effectiveness of its troops and to build up its capacity to destroy its
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adversaries without engaging in direct combat. Part of the downsizing's purpose is to free up
money to improve these areas' capabilities.
PLA Autonomy: For a long time, the PLA has demanded professional independence from the
party. The idea of the PLA exercising autonomy in areas like force structure, war-fighting
doctrines, etc. could be indicated by this modernization.
The Contradiction: How does the connection between the party and the PLA alter as a result of
this modernization drive? A fully professional army with worldwide influence cannot also
continue to operate on a daily basis as a political tool run by political commissars. The conflict is
found right there. As China aspires to be a major power, the need for the PLA to modernize and
develop into a combat force of the highest level is now essentially irrevocable. It will, however,
inevitably result in a more independent military mindset. The political system will thus need to
handle the transition. Although they may not be aware of it now, the political leadership would
eventually have to deal with this conflict.
Corruption – The On-going Theme: Xi Jinping has also taken strong action against the
widespread corruption inside the PLA. Therefore, the reorganization affords him the chance to
eliminate the existing standards, forces, and institutions that allowed this corruption to grow. It
creates a brand-new order that is impervious to corruption.
However, Xi Jinping's plan is more about modernization and efficiency than it is about control.
Additionally, it reflects the shifting perspective of the wars in which the PLA is most probable to
take part in the future.
Military Regions Reorganisation
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The Possible Final Alignment
Figure 1: The Possible Boundaries of Military Regions (Source South China Morning Post)
In the past, China's military zones have changed in number as well. There were formerly 13
military zones, but they were later reduced to 11, then 7, and currently there are just 5. This is the
result of shifting attitudes about the danger and scaling down the use of force. The three coastal
military zones are still mostly intact if the maps from the Economist are accurate (see maps
above), even if Beijing and Chengdu military regions have been combined in other locations. The
precise limits are not yet known. The limits shown above are only illustrative.
Therefore, it is more probable that group armies will be concentrated in the 3 coastal military
commands or zones, which will also likely be in charge of the three fleets.
The organization of the recently developed military commands/zones would be interesting to
investigate. For example, it is unclear if they would have direct authority over the militias and the
PAPF (―Peoples Armed Police Force‖). Should the latter occur, it would indicate the Party's aim to
handle the domestic situation via PAPF while the PLA focuses on foreign threats (like the Indian
Model). If it does, it would be a huge move and will lessen the PLA's role in upholding the party
dictatorship. It's important to keep an eye on this issue since it's not entirely apparent.
The PAPF, which has probably been renamed the National Guard, may take on a bigger role. This
might result in the PAPF's function being expanded to include all aspects of internal security. It
could be related to the CPC's belief that an event such as the one in Tiananmen Square is less
likely as affluence grows. This line of reasoning, however, may be incorrect given that the CPC
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continues to worry about regime transition despite the fact that President Xi Jinping has nearly
complete control over all governmental institutions.
The modern chain of command for the PLAAF and PLAN will be another important area to
research. The regional HQs for the PLAAF and PLAN were formerly located inside their
respective army areas. Will the innovative army areas continue to have combined structures,
whereby the service‘s controls all are placed in a single commander? Or with the designation of
PLAN and PLAAF as autonomous services, would the service head quarters have a stronger
operational say-especially in the instance of PLAN? The 3 coastal military commands/zones will
presumably continue to control the three PLAN fleets. This component is still not entirely
apparent. However, the reorganization is not intended to make the military commands and zones
more ―joint‖, since military regions have long controlled parts of all the services that are situated
inside their borders.
The reorganization of military regions does not make it clear whether a particular military
command is to be given this duty or whether all armed zones would now designate a force
component for expeditionary duties, despite the recent military papers' desire for expeditionary
capability.
India would be particularly interested in the reallocation of group armies since it will probably
determine how many reserves are made available to the military zone across from us.
Additionally, the 300,000-troop reduction endeavour may need some decrease in the size of
combat units. Such a significant decrease may not be achieved by just reducing HQ. These
specifics are yet unknown.
India, Russia, and Vietnam, respectively, are the three mainland boundaries that are of military
importance. All three are categorized under various military areas.
The military command/zone in Western will be in charge of the largest land boundaries as well
as a vast area of territory. Additionally, they may control problematic areas like Tibet and
Xinjiang. A reinforced military organization may be seen in the Western command/Zone, which
controls over one-third of China's land-based forces. Gen Zhao Zongqui, the current commander
of the Western command/zone, has a long history with Tibet; from 1984 to 2004, he held the
positions of Chief of Staff and Deputy Chief of Staff in Tibet. His position on Tibet is not likely to
be soft.
Only the Western military command/zone has boundaries with Indian Territory at this time.
From the Chinese standpoint, this will likely be more effective since they can coordinate the use of
troops in our Western and Eastern regions more effectively and with more synergy. This is
especially important since the Chinese are strategically positioned on inner lines. Conversely,
India is on the outside, hence there is little strategic synchronicity between its Western and
Eastern Sectors.
The USA has strategic commands that have the whole world under its control. Nevertheless, even
with an expansive mind, China has confined the geographical borders of the newly constituted
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Theatre Commands ―Within China‖ despite the fact that the Southern, Eastern, and Central
Theatre Commands are most probably assigned for eventualities ―outside China‖. Most probably,
the Southern Theatre Commands will be assigned responsibility for the IOR, while the Eastern
and Central Theatre Commands would focus on the Pacific Ocean. Further research must be done
to determine the precise jurisdictions.
PLA STRATEGIC SUPPORT FORCE AND PLA ROCKET FORCE
As mentioned above, there is a lot of focus on the expansion of asymmetrical abilities, including
those in space, missile technology, cyber war, nuclear deterrent, and so on. The establishment of
the PLA Rocket Force provides a further boost to this attempt and confirms resource synergy.
China has previously performed tests of tools like anti-satellite weapons. The rocket force has
greater freedom to create conceptions and ideologies due to its position as a service. It also shows
China's dependence on this service as a winning element in the struggle. There may have been a
conflict of interest while still being a member of the PLA (i.e., Army) or any other military, in
which the senior officials of that service could have attempted to maintain their relevance,
sometimes at the expense of the expansion of the nuclear and deterrent. As a result of the ability
to switch warheads, conventional missile deterrence would probably become more efficient.
Thus, delivery methods are standardized in a single agency.
Likewise, the PLA strategic force unifies different assets including cyber warfare capabilities and
information collected under a single command structure. This will further contribute to the
improvement of force structures, doctrinal principles, and financial independence and autonomy.
This will also assist in strengthening their expeditionary capabilities. Although these effects may
look modest, they will have a major impact.
Determining their anticipated deployment or distribution as well as operational command
factors, which are unknown at the present, is of course still an open question.
Miscellaneous Restructuring
Unconfirmed reports also circulated concerning more restructurings, including the elimination of
the divisional HQ and the placement of just brigades under group armies. It's uncertain whether
this represents phase 2 of the restructure or if it has already been implemented. Nonetheless, all
armies have dealt with this idea at one point or another, as various benefits and drawbacks
accumulate. The benefits may include quicker decision making, improved reserve management,
flatter, and leaner organization, etc. In contrast, the group army's HQ must be expanded and
grows unwieldy. Additionally, the decision-making process becomes more centralized, with no
buffer in the event of a poor choice. As Xi Jinping has lately stated several times, restructuring is
expected to continue alongside modernization.
A ―National Security‖ Commission to fight separatism, extremism, and terrorism has also been
established in China.[9] This did not get much attention due to the declarations of military reform.
Additionally, it's possible that the PAPF/National Guard will operate under new legislation that
even authorizes its deployment abroad.[10] Once again, this has not received much public
attention, but it has extensive ramifications for the dynamics of internal security, including the
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possible deployment of Chinese paramilitary forces in addition to their regular army to defend
Chinese interests overseas.
Modernization Trends: In the application of the military strategic directive in the new
circumstances, the armed forces of China should carefully focus on the CPC's objective of
developing a powerful military, addressing the state's primary security requirements, aim to
build an informationized military, deepen national defence reform, win informationized wars,
and the armed forces in a comprehensive manner, develop a new military system with Chinese
characteristics, and continuously improve their abilities to handle different security risks and
achieving varied military tasks.[11]
1) Nuclear Weapons: China has further refined the NFU doctrine, but there hasn't really been a
significant shift. The command, control, and communications systems for the nuclear forces were
extensively networked, allowing for better and quicker mobilization and deployment. A rising
number of ―DF-21 D‖ with a 1500 kilometers range are being deployed on land-based platforms.
These may be employed for both traditional and nuclear warheads. There are also anticipated to
be added DF 31s with a 11200 Km range. New generation mobile missiles are also being
developed, as well as DF 41 with MIRV capability. As the nuclear force of China is for the
2ndstrike and traditional missiles for the offensive 1 st strike hence currently its traditional missiles
make up the majority of China's ballistic missiles, and their rise was considerably quicker than the
nuclear forces. Additionally, they are creating the ―Global Strike Precession‖ missiles in imitation
of the Americans.
They have made an effort to establish their sea-based systems for power forecasts in terms of the
triad's development. Maximum development has occurred in this region. The JL2 SLBM (7,400
km Rg), which has been installed on the Jin Class SSBN Type 094-3+5, increases the Chinese
triad's power as well as its ability to target any location on the American mainland. China is
projected to build ―SSBN(Type 096)/Type 095 (SSGN)‖-along with ―Guided Missile Attack
Submarine Land Attack Capability(ASCM-ASCM/LACMs)‖during the course of the next decade.
The Liaoning aircraft carrier was relocated to the Northern Sea Fleet's Yuchi Naval station. It will
soon have a functioning air wing. China is preparing more aircraft carriers for high-profile naval
diplomacy, SLOC patrols, and military projection. This is consistent with the Chinese mindset of
exploration. To avoid the American aircraft carriers moving in, the PLAN (―Air Wing‖) is
enhancing its offshore strike capacity. A number of further modern destroyers and frigates with
improved capabilities are also being designed. Wave-piercing missile boats have been installed on
the HOUBEL Class ASCM.
2) Air and Air Defence: These are the special services/arms receiving increased modernization
emphasis. By 2018, the modernization effort involves the purchase of Russian SU-35 Flanker-ac
aircraft and the production of 5thgeneration fighters (J31&J20such as US F-35). LACM carrying
capabilities are being built into the H6-K. Additionally, the Y 20 big transport aircraft is
undergoing testing. UAVs have been introduced to long-range reconnaissance and strike
operations. Other advances include the purchase of the ―SA-X-21b (S-400) SAM System (400km)‖
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and an increase in the domestic CSA-9 8AM's range beyond 200 km. The next phase is to create an
informationalized military with credible A2AD capabilities. This will involve the capacity to
protect one's information systems and disrupt those of the opponent. More advanced radars, as
well as Electronic Counter Measures, will enable simultaneous operations on kinetic operations,
counter space, information domain, cyberspace, underwater, water, air, and land, under accurate
battlefield circumstances.
3) Space Capabilities: The advancements here contain EW Satellites, intelligence Reconnaissance,
& counter communication. Instances include the launch of the Space Launch Vehicle (―Long
March‖ 11) for quick entrance into space and the Kuaizhou (―Quick Vessel‖) for the introduction
of tiny satellites into low Earth orbit. By 2020, China is also projected to restart launching Beidou
NAVSAT, which will have the potential for a worldwide constellation. The human space program
and space launch vehicles continue to be the key priorities.
4) Establishing the Defense Industry: This indicates increased collaboration between state-
owned businesses (Industry and Shipbuilding Corporation).This also includes the program for
aircraft carriers. The goal is to raise the standard for ground weapons and advance turbo engine
technology. to increase the manufacturing of big body commercial and military aircraft by
improving the currently underdeveloped infrastructure and expertise. Additionally, the
acquisition of foreign technologies is undertaken. The main areas of interest include
manufacturing and engineering, computer-assisted design, forensic equipment and advanced
diagnostic, precision machine tools, guidance and control systems, processors, solid-state
electronics, and engines. Priorities comprise 3D marine environmental monitoring systems, for
quick, deep-sea operations, and several parameter ocean floor survey technologies; as a result, the
advancement of chemical along with solid laser state technology is also a high priority to deploy
weapon-grade systems from both ground- and airborne-based platforms.
In conclusion, the recently released defence white paper provided a hint as to the probable course
of PLA reorganization and reform. China now views itself as the United States' strategic ―Equal‖.
As a result, it aspires to have a worldwide military presence comparable to that of the USA as
well as a far greater economic global footprint. This calls for improved force projection
capabilities, an expeditionary approach, as well as force modernization. China now sees
significantly fewer dangers coming from its land borders. The only nation that poses a real land-
based danger is Russia, with whom it is developing relationships. Conversely, the danger from
the sea, the unresolved Taiwan question, and the conflicts in the East and the South China Sea
make it seem seawards. An improved global standing also necessitates putting more emphasis on
services such as PLAN that offer expeditionary abilities. South China Sea adventurism of Chinese,
the construction of artificial islands and their claim to them as sovereign territory, the
announcement of A2ADprocedures, etc., are all activities that are anticipated to increase in the
near future. It is consistent with China's desire to expand its sphere of influence all the way to the
second island chain and beyond. The whole world is already inside China's sphere of interest. We
will still have to gather more inputs before a much more detailed assessment can be drawn with
respect to implications for India
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The PLA has eased the quick induction along with the implementation of high-altitude
acclimatized and trained soldiers not only into ―Tibet‖ but also perhaps into ―Ladakh‖ for any
exigencies by placing the Qinghai area under the Western command/zone. This issue has to be
taken into account as well in our operational and mobilization strategies. Should the Western
Command get engaged in guarding Chinese property in the China and Pakistan Economic
Corridor, its forces would be dispersed throughout our Eastern, Northern, &Western Commands.
This requires more research.
Disquiet in PLA
There is a lot of speculation about possible disquiet in the PLA on account of the recent reforms
which have been carried out by Xi Jinping. There are reports that the reshuffle of various
functionaries in senior positions has been viewed with suspicion and as an effort on part of the
President to place his coterie in positions of power. This may however be only partially true.
There is no doubt that Xi Jinping would want to rid the PLA of all previous political appointees
and place his protégés instead. However, there is also a concurrent narrative of modernization,
reforms, and anti-corruption drive. It would be seen that many senior commanders have been
reassigned rather than purged. A mere posting to a new appointment of similar stature should be
seen as a commonplace occurrence in any military setup anywhere in the world.
Like any change the present set of reorganization is also being resisted – the military mind tends
to resist change. However, too much should not be read into it, as military minds are also attuned
to following orders. PLA has had a history of absolute obedience to the party and it is unlikely to
change anytime soon.
During the regime of Hu Jintao, senior leaders of the PLA may have gotten used to a greater
degree of autonomy and non-interference – which has changed now with a more involved and
powerful President at the helm. This may partially be the reason for resentment in certain
quarters.
While it has not come out in the media, there may have been some curtailment of the perks and
privileges of the senior military hierarchy-for example perks arising from the commercial
establishments being run by PLA. The anti-corruption drive may have also reduced the incomes
of certain officers. This would naturally be resented.
The Prima Donna status of PLAN and PLAAF can only come at the cost of funding to
PLA(Army). In China, inter-service turf battles were notably absent, so far. With each service now
getting an independent status, this may well change. This may also cause reduced promotion
prospects for certain Army officers. These can be big factors for internal grumblings.
As mentioned above there may be unease and uncertainty in PLA but this disquiet leading to any
form of revolt or usurpation of power by the military elite remains a remote possibility. The
present reorganization in PLA has many positives and unhappiness in certain quarters of PLA is
unlikely to be of great concern to the present leadership. On the contrary, a much strengthened
and professional military setup is likely to emerge in the long run. In the process, if Xi Jinping
manages to consolidate his hold- view it as a bonus.
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CT Force, OBOR: Implications
China has of late started propagating the deployment of its troops abroad for the protection of
Chinese overseas interests. The law has been recently amended to permit this type of deployment.
The defence white paper of 2015 also brings out the same. This shift in Chinese stance has come
with a concurrent shift in their doctrinal thought which is now increasingly expeditionary.
The OBOR was announced by China as a geo-economic concept with a view to enhance
connectivity and improve infrastructure in the region and beyond. A separate OBOR fund was
also earmarked for the same. Thus, Chinese companies and their personnel are going to be
increasingly located in many neighbouring countries. Because of the terrorist and other threats,
they will require protection when located in regions like the Af-Pak. But even in relatively
peaceful areas, a threat cannot be ruled out.
Thus, we are likely to see an increased presence of Chinese troops on foreign soil. While some
governments may be accommodative of this presence – some others may resist. For example, the
presence of Chinese troops for CPEC may not be in India's best interests. This deployment will
also provide valuable experience to Chinese troops in counter-terrorism and even otherwise
provide them first-hand knowledge of aspects such as terrain and local conditions.
This first presence has the potential to serve as a precursor to a longer-term deployment. Thus,
the host nations will be wise to thoroughly consider all possibilities before entering into any such
agreements.
Will a Maritime Silk Route initiative become the reason for more active deployment of naval
forces in ports is yet to be seen. For example, will Chinese investments in the Gwadar force justify
the positioning of naval assets there to protect these investments?
The requirement of protecting national interests abroad is of course justified. However, China will
have to take steps to assure host nations that the intentions are benign and not with any different
motive. Legal aspects such as the status of forces agreement may also have to be kept in mind. For
example, a law-and-order incident involving any Chinese troops overseas may create avoidable
controversies and may weaken relationships.
The CT force to guard Chinese assets in OBOR is indicative of growing Chinese confidence as also
its diverse economic stakes. If implemented correctly, this can well become an instrument to
provide regional security. On the other hand, it can also misrepresent intentions.
PLA MARINES AT GWADAR: IMPLICATIONS FOR INDIA

Newspapers carried reports that the PLA has increased the size of its Marine Corps. [12] According
to reports, the number of troops would rise from 20,000 to over 100,000, with some of those
staying permanently in Gwadar. This is perfectly consistent with the PLA's 2015 defence white
paper's description of their expeditionary attitude.[13] However, the expansion may be spread over
a period of time as the figure of 100000 marine troops seems a bit inflated. This growth might also
have prompted the reduction of troops elsewhere by 300,000, as suggested in the PLA's
restructuring plan from the previous year.
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As articulated in its OBOR plan, the PRC must seek bigger investment possibilities beyond its
borders due to its slowing economy. Nevertheless, this approach demands stronger military
projection capabilities to secure the PRC's global commercial interests and, more crucially, to
provide it with political and economic power in other nations.
The PRC's interests in the Western Pacific have now been largely secured due to the establishment
of bases in the South China Sea. The foundations of its force projection policy in the Indian Ocean
include the acquisition of bases in Malacca, Gwadar, and Djibouti, as well as equity shares in
Hambantota, rights to acquire property in the Maldives, and so on. The logical outcome was to
increase the size of its Marine Corps. It should be observed that the Marine Corps tasking by the
PLA now encompasses a far wider geostrategic presence rather than only Taiwan.
What does this augur mean for India? It is well known that a landslide-induced lake submerged
the Karakoram Highway in 2010.After that, starting in 2012, the PRC went to considerable lengths
to build several tunnels and bridges to ensure that the route is now all-weather. As part of CPEC,
further road widening will be performed.[14] So, even without CPEC, there is now an all-weather
road connection between the Mainland PRC and the Gwadar port.
The existence of the PLAN at Gwadar, and a Marines detachment as well as the potential for the
PLA to induct ground soldiers into Pakistan via the Karakoram highway under the pretext of
defending its CPEC assets, could not be ordered in the event that India and Pakistan engage in a
future conflict. These possibilities must be considered in India's operational planning and
information collection regarding suspected PRC intents and capabilities at this time. India would
also do well to eliminate the pressure point on its ―Northern‖ borders by at least sharing
respective perspectives of LAC with PRC even if the resolution of the boundary issue may be
postponed to a later date.India should also be prepared for totally unforeseen contingencies,
which may even appear ludicrous today. These may include China permanently positioning a
fleet in the Indian Ocean, China buying an island from the Maldives and making it a naval base,
China positioning troops permanently in Pakistan, and other such scenarios.
REFERENCES
[1] China's military regrouped into five PLA theater commands, Xinhua | 2016-02-01
23:48:33 | Editor: huaxia at http://news.xinhuanet.com/english/2016-
02/01/c_135065429.htm
[2] Ibid
[3] It's Official: China's Military Has 5 New Theater Commands, The Diplomat , By Shannon
Tiezzi February 02, 2016, at http://thediplomat.com/2016/02/its-official-chinas-military-
has-5-new-theater-commands/
[4] China establishes Rocket Force and Strategic Support Force, Ministry of National Defence
The People‘s Republic of China athttp://eng.mod.gov.cn/ArmedForces/second.htm
[5] Xi reshuffles military headquarters, By Zhao Lei and Wang Qingyun (China
Daily)Updated: 2016-01-12 08:11 at http://www.chinadaily.com.cn/china/2016-
01/12/content_23042975.htm
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Sanjay Kumar
[6] China's Military Strategy, The State Council Information Office of the People's Republic of
China, May 2015, Beijing, http://www.chinadaily.com.cn/china/2015-
05/26/content_20820628.htm
[7] Ibid
[8] James C. Mulvernon, 'The PLA Army's Struggle for Identity,' in The PLA and China in
Transition, INSS/NDU, 2003, 111.
[9] What Will China‘s National Security Commission Actually Do?,‖ Foreign Policy, accessed
September 30, 2015, https://foreignpolicy.com/2014/05/08/what-will-chinas-national-
security-commission-actually-do/.
[10] ―China Approves Wide-Ranging Counter Terrorism Law - CNN.com,‖ CNN, accessed
January 3, 2016, http://www.cnn.com/2015/12/27/asia/china-terror-law-
approved/index.html.
[11] Anthony H. Cordesman, Steven Colley, ‗Chinese Strategy and Military Modernization: A
Comparative Analysis‘, accessed 16 March 2016,
http://csis.org/files/publication/150901_Chinese_Mil_Bal.pdf.
[12] ‗China to Expand Marine Corps for Deployment in Gwadar - Times of India‘, The Times of
India, accessed 24 March 2017, http://timesofindia.indiatimes.com/world/china/china-to-
expand-marine-corps-for-deployment-in-gwadar/articleshow/57616597.cms
[13] ‗Decoding China‘s Military Strategy White Paper: Assessing the Maritime Implications |
Institute for Defence Studies and Analyses‘, accessed 24 March 2017,
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020615
[14] ‗Karakoram Highway‘, Wikipedia, 17 March 2017,
https://en.wikipedia.org/w/index.php?title=Karakoram_Highway&oldid=770769175
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Impact of Profitability on Capital Structure of NSE Listed

Pharmaceutical Indexed Companies
Md. Irshad Ali Tanwar a*, Akhil Kumar Mittalb
aC.C.S., University, Meerut, U.P., India
bDepartment of Commerce, S.S.V. (P.G.) College, Hapur, U.P. ,India
E-mail: irshadalitanwar@gmail.coma, akhilmittal1970@gmail.comb
Abstract
This study is tried attempt to explore the impact of profitability on capital
structure of indexed NSE pharmaceutical companies of India for the PAPER/ARTICLE INFO
period of 5 years (2017-18 to 2021-22). Nifty pharma indexed containing RECEIVED ON: 02/12/2022
20 companies and sample covers 10 out of 20 Pharmaceutical companies ACCEPTED ON: 30/12/2022
of indexed NSE pharmaceutical companies of India. The study used Reference to this paper
regression analysis to find the effect of capital structure on Net profit, should be made as follows:
Return on Assets, and Return on Capital Employed. Regression analysis
applied to check the relationship of data collected. This study reveals the Tanwar, Md Irshad Ali &
influence of independent variable such as Return on Asset, Return on Mittal, Akhil Kumar (2022),
Equity, Return on Capital Employed and Net Profit Ratio analysed with “Impact of Profitability on
respect to the debt equity ratio. From the analysis, it is found that the net Capital Structure of NSE
profit, ROCE and ROE were positively associated but ROCE was not Listed Pharmaceutical
Indexed Companies”,
statistically significant. In addition to this, ROA were negatively
associated and statistically significant.
Key Words: Capital Structure, Return on Equity, Profitability Ratios, 11, No. 2, pp: 412-423.
Indian Pharmaceutical Industry, ROCE, ROA.
DOI: 10.46333/ijtc/11/2/8
Impact of Profitability on Capital Structure of NSE Listed Pharmaceutical Indexed Companies
Md. Irshad Ali Tanwar , Akhil Kumar Mittal
1. INTRODUCTION
Capital is essential for the success of any business, no matter how big or small. To achieve best
and optimal leverage, it is important to comprehend the use of both debt and equity. Any
company can use leverage to their advantage by making the most of their best funding sources to
purchase and use fixed assets. In any case, the available funds can't be too little or too much in
relation to the needs at hand. How much equity and long-term capital needs to be raised is up to
the business.
Long-term debt and equity make up the business capital structure. It includes money raised
through the sale of common and preferred stock, bonds and debentures, bank term loans, and
other similar instruments. A clear understanding of your capital requirements and how you
intend to put that money to use is crucial when making finance decisions. The choice of financing
for a business is one of the most consequential decisions that can be made because of the direct
effect it has on the company's bottom line and capacity to remain solvent. The greatest success for
businesses is to find their best capital structure. You might think of it as a visual representation of
the left side of the balance sheet and the relationship between debt and equity.
Traditionally, short term borrowings were excluded from capital expenditure, thus long-term
claims were said to be capital structure of any enterprise. The term capital structure issued to
characterize the relation in among debt and equity where debt contains long term borrowings and
equity, paid-up capital, share premium and reserves and surpluses (retained earnings).
Pharmaceutical Industry
The pharmaceutical companies develop produces and markets drug or pharmaceutical licensed
for use as medicines. Prior to 20s century dugs generally produced in small scale with regulatory
control but now took giant shape and most profitable sector.
In 2021, it was anticipated that the Indian pharmaceutical market was worth $42 billion USD. As
the major exporter of pharmaceuticals in the world, India supplies about 20% of the world's
supply of generic drugs. The country also supplies more than half of the world's vaccines, making
it the largest vaccine supplier overall. Because of its large manufacturing capacity that complies
with industry standards and its massive number of qualified domestic labourers, India's exports
meet the criteria and needs of highly regulated markets like the United States, the United
Kingdom, the European Union, and Canada. Export revenue was US$17.28 billion in FY18 and
US$19.14 billion in FY19, while sales in the domestic pharmaceutical market reached Rs 129,015
crore (US$18.12 billion) in 2018, an increase of 9.4 percent year over year.
By 2021, the bulk of India's pharmaceutical exports will consist of its own brand of low-cost
generic pharmaceuticals. Patented medicines are often imported from other countries. Sixty
percent of the volume and $2.4 billion of API imports are sourced from the United States, Italy,
Singapore, China, and Germany. In terms of the monetary amount of its exports of medications
and medicines from 2018 to 2021, India came in third place overall.
According to the Indian Economic Survey 2021, the domestic market is projected to grow by a
factor of three during the next ten years. In 2021, the domestic pharmaceutical market in India
was estimated at US$ 42 billion and is anticipated to increase to US$ 65 billion by 2024 and US$
120–130 billion by 2030.
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Md. Irshad Ali Tanwar, Akhil Kumar Mittal
Figure 1: Indian Pharmaceutical Markets in US $ Billion

It is estimated that by 2025, the market would have grown to be worth US$50 billion, expanding
at a CAGR of 37 percent from 2020. With a projected 11 percent annual growth rate between
August 2021 and August 2022, the pharmaceutical business in India is expected to be worth more
than US$ 60 billion by CARE Ratings.
Table No.: 1 Indian Pharmaceutical Companies Market Size
S. Companies Name Market S. Companies Name Market
No. Capital No. Capital
1. Abbott India Ltd. Large 11. Granules India Ltd. Mid-Cap
2. Alkem Laboratories Ltd. Large 12. Ipca Laboratories Ltd. Large
3. Aurobindo Pharma Ltd. Large 13. Laurus Labs Ltd. Large
4. Biocon Ltd. Large 14. Lupin Ltd. Large
5. Cipla Ltd. Large 15. Natco Pharma Ltd. Mid-Cap
6. Divis Laboratories Ltd. Large 16. Pfizer Ltd. Mid-Cap
7. Dr. Reddys Laboratories Large 17. Sanofi India Ltd. Mid-Cap
Ltd.
8. Gland Pharma Ltd. Large 18. Sun Pharmaceutical Large
Industries Ltd.
9. Glaxosmithkline Large 19. Torrent Pharmaceuticals Large
Pharmaceuticals Ltd.
10. Glenmark Mid-cap 20. Zydus Lifesciences Ltd. Large
Pharmaceuticals Ltd.
Measurement of Variables
Financial decisions are taken on the basis of various factors such as profitability, size of firm,
tangibility, etc. These are characteristics that affect the leverage of the firm.
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I. Capital Structure
Capital structure refers to the mix of a company’s debt and equity that is used to finance its
operations and growth. It includes the mix of debt, such as bonds and loans, and equity, such as
common stock and retained earnings. The capital structure of a company is significantbecause it
can affect the company's risk and return for shareholders, as well as its ability to raise additional
funds in the future. The goal of capital structure management is to find the optimal mix of debt
and equity that maximizes a company's value and its ability to generate cash flow.
II. Profitability Ratios
Profitability ratios are financial metrics that assess a company's ability to generate profits in
relation to its revenue, assets, or equity. These ratios provide insights into a company's overall
financial performance and profitability, and help investors and analysts make informed decisions
about investing in or lending to a company. By using ratios, investors and analysts can compare a
company's profitability with its peers and track its performance over time.All these ratios indicate
how well a company is performing in terms of efficiency, profitability, and solvency. Some
common profitability ratios include: -
a. Net Profit Margin
This ratio measures the percentage of revenue that a company retains after subtracting all
expenses, including taxes and interest. It indicates a company's overall profitability.Net profit
margin is a financial ratio that calculates the percentage of revenue that remains as net profit after
all expenses, including both cost of goods sold (COGS) and operating expenses, have been
subtracted. It is calculated by taking the net profit (revenue minus all expenses) and dividing it by
revenue. This ratio is used to measure a company's overall profitability and efficiency in
generating income from its operations. A higher net profit margin specifies that a company is
high efficient and profitable, while a lower net profit margin suggests that a company may have
difficulty controlling costs or is facing increased competition.
b. Return on Capital Employed (ROCE)
ROCE stands for Return on Capital Employed. It is a financial ratio used to determine how
profitable a firm is in comparison to the amount of capital employed. It calculates the amount of
net income generated for each unit of capital employed in the business. It is typically stated as a
percentage and is calculated by dividing the net operating profit by the capital employed.
ROCE is a key metric used by investors and analysts to evaluate a company's performance and
efficiency in utilizing its capital to generate profits. A higher ROCE indicates that a company is
able to generate more profits from its investments and is considered to be more efficient, while a
lower ROCE suggests that the company may be trying to make profits or isn’t utilizing its capital
as effectively.
c. Return on Assets (ROA)
It's a measure of a company's profitability in relation to its total assets and is used as a financial
ratio. It is determined by comparing the company’s annual net income to its total assets over the
same time period. The resulting percentage is used to evaluate a company's efficiency in using its
assets to generate profits. If a company's return on assets (ROA) is high, it means it is making
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money from its assets effectively, but if it is low, it could be underperforming. It is a significant
metric to calculate the overall performance of a company, but it should not be used alone to make
investment decisions, as it is significant to consider other financial and non-financial factors as
well.
d. Return on Equity (ROE)
Return on equity is a financial ratio that determines the company’s profitability by comparing its
net income to the amount of shareholders' equity invested in the business. Essentially, ROE
measures how much profit a company is making for each rupee of shareholder equity. To
calculate ROE, the company's net income is divided by the shareholders' equity.
ROE is an important metric for investors as it provides insights into a company's ability to
generate net profits from the money advanced by its shareholders. A high ROE stated that a
company is utilized its shareholders' equity effectively to making profits, while a low ROE
recommends that the company is not generating as much profit as it could be with the amount of
investment by its shareholders. ROE can be used to compare a company's profitability with its
peers and track its performance over time.
III. Debt/Equity Ratio
The debt to equity ratio is a financial ratio that determines the company's level of leverage by
comparing its total debt to its total shareholders' equity. Divide the total debt by the total equity
of the company to get the debt to equity ratio.
The debt to equity ratio is important because it provides insights into a company's financial health
and risk level. A high debt-to-equity ratio indicates that a company is relying heavily on debt to
finance its operations, which may increase the risk of defaulting on its debts if it is unable to
generate sufficient profits. Conversely, a low debt to equity ratio suggests that the company is
using less debt to finance its operations and is relying more on equity, which can lower its
financial risk.
The debt-to-equity ratio can be used to compare a company's financial health with its peers, as
well as to track its own financial performance over time. It is important to note that the optimal
debt-to-equity ratio may vary depending on the industry in which the company operates and its
specific circumstances.
Jacob, Tom & V. S, Ajina (2020). Effects of capital structure on the bottom lines of a few Indian
pharmaceutical firms. All businesses must pay close attention to their capital structure. Such
choices play a crucial part in boosting the profits of businesses in the modern era of intense
competition. In this analysis, we examine how the capital structure of successful Indian
pharmaceutical firms relates to their bottom line. Capital structure and firm performance, as
assessed by the Debt Equity Ratio and Return on Equity, are estimated by regression analysis. As
shown by the regression analysis, the capital structure of the pharmaceutical companies chosen
for this study had no effect on their financial success on the Indian Stock Exchange.
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Tiwari, Rajesh et. al. (2017). Large pharmaceutical companies were shown to have no statistically
significant relationship between capital structure and market value, while Ajanta, a
pharmaceutical company with a mid-cap market cap, exhibited statistically significant negative
connections. Since 2014, pharmaceutical company profits have been on the decline. In spite of a
general fall in profitability, both Lupin and Ajanta were able to keep their operations running
smoothly. As this evidence demonstrates, capital structure is not a major factor in the stock price
of pharmaceutical companies. Their capital structure was constructed using information from
advanced economies with perfectly functioning markets. Due to market imperfections, a
company's capital structure may not have the same impact on profitability and value in India as it
would in a more developed economy like the United States.
Madaan, Varun & Chawla, Neha A. (2019). The study's findings demonstrate a considerable
impact of dividend payout ratio on both the Current Ratio and Return on Assets, leading the
authors to the conclusion that the dividend payout ratio significantly affects the short- and long-
term profitability of the pharmaceutical sector. In contrast, the research found no correlation
between the Dividend Payout ratio and ROE. This result agrees with what has been discovered in
previous research on the topic of the effect of the dividend payout ratio on the success of
businesses.
Adaobi Nwafor, C., Yusuf, A., & Shuaibu, H. (2022). Financing is an important decision because
it has a direct impact on a company's profitability. In fact, the quality of a company's financial
decisions determines how successful it is in its operations. As evidenced in this study, capital
structure, measured by total debt ratio and debt equity ratio has mixed effect on profitability
(measured by ROA) of pharmaceutical firms in Nigeria. For pharmaceutical companies, debt may
be an effective tool to raising funds for expansion and development without diluting ownership
control. To reach a more general conclusion, more research on the same topic with more
integrated and multi data should be conducted. Because of the database limitation, the study does
not include some determinants mentioned in previous investigation, such as company unique
characteristics and size earning fluctuation, and market-related factors. More research should be
done to see if the pecking order model can be applied in light of new input data, resulting in more
reliable empirical evidence.
Kothari, Haresh & Sodha, Shankar (2018). The research found that liquidity significantly affected
the selected companies' profitability and capital structure. However, the research does not show
that leverage has a particularly large effect on profits or capitalization. The following suggestions
are given based on the results of this study: Financial managers should prudently use a mix of
debt and equity because the capital structure proxies show a negative impact on corporate
performance. In order for the company to succeed, it is imperative that the right mix of people be
assembled. The financial proxies of companies in the pharmaceutical industry benefit from both
QR and CR. It is consequently hypothesised that a company's financial performance will improve
in proportion to the amount of cash and short-term assets at its disposal. This study's findings
confirmed that a company's capital structure is influenced by its liquidity, which is measured by
its consistent ability to satisfy financial obligations.
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Shalini, R. & Biswas, M. (2017). Research in the field of corporate finance has focused extensively
on the factors that influence capital-structure decisions. This research proves that pharmaceutical
firms' debt equity is affected by their choice of capital structure. The firm's worth from 2012 to
2016 has been shown to be influenced by a number of characteristics that are unique to the
company using a multiple regression model. As shown, the debt equity of pharmaceutical
companies was affected more by the amount and tangibility of investments than by profitability,
liquidity, and business risk factors. Although just five years of data were used for this analysis, it
is strongly felt that a longer time period with a bigger number of observations might deliver
meaningful consequences to the various stakeholders in capital structure decisions. It is suggested
that the study could be strengthened by adding more firm- and country-specific aspects to the
research on this topic.
Problem Statement
Effect of Profitability on Capital Structure indexed NSE Pharmaceutical Listed Companies
Research Objectives
(a) To figure out effect of capital structure and profitability ratios.
(b) To explore the relationship between capital structure and profitability.
Sampling Frame
The population for the analysis is indexed NSE Pharmaceutical Listed Companies. It consists of
20indexed NSE Pharmaceutical Listed Companies. Out of these 20 companies we took 10
companies for data sample. These companies are below: -
S. No. Name of The Pharmaceutical Companies
1. Cipla Ltd.
2. Divis Lab
3. Dr. Reddys
4. Aurobindo Pharma Ltd.
5. Biocon Ltd.
6. Zydus Life Sciences
7. Sun Pharma
8. Lupin
9. Abbott Ltd.
10. Torrent Pharma
Research Design
This research analytical and descriptive in nature that tries to find analysis of profitability, and
regression model of Nifty pharma indexed companies using statistical tools such as Standard
deviation, mean, Kurtosis, Regression Analysis, graph and other statistical required formulas.
Collection Data
This research is based on secondary data sources. The secondary data carried out from annual
reports of companies, journals, articles, NSE data, news papers and some other related websites.
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Limitation of Study
This research explores only ten NSE indexed pharmaceutical companies of NSE pharma indexed
to reach out to its aim namely Cipla Ltd., Divis Lab, Dr. Reddys & Aurobindo Pharma Ltd.,
Biocon Ltd., Zydus Life Sciences, Sun Pharma, LupinLtd., Abbott Ltd.& Torrent Pharma. We have
considered five consecutive financial year (2017- 18 to 2021-2022).
The study is based on descriptive nature. The secondary data utilised in this study of the last five
years (2018-2022). The data is causal in nature since the data was collected from the sites of NSE
India and individual company of the sample size. The population includes all pharmaceutical
companies listed in NSE index of India. The sample size was 20 companies listed in NSE and
consistently present from 2010-2014. The study used judgmental sampling technique for selecting
the sample.
4. RESEARCH HYPOTHESIS
Ha1: There is significant difference between capital structure and the net profit of Indian
pharmaceutical companies.
H01: There is no significant difference between capital structure and the net profit of Indian
Ha2: There is significant difference between capital structure and the return on capital employed
of Indian pharmaceutical companies.
H02: There is no significant difference between capital structure and the return on capital
employed of Indian pharmaceutical companies.
Ha3: There is significance difference between capital structure and the return on equity of Indian
H03: There is no significance difference between capital structure and the return on equity of
Indian pharmaceutical companies.
Ha4: There is significance difference between capital structure and the return on assets of Indian
H04: There is no significance difference between capital structure and the return on assets of
Indian pharmaceutical companies.
5. DATA ANALYSIS AND INTERPRETATION

Table No. 1: Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Debt Equity Ratio 50 .00 1.13 0.2678 0.26926
Net Profit Ratio 50 -9.20 33.04 13.1720 7.67802
ROCE 50 -9.07 36.37 17.2220 8.57575
ROE 50 -12.57 28.32 13.6596 7.98420
ROA 50 -7.00 22.13 8.4624 5.79307
Valid N (listwise) 50
The description of 5 year data is based on Minimum, Maximum, Mean and Standard Deviation.
Table No. 1 shows the descriptive analysis of 5-year data. Descriptive statistics conclude that
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there is a wide variation in the variables Net Profit Ratio, ROCE, ROE, and ROA. The variation in
the Net Profit Ratio is negative 9.2 percent to 33.04 percent, while the mean and standard
deviation of the net profit ratio are 13.1720 and 7.6780, respectively. ROCE ranges from negative
9.07 percent to 36.37 percent, with a mean value of 17.2220 and a standard deviation of 8.5758.
Whereas the minimum and maximum values of ROE are negative 12.57 and 28.32, with a mean
value of 13.6596 and a standard deviation of 7.9842, ROA ranges from negative 7 percent to 22.13
percent with a standard deviation of 5.7931 and a mean value of 8.4624. The standard deviation of
the debt equity ratio is 0.2693 and the mean value is 0.2678, while its range is 0.00 to 1.13 percent.
Regression Analysis
Table No. 2: Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .853a .727 .703 .14681
a. Predictors: (Constant), ROA, Net Profit Ratio, ROE, ROCE
Table No. 3: ANOVAa
Sum of df Mean Square F Sig.
Model Squares
1 Regression 2.583 4 .646 29.956 .000b
Residual .970 45 .022
Total 3.553 49
a. Dependent Variable: Debt Equity Ratio
b. Predictors: (Constant), ROA, Net Profit Ratio, ROE, ROCE
Table No. 4: Regression Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .105 .068 1.547 .129
Net Profit Ratio .017 .006 .476 2.658 .011
ROCE .007 .007 .212 1.017 .314
ROE .061 .007 1.795 8.678 .000
ROA -.118 .014 -2.540 -8.373 .000
a. Dependent Variable: Debt Equity Ratio
Table 3 shows that adjusted R square is 0.727 it informs that the dependent variable explains
independent variable more precisely or it shows that the data fit in regression line. Thus 72.70% of
variation in the dependent variable is explained by explanatory variables.
ANOVA table summary indicates that the value of F is .000 (as less than .05 level) predicts that
the model has high fit. It can be concluded that there is strong association in between dependent
and independent variables.
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The coefficients table also indicates statistically significant but negatively associated in case of
ROA while positively associated with Net Profit, ROCE and ROE. The study further revealed that
the t- stats is not significant in case of ROCE.
Net Profit
The relationship between net profit and leverage is positive, indicating when net profit increased,
there is increase in debt. The coefficient of Net profit, indicating that leverage increased by 1.7%
and significant at 5% significance level. The positive relation of the ratio is said to be significant at
the 5% level of significance because p value is 0.011.
Therefore, we accept alternate hypothesis Ha1 i.e. There is significant difference between capital
structure and the net profit of Indian pharmaceutical companies.
Return on Capital Employed
ROCE is positively associated as with increase in ROCE, there is a increase in leverage. The
coefficient indicating that leverage is increased by 0.7% on 5% significance level. The positive
relation of the ratio is said to be insignificant at the 5% level of significance because p-value is
0.314.
Therefore, we accept null hypothesis H02 i.e. There is no significant difference between capital
structure and the return on capital employed of Indian pharmaceutical companies.
Return on Equity
The relationship between ROE and leverage is positive, indicating when net profit increased,
there is increase in debt. The coefficient of ROE, indicating that leverage increased by 6.1% and
significant at 5% significance level. The positive relation of the ratio is said to be significant at the
5% level of significance because p value is 0.000.
Therefore, we accept alternate hypothesis Ha3 i.e. There is significance difference between capital
structure and the return on equity of Indian pharmaceutical companies.
Return on Asset
The relationship between ROA and leverage is negative, indicating when net profit increased,
there is decrease in debt. The coefficient of ROA, indicating that leverage increased by 11.8% and
significant at 5% significance level. The positive relation of the ratio is said to be significant at the
5% level of significance because p value is 0.000.
Therefore, we accept alternate hypothesis Ha4 i.e. There is significance difference between capital
structure and the return on assets of Indian pharmaceutical companies.
6. CONCLUSION
Capital is essential for the success of any business, no matter how big or small. To achieve best
and optimal leverage, it is important to comprehend the use of both debt and equity. Long-term
debt and equity make up the business capital structure. The choice of financing for a business is
one of the most consequential decisions that can be made because of the direct effect it has on the
company's bottom line and capacity to remain solvent. The greatest success for businesses is to
find their best capital structure.
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The study conducted with determinants of capital structure. Moreover, the study tested the
determinant of capital structure. Linear regression model is used to determine the relation of
selected pharmaceutical company. The independent variable like Net Profit, ROCE, ROE, and
ROA are indicators of profitability are found statistically significant except ROCE at 5%
significance level. It is also found that net profit, ROCE and ROE is positive, but ROA are
negatively associated. Thus, it is concluded that profitability is a strong determinant of capital
structure. Therefore, Indian firm prefer internal financing to external, if the firm is profitable. As,
traditionally Indians avoid to take debt and believe in own financing.
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[1] https://www.ibef.org/industry/pharmaceutical-india
[2] https://economictimes.indiatimes.com/cipla-ltd/stocks/companyid-13917.cms
[3] https://www.moneycontrol.com/financials/cipla/consolidated-ratiosVI/C#C
[4] https://www.moneycontrol.com/financials/divislaboratories/ratiosVI/DL03#DL03
[5] https://economictimes.indiatimes.com/divis-laboratories-ltd/stocks/companyid-3635.cms
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[6] https://www.moneycontrol.com/financials/drreddyslaboratories/consolidated-
ratiosVI/DRL#DRL
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13841.cms
[8] https://www.moneycontrol.com/financials/aurobindopharma/consolidated-
ratiosVI/AP#AP
[9] https://www.moneycontrol.com/financials/zyduslifesciences/consolidated-
ratiosVI/CHC#CHC
[10] https://economictimes.indiatimes.com/zydus-lifesciences-ltd/stocks/companyid-
3778.cms
[11] https://www.moneycontrol.com/financials/sunpharmaceuticalindustries/ratiosVI/SPI#S
PI
[12] https://economictimes.indiatimes.com/sun-pharmaceutical-industries-
ltd/stocks/companyid-9134.cms
[13] https://www.moneycontrol.com/financials/lupin/ratiosVI/L#L
[14] https://economictimes.indiatimes.com/lupin-ltd/stocks/companyid-10743.cms
[15] https://www.moneycontrol.com/financials/abbottindia/ratiosVI/AI51#AI51
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[17] https://www.moneycontrol.com/financials/torrentpharmaceuticals/ratiosVI/TP06#TP06
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8492.cms
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13937.cms
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ltd/profitandlose/companyid-9134.cms
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3778.cms
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[26] https://en.wikipedia.org/wiki/Pharmaceutical_industry_in_India
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Challenges Faced by the Women Entrepreneurs in the E-Commerce

Sector in India
S.K.S. Yadava*, Arushi Jainb
aNational
P.G. College, Bhongaon, District Mainpuri, U.P., India
bDepartment of Commerce & Business Administration, Meerut College, Meerut, U.P., India
E-mail: sudhiryadavmeerut@gmail.coma, arujain250793@gmail.comb,
Abstract
In the modern world, e-commerce is proving to be a powerful tool for the
empowerment of women. The ability to work from home and achieve PAPER/ARTICLE INFO
financial independence is made comfortable and possible for female RECEIVED ON: 26/11/2022
entrepreneurs by e-commerce. It aids the women in coming up with fresh ACCEPTED ON: 23/12/2022
concepts and reaching their professional goals. This research largely Reference to this paper
concentrates on the issues and challenges that female online business should be made as follows:
entrepreneurs experience, such as an insufficient funding, absence of
family support, low level of education, security fears, marketing Yadav, S.K.S. & Jain,
challenges, etc. Arushi (2022), ―Challenges
In order to do this, 100 Indian women business owners in the E- Faced by the Women
Commerce sector were chosen for a study using the stratified random Entrepreneurs in the E-
sample technique. The response from the respondents is ascertained using Commerce sector in India‖,
a well-structured questionnaire. The study also makes an effort to present
ideas and different approaches to address the issues facing female
11, No. 2, pp: 424-440.
entrepreneurs. The acquired data are evaluated using the SPSS
technique, Chi-square test According to the study's findings, there is no
correlation between women entrepreneurs' marital status and the
difficulties they encounter when operating an online firm.
Key Words: E-Commerce, Women Entrepreneurs, Online business,
Entrepreneurship, Challenges.
DOI: 10.46333/ijtc/11/2/9
Challenges Faced by the Women Entrepreneurs in the E-Commerce Sector in India
S.K.S. Yadav, Arushi Jain
1. INTRODUCTION
The term used to describe the online buying and selling of products and services is electronic
commerce, or e-commerce. E-commerce, usually referred to as online trade, is the buying, selling,
or exchanging of goods, services, or information through an electronic platform, mostly the
internet using a computer.
E-Commerce is all about selling the goods and services online and has completely revolutionized
the concept of doing online business by transforming traditional business into online business.
E-Commerce has brought a remarkable change in the growth of the country by evolving as a great
tool for women entrepreneurs. E-Commerce sector provides a sense of comfort and freedom to
the women entrepreneurs so that they can easily work from home and helps them to fulfill their
long-cherished dream of becoming an entrepreneur into reality.
1.1 Concept of Women Entrepreneur
The French term "Entrepreneur," means "to undertake" and to establish a business. In order to
operate a firm, a woman entrepreneur must take the initiative, organise, manage, unite all the
components of production, and accept risk. An entrepreneurial woman is one who is creative,
innovative, confident and creates employment opportunities to others.
Women entrepreneurs are described by the Indian government as businesses that are held,
owned, and managed by women, have at least 51% female employees, and have a female
financial stake in the company's capital.
Frederick Harbison (1956) outlined the following five duties for female entrepreneurs-
[i] Examining the potential for launching a new business.
[ii] To accept the risk and financial uncertainty associated with the enterprise.
[iii] Innovation introduction and imitations
[iv] Supervision and Leadership
[v] Coordination, administration and control.
1.2 Situation of Women Entrepreneurs in the E-Commerce Industry-
In India, women make up half of the country's population and are seen as the better half of
society. The scenario in India is changing as now women like men are coming out of their homes
and participates in all the social, political and financial activities and has brought a drastic change
in the Indian Economy. The current study demonstrates that women entrepreneurs in India are
more significant for the nation's economic growth than women entrepreneurs in other areas of the
world due to their higher capital generation rates. According to World Bank studies, women
entrepreneurs typically hire other women. Ministry of Statistics and Program in sixth economic
census reports that 14% of the total entrepreneur’s base comprises women which means about
8.05 million out of the total 58.5 million are women entrepreneurs in India.
1.3 Challenges and Issues Experienced by Female Entrepreneurs in the E-Commerce Sector
With the advent of the E-Commerce industry women entrepreneurs has achieved huge success in
the entrepreneurial environment and has attained new heights in the country. E-Commerce offers
a lot of opportunities to the women entrepreneurs as now they can easily work from home and
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can start and grow their business. Many new successful women entrepreneurs doing online
business are coming up in the E-Commerce industry.
However, women entrepreneurs have to come across a lot of problems and obstacles while doing
online business. Generally, women entrepreneurs have to face two types of problems namely
specific and generic problems. Specific problems mainly include problem of finance, lack of
family encouragement, Lack of knowledge, awareness, Low risk bearing capacity. General
problems mainly include Lack of self-belief, intense competition, Lack of identification in the
society, gender-biasedness etc.
Some of the Issues Experienced by Female Business Owners in the E-Commerce Sector
Include-
A. Lack of Finance
Funds are the lifeblood and the most basic component to run any business. Women entrepreneurs
faces a lot of problems in raising sufficient funds for their business due to the tedious procedure
for the procurement of loans as well as less awareness of the sources of raising funds amongst the
women.
B. Stiff Competition
For women entrepreneurs it is very difficult to survive in the E-Commerce sector industry as they
have to face intense competition in the market. Because there is fierce competition in every
product category, women business owners have a difficult time in selling their goods.
C. Lack of Awareness
Education and awareness are the most important factors to run any business.Most of the women
are unaware of the numerous government incentives and programdue to which they are not able
to run their business smoothly in an effective and efficient manner.
D. Problem in Finding a Suitable Market
Every women entrepreneur has to face problem of finding a suitable market. Due to immobility
women are unable to do market research and identify customer’s problems due to which it
becomes very difficult for women to find a suitable or niche market.
E. Retaining Customers
Another difficulty many female businesses confront is acquiring and keeping customers.
Customer loyalty is a crucial component of every organization. To attract customers, the e-
commerce business has to invest heavily in marketing and promotional efforts. Therefore, women
entrepreneurs have to put a lot of efforts in promotion and advertisement in order to retain
customers.
F. Lack of Trust
Reliable supply chain and proper logistic is important for the goodwill of the company and if
there is failure in this particular area it can adversely affect the reputation and goodwill of the
company.
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G. Security and Privacy Issues
One of the major issues faced by the women entrepreneurs is Security threat as all the digital
transactions are carried on the internet. There is always a security and privacy issue for the
customers who queries online for products and services as there is a chance of getting their
information misused by unidentified people.
H. Reliable and Efficient Service
Customer Satisfaction is the utmost priority for the entrepreneurs doing online business. To
maintain good reputation through regular good service is the largest barrier for the women
entrepreneurs because there are times when delivered goods can be unsatisfactory.
I. Lack of Marketing Skills
Marketing is yet another problem that the women entrepreneurs have to face. They have to keep
themselves updated with the new marketing strategies and trends as a specific marketing strategy
is simple to duplicate.
J. Lack of Self-Confidence
In India, due to the lack of support from the family women entrepreneurs generally lack self-
confidence and are confident about their strengths and skills which is an important factor to run a
business.
Goyal, Prakash (2011) through his study ―Women Entrepreneurship in India –Problems and
Prospects‖ explored the different issues and challenges that women business entrepreneurs
confront, such as family responsibilities, lack of confidence, social norms, etc. Additionally, he
recommended that the government support various initiatives and training programs to support
the growth and development of women entrepreneurs in India.
Rajan, Krishna (2019) through his research ―Women entrepreneurship in E-Commerce Sector-
Problems and opportunities‖ determined that the E-Commerce industry presents many
difficulties for women business owners in India like traditional problems in terms of family
resistance, lack of resources to run the business and virtual problems like lack of technical skills,
lack of awareness, difficulty in building credibility etc. Therefore, there is a need to make
awareness on women entrepreneurship and government should initiate various training
programs for women in order to encourage, inspire and motivate them which in turn enhance the
economic condition of women in our country.
Siddiqui (2012) In an effort to analyze the numerous problems and difficulties faced by women
business owners in India, this study found that among the main problems they face are lack of
funding, managerial abilities, information, gender differences, lack of family support, lack of
understanding of the legal system, and a lack of self-belief. The author arrived to the conclusion
that women should occasionally be driven and supported, as well as treated similarly to males.
Charulakshmi T. & Thaiyalanayska M. (2019) carried out a study on ―A study on Problems faced
by the women entrepreneurs in Kanchipuram district‖ and analyzed the various problems like
male dominant society, family obligations, socio-cultural norms faced by the women
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entrepreneurs in Tamil Nadu. They also recommended that certain steps should be taken by the
government in order to help the women entrepreneurs.
Akhter, Mehnaz (2017) conducted a study on ―Empowering women through E-Commerce-
Conduit for women entrepreneurs in Bangladesh‖ and expressed that with the help of E-
Commerce women are becoming financial independent and can easily perform a dual role of
working as an entrepreneur and taking care of her family. She also highlighted that E-Commerce
is the great platform for the women entrepreneurs to run business but still they have to face
various problems while doing online business-like insufficient knowledge, lack of managerial
skills, marketing problems, network problems, competition, lack of self-confidence, financial
shortage etc. She emphasized on increasing the awareness amongst women and also training
programs and workshops should be conducted to help and encourage women entrepreneurs so
that they can also contribute to the social and economic development of the country.
Priya, G. Lakshmi (2020) through her study on ―A study on online women entrepreneurs‖
concluded that there are various motivational factors that motivates and inspires women to start
online business but they have to face various problems while selling products online. She
discovered via her research that "Competitors" is one of the biggest issues faced by female
entrepreneurs. She also suggested that the government should make efforts to conduct
workshops, training programs to motivate and encourage women entrepreneurs.
Pushpam, K. (2020) did research on "The role of women entrepreneurs in digital commerce" and
highlighted the difficulties encountered by women business owners in the e-commerce industry.
According to the study's findings, women entrepreneurs are mostly in the age range of 31 to 40,
and their main issues are lack of trust and lack of funding.
Pradeepika (2017) through her study ―Women Entrepreneurs in India: Socio-Cultural issues and
challenges‖ stated that women entrepreneurs have to encounter lot of issues and problems in E-
Business like lack of funds, managerial expertise, lack of technical skills, family support etc. as
they have insufficient knowledge about E-business and they do not get any support or guidance
from the government.
Raj, Sonia Justin (2016) conducted research on "E-Commerce v/s Women Entrepreneurs" and
examined the various difficulties and barriers encountered by women business owners in the e-
commerce industry. Through her research, she came to the conclusion that lack of awareness is
the most frequent issue faced by many women entrepreneurs when conducting online business.
The report also recommended that women business owners be informed of government programs
and laws which makes their jobs considerably simpler.
Parnami, Manisha & Bisawa, Tripti (2015) through their study ―The Rise of Indian Women
Entrepreneur in E-commerce‖ revealed the importance of E-Commerce sector to the women
entrepreneurs as it helps them to become financial independent and also, they have the comfort to
work from home. But with the advantages there are numerous problems also that the women
entrepreneurs have to face like customer acquisition, Lack of trust, insufficient find, and reliable
logistics and supply chain. They also suggested that Government and Non -Government agencies
must help and encourage women entrepreneurs and workshops and training programs must be
conducted to inspire, encourage and motivate women entrepreneurs.
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Akhila, Pai H. (2018) The author of the study "Digital start-ups and women entrepreneurship"
makes an effort to understand the situation of female entrepreneurs and the difficulties they
encounter in the e-commerce sector. Women are thriving in the entrepreneurial environment;
however, they also have to deal with a number of problems such as gender prejudice, a lack of
self-confidence, a lack of resources, etc. Government should work harder and take the lead in
assisting women who want to start their own businesses.
Manikandan, B. (2019) through his study "Challenges and Opportunities for Women
Entrepreneurs‖, highlighted the various issues experienced by female entrepreneurs starting
enterprises on online platforms , including lack of resources, fierce competition, lack of support,
financial difficulties, marketing issues, etc. Proper training institutes should be established to
enhance the knowledge, skills and capabilities of women and various schemes should be
launched to provide financial support.
Suneetha, K. (2021) through her study ―E-Commerce for Economic Empowerment of women
(Challenges and Strategic Interventions)‖ stated that women entrepreneurs have to face a lot of
problems in the E-Commerce sector like finding a proper market, identifying and retaining
customers, raising finance, marketing and technical problems, lack of motivation, stress etc.
Satpal, Rupa Rathee & Rajain, Pallavi (2014) conducted a study on the ―Challenges faced by
women entrepreneurs in the present technological era‖ and explored the various challenges faced
by them that includes lack of education, technical skills, gender biasedness, socio-cultural
problems, issues with marketing, a lack of confidence, a lack of mobility, a financial limitation etc.
They also came to the conclusion that most female entrepreneurs are in the 40–60 age range. They
have also suggested that the government should take initiatives and provides subsidies and
supportive schemes to the women entrepreneurs.
Jetwa, Meetha & Mishra, Chhaya (2016) through their study ―A study on status of women
entrepreneurs in E-Commerce environment in India‖ studied the issues and problems
experienced by women in the e-commerce business, including lack of trust, difficulty acquiring
and keeping customers, lack of funding, difficulty in establishing a market niche, and difficulty in
providing good customer service.
[i] To understand the concept of E-Commerce.
[ii] To critically evaluate the demographic traits of female entrepreneurs who have started their
business in the e-commerce industry.
[iii] To investigate the major issues and problems that women entrepreneurs in the e-commerce
industry confront.
[iv] To make recommendations for various actions to help women entrepreneurs.
4. HYPOTHESIS OF THE STUDY
H0: There is no connection between women entrepreneurs' marital status and the difficulties
they confront in running an online business.
H1: There is a correlation between women entrepreneurs' marital status and the difficulties they
confront when operating an online business.
-429-
The study technique is described in the next section:
5.1 Research Design
Research design is both analytical and descriptive.
5.2 Sampling
A sample of 100 female entrepreneurs who operate online has been collected. Simple and
stratified sampling is the foundation for sampling.
5.3 Data Source
The research is founded on primary and secondary data. The first-hand information was gathered
using a structured questionnaire.
Internet, magazines, printed journals, websites, newspapers, books, literary surveys, other
research projects, and publications in the field are used to gather secondary data.
5.4 Area of Research
The current study is being undertaken in India, where 100 online women entrepreneurs have
been chosen.
5.5 Research Tools
Frequency tables and pie charts are used to evaluate data for demographic characteristics, and
SPSS techniques like Chi-Square are used to examine the difficulties that female entrepreneurs
experience when operating an internet firm.
5.6 Variables
5.6.1 Dependent Variable:
Issues and Problems experienced by online women entrepreneurs.
5.6.2 Independent Variable:
Marital Status of Female Entrepreneurs
6. DATA ANALYSIS
I. Age of the Respondents
Table 1: Respondent’s Age
Age Group
Less than 25 27 27.0 27.0 27.0
25-35 44 44.0 44.0 71.0
35-45 19 19.0 19.0 90.0
45-55 8 8.0 8.0 98.0
Above 55 2 2.0 2.0 100.0
Total 100 100.0 100.0
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Figure 1: Age of the Respondents
Age refers to the chronological age of the respondent in years and has a great effect on the
development of entrepreneurship. The responders ranged in age from under 25 to over 55. The
age ranges of the respondents are classified as follows: under 25, 25–35, 35–45, 45–55, and over 55.
In Table 1, the ages of the female business owners are displayed.
Table 1 shows that 44 respondents, or 44% of the 100 respondents, were women entrepreneurs
aged 25 to 35. 27 respondents, or 27%, are under the age of 25. Nine respondents are between the
ages of 35 and 45, eight respondents are between the ages of 45 and 55, and two respondents are
beyond the age of 55.
Table 1 and Figure 1 make it clear that the biggest percentages of respondents, or 44%, are
between the ages of 25 and 35. This suggests that women in this age range are more likely than
those between the ages of less than 25 and 35 to 45 to launch their own internet businesses.
Women who are over 55 and between the ages of 45 and 55 are less likely to start their own online
business.
II. Marital Status of the Respondents
Marital Status
Frequency Percent Valid percent Cumulative Percent
Single 42 42.0 42 42
Married 58 58.0 58 100
Divorced 0 0.0 0 100
Widowed 0 0.o 0 100
Total 100 100.0 100.0
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Figure 2: The Respondents' Marital Status
Table 2 shows the information regarding the marital status of the women entrepreneurs doing
online business and it was found that out of total 100 respondents 58 are married and 42 are
unmarried.
Figure 2 and Table 2 make it very evident that the majority of female entrepreneurs operating
online business are married.
III. Education of the Respondents
Table 3: Respondents' Education
Education
Intermediate 10 10 10 10
Graduate 48 48 48 58
Postgraduate 42 42 42 100
Total 100 100 100
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Figure 3: Educational Qualification of the Respondents
Education is the term used to describe the respondents' formal education, which is significant in
the growth of female entrepreneurship in online business. Education level of respondents is
shown in Table 3 that clearly shows that out of 100 respondents 48 respondents are graduate, 42
are post-graduate and only 10 respondents are intermediate to start their online business.
Table 3 and Figure 3 clearly depicts that majority of the respondents are graduate and post-
graduate and have good knowledge to start their business.
IV. Income of the Respondents
Table 4: Respondent’s Income Level
Income
UptoRs 20,000 29 29 29 29
20,000-40,000 15 15 15 44
40,000-60,000 11 11 11 55
60,000-80,000 25 25 25 80
80,000-1,00,000 2 2 2 82
Above 1,00,000 18 18 18 100
Total 100 100 100
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Figure 4: Income Level of the Respondents
Table 4 shows the distribution of the income level of the women entrepreneurs doing online
business and it was founded that out of total 100 respondents, 29 are earning uptoRs 20,000. 15
respondents are earning in between (20,000-40,000). 11 respondents are earning in between
(40,000-60,000). 25 respondents are earning in between (60,000-80,000). 18 respondents are earning
above 1, 00,000 and only 2 respondents are earning in between 80,000-1, 00,000.
From table 4 and figure 4 it is clearly evicted that the majority of the respondents i.e., 29% are in
the income category of up to Rs 20,000.
V. Experience in Online Business
Table 5: Experience of the Respondents
Experience
1-6 months 32 32 32 32
7 months-1 year 22 22 22 54
1-2 years 25 25 25 79
Over 2 years 21 21 21 100
Total 100 100 100
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Figure 5: Experience of the Respondents
Table 5 highlights the experience of women entrepreneurs in online business and it was founded
that out of total 100 respondents, 32 respondents have experience of 1-6 months. 22 respondents
have experience of 7months-1 year, 25 respondents have experience of 1-2 years and 21
respondents have experience of over 2 years in doing online business.
From table 5 and figure 5 it is clear that majority of the women entrepreneurs i.e., 32% have the
experience of 1-6months which shows that women have interest in starting their online business
recent times.
VI. Problems and Obstacles Female Entrepreneurs Face in Online Business
Table 6: Obstacles and Issues Faced by Women Entrepreneurs in Online Business
Problems Faced by women entrepreneurs
Lack of Trust 11 11 11 11
Lack of Awareness 17 17 17 28
Competitors 12 12 12 40
Financial Shortage 16 16 16 56
Security Threats 13 13 13 69
Network and
15 15 15 84
Marketing Problems
Identifying and
16 16 16 100
Prospecting Customers
Total 100 100 100
-435-
Figure 6: Challenges Faced by Women Entrepreneurs in Online Business
The challenges that women entrepreneurs encounter when doing online business are listed in
Table 6, and it was discovered that, out of the 100 respondents chosen for the survey, the biggest
difficulty that women entrepreneurs encounter is "Lack of Awareness. By analyzing the above
table and figure it was clearly highlighted that Lack of Awareness (17%), financial shortage (16%)
and Identifying and prospecting customers (16%) are the major issues and problems faced by the
women entrepreneurs. Moderate challenges faced by the women entrepreneurs are network and
marketing problems (15%) and security threats (13%). Lower challenges are Lack of Trust (11%)
and Competitors (12%).
VII. Interrelationship between Marital Status and the Difficulties Experienced by Female
Entrepreneurs in Online Business
Table 7: The Relationship between the Challenges Faced by the Women Entrepreneurs in
Online Business and the Marital Status
Challenges Faced by Women Entrepreneurs Total
Netw Identi
ork fying
and and
Lack Finan Secur marke prosp
Marital Lack of cial ity ting ecting
Status of aware Comp shorta threat probl custo
trust ness etitors ge s ems mers
Single Count 6 6 5 6 4 7 8 42
Expected 4.6 7.1 5.0 6.7 5.5 6.3 6.7 42
Count
Married Count 5 11 7 10 9 8 8 58
-436-
Expected 6.4 9.9 7.0 9.3 7.5 8.7 9.3 58
Count
Total Count 11 17 12 16 13 15 16 100
Expected 11.0 17.0 12.0 16.0 13.0 15.0 16.0 100
Count
Table 8: Summary of Case Processing
Case Processing Summary
Cases
Valid Missing Total
Marital Status *
Challenges faced by the 100 100.0% 0 0.0% 100 100.0%
Women Entrepreneurs
Table: 9 Chi-Square Analyses
Chi-Square Analysis
Asymptotic
Value df Significance (2-sided)
Pearson Chi-Square 2.386a 6 0.881
Likelihood Ratio 2.398 6 0.880
Linear-by-Linear 0.040 1 0.842
Association
1 cell (7.1%) had anticipated count that is lower than 5. 4.62 is the bare minimum predicted count
Chi-Square data were used to investigate the relationship between marital status and difficulties
experienced by women entrepreneurs. Table value is 12.59 for 6 Degrees of Freedom at 5% level.
Ho is accepted because the estimated Chi-Square value of 2.386 is smaller than the (<) the table
value of Chi-Square. Additionally, the P value of the variable (0.881) is significantly larger than
the threshold of 0.005 that is generally accepted; hence the null hypothesis cannot be rejected.
Rather we conclude that both Single and Married women face equal challenges while doing
online business and there is not enough evidence to suggest an association between marital status
and challenges faced by women entrepreneurs.
7. FINDINGS
The above study reports that—
[i] The majority of female entrepreneurs, i.e., 44%, are graduates (48%), and they are mostly
between the ages of 25 and 35.
[ii] The majority of female business owners are married (58%) and have between six and
twelve months' worth of experience (32%), as well as earning between (60,000-80,000)
(25%).
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[iii] The biggest obstacles facing female entrepreneurs in the e-commerce are Lack of
Awareness (17%), Financial Shortage (16%) and Identifying and Prospecting customers
(16%). Moderate challenges are network and marketing problems (15%) and security
threats (13%). Lower challenges are Lack of Trust (11%) and Competitors (12%).
[iv] The inter-relationship between marital status and issues and problems faced by the
women entrepreneurs in online business. According to chi-square analysis, there is no
connection between a woman's marital status and her business challenges.
8. SUGGESTIONS
[i] In order to promote women entrepreneurship in E-Commerce sector women
entrepreneurs should be inspired, encouraged and motivated from time to time. Family
support is very important to enhance the confidence of women so that they can come out
of their homes and work.
[ii] Government should organize various training programs to develop professional and
entrepreneurial skills among women and provide special incentives and assistance to
women.
[iii] Government financial support and financial incentives provides financial support to
women entrepreneurs so that they do not face shortage of funds while setting their
business.
[iv] Legal processes and rules for setting up an enterprise by women entrepreneur should be
streamlined, and infrastructure facilities should be provided to them so that they can
easily set up their business.
[v] Government and Educational institutions should make an attempt to provide better
educational facilities and should make effective provisions to improvise the overall
personality standards.
[vi] Women should be given loan facilities and subsidies to enter into the E-Business and also
various National and International Conferences should be conducted to encourage
women entrepreneurs.
[vii] To overcome the difficulties experienced by the women entrepreneurs in E-Commerce
sector a grievance cell should be opened to handle their problems.
[viii] Exhibitions and workshops should be conducted so that women entrepreneurs can
connect with each other and share their thoughts and ideas and can also take help and
suggestions from each other.
[ix] Many women are not aware about the entrepreneurial opportunities, incentives and
financial assistance provided by the government. To educate women about their business
prospects, a program should be launched.
[x] Security threats, Competitors, Identifying and Prospecting customers are the major
problems faced by the women entrepreneurs. Government should take various steps and
initiatives to help women to sell their product at reasonable prices by understanding
threats and trends in E-Commerce sector.
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9. CONCLUSION
Because of the tremendous growth in technology, which has given women numerous chances to
expand their businesses, female entrepreneurs are increasingly active in the e-commerce sector. E-
commerce has aided women in achieving financial independence and is crucial to the
advancement and expansion of female businesses. The study investigates the connection between
marital status and the difficulties experienced by female business owners in the e-commerce
industry. Cross tabulation between the variables was done for this. The chi-square test's findings
indicate that there is no associationbetween women entrepreneurs' marital status and the
difficulties they encounter when operating an internet firm. Women who are married and single
in internet business both confront difficulties.
According to the report, the majority of women business owners are having issues like Lack of
Awareness, Financial shortage, Lack of trust, Security threats, networking and marketing
problems, Identifying and prospecting customers, Competitors etc.
The Government and other financial institutions should take several steps and introduce various
schemes, incentives and subsidies to support and empower women entrepreneurs which create
employment opportunities as well as leads to the development of the country. Various awareness
programs should be conducted among women in order to create awareness about various
entrepreneurial opportunities.
REFERENCES
[1] Akhter, M. (2017). Empowering Women through E-commerce- Conduit for Women
Entrepreneurs in Bangladesh. 19(8), pp.37–47.
[2] Charulakshmi, T., & Thaiyalnayaki, M. (2019). A Study on Problems Faced by The women
Entrepreneur in Kancheepuran District. 6, pp.1191–1194.
[3] k.Suneetha. (2021). Ecommerce for Economic Empowerment of Women : Challenges and
Strategic Interventions. 6(2), pp.457–460.
[4] Goyal, M., & Parkash, J. A. I. (2011).Women Entrepreneurship in India -Problems and
Prospects. 1(5).
[5] Institiute, G., & Rajan, K. (2019). Women entrepreneurship in e-commerce sector - Problems
and opportunities. 6(2), pp.408–415.
[6] Jetwa, M. (2016). A Study on status of women entrepreneurs in E-Commerce environment
in India,Review Of Research Journal. 5(8).
[7] K. Pushpam, D. (2020). Role of Women Entrepreneurs in Digital Commerce. 7(1).
[8] Kanojia, Deepti & Kumar, Ashwani (2013). "Women Entrepreneurship Development - with
Special Reference to Rural India". International Journal of Trade and Commerce-IIARTC.
2(2), pp. 334-347.
[9] Manikandan, B., Kathirvel, N., & Kavipriya, D. (2018). Challenges and Opportunities for
Women Enterprenurs. pp.34–36.
[10] Pai, A. (2018). Digital Startups and Women Entrepreneurship : A Study on Status of Women
Entrepreneurs in India,IJRAR- International Journal of Research and Analytical Reviews,
5(4),pp. 655–659.
[11] Parnami, M., & Bisawa, T. (2015). The Rise of Indian Women Entrepreneur in E-commerce.
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17(10), pp.36–40. https://doi.org/10.9790/487X-171013640
[12] Pradeepika, D. (2017). Women entrepreneus in India: socio-cultural issues and challenges.
07, pp.17403–17408.
[13] Priya, G. L., Nadu, T., & Nadu, T. (2020). A Study on online women entrepreneur. 11(12),
pp.1095–1110.
[14] Raj, D. sonia justin. (2016). E-Commerce vs Women Entrepreneurs. 6(6), pp.729–732.
[15] Rathee, R., & Rajain, P. (2021). Challenges Faced by Women Entrepreneurs in Present
Technological Era.
[16] Thaker, J. K. (2013).Obstacles faced by women Entrepreneurs in India,2(8), pp.121–122.
[17] Tomar, T.S. (2013). "Perception of Short-Term Financial Sources for Women Entrepreneurs:
An Empirical Study". International Journal of Trade and Commerce-IIARTC. 2(2), pp. 366-
375.
BOOKS
[1] Kothari and Garg. (2020). Research methodology: Method and Techniques, New Age
International Publishers (4th ed.)
[2] P.T. Joseph, S. J. (2019). E-Commerce An Indian Perspective (6th ed.). PHI Learning Pvt.
Ltd.
WEBSITES
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533e89866f55
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and-functions of-women-entrepreneurs-explained/41096
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Northern Coalfields Limited and Its HRD Practices: An Assessment

Pankaj Kumar Bhartia*, Vinay Aryab
a&bDepartment of Commerce & Business Administration, Meerut College, Meerut, U.P. ,India
E-mail: bhartipankaj0109@gmail.coma, vinayaryadu@gmail.comb
Abstract
HRM Practices denote various organizational activities aimed towards
the management of the collection or team of human resources and PAPER/ARTICLE INFO
ensuring that resources are utilized towards then accomplishment of RECEIVED ON: 20/11/2022
organizational goals and objectives. Now-a days the need for human ACCEPTED ON: 25/12/2022
resource practices in coal industries has continuously grown up because Reference to this paper
of an effective role they play towards economic and infrastructural should be made as follows:
development of the nation. This research work has made an in-depth
study of HRD practices in Northern Coalfields Limited. As coalfields are Bharti, P.K. & Arya, Vinay
important sources of providing fuel to other industries, as, electricity- (2022), ―Northern Coalfields
generating industries, cement industries, steel industries, etc. and thus it Limited and Its HRD
is very urgent to evolve HRD practices in these coalfields so as to meet Practices: An Assessment‖,
India’s increasing coal needs. This organization has been selected on the International Journal of Trade
assumption that human resource development practices and their
11, No. 2, pp: 441-459.
development is being an emerging field for all industries in India and
abroad too and large organizations might introduced it already.
Key Words: HRM Practices, Northern Coalfields, Human Resource,
Human Resource Development.
DOI: 10.46333/ijtc/11/2/10
Pankaj Kumar Bharti, Vinay Arya
1. INTRODUCTION
India's energy demands are growing quickly as a result of rising industrialization and capacity
development in the power production sector. This is where "Coal" enters the picture. Coal serves
as the primary fuel for several of India's main infrastructure sectors, including steel, cement, and
power. NCL is doing a good job of meeting these businesses' energy demands. In the Raniganj
Coalfield on the west bank of the Damodar River, M/s Sumner and Heatly of the East India
Company began commercial coal mining in India about 220 years ago. Nevertheless, due to a lack
of market, Indian coal mining grew slowly for over a century until receiving a boost from the
introduction of steam engines in 1853.In a short time, output increased to an average of 1 million
tonnes annually. By 1900, India could manufacture 6.12 million tonnes annually, and by 1920, it
could produce 18 million tonnes annually. The First World War gave output an immediate boost,
but it experienced a slump in the early 1930s. In 1942, the output reached tone of 29 million, and
in 1946, tone of 30 million (Ministry of Coal).
In 1845–1846 and again in 1860, thorough surveys of coal mines were conducted. It was
discovered that the region producing 28,200 tonnes of coal had roughly fifty collieries. Initial coal
mining operations were restricted to the Raniganj Coalfields, but later in the 19th century,
exploratory efforts began elsewhere in the nation. India produced 6 million tonnes of coal during
the beginning of the 20th century. The need for coal increases considerably during the First World
War, which sparked the growth of the coal industry. The amount of coal produced increased to 21
million tonnes in 1919. Due to high unemployment in the years after the First World War, the
industry suffered setbacks.
Between 1937 and 1942, the demand for coal increased substantially on a global scale. In the
meantime, quite a few quarries and mines were in operation in the coalfields of Raniganj, Orissa,
and Madhya Pradesh. The Imperial Government established the Coal Mining Committee, which
presented its 1936 report on the measures to protect and avoid the squandering of available coal.
The first government-owned coal company in the nation was established in 1945 as the Singareni
Collieries Company Limited (SCCL). In that year, the Nizam government of Hyderabad
purchased all of the company's shares, transferring ownership to the India Trust Fund of the
Nizam government. In 1889, the aforementioned firm began manufacturing in the Yellandu
district of present-day Andhra Pradesh, producing 60,000 tons of coal.
Five Year Plans with lofty goals of increasing coal output were introduced after independence in
1947. The National Coal Growth Corporation (NCDC) was founded in 1956 as coal's significance
for India's development became clear. In order to rationalise the coal sector, the majority of
collieries formerly owned by Indian Railways were transferred to the NCDC. The coal miners'
lifestyle and working circumstances have significantly changed as a result of NCDC. Insofar as
supply was not absorbed by demand, the coal industry suffered a setback in 1960. This was a
result of the steel, power, and other sectors' failure to meet their goals. In the 1960s, there was a
period of low oil prices that benefited the coal sector. The 1970s saw a major change in the
situation, however, as a result of the skyrocketing price of oil and the consequent increase in gas
consumption. The Central Government decided to impose state control over coalmines. It was the
final time the coal industry was controlled by private proprietors. It's vital to keep in mind that at
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the time, private owners held over 75% of the world's coal production. Production and
distribution of coal were in complete chaos and uncertainty due to the rising demand for coal.
The Department of Power, Ministry of Energy, and Government of India established the current
"Coal India Limited (CIL)" as a holding company on 1 November 1975. Coking and non-coking
coal mines were to be combined and streamlined into a single governing organisation that would
be in charge of all the coal mining sectors owned and run by the Central Government. Then,
BCCL and each of the three former CMAL divisions were established as CIL subsidiary
businesses. Western Division of CMAL became Western Coalfields Limited (WCL), Eastern
Division became Central Coalfields Limited (ECL), and vice versa (CCL).In order to provide
planning, design, and engineering consulting services for coalmines, a new subsidiary called
Central Mine Planning and Design Institute Limited (CMPDIL) was created. On January 1, 1986, a
few mines were once more restructured to improve management of the mining operations and
boost output. Two new subsidiaries—one from WCL named South Eastern Coalfields Limited
(SECL) and another from CCL called Northern Coalfields Limited—came into being (NCL).
Additional restructuring occurred in April 1992, and Mahanadi Coalfields Limited, a new
subsidiary from SECL, was created (MCL). Eight subsidiaries of Coal India Limited were created
as a result.
The amount of coal produced in 2017–18 was 639.23 million metric tonnes (704.63 million short
tonnes), an increase of 4.93 percent over the previous year. In 2017–18, lignite was produced in
quantities of 43.84 million metric tonnes (48.33 million short tonnes), which is 9% less than in the
prior fiscal year. In terms of coal output, India comes in fourth.
States that produce the most are:
▪ Odisha
▪ Chhattisgarh
▪ Jharkhand
In India, industrial consumers used 832.46 MT of coal in 2017–18. India's main users of coal are
the steel and washery industries (508.25 MT), cement industries (8.93 MT), sponge iron industries,
and power generation (7.76 MT). 42.52 MT of lignite were consumed in 2017–18. 89.57% of the
entire lignite usage is accounted for by the production of electricity alone.
Ville, Nurmi (2007), in the report "The HRD trends in the Finnish pulp and paper industry,"
points out that many significant differences exist in the last twenty years. Results in improvement
culminated in dramatic improvements in the personnel's skill criteria. But on the other side, the
increase in mergers in this field has limited the number of companies with international
operations. He concluded that globalization, which is necessary for Labour cost competitiveness,
threatens the European Labour market, social policy, vocational education, and also HRD
practices to grow higher productivity and competencies. The research integrated the findings of a
test in the Andhra Pradesh State Electricity Board's management training and growth processes,
successes, and shortcomings. The opinions of the top, middle and lower executives involved, the
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training staff, and the managerial associations will also be integrated in order to present a varied
evaluation of the policies and practices of the Electricity Board in India.
In their study on the "Industrial Relations and Human Resource Management – An Analysis,"
Sathes kumar L and Selvaraj V (2008) had observed that the goals of the Labour reform measures
tend to only be marginally accomplished further, and improvements in these fields would be
attractive and concerned for educational labour relations around the world. In seeking them, we
should take into consideration Watson's recommendation that social sciences' core domains will
be used to investigate the job interaction that they have and take account of Watson's remark that
core domains in the social sciences must be used instead of hoping to boost human resources
management or labour relations.
Gupta, Anupama (2010) identified the challenges the Human Resource Manager faces in the
framework of the global economic scenario. The paper emphasized that these problems must be
taken seriously. The lack of skilled workers is the biggest challenge. This paper analyzed the role
of the Department of Human Resources in solving the problem. It was the responsibility of the
HR department to prepare a future career path to attract talent. It was recommended that the HR
manager be equipped to face the challenges, but that the role of others must also be taken into
account to ensure the stable sustainability of the organization.
In this research paper, Thamil Selvan (2012), Bhavani, discusses a methodological rigor of the
dependent profile in the determination of labour relations of Tamil Nadu sugar mills. The
effective organisation, which results effectively through the workers, stands on an efficient
system. The goal of the researchers is to investigate the significant portion and role of the
demographic profile in deciding labour relations and participation in the organization. Statistical
approaches such as frequencies and percentages and chi-square analysis have been used. The
study concludes that the demographic variables affect the working relations of workers with
government-owned sugar factories in Tamil Nadu.
M. Usha, Nandhini, and P. Palanivelu (2012), have assessed that an evaluation of performance is
a method of measuring the efficiency of an employee's work according to his needs. It is a
mechanism in which an item, a particular person is evaluated or evaluated for its merit,
excellence, qualities or status. The Quality Assessment was considered the most powerful and
invaluable resource for a company because the information it provides is of great benefit to take
decisions on various personal considerations such as promotions and a rise in merit. The
government has taken a range of steps to boost the sugar cane yield, to ensure better milling and
recovery, to increase investment in by-products management, to revive and rehabilitate closed
and diseased millers, and above all, to give sugar cane farmers timely and better remuneration. It
also considers the different factors influencing the proper implementation and successful
execution of the company's performance evaluation framework.
Suresh, Muralidhara Rao (2013), has researched "Human Resource Management" (HRM) for
management. The latest HRM version, Personnel Management (PM), is a concept that can be well-
connected with the old operational structure and is centralized, with less autonomy and greater
coordination and standardization, that is to say, adherence with laws and rules. HRM, but on the
other side, is about the general philosophy of the organisation and also how people must be
handled and not just about certain fundamental role models. HRM concentrates on congruence
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and commitment instead of compliance and control. Human resources are regarded as the
cornerstone of any organization. Recently, the economist has introduced "Human Resource" in
addition to land, money, and technology as the principal factor in constructing and transforming
the country. Human resources management is a constructive, centralized strategic management
practice that differs from traditional personnel management. The HRM is extremely relevant for
the productivity industry. Personal feedback is the highest in the industry. The reliability of this
input is expressed in the quality of the product as a whole, and a structured strategy is required in
order to optimize the human resources. The sugar industry is among the biggest human resources
firms with the full satisfaction of workers. It was decided that the investigator learn the human
resources strategies and happiness of their staff.
Zehra Alakoç Burma (2014), has observed that competitive rivalry is the main factor in the
definition of corporate strategies in the world today, contributing to the manufacturing economy
transiting into the information economy. Efficiency can only be accomplished at a time when
absolute output is crucial by the efficient management of human resources. Human resources
management is among the needs of today's market. The Human Resource Management
Department plays a major role in providing the individual person with the most important
business tools. The Human Resource Management Department has a central role to play in staff
recruiting, orientation and performance review, etc. The HRM to be dealt with at the highest level
in organizing and managing business decisions is needed. This study will guide human
resources, the spectrum, and variables that impact HRM.
Jalil, Shaikh, and Alam (2014), performed research to examine the effects of human resource
management (HRM) practices on operational performance in the public sector. Respondents were
chosen by simple random selection. The association between particular HRM practices and
operational performance was investigated using correlation analysis, regression analysis, and T-
testing. According to the analysis of the respondents' opinions and perceptions, there is a positive
and significant correlation between efficient HRM practices—particularly those related to hiring
and firing, performance evaluation, employee relations, involvement and communication, and
recruitment and selection—and operational performance.
Narendra & Bhor (2014), noted that the Indian coal industry is highly labour focused and has a
range of practices, from coal excavations to electricity generation and sales. Several divisions in
Coal Projects involve enormous roles in themselves. The implementation of IT to such
departments optimizes the systems that Coal Mining requires today. The improvement in IT is
quicker than any other method in the company. The changing technical climate is among the big
obstacles the HR department must resolve. This article looks at the use across the whole coal
industry of applications such as e-HRM, heavy machines, and wireless technologies. The
Maharashtra states are centered on the collection of data. The Coal industry wants to reduce costs
by optimizing processes, including the use of IT as a significant tool to achieve this. We address
many areas whereby data collection, reporting, project planning, obligation delegation, and
consistency can be monitored and enhanced with the use of IT.
In their research, Muthu Kumar & Sirajudeen (2014) seeks to explain how HRD practices have an
effect on employee satisfaction throughout the sense of identified BPO companies in the districts
of Coimbatore. The nature of human resources management is evolving more rapidly than we can
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believe. The identification of these organizational problems has contributed to a fundamental
change in human resources management. Factors such as recruiting and selection, formation and
development, compensation practices, performance appraisal have been found; career
development practices (HRD) play an important part in job satisfaction (JS). This section also
provides potential solutions to the above issue.
Velmurugan & Jeyapriya (2015), assessed that the value of personal management in both
industrial and non-industrial organizations in India is increasingly being realized. The
consequence was that the roles of managers and managers were becoming more complex. The
challenges that most organizations face are the most important ones: getting qualified and
relevant people, keeping their motivation and morals, helping them continue to grow, and
delivering their maximum to the organizations. This reference was accompanied by the study on
HR practices based on objective research at the Salem Co-Operative Sugar Mill in order to gain a
better understanding of the management practices adopted by the SCSM regarding HR Policy
established by the HR department of an organisation. It underlines the value of a consistent
organization structure and culture in order to prevent uncertainty in order to achieve maximum
results with minimal resources. The article seeks to cover the full awareness of HR procedures in
the company and how employee performance is measured, which key variables are taken into
account, how data are kept, and finally, how the assessment is conducted. The practical
knowledge was primarily obtained by observing all the events in the H.R. division. Division. This
is a quick analysis to comprehend the H.R. the topic, how it is technically implemented, why it is
required, its consequences, and its advantages.

The key aims of the proposed research are to analyze Northern Coalfields. It aims to research,
evaluate and figure out how the roles of human resources work efficiently and effectively in
achieving the organization's overall Human Resource Strategy and target and stress on harvesting
the best possible human resources. Instead that, what are the other factors for asking for
disciplinary intervention or changing the roles of human resources development practices? The
main objectives of this study are confined to the following issues:-
(i) To analyze the profiles of the Northern Coalfields Limited.
(ii) To identify and analyze the existing Human Resource Development practices in NCL.
4. NATIONALIZATION OF COAL MINES

Modern India's commercial coal mining has always been influenced by the demands of the local
market. The Jharia Coalfield's coking coal deposits have to be systematically mined in order to
meet the growing demands of the steel industry. In order to fulfil the country's expanding energy
demands, the private coal mine owners had not received sufficient capital investment. Poor
working conditions in some of the private coal mines and unscientific mining techniques used by
some of them have drawn the attention of the government. The Central Government has decided
to nationalise the private coal mines as a result of these factors. Coking coal mines were first
subject to nationalisation in 1971–1972, followed by non–coking coal mines in 1973. The 1971
Coking Coal Mines Act (Emergency Provisions) authorised the purchase of coking coal mines and
coke oven facilities to be run in the public interest while being considered for nationalisation in
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October 1971. The 1972 Coking Coal Mines (Nationalization) Act came after it, nationalising
coking coal mines and coke oven facilities on January 1, 1972, aside from those owned by Tata
Iron & Steel Company Limited and Indian Iron & Steel Company Limited, and establishing
Bharat Coking Coal Limited (BCCL), a new central government undertaking. Another piece of
legislation, the Coal Mines (Taking over of Administration) Act of 1973, expanded the Indian
government's power to take over management of the coking and non-coking coal mines in seven
States, including the 1971 coking coal mines. The Coal Mines (Nationalization) Act, 1973, which is
currently the primary piece of law that regulates the competence of coal mining in India, was
passed on 1.5.1973 after the nationalisation of all these mines (Ministry of Coal).
Main Factors Leading Towards Nationalization of Coal Industries
After a shock in the price of oil in the 1970s, the nation carefully examined its energy sources.
Second, the coal industry did not get adequate investment for expansion and was mostly
controlled by the private sector. To determine coal as the main source of commercial energy and
the area that required investment, a Fuel Policy Committee was established. Principal causes of
nationalisation are:
a. Stopping indiscriminate, slaughterhouse mining.
b. To exploit available coal resources in a planned manner.
c. To improve safety regulations.
d. To raise the standard of living for employees.
e. To ensure sufficient investment is made to use resources as effectively as possible in line
with growth requirements.
5. COAL IN INDIAN ECONOMY

India, which has 1.3 billion residents in 2017 and is expected to reach 1.5 billion by 2030, is the
second-most populated nation in the world. One of the world's main economies with the quickest
growth rates is India. The average GDP growth rate over the past seven years has been 7.3%, and
over the next five years, it is expected to be about 7.9%. India continues to be a low-income nation
with significant portions of its people living in high levels of material squalor. At purchasing
power parity (PPP), the GDP per capita in 2011 was around $6500 USD, which is 2.3 times less
than China's GDP per capita of roughly $15,200 USD in the same year.
6. COAL IN THE INDIAN ENERGY SECTOR

For the reasons mentioned above, coal dominates India's energy consumption matrix, making up
56% of primary energy consumption. The matrix of India's main energy consumption for 2018 is
depicted in the graph below. It should be emphasised that the graph primarily shows how many
"commercial" fuels, or those that are offered for profit, are used. This leaves out traditional
biomass, which is still a large component of the Indian energy system and is often harvested by
non-market labour (often women). Therefore, modern renewables include things like wind, solar,
and other kinds of biomass.
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Chart 1.1: India's Commercial Fuels' Primary Energy Consumption Matrix
Source: Data from (BP, 2018)

In addition, coal is essential for the creation of power. The power generation matrix for India in
2018 is shown in Figure 1. It can be observed that coal produced the majority of the power (76%)
with hydro (9%) and renewable sources including wind and solar (6%), both of which contributed
considerably. Wind and solar generation have also experienced rapid expansion, with a
compound annual growth rate of 18.4% over the past ten years. It portends a potential future
switch in India's power industry from coal to renewables. Long-term success of the switch to
variable renewables, as addressed in this paper, will determine the fate of coal in India.
Table 1.1: State wise Estimated Reserve of Coal in India
(in Billion Tonne)
Proved Indicated Inferred Total Distribution
State/UTs %
31.3.17 31.3.18 31.3.17 31.3.18 31.3.17 31.3.18 31.3.17 31.3.18 31.3.17 31.3.18
Andhra 0 0 1.15 1.15 0.43 0.43 1.58 1.58 0.50 0.50
Pradesh
Arunachal 0.03 0.03 0.04 0.04 0.02 0.02 0.09 0.09 0.03 0.03
Pradesh
Assam 0.47 0.47 0.06 0.06 0.00 0.00 0.53 0.53 0.16 0.16
Bihar 0.00 0.16 0.00 0.81 1.35 0.39 1.35 1.37 0.43 0.43
Chhattisgarh 20.00 20.43 34.46 34.58 2.20 2.20 56.66 57.21 17.98 17.97
Jharkhand 44.34 45.56 31.88 31.44 6.22 6.15 82.44 83.15 26.16 26.06
Madhya 11.27 11.96 12.76 12.15 3.65 3.88 27.67 27.99 8.78 8.77
Pradesh
Maharashtra 7.04 7.18 3.16 3.07 2.06 2.05 12.26 12.30 3.89 3.88
Meghalaya 0.09 0.09 0.02 0.02 0.47 0.47 0.58 0.58 0.18 0.18
Nagaland 0.01 0.01 0.00 0.00 0.40 0.40 0.41 0.41 0.13 0.13
Odisha 34.81 37.39 34.06 34.17 8.42 7.74 77.29 79.30 24.52 24.86
Sikkim 0.00 0.00 0.06 0.06 0.04 0.04 0.10 0.10 0.03 0.03
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Uttar 0.88 0.88 0.18 0.18 0.00 0.00 1.06 1.06 0.34 0.33
Pradesh
West Bengal 13.72 14.16 12.95 12.87 4.99 4.64 31.67 31.67 10.05 9.92
Telangana 10.40 10.47 8.54 8.58 2.52 2.65 21.46 21.70 6.81 6.80
All India 143.06 148.79 139.31 139.18 32.78 31.06 315.16 319.04 100.00 100.00
Total
Distributioin 45.39 46.64 44.20 43.62 10.40 9.74 100.00 100
%
Source: Office of Coal Controller (Ministry of Coal)
The majority of the country's coal reserves are located in the east and south-central regions.
98.26% of the nation's total coal reserves are located in the states of Jharkhand, Odisha,
Chhattisgarh, West Bengal, Madhya Pradesh, Telangana, and Maharashtra. As of March 31, 2018,
the State of Jharkhand had the largest percentage (26.06%) of the nation's total coal reserves,
followed by the State of Odisha (24.86%).
Chart 1.2: Domestic Production and Imports of Coal Fuels
Source: Data from (BP, 2018)

The rapid surge in demand has prevented domestic manufacturing from keeping up.
Additionally, compared to the coal sold on foreign markets, local coal frequently has higher
impurities and lower energy content.
Coal is utilised directly in the industrial sector in addition to powering energy generators. It is
used as a reactant in the manufacturing of steel as well as an industrial fuel (coking carbon). In
2017, India utilised 805 Mt of steam coal, mostly for the production of electricity. India, on the
other hand, used 88.5 Mt of coking coal, with 53% of that being imported. India will likely
continue to depend on imports to fulfil its rapidly expanding need for coking coal since its native
coal, which has high ash content, is unsuitable. Given its extremely low per capita steel
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consumption (about one-third of the world average), India's need for steel is anticipated to
increase dramatically over the next several years.
7. COAL IN STATE AND REGIONAL ECONOMIES

Although the nation as a whole does not consider coal to be a substantial economic sector, it is
very essential for several states, and more especially for some districts within those states. In
resource-rich states like Jharkhand, Chhattisgarh, and Odisha, coal is a significant source of
income and employment creation. In the table below, the financial worth of India's coal
production is broken down by state. It is clear that a small number of states—including
Jharkhand, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Odisha, and Maharashtra—
dominate the production of coal.By combining statistics on the proportion of coal mining in these
states' mining sectors (column B) and the proportion of mining in the total state economy, we can
try to determine how significant the coal mining industry is to the economies of these states
(column C). The outcome (column D) shows that the economy of these states' coal-producing
states made up between 3 and 10% of the total. Given the necessity to integrate information on the
value of production in the mining and coal industries (columns A & B) with information on the
value provided by the mining industry to the state economy as a whole, the values presented here
are approximate (column C).But the statistics do provide a sense of the scale of the contribution of
the coal industry to the state economies of these coal-rich states. It should be emphasized that the
numbers in the table below are from 2009–10, the most recent year for which we could obtain
statistics on the monetary output of coal each state. The below-quoted figure of 3-10% of state
production is probably lower now since other economic sectors expanded faster than the mining
industry during the preceding time.
Table 1.2: Importance of Coal to the State Economy
States State Share in Share of Coal of Share of Estimated Share
the All India the Value of the Mining in the of Coal Mining in
Coal Output Output of the State’s the State’s
(A) State’s Mining Economy (C) Economy (D)
Sector (B)
Jharkhand 22 % 91 % 11 % 10 %
Madhya Pradesh 16 % 78 % 4% 3%
Chhattisgarh 15 % 66 % 13 % 9%
Andhra Pradesh 13 % 43 % 4% 2%
Odisha 11 % 38 % 12 % 4%
Maharashtra 10 % 83 % 5% 4%
Source: Based on data from the (RBI, 2018; India Stat, 2018)
Additionally, certain districts within these states produce more coal than others. Statistics at the
sub-state level are difficult to get and are not uniformly distributed throughout the districts of
various states. However, based on the information that is currently available, we may estimate the
district-level concentration of the coal economy.
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8. FUNCTIONS OF MINISTRY OF COAL
India's coal and lignite deposits must be developed and exploited, according to the Ministry of
Coal. According to the Government of India (Allocation of Business) Rules, 1961, as amended
from time to time, the Ministry's topics, which comprise attached and subordinate or other
entities, including PSUs, involved with their subjects, are as follows:
a. The discovery and development of lignite, coking coal, and non-coking coal reserves in
India.
b. All issues pertaining to the manufacture, delivery, and pricing of coal.
c. The construction and management of coal washeries other than those that are within the
purview of the Department of Steel (ISPAT Vibhag).
d. The carbonization of coal at low temperatures and the creation of synthetic oil from coal.
e. The 1974 Coal Mines (Conservation and Development) Act's administration (28 of 1974).
f. The Organization for the Coal Mines Provident Fund.Coal Mines Welfare Organization
g. The Coal Mines Provident Fund and Miscellaneous Provision Act of 1948 is administered
(46 of 1948).Administration of the Coal Mines Labour Welfare Fund Act, 1947 (32 of 1947).
h. Regulations made under the Mines Act of 1952 (32 of 1952) for the administration of the
rescue fund as well as the assessment and collection of excise taxes on coal and coke
produced and transported from mines.
i. Coal Bearing Areas (Acquisition and Development) Act of 1957 administration (20 of
1957).
j. Implementation of the CMSP Act of 2015 (no. 11 of 2015).
Administration of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957)
and other Union Laws inasmuch as the said Act and Laws pertain to coal, lignite, and sand for
stowing, business attendant to such administration includes inquiries affecting various States.
9. ROLE, MISSION, OBJECTIVES AND FUNCTIONS OF CIL

The top organisation in the coal sector, CIL is in charge of establishing policies, standards, and
coordinating the activities of subsidiaries. On behalf of all of its subsidiaries, it also handles
investments, planning, human resources management, the procurement of heavy machinery,
financial budgeting, etc.You may look at CIL's role, mission, goals, and functions in more detail
by:
(i) Role of CIL: Coal India is responsible for management of the entire coal sector owned
and controlled by the Central Government.
(ii) Mission of CIL: The mission of an enterprise describes the scope of operation in
terms of products and markets or service and client. It tells what the organization is
and why it exists and the unique contribution it thrives to make. It answers the
question of the nature of business and sense of purpose. The mission of coal India Ltd. Is
to produce the planned quantity of coal efficiently and economically with due attention to
satisfy, conservation and quantity.
(iii) Business Objectives: The future condition of affairs that the organisation aspires to
achieve is defined by its organisational objectives. It gives an organisation the
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required direction and serves as a source of legitimacy for the organization's
operations and very existence. The objectives specify the areas in which the business
will operate and identify a particular market segment as well as the items or services
it will provide.
The primary goals of the company, as stated in the Memorandum and Articles of Association of
Coal India Ltd., are: (a) to carry on business of coal mining in India and elsewhere, including the
management of coal mines; (b) acquisition of coal mining; (c) mining coal, manufacturing coke,
and dealing in other business; (d) manufacturing, trading, and other business; (e) reorganisation
and reconstruction of coal mines taken over by the government; and (f) policy formulation
Figure 1.1: Organization Structure of CIL
Central Mine Planning and Design Institute Limited (CMPDIL), with offices in Ranchi,
Jharkhand, serves as CIL's consulting firm. In Singrauli, Madhya Pradesh, Northern Coalfields
Limited (NCL) is a coal-producing plant that is directly under the operational supervision of CIL.
10. Objectives of Northern Coalfields Limited
a. To conduct coal mining operations, including mine management, on behalf of and in
accordance with instructions from Coal India Ltd.
b. To install, run, and manage all essential plants, mines, establishments, works, etc. for this
purpose as well as to mine, query, and beneficiate coal and other byproducts.
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c. To operate any coal washing or beneficiation company and to trade in any associated by-
products.
d. To look for, get, labour with, produce, grow, sell, and trade in coal and its byproducts.
e. To carry out the roles of mine and colliery owners, dealers, and coal carriers.
f. To reorganise and rebuild any coal mines, as well as take over management of those
mines and operate them in accordance with sound commercial principles in order to
ensure the development of coal production is rational and coordinated and to ensure the
best possible use of capacity and various projects.
g. To plan and coordinate the production of coal, as well as its beneficiation and by-
products, in accordance with the government's objectives and economic policies.
h. To scale back in the plan expenditure on new projects while taking into account its duty
to provide a decent dividend.
i. To increase technical expertise in coal mining and coal beneficiation and to conduct
applied research and development related to the exploitation of coal reserves as well as
coal usage, in order to stop dependency on technical assistance from outside.
11. CORPORATE STRUCTURE OF NCL

Figure 1.2: Organizational Chart of Northern Coalfields Limited
Source: Annual Report of NCL (2017-18)

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Chart 1.3: Total Coal Production of NCL
12. SECTOR WISE DISTRIBUTION OF COAL

Nearly 90% of NCL's coal production is used in the power industry. NCL said that 88.35% of its
coal output during the 2017–18 fiscal year was delivered to power and energy producing firms
including UPRVUNL, NTPC, LANCO, etc. The distribution of coal by industry is illustrated in
the chart below. Cement manufacturing companies received 0.27% of the total output of coal, and
the rest 11.38% went to other businesses like HINDALCO.
Chart 1.4: Sector Wise Distribution of Coal by NCL
13. SALES OF NCL

The overall gross sales for NCL for the 2017–18 fiscal year were 19,741.85 crore rupees, while net
sales came in at 12,096 crore rupees. The statistic and table below show that NCL's sales have
steadily increased over the past 10 years.
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Chart 1.5: Net Sales of NCL
14. PROFIT OF NCL

NCL's profit before tax for the fiscal year 2015–16 was 4066 crore rupees, while its profit after tax
was 2723 crore rupees. Over the years, NCL's profitability has also increased steadily. The
following pages include a table and chart illustrating NCL's ten-year profitability before and after
tax payments.
Chart 1.6: Profit of NCL
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15. NEED FOR HUMAN RESOURCE DEVELOPMENT
Organizations in business and industry are all dynamic. In actuality, business enterprises become
more dynamic as a result of globalisation, privatisation, and liberalisation. In other words, they
have undergone continual change in terms of technology, business model, goods and services,
organisational capability, and so forth. The human resource development is a constant
requirement of change.
1. Modifications to economic policies: Almost all governments in the world have switched
from communistic/socialistic to capitalistic economic policies. Even the Indian government
loosened its economic regulations in 1991. Globalization, privatisation, and liberalisation all
presented threats to small businesses and possibilities for big ones.
2. Modifying job specifications: Organizational dynamism affects both organisational
structure and job design. The modifications to the job design also affect the job description
and requirements. These modifications need HRD.
3. The need for multi-skilled human resources: Changing trends in industrialization, job
structuring, and organisational structure necessitate that employees engage in a variety of
tasks. The focus on the needs of the consumer resulted in de-jobbing, flexible workplaces,
and flexible organisations.
4. Organizational viability and the transformation process: Environmental challenges have an
ongoing impact on organisational viability. The company will lose market share if it does
not adjust to the changing environmental variables. The organisation must enhance its
human resources if it wants to be the first to implement these changes.
5. Technological Developments: In order to thrive and advance, organisations must use the
most recent tools. The newest technology cannot be fully adapted unless it is staffed by
qualified personnel. Human resources development makes it feasible to develop
employees. These days are characterised by advanced industrial and service technology as
well as information technology. HRD is therefore crucial in the new millennium.
6. Organizational complexity: As more mechanisation and automation, the production of
numerous products, and the provision of services develop, organisations become
complicated. HRD allows for the management of organisational complexity.
7. Human Relations: Nowadays, the majority of firms choose to use a human relations-based
strategy. This calls for HRD in turn.
16. TRAINING AND DEVELOPMENT IN NCL

In general it is believed that both training and development programmes is one and the same
thing. But it is not so, both are different from one another in a number of ways. As, Training is
required for specific skills and behavioral aspects meant for operatives, focuses on current job,
contains specific job related information and fixes current skill development. While Development
is executive oriented focused on present as well as future jobs and concentrated on general
awareness as well as knowledge gaining. A development activity tries to transform the total
personality of an Individual. In nutshell, Training is a job oriented process while development is
individual oriented process. Training is a reactive process whereas development is a proactive
process. Thus, we can say that Development is a future oriented training programme.
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Nine Vocational Training Centers (VTCs) are located at several NCL projects, while the Central
Excavation Training Institute (CETI) is located in Singrauli. Workmen, Operators, Supervisors,
and front-line Managers get training depending on their individual needs. Training and reference
materials for specialised programmes on new equipment for all levels of employees are properly
prepared in order to give employees learning opportunities and close the performance gap. Basic
courses for HEMM (Dumper, Shovel, Drill, Pay loader and Dozer) Operators, Technicians and
Unskilled Workers are being conducted at CETI as one of the main training programmes. CETI
organized 18 Workshops and Seminars during the year 2015-16 for middle and senior level
management groups and staff focusing on contemporary issues. The statutory training
requirements are met by VTCs. NCL makes training needs identification according to the policies
and rules set out by the CIL. CIL has also led down specific training areas for different categories
of employees as discussed below.
Table 1.3: Total Number of Persons Trained By NCL
S. No. Description 2016-17 2017-18
1. Number of Persons Trained through 15863 12701
Vocational Training Programmes at VTC
2. Number of Persons Trained at CETI:
a) Regular Training Programmes 3376 4134
b) Workshops & Seminars 421 1155
c) Technical Training (Out Side/OEM) 184 216
Total 3981 5505
3. Number of Persons Trained through
Outside Company Programme in India
a) General Management Programme 511 469
b) Techno-Managerial Courses 143 141
Total 654 610
4. Number of Persons Trained Abroad
a) General Management Programme NIL NIL
b) Techno-Managerial Courses 04 03
Total 04 03
From the Table it can be concluded that, Vocational training centers located at each project has
trained 15,863 number of persons during 2016-17and a total number of 12,701 persons during
2017-18.CETI has imparted training to 3,981 persons during 2016-17and to 5,505 persons during
2017-18. A total no. of 654 persons during 2016-17 and a total number of 610 persons has been
trained during 2017-18 by the outside company training programmes. A total no. of 04 persons
has been send abroad for training purposes during 2016-17 and a total number of 03 persons
during 2017-18.
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17. CONCLUSION
The present study revealed that NCL takes the utmost care of its human resource and conducts a
variety of HRD Practices each year for its overall growth and performance. It acquires individuals
correctly, improves them through a number of training and development activities, and also
motivates and promotes them through a number of social security and welfare systems. The
study shows that NCL is Coal India Limited's wholly owned subsidiary and as such, follows its
policies in all respects, including Human Resource Management Practices. NCL’s human
resources are divided into two categories: 1. Executives, 2. Non-Executives: Supervisors, clerical
staff and highly trained and semi-skilled/unskilled employees are further categorised into non-
executives. A separate department has been formed by NCL to look after its human resources. It
was identified by the firm as the Personnel Department. It has set up a good number of
independent divisions that work to procure, manage, improve and retain human resource, and it
also aims to develop its human resources to the fullest extent. It does a lot for this personnel
department. As per CIL's guidelines, NCL provides its employees with training and growth.
Workmen, operators, supervisors and front line managers are provided with need-based training.
In order to provide workers with learning opportunities to close the performance gap,
training/reference materials are well equipped for special programmes for all employee levels on
new equipment. In order to cope with the demanding demands of their duties, NCL is aware of
the rising training and developmental needs of its employees. It organises a large number of
training and development programmes each year and, at its own cost, invites renowned
institutions or sends its staff to training institutes.
REFERENCES
[1] T.V.Rao, Professor of Indian Institure of Management, Ahmedabad, article, Planning for
Human Resource Development, Vikallpa, the journal of IIM, Ahmedabad, 12(3).
[2] Shah H, Gopal R (2012) Training needs analysis for bus depot managers at GSRTC. Eur J
Train Dev 36(5), pp. 527–543.
[3] Roscoe J (1995) Analysis of organizational training needs. In: Truelove S (ed) The handbook
of training and development. Blackwell, Cornwall, pp. 50–78.
[4] Noe R, Tews M (2008) Strategic training and development. In: Storey J, Wright PM, Ulrich
D (eds) The Routledge companion to strategic human resource management. Routledge, pp
262–284.
[5] Ferreira A, Leite R (2014) A glimpse at the Portuguese employees’ perceptions of training
and development: what they get is what they see? Int J ApplManagSciEng 1(1), pp. 1–16.
[6] Bhat, A., and Kumar, A. (2008). Management Principles, Processes and Practices. Oxford
University Press, pp. 16-17.
[7] Edwin, B.Flippo. (1980). Personnel Management, McGraw-Hill, Tokyo, p.31.
[8] Human Resource Management (Third Edition) by V S P Rao Handbook of Human Resource
Management Practice, 8th Edition, 2001
[9] Kirkpatrick, Donald (1959). Techniques for evaluating training programs, Journal of the
American Society of Training Directors.
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[10] S. Sundarajan,( 2007) Indian Journal of Training and Development xxxvii No.3 (July –
September).
[11] Tripathi, P.C., and P.N. Reddy, (2009), Principles of Management. Tata McGraw Hill
edition. pp.7-10.
[12] Baldwin T and Magjuka, R, ― Organizational Training and Signals of Performance: Linking
Pretraining Perceptions to Intentions to Transfer‖, Human Resource Development
Quarterly, 2, pp. 25-36.
[13] Neo, R. (2008) ― Employee Training and Development‖, McGraw Hill, New York.
[14] Verma, M. M. (1988), ―Human Resource Development‖, Gitanjali Publishing House, New
Delhi.
[15] Tripathi, P. C (2002), ―Human Resources Development‖, Sultan Chand and Sons, New
Delhi.
[16] Wentling, Tim L., (1980), ―Evaluating Occupational Education and Training Programs‖,
Boston: Allyn and Bacon, Inc.
[17] Vardan, M. S. S. (1989), "HRD for Organisational Effectiveness", University of Rajasthan,
Jaipur.
[18] Roback, Thomas H, ― Personnel Research Perspectives on Human Resource Management
and Development‖, Public Personnel Management Vol.18, Issue 2, Summer 1989.
[19] Saini, Debi S. &PawanBudhwar (2004), ―Human Resource Management in India‖.
[20] Silveria, D. L.(1987), ―Human Resource Development :The Indian Experience‖, New Book
Publications.
[21] Rao, T.V. (1991), ―Reading in Human Resource Development‖, Oxford & IBH publishing.
[22] Rao, T.V. (1996), ―Human Resource Development‖, Sage Publications, New Delhi.
[23] Srivastava, P. K. (2017), ―Human Resource Management : A Value Based Approach‖,
[24] Tomar, T.S. (2017), ―Human Resource Management and Innovative Practices: Key
Connections:, International Journal of Trade and Commerce-IIARTC, 6(1), pp. 30-41.
Reports
[1] Annual Report of Coal India Limited, 2015-16 za
[2] Annual Report of NCL, 2015-16
[3] CIL HR vision, 2020
[4] Mine Manager Manual by Sri Anup Krishna Gupta
Websites
[1] http://www.indianindustry.com
[2] http://www.ncl.gov.in
[3] http://www.wikipedia.in
[4] http://www.coalindia.in
[5] http://www.Soadhgangainflibnet.in
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Emergence of Insurance Realm in India

Vijay Singh Negi*
Department of Commerce, Govt. P.G. College, Dakpathar, Vikasnagar, Dehradun, U.K., India
E-mail: dr.vijaysinghnegi65@gmail.com
Abstract
In our nation, insurance serves as an extended record. When Oriental
Life Insurance Company started business in India in 1818, life insurance PAPER/ARTICLE INFO
as we know it today was invented. However, general insurance entered RECEIVED ON: 17/11/2022
the market very late, in 1850, when Triton Insurance opened its business ACCEPTED ON: 15/12/2022
in Kolkata. Indian insurance history is divided into three periods: Pre- Reference to this paper
Nationalization, During Nationalization, and Post-Nationalization. In should be made as follows:
1956, life insurance was the first insurance industry that was
nationalized. The movement was accompanied by General Insurance, Negi, Vijay Singh (2022),
which was nationalized in 1973. With United India, New India, ―Emergence of Insurance
Oriental, and National serving as its accessories, the governing structure Realm in India‖,
of General Insurance Corporation of India underwent revolution. The International Journal of Trade
Economic Reform Program, which began in 1991, served as the impetus and Commerce-IIARTC, Vol.
11, No. 2, pp: 460-466.
for the system of launching the coverage area. As a result, the Malhotra
Committee was established, and after it issued a report in 1994, the
Insurance Regulatory Development Act (IRDA) was passed in 1999. As
a result, Indian Insurance became an open door for certain agencies, and
in 2001, a private insurance firm successfully launched operations. One
of India's most popular investment sites for both Indians and NRIs is the
insurance sector. In the encyclopaedically expanding coverage
husbandry, India is the fifth-largest coverage request. The development of
coverage awareness among individuals, innovative products, and
disbursement methods is sustaining the expansion of the insurance
sector.
Key Words: Nationalization, Disbursement channels, IRDA, Private
and Public Insurance.
DOI: 10.46333/ijtc/11/2/11
Vijay Singh Negi
1. INTRODUCTION
On January 19th, 1956, a law was approved that nationalized the life insurance sector and
simultaneously created the Life Insurance Corporation. In total, 245 foreign and Indian insurers
were takeover by the LIC, including one hundred fifty-four Indian, sixteen non-Indian, and
seventy-five provident societies. The insurance sector emerged as a response to the private sector
while the LIC had a monopoly until the late 1990s. The data on famous insurance come from the
rise of ocean-faring shift and revolution in the 17th century, which was a direct effect of the
Industrial Revolution in the west. It was brought to India as confirmation of British rule. The
present system of Triton Insurance Company Ltd., which was founded in Calcutta in 1850 as a
result of British imperial policy, is where general insurance in India first emerged. The Indian
Mercantile Insurance Ltd was founded in 1907. The estates of well-known insurance industry
companies are now being transacted by this company the most. The Insurance Association of
India branch known as the General Insurance Council was formally founded in 1957.A code of
conduct was established by the General Insurance Council to guarantee honest conduct and
moral business practices. Famous insurance industry company been nationalized on January 1st,
1973 when the General Insurance Business (Nationalization) Act was expired in 1972.
The Oriental Insurance Company Ltd., the National Insurance Company Ltd., the United India
Insurance Company Ltd., and the New India Assurance Company Ltd. were formed from the
compilation of one hundred seven firms. The General Insurance Corporation of India became a
legal entity in 1971, and on January 1st, 1973, it began operations as an industrial corporation.
This renaissance has observed the insurance industry's daily experience elongating to 200 times
its original size. The early 1990s saw the beginning of the revitalization project, and during the
previous decade and more, it has undergone a considerable opening up. Under the direction of R.
N. Malhotra, a former governor of the RBI, the government produced guidelines in 1993 to
suggest improvements in the insurance industry. As a result of reforms started inside the
economic region, the quality starts to show. When the price submitted its dossier in 1994, one of
its main recommendations was to make it lawful for the private sector to work in the insurance
sector. They claimed that floating Indian agencies could access far-off regions, giving them the
chance to go on commonplace trips with Indian friends. In 1999, following the recommendations
of the Malhotra Committee report, the Insurance Regulatory and Development Authority (IRDA)
was founded as an autonomous organization to transform and expand the insurance industry.
The IRDA had become a legal entity in April 2000. The IRDA's primary objective fostering
competition in order to enhance consumer pride through increased consumer choice and fewer
decorations, all the while ensuring the financial security of an insurance request. The request was
made available by the IRDA in August 2000 along with the assignment for enrolment activities.
The number of foreign agencies was limited to 26. The Insurance Act of 1938's Section 114A grants
the Authority the authority to make regulations, and since 2000, it has done just that. These
regulations cover a wide variety of topics, from the registration of agencies to conduct insurance
business to the protection of policyholder interests.
The General Insurance Corporation of India's subsidiaries were reorganized as separate agencies
in December 2000, and GIC also appeared as a newly transformed civil reinsurer at the same time.
In July 2002, a law delinking the four accessories from GIC was approved by parliament. Second,
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Vijay Singh Negi
in addition to the 23 currently operating insurance businesses, the nation is home to 24 renowned
insurance firms, including the Agriculture Insurance Corporation of India and the ECGC. The
insurance industry is expanding quickly (15–20%). Insurance services contribute around 7% to the
country's GDP concurrently with banking services. A strong and excellent insurance sector is a
blessing for profitable development because it provides long-term fee variety for form
development while also enhancing the nation's capacity for risk-taking.
2. EVOLUTION
India has a long and established history with coverage. It reveals quotes from Yagnavalkya
(Dharmasastra), Manu Manusmrithi, and Kautilya ( Arthasastra) in their writings. The memoirs
elaborate on the idea of accumulating funds that may be redistributed in the event of failures like
fire, cataracts, pandemics, and shortage. This served as perhaps a precursor to modern-day
insurance. Ancient Indian data has the most significant insurance lines preserved in the form of
marine carriers' contractsand alternative loans. India's insurance industry has developed
throughout the years with careful inspiration from unique nations, particularly England. Indian
life insurance businesses first appeared in 1818 with the founding of the Oriental Life Insurance
Company in Calcutta. But in 1834, this insurance Company shut down. In 1829, the Madras
Equitable began providing life insurance to the Madras Presidency. The Bombay Mutual (1871),
Conglomerate of India (1887), and Oriental (1874) were all established inside the confines of the
Bombay Residency during the final three decades of the nineteenth century following the passage
of the British Insurance Act in 1870.However, international insurance companies that regularly
conducted business in India, such Royal Insurance, Liverpool, and London Globe Insurance, were
dominant at this time, and Indian insurance options had to contend with intense foreign
competition. In 1914, the Indian government released the first set of insurance companies' returns
to the public. The Indian Life Assurance Companies Act of 1912 was the first statute to modify
lifestyle companies. The government was able to compile statistics on lifestyle and non-lifestyle
business undertaken in India by Indian and international insurers, including provident insurance
societies, thanks to the Indian Insurance Companies Act, which was passed into law in 1928.The
previous law was consolidated and amended in 1938, to defend the interests of the insurance
public, by the Insurance Act, 1938, with complete virtues for powerful manipulation over the
interests of insurers.
Jha, A. N. (2014) conducted a thorough review of the various distribution channels used by the
insurance industry in India. Only individual insurance agents were permitted to sell life
insurance prior to privatization. However, distribution channels also grew as a result of the IRDA
Act.
Thakur, A. (2013) conducted a thorough analysis of current marketing tactics in the context of
scientific medical insurance, and practical marketing and marketing techniques were
recommended. The Indian insurance market has a sizable potential for health insurance.
However, there are currently limited products and a large number of companies with a poor
reputation, resulting in negative penetration.
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Vijay Singh Negi
In relation to the rise insurance corporation, Anshuja (2012) examined the bank assurance model
of insurance service distribution. The year 2000 saw the opening of the insurance industry. Before
that, only the best individual insurance agent could offer life insurance products, but the IRDA
introduced a number of additional distribution channels, including business agents, brokers,
direct sales, and bank assurance, to meet the demands of companies.
Singh, A.K. (2014) conducted research on the life insurance market as it stands today. The gift
market is changing quickly and unpredictably. Competition and stress are there when moving
forward. The strengths of this expansion strategy include hunting for new business employers
who are looking for capacity and snatching it.
Arup (2011) analysis of the broking system, possibilities and challenges are listed, and the
"relationship model approach"—a novel notion in marketing and advertising—is promoted. After
being privatized, the Indian insurance industry is expanding quickly and moving forward.
4. OBJECTIVES OF RESEARCH
The study has followings objectives
a) To encircle the globe in insurance viscosity and connect it to India viscosity. Due to the
diverse mindsets of the people and the way that insurers approach them, the way that
Indian insurance operates can be compared to that of other nations.
b) The investigation of extravagant trend analysis for extrapolating insurance enhancement
in India This study will provide us with a picture of where we are now in the context of
Indian insurance and where we are headed in the insurance sector.
c) Study of global evaluation of coverage density: As part of the evaluation of the coverage
zone in India, we will look at our role on the global stage in terms of coverage, and we will
also look at the future of coverage in many different countries across the world. In this
analysis, we will look at both lifestyle and non-lifestyle policies in the 22 countries that
make up the world so that we can provide a complete picture of the distribution of policies
around the world.
Secondary sources of information are used to learn about our research topic from information that
has already been mentioned by a few other researchers. The supplemental information is
gathered from a few researchers' online books and a few picky websites. The secondary
information was useful for the practice of the literature review. We might want to look at various
findings by various researchers that helped us understand the previously mentioned factors and
the conclusions made as a result. Additionally, it helped us understand what else could need to
be researched in order to answer the research problem.
6. DATA ANALYSIS
Table-1: International Comparison of Insurance Density
S.No. Country Life Insurance Non-Life Insurance Total
1 Australia 2077 2017 4094
2 Brazil 208 189 398
3 France 2638 1403 4041
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Vijay Singh Negi
4 Germany 1389 1578 2967
5 Russia 8 295 303
6 South Africa 823 215 1037
7 Switzerland 4421 3591 8012
8 United Kingdom 3347 1188 4535
9 U.S.A. 1716 2130 3846
10 Bangladesh 5 2 7
11 Hong Kong 3442 462 3904
12 India 49 10 59
13 Japan 4138 1031 5169
14 Malaysia 328 175 5169
15 Pakistan 4 4 8
16 China 99 64 163
17 Singapore 2296 810 3106
18 South Korea 1615 1045 2661
19 Sri Lanka 15 18 33
20 Taiwan 2757 614 3371
21 Thailand 134 88 222
22 Other World 378 283 661
Source: Data from IRDA
7. RESEARCH FINDINGS
With the help of the above table, we can see how far behind the rest of the world India is in terms
of coverage. India must therefore increase its coverage area and concentrate on doing so in order
to boost its economy. The economic machinery of developed nations like Japan, Switzerland, the
United Kingdom, and Hong Kong is completely stimulated by coverage area, therefore the
density of coverage inside those nations is excessive. In order to cover the possibility coverage
inside of countrymen's lives, insurance area density has been increased. Pakistan has the lowest
population density in the world, according to the desk above, while Japan has the most. India is
the country with the ninth-highest population density worldwide. India wants to increase the
density of its coverage area in order to strengthen its financial situation. Because of its excessive
covering density, Japan frequently experiences unusual failures like earthquakes and tsunamis.
Citizens of that nation benefit from insurance chances since they have life and asset insurance.
The nation is experiencing a great deal, but it is still thriving as an advanced nation and because
of this, we can predict that the coverage area will be crucial to the country's financial system.
8. SUGGESTIONS
i. For customers to have easy access, the company must have several branches open.
ii. The services provided are the most effective and appropriate for the customers. The
offerings must be developed in such a way that clients have a positive impression of the
service.
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Vijay Singh Negi
iii. More and more information about the coverage plan must be made available to clients
through various media, as 78% of respondents are aware of the various coverage plans.
iv. The primary media for the company to communicate with the public is television. A lot of
commercials must therefore be broadcast.
9. CONCLUSION
In India, there is a good chance of insurance. However, less than 80% of Indians have life
insurance, falling short of the international standards that would open up more prospects in this
area. Mutual and coverage finances offer consumers significantly higher returns than other
investment options since they are not affected by market fluctuations. With tax and financial
planning as its primary focuses, coverage will undoubtedly advance quickly. We can infer from
this research that the Indian coverage zone is experiencing a rising rise rate. From the
aforementioned fashion analysis, we can see that fashion possibilities are expanding, leading us to
the conclusion that they are improving over time. It is regrettable to note, however, that India has
a lower percentage of its population living in urban areas than the rest of the world, which is
likely due to the reasons mentioned above. As time permits, India is currently improving its
density potential. So, wishing better that India can also improve in the coverage area.
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[5] www.bajajfinsrev.com
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India’s Skincare Brands and their Preference to Digital Marketing

over Traditional Marketing
Swati Panwara*, Megha Sharmab
a&bDepartment of Commerce & Business Administration, Meerut College, Meerut, U.P. ,India
E-mail: swatipanwar678@gmail.coma, sharmamegha0297@gmail.comb
Abstract
The study investigates the reasons why major Indian skincare companies
have preferred digital marketing channels over traditional offline PAPER/ARTICLE INFO
marketing channels to reach their targeted customers. With advancement RECEIVED ON: 15/11/2022
of technology and growing consumer awareness and their positive ACCEPTED ON: 23/12/2022
perceptions about beauty and personal care, the skincare start-ups have Reference to this paper
been able to leverage over the marketing opportunity. should be made as follows:
The recent trends show that most of the skincare brands mandatorily have
their own D2C (direct to consumer) channels such as websites and Panwar, Swati & Sharma,
applications to reach pan India as well as globally. The study follows a Megha (2022), “India‟s
qualitative approach and content analysis of the available data to reach to Skincare Brands and their
its findings and conclusion. The findings show that with strong digital Preference to Digital
marketing strategy major Indian skincare brands such as Nykaa, Plum, Marketing over Traditional
Marketing”, International
Pilgrim, Mcaffeine etc. have made a profound market space for them
Journal of Trade and
along with a strong and loyal customer base within a very short span of
Commerce-IIARTC, Vol. 11,
time. No. 2, pp: 467-476.
Key Words: Skincare Companies, Skincare Brands, Digital Marketing,
D2C.
DOI: 10.46333/ijtc/11/2/12
India’s Skincare Brands and their Preference to Digital Marketing over Traditional Marketing
Swati Panwar, Megha Sharma
1. INTRODUCTION
Marketing has been one of the most important components of the business strategy of all
companies to reach to their present and potential customers. However there has been a gradual
shift in the techniques and medium of implementing the marketing strategy.
Initially traditional offline marketing (a form of marketing that uses offline media to reach an
audience) channels like billboards, pamphlets, newspaper advertisements, magazines, TV and
radio advertisements, handouts, direct mail etc. were used by companies to communicate their
campaigns about new product launches, innovation in existing products and their CSR initiatives
but in the past decade or so the companies have realised the potential of internet and
advancement of technology and have started employing it to their own benefit.
This shift to Digital Marketing began in the western countries but very soon the Indian brands
also jumped onto the bandwagon.
In 1990s, the term Digital Marketing was first coined. It is also referred to as Online marketing,
Internet marketing or Web marketing. During the decade of 2000 and 2010, with the evolution of
new social media tools and mobile tools, the concept of Digital marketing began to expand
unstoppably.
Digital Marketing according to (Chaffey and Mayer 2009)1, is marketing that has a broader scope
because it refers to digital media such as web, email and wireless media, but also includes the
management of digital customer data, and also how the internet can be used in common with
traditional media to acquire and provide services to customers.
The fruits of the shift from offline marketing to digital marketing were especially reaped by the
Beauty and Personal Care (BPC) brands, with their product lines sprawling across skincare and
beauty ( with special emphasis on skincare) . The concept of skincare is not yet well defined. It is
an umbrella term covering cleansing, soothing, restoring, reinforcing, protecting and keeping the
skin in good condition (Christian Surber and Jan Kottner) 2. According to Collins dictionary,
skincare means the care of the condition and appearance of skin.
Initially the BPC industry was dominated by international giants such as L‟Oreal, Maybelline,
Unilever etc. But in the last decade Indian companies were able to successfully identify the gap
between what international brands were offering and what the Indian customers actually
required. The international brands majorly lacked Inclusivity since their products were not made
and customized as per the Indian skin type. This created an opportunity for the Indian skincare
brands especially start-ups to test waters in this unexplored industry and successfully exploit this
supply gap.
The skincare brands also realized the potency of natural, ayurvedic and organic ingredients to
win over the customers‟ trust and loyalty and increase the customer base by connecting with the
sceptics who in the past would always associate beauty and skincare products to exploitative
chemicals. This coupled with advancement in technology like search engine optimisation (SEO),
Search Engine marketing (SEM), responsive app development, interactive website designing, and
strong online logistical supply chain paved the way for many Indian skincare brands to occupy a
significant position in the BPC segment over a short span of time, resulting in start-ups like
Nykaa, Plumgoodness, Pilgrim and Mcaffeine now becoming household names sheerly on the
basis of their digital presence.
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Statista reported that India ranked 4th in revenue generation from the BPC market in 2021 just
behind US, China and Japan.
Data by research and markets shows that the skincare product market in India was worth $6.25
billion in 2022 and is expected to reach $8.84 billion in 2027 at a CAGR of 6.25%. According to The
International Market Analysis Research and Consulting Group (IMARC group), the Indian BPC
market is expected to exhibit a CAGR of 6.5% during 2022-2027.
This paper focuses on exploring the reasons why most of the start-up skincare brands that
became successful in India chose digital marketing over traditional offline marketing unlike their
predecessors and why digital marketing proved to be more efficient alternative for them to
become success stories. We have selected 4 D2C (Direct to Consumer) Indian skincare brands and
analysed their marketing strategies and growth to understand the reasons for their preference to
digital marketing over traditional offline marketing.
Anoopama Ray and S Boopathy (2019) 3 aimed at understanding the efficiency of Instagram
marketing in influencing purchase decisions for personal care products. It was recommended that
customised ads according to the target market should be designed to convert website traffic into
actual customers. The paper also included recommendation to authenticate the accounts of non-
established emerging sellers of personal skincare products as this will remove scepticism and
hesitation from the minds of the consumers and will assure them that their data is absolutely safe.
P. Sathya (2015)4 has analysed and recognised the usefulness of digital marketing in competitive
markets and used the sample size of 100 respondents as the primary data and some secondary
data to make conclusions about the frequency of online purchasing, awareness about digital
marketing, safety, concerns about digital marketing, general demographics, and customer
satisfaction.
Neeta Bhatia (2015)5 The researcher used secondary data and selected samples from Lucknow
region representing the different genders, different age groups, education, level, marital status,
and monthly incomes and concluded that the consumers are aware and conscious about the
difference of natural and synthetic ingredients present in skincare products. The majority of
respondents reflected that side-effects from the ingredients used in skincare products is the first
concern while making purchase decisions for skincare products and finally, recommendations
were made for scientifically authenticated and clinically tested products for wider market
penetration in future.
Having visited the websites of various brands and after analysing their marketing strategies
coupled with drawing inferences from what the owners of these brands have shared about their
strategies and scope, the findings and conclusion about the reasons why digital marketing play
such a significant role in the success of skin care brands were drawn.
The reports published by the skincare brands and data like pages per visit, bounce rate, average
visit, duration, total visitors, total app downloads have been analysed. The efficiency and
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interactiveness of websites of various skincare brands and the growth patterns of the skincare
brands have been analysed and inferences are drawn through content analysis.
Downe-Wamboldt B. (1992)6 has explained content analysis as a research method that provides a
systematic and objective means to make valid inferences from verbal, visual or written data in
order to describe and quantify specific phenomena.
Qualitative content analysis is a valuable alternative to more traditional quantitative analysis
when the researcher is working in an interpretative paradigm.
In this paper, qualitative data derived from interviews, reports, brand applications, websites is
analysed and inferences are drawn to understand the role played by digital marketing in the
rapid growth of skincare brands in India and why it is preferred over traditional off-line
marketing methods by the brands.
4. BRANDS UNDER STUDY

Major growing Indian Skincare Brands using Digital Marketing over traditional offline marketing:
(a) Nykaa
Nykaa, founded by Falguni Nayar in 2012, is the fastest growing beauty and wellness e-
commerce platform in India. Within a decade this e-commerce platform has evolved into one of
India's largest Cosmetics and Lifestyle brands. Its product portfolio has a wide category including
makeup, skincare, haircare, bath and body, fragrance, grooming appliances, personal care and
health and wellbeing. Started as an online-only retailer of cosmetics and beauty products, the
company expanded itself to an omni channel model and began selling fashion products.
According to the data available on similarweb.com the targeted population of Nykaa is mainly
Millennials (18-24 years) comprising 37.08% males and 62.92% females as on Jan 2023 and India
was the top country sending desktop traffic to Nykaa.
Nykaa is reaching out to its customers leveraging with a strong digital content and influencer
marketing. Under its digital capital it has 4 apps, 8 websites, 13mn social media followers and has
spent ₹4781mn on digital marketing and advertising. According to the Integrated Report by
Nykaa, it has 5403 influencers connected with it and has spent 140mn rupees on influencers and
bloggers for FY 2022. It has 1.2mn subscribers on its exclusive Youtube beauty channel "Nykaa
TV" which creates educational content with immersive storytelling across beauty and personal
care to engage beauty enthusiasts. Nykaa has a "Nykaa Network" with 4.4mn members which is a
kind of interactive beauty forum to reach to members where they are allowed to chat, participate,
ask and answer beauty related questions, give and seek advice, discover trends and join beauty-
centric conversations. It also provides a "Watch and Buy" feature where consumers watch content
generated by influencers on various social media channels and shop for featured products
simultaneously and has recorded 23.5mn post views in FY 2022. It even has a repository of beauty
and fashion blogs with numerous articles and blogs published.
With this strong digital presence, Nykaa has been able to become India's first unicorn start-up
(with value over US $1Billion) headed by a women and has featured in the prestigious annual
TIME 100 most influential companies list 2022. Nykaa now is linked with 2400+ beauty and
fashion brands and offers 100000+ products on its website, app and stores.
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(b) Plum Goodness
Founded in 2013 by Shankar Prasad, Plum is India's first online only 100% vegan beauty brand.
Its product portfolio includes 100% vegan (free from phthalates and parabens) skin, hair and
makeup products.
According to similarweb.com Plum is part of Pureplay Skin Sciences (India) Ltd. which houses
Plum body lovin' and PHY (grooming range for men). Since Plum is a D2C (Direct to consumer)
skincare brand, digital marketing becomes crucial to reach out to its customers whom it calls THE
PLUMSTERS. The customers are largely the Millennials aged between 18-24 years. The user
demographic comprises 38.50% males and 61.50% female as on January 2023.
In its digital marketing strategy, Plum mainly emphasizes on Social media marketing, Search
Engine Optimisation (SEO) strategies, influencer marketing, digital advertisements, marketing
campaigns, content creation and personalised SMS and Email alerts to notify the Plumsters about
new schemes and campaigns.
Plum has an active Digital Footprint with 684K followers on Instagram, 240K followers on
Facebook and over 30K followers on Youtube, Instagram being the front runner. For this Plum
uses Influencer marketing as an important digital marketing strategy. It connects with most
influential personalities on social media handles and these influencers with their blog posts, vlogs
and other content influences the Plumsters. Plum also launched an influencer affiliated
programme "Plum List" to connect with 1000+ influencers to create digital content along with
positive word of mouth marketing. „Influencer marketing can play a significant role in creating
brand awareness, reaching out to potential customers and engaging with existing ones.‟ 7
In an interview with Business Insider, Shankar Prasad, the founder of Plum, stated about the
marketing strategy as 'Initially, like all brands, we also started with performance marketing. We
only bothered about how much we were selling through the ads that we were running and the
communication was completely product-focused. Then, as we evolved, we looked at influencer
marketing, launch marketing, launch events, social media marketing, creating a buzz around the
brand fresh new ideas and content marketing'.
(c) Mcaffeine
PEP Technologies Pvt Ltd. doing business as Mcaffeine, is India's 1st caffeinated personal care
brand with an exciting range of caffeinated products for young and aspiring Millennials. It was
founded in 2016 by Tarun Sharma and Vikas Lachhwani as an internet only D2C personal care
brand. Recently Mcaffeine came up with a range of new green tea and coffee based products for
the promotion of which it brought on board a wide range of content creators with a follower base
ranging from 2L to 20L.
As part of this, it sent gift kits to the creators and some were seen posting posts, videos, blogs
using the product. This influencer strategy has made the brand able to connect to millions of its
customers. Along with the aggressive use of influencer marketing as its digital marketing
strategy, the brand also uses other social media platforms like Facebook and Instagram, content
creation, digital campaigns and personalized SMS and Email alerts to notify customers about its
sales, schemes and new product launches.
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When asked in an interview to Economic Times if Mcaffeine plans to focus on the offline market
going forward, the founder said that 'Given the nature of the brand D2C, that is, its website and
application is at the highest focus for the company. The retailer presently records over 5 million
monthly impressions on its website'. According to him, the company records 75% of its revenue
from its digital channels while only 25% from its year old-offline channel (which it went in Sept
2021). With effective application of its digital marketing strategies, Mcaffeine has been able to sell
more than 10 million products in just 5 years of its launch. Now Mcaffeine has a strong digital
presence where it reaches out to its customers through its own online platforms and through
other retailers like Nykaa, Amazon and Flipkart. It is also one of the largest selling brands on
Nykaa.
(d) Pilgrim
Pilgrim is an Indian internet only D2C skincare brand started by two IIT and IIM alumni Anurag
Kedia and Gagandeep Makkar. Its USP is to provide 100% vegan and cruelty free products, free
of 20 toxic ingredients (such as parabens, sulphates, toluene etc), dermatologically tested, FDA
approved and plastic positive.
Pilgrim launched its products in May 2020, during the surge of Covid pandemic and lockdown
restrictions when the supply chain was entirely disrupted. At that point of time, pilgrim chose the
digital channel for marketing as D2C offers multiple benefits over the traditional offline
marketing. In an interview to Indianretailers.com, Anurag Kedia, the founder, highlighted the
benefits of D2C mode of retail saying "D2C gives you the freedom to reach pan India while sitting
at one place. It also helps to get feedback quickly from consumers". He further added "It is not
like that we will not go omnichannel. At some point in the journey, we would like to go
omnichannel but D2C allows so much closer consumer connection and that is the primary reason
behind opting for D2C marketing"
Besides having convenience and direct link with its millennial consumer base, the brand has been
able to gather insights and reviews about its products thereby helping it in its performance
analysis. With use of digital marketing strategies such as influencer marketing, social media
marketing, online content creation, personalized SMS and Email notifications Pilgrim has been
able to create a good digital space with its loyal customer base.
Traffic & Engagement across Different Brands
(as on January 2023)
Brand Bounce Rate Page per visit Average Visit Duration Total Visits
Nykaa 55.43% 4.84 00:02:58 122.7 Million
Plum 62.56% 4.63 00:02:52 777.3K
Mcaffeine 60.56% 4.03 00:02:22 1.1Million
Pilgrim 49.52% 3.24 00:03:02 1.4M
Source: similarweb.com
Bounce Rate: Average percentage of visitors who view only one page before leaving the website
Page per Visit: No. of page(s) visited by the visitor in one go
Average Visit Duration: Average duration of time spent on the site
Total Visits: Sum of all visits on desktop and mobile from the last month
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5. REASONS BEHIND SKINCARE BRANDS CHOOSING DIGITAL MARKETING
Accessibility: By using digital marketing and social media‟s influence, the brands can reach
wider audience at lower cost. Most of the skin care brands that are now dominating the industry
are fairly new in their inception and their phenomenal growth and wide reach is attributed to the
fierce, calculative and diligent use of social media by these brands.
Cost Efficiency: The start-ups began their venture with a modest capital and it was pertinent for
their success to manage their marketing campaigns in a budget. Online marketing helps in cutting
advertising cost as ad spend in online marketing tends to be lower than other forms of marketing.
So digital marketing allowed the brands like Plum, Mamaearth, Mcaffeine etc. to create strong
brand image through social media influencers in lower budget instead of spending their entire
advertising budget on a single expensive already established film star or highly paid cricketer
who were getting hired as brand ambassadors by giant multinational corporations in hefty
budgets.
Customer Engagement and Prompt Targeting: Customers are already bored of conventional
marketing techniques and hence their retention rate is really low. In case of online marketing, the
use of interactive multimedia that combines photos, videos, clips is more efficient as it engages
the customers much more.
Targeted digital advertising is the process of creating and placing ads in specific areas on the
internet to increase the number of target audiences reached and to improve the engagement with
these audiences. Through the use of search engine optimisation, hashtags, artificial intelligence
powered platforms like ad engines, third-party management tools, and copywriting software the
brands are able to reach their target audience instead of scattering their efforts in the wrong
directions.
Performance Analysis: The companies can easily and efficiently analyse the performance of their
marketing campaigns through pages per visit, bounce rate, average visit duration, total visits, cost
per click, etc. Such analytics are extremely important and helpful for the brands to carry on with
the strategies that are proving to be successful and to make suitable modifications to the strategies
that are not so successful and have not been well received.
Quick Reviews and Publicity: Most of the D2C skincare brands, display customer feedback and
reviews on their home pages. These reviews serve two purposes. Firstly, they help the brands to
know the feedback of the customers very quickly and appropriate changes are made to the
products and strategies according to the feedback to improve customer satisfaction. Secondly,
positive feedback on the website encourages more and more people to buy the products as no
other publicity is as propelling as positive word of mouth.
Virtual Real-Time Experience to Customers: Virtual reality creates a stimulated space that allows
clients to interact with products before making a purchase decision. In beauty industry, a perfect
example of this is - Certain websites provide an option to the customers to upload their photo and
different swatches of lipstick shades offered by the brand will then be applied to the photo to give
a better idea to the customer as to which shade would suit them the best and then they can make
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their purchase decisions accordingly. Using virtual reality experience, brands are now able to
provide tailored/customised products using try-ons and skin diagnostics, providing at home
experience to customers encouraging them to make more frequent purchases.
Influencer Marketing: The rise of social media, such as YouTube and Instagram has opened a
new channel for brands to connect with customers, more directly and organically. Instead of
spending a large chunk of advertising budget on one highly established and highly paid celebrity
sponsored by multinational giants with big and hefty budgets to appoint him/her as the brand
ambassador, most of the start-up skincare brands in India opted for influencer marketing so that
influencers who have large social media reach on platforms like YouTube, Instagram, Twitter
directly and organically market their brands through content creation in the form of vlogs, blogs
and posts and create a strong brand impression in the minds of their loyal customer base.
Consumer Awareness and Inclination towards Self Care: Over the past few years there has been
a significant increase in the way people prioritise self care especially women. As female
participation in workforce increased and they started possessing more disposable income, their
expenditure on beauty and personal care increased. These women are now becoming the target
markets of most skin care brands. The demographic dominating the skincare market is
constituted by young women. The shift from make up to skincare is also a recent trend and the
one to stay.
Product Innovations and Customer Perception: Companies like Mamaearth, Plum, Moms Co
laid a special emphasis on cruelty free, vegan products and designed online marketing
campaigns, highlighting these features about their products. This helps the brands to reach out to
socially conscientious customers.
The skin care brands have innovated their products by infusing them with naturally derived and
organic ingredients. Through their webpage designing and digital marketing these brands
highlighted such innovations and reached out to those customers who were averse to make-up
and skincare products thinking that such products are chemically overloaded and hence are
harmful for the skin. This helped brands to widen their customer base by removing the scepticism
from the consumers‟ minds.
Technological Advancement: With continuous evolution of Information and Computer
Technology (ICT), the number of internet users in India is on a rise. Cisco‟s annual report suggests
that India will have over 907 million internet users by the end of 2023. With this number, India‟s
64% population will come online, largely the millennial population. This will provide an
opportunity to the Direct to consumer (D2C) companies to penetrate the growing digital space
even more.
6. CONCLUSION
Having analysed the 4 dominant skincare brands in India (which are notably and fairly new in
their inception), their various digital marketing campaigns, analytics, reach and technology used
by them, we have reached to the following findings which suggests why starting with digital
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marketing has been extremely helpful in the success of these brands and the skincare industry as
a whole in India.
■ Cost efficiency, customer engagement, performance analysis, quick reviews and publicity,
virtual real time experience to customers, influencer marketing, consumer awareness and
inclination towards skincare, product innovation, shift in customer perception, advancement
of technology and technologically advanced customers have been the major reasons behind
Indian skincare brands preference to digital marketing over traditional offline marketing
■ The content analysis of the websites of aforementioned brands and their marketing strategies
also gives an insight about the future trends and scope of skincare industry in India. The
skincare brands which attained their present position and dominance through digital
marketing are now shifting to offline stores and traditional marketing techniques like TVCs
and print media as well to reach an even wider customer base of those people who are not so
technologically inclined.
■ The demand for premium products is growing in India and Indian consumers are expanding
from functional products to advanced and specialized products. Ethically sourced, packaged
and manufactured goods will have a separate niche base of loyal customers who are socially
and environmentally conscientious and prefer naturally derived ingredients in their skincare
and beauty range. The focus of skincare brands will also expand from females to males and
special emphasis will be placed on inclusivity. Plum's parent company Pureplay Skin Sciences
(India) Ltd is one such company that already has a dedicated personal care brand for men
called PHY. A growth in unisex products is also expected. Harnessing the benefits of digital
marketing, a deeper penetration in tier 2 and tier 3 cities seems to be on the cards. Hybrid
cosmetics with skin benefits is also a trend that is expected to prosper in future.
REFERENCES
[1] Chaffey D, Ellis- Chadwick F, Mayer R. & Johnston K. (2009) „Internet Marketing: Strategy,
Implementation & Practice‟.
[2] Christian Surber and Jan Kottner (2017) „Skincare products: what do they promise, what do
they deliver‟. 26(1), pp. 29-36.
[3] Anoopama Ray, S Boopathy (2019) „A study on impact of Instagram marketing on personal
care products in India‟. IJRAR March 2019, 6(1).
[4] P. Sathiya (2015) „A study on digital marketing and its impact‟. International Journal of
Science and Research. ISSN (Online): 2319-7064
[5] Neeta Bhatia (2015) „Consumer buying towards cosmetics in the present era: A case study
of FMCG products‟. 1(17).
[6] Downe-Wamboldt B. (1992) Content Analysis: method, applications and issues. Healthcare
for women International, pp. 313-321.
[7] Gupta, Princi & Singhal, Nidhi (2016), “Digital Marketing Synergy for Management
Integrated Functions and Operations”, International Journal of Trade and Commerce-
IIARTC, 5(1), pp. 136-144.
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[8] Ramola, K.S. et al. (2016), “Role of Online Customers towards Online Shopping Companies
In Today’s Digital Era: A Case Study”, International Journal of Trade and Commerce-
IIARTC, 5(2), pp. 294-300.
[9] Saxena, Kavita & Mittal, Surbhi (2019), “An Analytical Study of Digital Advertising
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Commerce-IIARTC, 8(1), pp. 98-111.
[10] https://plumgoodness.com/pages/reviews-influencer-policy
[11] https://www.similarweb.com
[12] Nykaa Integrated Report retrieved from https://www.nykaa.com/annual-report
[13] https://www.teampureplay.com/
[14] https://www.mcaffeine.com
[15] https://www.discoverpilgrim.com
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Freedom of Trade in India: A Constitutional Perspective

Shivani Tripathi*
Faculty of Law, Banaras Hindu University, Prayagraj, U.P., India
E-mail: shivani.7tripathi@gmail.com
Abstract
Trade is the most important aspect of a country’s economic growth. To
ensure growth and prosperity in the country the Constitution of India PAPER/ARTICLE INFO
has enshrined right to freedom to carry on trade by an individual. Article RECEIVED ON: 18/11/2022
19(1)(g) and Articles 301-305 provides for such freedom to carry on ACCEPTED ON: 24/12/2022
business, trade, profession and occupation; and freedom of commerce and Reference to this paper
trade in any state and in India. These rights are not unrestricted and should be made as follows:
unguarded. These provisions also prescribes some restriction to prevent
any misuse and mis-happening in the society. These are the ways it Tripathi, Shivani (2022),
secure economic justice enshrined in the preamble to the constitution. In “Freedom of Trade in India:
this article the researcher aims to analyse these provisions and find out if A Constitutional
there is an inter-relationship and harmony between these provisions. Perspective”, International
Key Words: Economic Growth, Freedom of Trade, Constitution, Journal of Trade and
Articles.
No. 2, pp: 477-484.
DOI: 10.46333/ijtc/11/2/13
Shivani Tripathi
HISTORICAL BACKGROUND
Laws related to trade and commerce has always been a part of Indian history. From barter system
to well defined laws, the freedom of trade has come a long way. The earliest laws on trade and
commerce can be found in the writings of Arthashastra. The object of making these laws was to
provide opportunities to the people to earn their livelihood and for the nation to prosper and
grow. We have found evidence of trade and commerce in Indus valley civilization trade
flourished with countries like Persia, China & Mesopotamia for gold, silver, and gems. With the
entry of British East India Company the policies for the right to carry our trade and occupation
changed completely. With the aim of establishing monopoly over the Indian market the company
imposed restrictions on the Indian producers and traders which would directly benefit market of
Britain.
An important event in India was performed in 1858, that was the transfer of power from East
India Company to British Crown, we can say it was to begin to grow light after the black night for
freedom of trade and business in India. After a long time, for trade and business, the selected
rights were conferred as The Government of India Act, 1935 but it was also in shadow of British
interest in India. Again a discussion was made by the Constituent Assembly under Article 13 (1)
(g) and 6 of the Draft Constitution for the fundamental freedom of trade and commerce. After a
big and bulk dialogue with related argument with existence of current and future need in respect
of development and consequently growth of trade and business and in its continuation the
Article 19 (1) (g) and the clause 2 of Article 19 (1) (g) was drafted.1
The fundamental rights in Indian Constitution are a magna carta of the rights given to the people
of the country. Article 19 protects certain basic freedoms of the citizens. Out of the six
fundamental freedoms, Article 19(1)(g) of the Constitution of India guarantees that all citizen
have the right to practice any profession or carry out any occupation or trade or business. This
freedom is available to all the citizens residing within the jurisdiction of the country, thus it is not
available to the non-citizens. Article 19(1)(g) confers a right to do any kind of business and
practice nay profession. But it does not confer a right to do anything illegal, immoral, and
dangerous in practice.
OBJECTIVE OF ARTICLE 19(1)(g)

This freedom is in line with the principle of economic justice enshrined in the preamble of the
constitution. The state shall endeavor to ensure that equal opportunities are given to everyone in
economic matters. Its major object is to strengthening of the socio-economic conditions of the
country. The reason to keep this freedom under the head of fundamental rights is to ensure that
this right is available to the people without any discrimination. This right was provided as
obligation of by the state.
ANALYSIS OF ARTICLE 19(1)(g)
The main provision of Article 19(1)(g) is facilitating as equipment for confirming the rights of all
citizen easily. In context of right of trade and business, the Article 19(1)(g) making a confirm
assurance to all citizen to raising and leading the related work. The main purpose of this article is
make a umbrella as easily economical growth as well as ease of business format. In this article, the
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constitution maker use many time the terms like Trade , Business ,Occupation and Profession in
overlapping manner, the objective was a effort and making discipline that anyone do not make a
loop hole to leave, suppress or omit any kind of economic activity for purpose.2
The expressions trade, business, occupation, and profession were explained by Kuldeep Sing, J.
in the case of Sodan Singh v. New Delhi Municipal Committee3 and we can express it in general
language for communicating and interface easily; what say the term-
Profession: The word “Profession” will describe as in the context of a any person with regard his
skill and qualification in dedicated branch.
Business: In the objective of profit a work lies the labor, attention and cover including
investments, profession, trade, sailing of items and operational activity regard all the major term
“Business”.
Trade: The term „Trade‟ is used for benefits by manual or mercantile i.e. purchase, sale and
providing services which can described in broad theme combine any negotiation or sale, any
occupation or business.
Occupation: The word „occupation‟ express a broad sense and meaning like any permanent job,
profession, work, mainly activity, employment, business as well any one is ready to provide
his/her services on call or directly.4
JUDGMENTS ON ARTICLE 19(1)(g)

Various judgments have been made on the freedom of trade where courts have laid down
different principles involving this freedom and brought out new aspects in this.
In Hathising Mfg. Co. v. Union of India5 the Supreme Court held that closing of business should
be restricted in the case that even closing of business is not completely right and trader wishes to
close by his will. Because of fact that State cannot force to continue his business and owner do not
want to carry on by his will.
In Excel Wear v. Union of India6 the Supreme Court declared certain provisions of the Industrial
Disputes Act, 1947 to be unconstitutional for being in violation of Article 19 (1)(g).
In Sukumar Mukharjee v. State of W.B.7 The court held that in the interest of common public, the
restriction of private practice of Doctors, Teachers of W.B. is genuine. The restriction imply by the
West Bengal Govt. under Article 19(1)(g) i.e. right to carry on any occupation, trade or business
service rules of the state was challenged on which found that it imposes unreasonable restriction.
Khoday Distilleries Ltd. V. State of Karnataka8 In this case the matter was decided that a citizen
of India have Fundamental right to business or trade of liquor or not by the Hon. Supreme Court
of India. In the light of Article 19, the State is empowered to make mandatory and logical
restriction in public favor because of the fact that a citizen has no fundamental right to carry on
trade or business in activities which are not a moral and not a legal and not a healthy for wealth
and health of public. The state has right to prohibit, the manufacture, sale, possession,
distribution of liquor. Also Article 47 of the Constitution prohibits the same expressly.
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Shivani Tripathi
In Uni Krishnan v. State of A.P.9 it was under Article 19(1)(g) as described that in a healthy
society the educational institution establishment is not a part of the freedom because education is
not a commercial activity and thus cannot be equated or measure with trade or business.
RESTRICTION ON THE FREEDOM

The assured rights under Article 19 are not unlimited and unfettered. To prevent and control any
kind of misuse of the rights the constitution makers have also added restriction on the practice of
these rights. The article mentions some of the grounds of restrictions. The state is fully free and
authorized to imply the valuable prohibition to carry the business, profession or trade under
Article 19(6). The following reasons for restrictions are applicable-
i. Reasonable, and
ii. In the interest of general public.
Because the restriction imposed by law in the interest of the general public under Article 19(6) as
subject to exercise of this right to carry out trade.
The public order, public security, morals, humanity, public health and economic welfare of the
community is the subject to a slogan „in the interest of general public‟, in Article 19(6) is followed
by wide import understanding. The legislature face the test of genuineness has to be observed in
the reference of the matters and judge the validation by which the anapproach the problems from
the point of view of furthering the social interest by the court and purpose of the legislation itself.
Now, the expression „interest of general public‟ is of subjective interpretation. What is in interest
of general public in a particular trade of business will be different in every trade and business.
While imposing the restriction under Article 19(6), the legislature must consider the nature of the
trade and business in determining the scope of the restrictions.
This fundamental right to carry on trade and business is not extended to carry on trade in
obnoxious and dangerous goods like trade of drugs and liquors, trafficking of women, trade in
adulterated food. Certain occupations are such that which may cause harms and discomfort to the
general public. They cannot be banned but requires to be regulated because they are against the
interest of people.
The state can make any law which prescribes technical or professional qualifications necessary to
practice any job or carry on any occupation, trade or business. For example, it can be prescribed
that one who wants to become a lawyer and practice in a court of law should have clear the LL.B.
examination from any recognized University. The Advocates Act, The Legal Practitioners Act etc.
are some of the examples of such laws.
ARTICLE 19(6)(ii)
As we know that the First Constitutional Amendment, 1951 incorporate the Article 19(6)(ii) and It
consist to providing the authority for the State by which making any law related to partial or
complete exclusion of citizen of India or differently from any financial action which the State
required. This consist a restriction in said provision. The State is as parent of citizen and it is
applicable ban by commanding with Article 19(6)(ii) of State and it is the said idea and plan of
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Shivani Tripathi
State as so why the State will always agree with promising any action pro bono.10 In a very
important case of Akdasi Padhan v. State of Orissa,11 the Supreme Court of India describe the
nature of state monopoly; and checking the validity; and remarkable points to considering it as
follow-
i. The creation of monopoly have direct relation to State monopoly in Law formulation.
ii. The creation of monopoly should have any incidental, subsidiary, or helpful to the
operation of monopoly because after this there is no other systems in law formulation.12
The part XIII of the Constitution of India provide us facility to understand the freedom of trade
and commerce in India; So, we need to understand the components and implication of freedom in
reference to trade, commerce and intercourse.
FREEDOM OF TRADE, COMMERCE AND INTERCOURSE
The Articles 301 to 307 under part xiii of constitution of India provide us the freedom of trade,
commerce, and intercourse in which Article 302 to 305 express the restrictions while Article 301
cover the general principles of trade and commerce which trade is referenced.
This provision for this right was made to ensure the fare free logistics and exchange of goods all
over the country to create financial integration of the Nation. The aim was to break barriers
between all the state boundaries which would promote free flow of trade and commerce. It will
help people to maximize their opportunities to earn their livelihood by providing them with new
markets and they can trade in any part of the country.
The provision is made for trade, commerce and intercourse throughout the territory of India that
it shall be free; and such provisions are facilitate by Article 301 of the Constitution of India and
was sourced from Section 92 of the Australian Constitution which says that, “trade, commerce
and intercourse among the states whether by means of internal carriage or ocean navigation, shall
be absolutely free.”
The meaning of freedom described as right to freedom of –
- Movement of persons,
- Movement of property,
- Movement of things
and it may be clearly seen for existence or difficult to measure, no obstacle by any hurdle within
the intra or inter-state demography. The Article 301 mention the freedom from all bans excluding
other applicability of Part XIII (Articles 302-305). Hence the restrains should not be indirect and
occasional; it should be imply directly same time strictly.
TERMS USED IN ARTICLE 301
Trade: In the Article 301, the main motive for word “trade” is used frequently as “business” and
visa-versa. So, the word “trade” mean an activity belongs to get a goal along with real and
organized frame by which achieved the certain objective and aim.
Commerce: Commerce means Logistics by airways, waterway and roadways.
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Shivani Tripathi
Intercourse: The movement of items, luggage or goods from one place to another is called
intercourse and It combine commercial and non-commercial both for intercourse. So, in short; we
can define that intercourse is “movements and dealings” of goods. In term of intercourse it
includes the travelling and all formats to perform the relations and management as dealing with
others. Hence the Commerce and nature of commerce include and organized with words
“Trade”, “Commerce” and “Intercourse”.
JUDGMENTS ON ARTICLE 301

Atiabari Tea Co. v. State of Assam12
There was a business by which petitioner transported the tea to metro city Calcutta of West
Bengal by the way of Assam. In Assam state a tax was implied for transportation of goods by
roadways as well as waterways, called Assam Taxation Act. A tax under the above said Act was
applicable on the time of supply and shipment of tea by the petitioner via Assam to Calcutta and
so why the applicability of the act lies again discussing with remarkable questions on following
basis:
a. The provision and rights of Article 13 is being violated or not?
b. As described matter can be secured and protected by Article 304 (b) or not?
In such case, If an obstruction is made without following the references and criteria of Article 302
to Article 304 of the constitution of India, because the following observations and conditions were
not fulfilled so the Court finally held that freedom assured under Article 301 would be imaginary.
1. It was described by the Supreme Court without fulfilling of all the conditions of the
Article 304 (b), cannot imply the taxes and sanctioning of President will compulsory
required before any law of state enacts.
2. As the Act was challenged, the restriction of free movement of goods directly as well as
indirectly, the Supreme Court of India held that so why it comes under Article 301.
Automobile Transport Ltd. v. State of Rajasthan13
To get the freedom in trade in the reference of transportation the petitioner raises validity of
Rajasthan Motor Vehicles Act, 1951 in the context of Article 301 of the Indian Constitution and
challenged it. In fact, this act imposed the annual tax on motor vehicles in two categories as; an
amount of Rs 60 for a motor vehicle and an amount of Rs 2000 for a goods vehicle.
As above context, it was necessary to check the validity of act in the reference of constitutional
and in this case the Supreme Court of India held that:
1. Because of fact that for the smooth running of trade, commerce as well as intercourse the
tax imposed is valid that‟s why this tax is just like only a compensatory or regulatory
measure.
2. It is cleared that financial health of the state was securing by this type of compensatory
and regulatory tax and ensuring the main objectives of state for regulatory purpose
or/and public interest “Sarva Jan Hitaya”. So, is not a violation of Article 301 and such
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Shivani Tripathi
opinion and arguments do not require to check the effects and act of process under
Article 304(b).14
RESTRICTIONS ON TRADE AND COMMERCE

Article 301 is subject to the following restrictions imposed under Articles 302- 305.
1. In the public interest, how to regulate in the all territory of India or inter-state trade and
commerce with Parliament‟s power. (Article. 302).
2. There is not any provision and clause for giving any benefit as regulating the inter-state
level trade and commerce by the Parliament of India.(Article. 302).
3. A different circumstances occurs by the parliament of India, in the case of scarcity of
goods in all area of India by which it will define and action performed as discriminate
among all states if feels necessary with situations. (Article 303).
4. There is no any discrimination occurs, In a case, if any tax imposed by the state for similar
goods and similar tax which are imported from one state to another states.(Article 304).
5. Saving of the existing law and laws providing for state monopolies. (Article 305)
WHY BOTH ARTICLES 19(1)(g) AND ARTICLE 301 ARE ASSOCIATED WITH EACH OTHER?
1. By Article 19(1)(g),We got a guarantee of freedom to perform any type of business, trade
and profession while Article 301 provides us to do any practice trade in all over India.
2. As we know that we have a Fundamental Right and it can claim by only citizen under
Article 19(1)(g) and Article 301 is constitutional and provide us facility to be claimed by
both citizen and non-citizen also. Hence, its make a provision to move the court, if the
rights are being violated in the reference of restriction or limitations of Article 19 is
encroached with under Article 301.
3. To limit the freedom for movement of trade or occupation controlled by Article 19(1)(g)
whereas it is being limited to the free flow of trade in all over the country by Article 301
which is accompanied by Article 302-307.
4. Basically the Article 301 has a limited scope in reference goods and services for trade and
business, so it is assumed as an descriptive arrangement and provision to Article 19(1)(g)
and having very limited criteria in respect of Article 19(1)(g).
5. We can say that, In trade or business, the Article 19(10(g) provide a right for individuals
while Article 301 provide for whole. So, both Article‟s provisions can be assumed as
rights of “One” and “All” respectively.
6. So, both above said Articles are associated with each other in the reference of few
conditions of trade or business as well as goods and services. In accordance, the rights of
Article 19(1)(g) will be withheld in critical position and unavoidable circumstances. It is
the time for court to consider all the facts and check the infringements (Yes/No) as
facility provided under Article 301. 15
CONCLUSION
The Constitution of India while understanding the importance of trade for the country and its
people gives space to provisions related to trade and guarantees the freedom in Article 19(1)(g)
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Shivani Tripathi
and Article 301. The Constitution firstly declares that there is freedom of trade in Article 19(1)(g)
and Article 301 but later also provides for some restrictions to prevent the misuse of the freedom
in Article 19(6) and Article 302-305 respectively. So we see a holistic mention of the provisions.
There are rights as well as corresponding liabilities. Through these provisions all the people will
have right to carry on trade and earn their livelihood and the free flow of trade and commerce is
ensured but if there is any act done with malafide intentions to cause harm which is against the
interest of people and society then restrictions will be imposed.
REFERENCES
[1] “freedom-of-trade-business-and-profession-in-depth-analysis”lexinsight.wordpress.com,
(visited on 13/10/2022)
[2] DivyamJhaveri “Freedom to Practice Any Profession or Carry on any Occupation, Trade or
Business - an in depth Analysis”
[3] AIR 1989 SCC 155
[4] V.N Shukla, Constitution of India 172-173 (Eastern Book Company 12th Ed. 2013)
[5] AIR 1960 SC 923
[6] AIR 1979 SC 25
[7] (1993) 3 SCC 724
[8] (1995) 1 SCC 574
[9] (1993) 1 SCC 645
[10] “freedom-of-trade-business-and-profession-in-depth-analysis)”, lexinsight.wordpress.com
(visited on 29/10/2022)
[11] AIR 1963 SC 1047
[12] AIR 1951 SC 232
[13] AIR 1962 SC 140
[14] “Relation between Part III and Part XIII”, www.legalserviceindia.com, (visited on
20/10/2022)
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The Role of Corporate Social Responsibility as a Marketing

Strategy
S.K.S. Yadava*, Vaishali Siddhub
aNationalP.G. College, Bhongaon, District Mainpuri, U.P., India
bDepartment of Commerce & Business Administration, Meerut College, Meerut, U.P. ,India
E-mail: sudhiryadavmeerut@gmail.com a, vaishalisiddhu6@gmail.comb
Abstract
Over the years, social responsibility has shown itself to be a valuable link
in the company's business strategy. As a result, the world's leading PAPER/ARTICLE INFO
companies spend millions every year on CSR and other philanthropic RECEIVED ON: 23/11/2022
activities. A socially responsible company shows that it cares about the ACCEPTED ON: 21/12/2022
community and prioritizes the well-being of the community. Businesses Reference to this paper
play an important role in society, regardless of whether they generate should be made as follows:
income. Corporate social responsibility is the concept that we should care
about everything we do and not just profit. With concerns about the Yadav, S.K.S. & Siddhu,
environment and society as a whole, the government obliges companies to Vaishali (2022), “The Role
spend a portion of their profits for social purposes. While some companies of Corporate Social
see it as external pressure, others use it as a strategy to create a positive Responsibility as a
brand image. Good job marketing is very important from a company's Marketing Strategy”,
point of view because it attracts people's attention. Today's consumers
are increasingly concerned about social, environmental and global issues,
11, No. 2, pp: 485-492.
and their purchasing decisions are inevitably influenced by such issues.
Therefore, there is a great desire to buy from companies that care about
society and their actions show their seriousness for various problems that
require attention.
Key Words: Corporate Social Responsibility, Marketing, Consumer
Attention, Environment, Society.
DOI: 10.46333/ijtc/11/2/14
The Role of Corporate Social Responsibility as a Marketing Strategy
S.K.S. Yadav, Vaishali Siddhu
1. INTRODUCTION
Business is much more than just selling goods and earning profit. Corporate Social Responsibility
is among those activities which a business does apart from earning profit. The term “social
responsibility” is not new in corporate world. Social responsibility refers to individuals and
companies must act in a manner that benefits their environment and society at large. When social
responsibility is applied in business, it is known as Corporate Social Responsibility. This has
become a more vital area of focus within business spectrum because of changing social norm.
Socially responsible organizations implement strategy that promotes the welfare of society and
the environment at the same time which reduces the negative impact on them. Social
responsibility has become slowly but surely more significant to investors and consumers who
look for investments that are not just money-making but also add to the betterment of the
environment and society. The European Union defined CSR as “The voluntary integration of
companies‟ social and ecological concerns into their business activities and their relationships
with their stakeholders. Being socially responsible means not only fully satisfying the applicable
legal obligations but also going beyond and investing „more‟ in human capital, the environment,
and stakeholder relations.”
According to International Organization for Standardization (ISO) 26000 “The responsibility of
an organization for the impacts of its decisions and activities on society and the environment,
resulting in ethical behavior and transparency which contributes to sustainable development,
including the health and well-being of society; takes into account the expectations of
stakeholders; complies with current laws and is consistent with international standards of
behavior; and is integrated throughout the organization and implemented in its relations.”
Before the passage of the Companies Act in 2013, corporate social responsibility in India was
traditionally considered philanthropy. Also, according to Indian social practices, it is considered a
moral responsibility for every company to play an active role in fulfilling its social obligations
depending on the company's financial position. In the early 1990s, Mahatma Gandhi developed
the idea of trust to help with social and economic development. CSR is influenced by social
values, traditions, culture, beliefs and needs. The new Companies Act in India was the first piece
of legislation in the world to mandate the obligatory adoption of corporate social responsibility
(CSR) activities as well as the reporting of CSR initiatives. A brand new era has just begun for
corporate social responsibility in India. The Companies Act, 2013, Ministry of Corporate Affairs:
Companies Act, 2013, Government of India has taken one of the biggest socio-economic steps to
make CSR mandatory. project for welfare measures. So far, India is the only country that
regulates and mandates CSR for companies registered under the Act. These CSR initiatives will
go a long way towards the Sustainable Development Goals and public-private partnerships in
renewing India.
2. CSR AS MARKETING STRATEGY
Corporate social responsibility (CSR) is receiving greater than ever attention, particularly in
recent decades. CSR is a self-regulatory business concept that helps companies improve their
social image and brand image. Using clean practices in the business environment promotes a
positive brand image as a socially responsible company. CSR is considered a way for a company
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to achieve balanced economic, social and environmental goals while addressing the needs of
various stakeholders of the company. Marketers are faced with the challenge of connecting and
communicating the thoughts, feelings, expectations, beliefs, sensitivities and opinions of
customers and brands in a positive way (Keller, 2007). Creating a positive brand image is difficult
and is created through the messages received about a particular brand. When customers feel
connected to the flow of brand messages, brand relationships develop and create a positive
impression in the customer's mind. However, it depends on the customer's perception whether
this brand message contributes positively to the brand image. Determine whether CSR activities
are perceived by customers or not (Grönroos, 2007). When meeting the expectations for the
intangible and tangible elements of the service, it is important to satisfy the social values that are
considered important by the customers (Popoli, 2011).
In this era marketers are alert about the fact that not only environmental organizations are
attentive towards corporate social responsibility activities but a large number of customers,
shareholders, employees, government are also very serious about that. Stephen Chen, Petra
Bouvain observed in their study that “Corporate Social Responsibility ranking of the firm is
greatly influenced by CSR activities of the firm and its brand image. Consumers are not willing to
purchase the products and services from the companies businesses which are not engaged in
socially and ethically responsible activities”. Business leaders in the UK and Bulgaria think that
CSR initiatives are a great way to boost their company's standing in the community. Various
studies show that British company managers believe that the CSR activities carried out by
companies maintain their 'market position' and 'brand'. When consumers perceive a significant
level of risk in acquiring a product or using a service, corporate reputation can also be referred to
as corporate or brand image. Companies with a stronger emphasis on philanthropic duty are
viewed more favourably by consumers than those who engage in sponsorship and related
marketing.
According to Curras (2009) trust on the brand impacts the satisfaction level of the customers, and
similarly satisfaction of the brand impacts the attractiveness of the brand. There are three things
which CSR activities do in particular those are:
■ Influences thoughts
■ Growing brand magnetism
■ Boost customer conviction
CSR influence the interest of stakeholders in buying a product and make stronger its relationship
with an organization (Sen et al., 2006). When a firm conducts CSR activities, there are various
relationships of a single individual with the organization. A single individual can be a customer
and employee of the organization all at once. The relationship between customer and an
organization can be enhanced through CSR activities but companies perceive that customers do
not regard as ethical and social practices important. Because of this reason, they put hard work
for increasing profits. In many cases, consumers actually buy Tata products, not only for the
reason that they are evaluating the quality at a rational level, but because of their supreme trust
and belief in what the Tata name stands for. According to the findings of a recent survey, the
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corporate giant Reliance Industries together with two Tata Group companies, namely Tata Motors
and Tata Steel, have emerged as the nation's preferred corporations for CSR activities.
If you've been on social media a few times, you've probably seen brands discussing new ethical
products and how they will help not only you, but society as a whole. This is an example of CSR
marketing.
It is no coincidence that we see more CSR in social media, and like marketing. Consumers are
more likely to buy from brands that are actively involved in global issues and contribute to the
improvement of society, and as a result, corporations make greater efforts to demonstrate their
CSR initiatives.
3. WAYS TO USE CSR AS MARKETING STRATEGY
By aligning corporate social responsibility to their brand, businesses can use it as a marketing
tactic. The marketing strategies of many businesses now include components of social
responsibility in an effort to provide social benefit through their offerings. Another effective
marketing strategy is philanthropy. NIELSEN found that 66 percent of consumers are willing to
pay more for products from firms that exhibit social responsibility after polling consumers in 60
different nations.
4. CONNECT TO THE VALUES OF COMPANY
While CSR was once seen as a secondary approach to improve business performance and
authenticity, today's best CSR initiatives are aligned with the brand and central to the operational
strategy. Integrating CSR into business strategy is a best practice, as demonstrated by 181 CEOs
from brands such as Amazon, Citigroup, and Ford who signed up to the latest Roundtable
program to "lead the way for the benefit of all companies." stakeholders - customers, employees,
suppliers, communities and shareholders. “Aligning your CSR strategy with your brand, core
competencies and operational strategy will be different for every company.
5. GET PERSPECTIVE OF YOUR DIFFERENT STAKEHOLDERS

You should develop a strategic plan for CSR that is inspired by the concerns of your customers,
employees and community members. You can also look for inspiration from what works for other
brands. Here are some methods:
6. CUSTOMER POLL
Creating a CSR strategy is a great reason to connect with your customer base. Create a short, easy
survey to collect the following information:
■ What environmental and social issues are important to your customers?
Plan your options based on your brand. For instance, if you sell personal care products, are
customers more interested in your sustainability, your supply chain, your commitment to labor
and human rights, or your donations to children in need? Focused questions will lead to more
effective results.
■ What do customers know about your latest donations and initiatives?
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How do you know about past or current CSR programs you work with? Are your startups
successful?
■ How do customers feels associated with your brand?
This is indeed a good opportunity to gather information about your business reputation that can
affect your new CSR strategy.
To increase engagement, consider offering incentives to customers who complete your surveys,
such as discounts, gift certificates, or lucky draws.
7. COLLECT EMPLOYEE OPINIONS

Your CSR strategy cannot work without your employees. Start by identifying the needs of your
employees and use that information to create an overall strategy.
Surveys that combine multiple choice and open-ended questions are a great way to gather this
important information. For example, for a personal care products company, you can choose an
employee to open one of three volunteer opportunities related to the brand. This will help you get
the targeted information you need, as well as help employees feel heard and valued.
8. EVALUATE COMMUNITY NEEDS

The type of "community" is different for every business. The first step to building partnerships for
the success of your CSR program is to spend time researching and learning what your community
needs and wants.
9. BORROW SUCCESSFUL STRATEGY

Your CSR strategy should not waste time trying to do something that has already been done
successfully. Spending time researching where other businesses have been successful in
sustainability, philanthropy, and employee engagement will help you. Don't be afraid to copy:
your strategy will be unique because your brand is unique and the people you like and listen to.
Some companies have linked their CSR activities with the 17 Sustainable Development Goals
(SDGs) of the United Nations, including issues related to poverty, hunger, education, gender
equality and climate change. For example, Chevron's corporate sustainability program clearly
shows how the company addresses each SDG, and includes an SDG index in the Target 2020
Corporate Social Responsibility Report.
10. MAKE INTERNAL PROCUREMENT

Your team's support, dedication, and commitment will be necessary for your social responsibility
program to succeed. Put employees at the forefront of the strategy process with immediate
feedback and inclusion.
11. LEARN, RESPOND AND IMPROVE
There is always room for improvement in the world of CSR because CSR is all about people and
dynamic people. Our needs change and so does the world we live in.
Accordingly, your CSR strategy will not be possible without a plan to explore, refine and develop,
or as Global Giving puts it, 'Listen, Do, Learn, Repeat'.
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12. DISCUSSION
Key conceptions of CSR in India and the position that firms define in society were identified in a
study undertaken by the Confederation of Indian Industry (2002) in partnership with the United
Nations Development Programme, the British Council, and PricewaterhouseCoopers (PwC).
Findings suggest that the primary reasons for companies to participate in CSR are to improve
their reputation and to do good in the community.
Edenkamp (2002 )says that “Consumers consider switching to another company's products and
services, speak out against the company to family/friends, refuse to invest in that company's
stock, refuse to work at the company and boycott the company's products and services in case of
negative corporate citizenship behaviors”.
According to Harish Bijoor “The modern consumer understands CSR that much more intimately.
The future of marketing is full of CSR.”
Edenkamp in his study found that, “Only firms that have gained the goodwill of the general
public and are ideal corporate citizens will be to develop these intangible assets into strategic
advantages.”
According to Mark Choueke, “Corporate social responsibility is unarguably the most important
thing on any brand marketer's mind. It's important because studies increasingly show that
consumers will spend their money on brands that reflect their values and concerns.”
Scott Beaudoin in his study found that “CSR practically has the same effects as advertisements,
because it sheds a positive light on a brand or product. That is why CSR can also be seen as an
expression of marketing. By including the brand name in social responsible campaigns, brand
awareness and brand recognition are raised. It's clear that the concepts of value and values are
rapidly merging in the minds of consumers. People want to be engaged with companies that
share their values”. Based on established theories in the fields of corporate marketing and CSR,
this research develops an identity-centric framework for describing CSR. This establishes CSR as
an excellent management tool for fostering harmony between different parts of a business (such
as its internal and external components) and, ultimately, substantial gains for the enterprise.
Zain Noori Ismael in his study found that “Implementing CSR activities that are related to
products, jobs, communities, and the environment can improve a brand's image and the quality
with which consumers view the company. CSR can add value to a company by sending a
message about the quality of its products. As a result of the halo effect, such signals of product
excellence have the potential to spread to other areas of the company. Therefore, businesses that
engage in socially responsible practices can be perceived as brands that provide high-quality
goods and services, and CSR activities have the potential to improve the overall image of a
company's brand”.
13. CONCLUSION
The simple evolution of the definition of marketing and its application to the business world and
its conceptual and practical relationship to CSR shows that the discipline is important and
common in society. The public is now more educated and attentive to issues of corporate social
responsibility and business behaviour. Socially conscious advertising practises are another aspect
of CSR. A product may be labelled "green" if it contains recycled materials or if a portion of the
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sale price will go to a good cause. Community service is a win-win for both the local community
and the small business that provides the service. The public's opinion of a firm can improve when
it engages in socially responsible actions. Companies are now considered corporate citizens.
Buyers give serious consideration to social and environmental causes while making purchases. To
succeed in the modern business environment, it is not enough to prioritise cash flow. However, it
is also important to incorporate social projects and higher standards in order to boost the
company's image as a decent corporate citizen. Sustainability is a voluntary commitment to the
company's work. This demonstrates the company's commitment to and engagement with issues
of social and environmental significance. This worldwide shift towards integrating CSR with
bottom-line concerns has prompted a reevaluation of traditional business concepts and practises.
REFERENCES
[1] Beaudoin, S. (2009). New Age of Cause Marketing. PR Newswire, New York.
[2] Bijoor, H. (2008). Role of CSR IN Modern Marketing'. Brand Line, Business Line, 14.
[3] Bigné Alcañiz, E., Alvarado Herrera, A., & Currás Pérez, R. (2009). Epistemological
evolution of corporate social responsibility in marketing. International Review on Public
and Nonprofit Marketing, 6(1), 35-50.
[4] Chen, S., & Bouvain, P. (2009). Is corporate responsibility converging? A comparison of
corporate responsibility reporting in the USA, UK, Australia, and Germany. Journal of
business ethics, 87(1), 299-317.
[5] Choueke, M. (2009). Presentation is the lifeblood of CSR, Marketing Week, London,
September, (24).
[6] Dixit, Pankaj & Lal, R.C. (2016). Role of Gandhi's Khadi Textile Industry Towards Inclusive
Growth and Corporate Social Responsibility. International Journal of Trade and Commerce-
IIARTC. 5(1), pp. 115-120.
[7] Edenkamp, P. (2002). Insights into how consumers are thinking, how they are acting and
why. Brandweek, 43(36), 16-20.
[8] Gronroos, C. (2007). Service management and marketing: Customer management in service
competition (Vol. 3). Chichester: Wiley.
[9] Ismael, Z. N. (2022). Marketing strategy: The Influence of Corporate Social Responsibility
on Brand Awareness. International journal of Engineering, Business and Management, 6(5).
[10] Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011). Strategic brand management:
Building, measuring, and managing brand equity. Pearson Education India.
[11] Meenu & Rastogi, S.K. (2019). Trends of Marketing Practices in Public Sector Fertilizers
Companies. International Journal of Trade and Commerce-IIARTC. 8(1), pp. 11-21.
[12] Popoli, P. (2011). Linking CSR strategy and brand image: Different approaches in local and
global markets. Marketing Theory, 11(4), 419-433.
[13] Sen, S., Bhattacharya, C. B., & Korschun, D. (2006). The role of corporate social
responsibility in strengthening multiple stakeholder relationships: A field
experiment. Journal of the Academy of Marketing science, 34(2), 158-166.
[14] Tyagi, Aakanksha & Yadav, S.K.S. (2021). Green Marketing Practices and Challenges to
Indian Companies. International Journal of Trade and Commerce-IIARTC. 10(1), pp. 95-101.
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[15] Yadav, Surbhi (2019). A Comparative Study of CSR Spending among selected Banking
Companies. International Journal of Trade and Commerce-IIARTC. 8(1), pp. 22-33.
INSTITUTIONS
[1] Confederation of Indian Industry
[2] International Organization for Standardization-26000
[3] Nielsen Global Survey
[4] The European Union
COMPANIES
[1] Reliance
[2] TATA
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Prospects of Growth in E-Commerce in India and Security

Framework
Vijay Singh Negi*

aDepartment of Commerce, Govt. P.G. College, Dakpathar, Vikasnagar, Dehradun, U.K., India
E-mail: dr.vijaysinghnegi65@gmail.com
Abstract
The growth and various sectors of digital trade (e-trade) in India are
examined in this article. Non-native investors are investing in the e-trade PAPER/ARTICLE INFO
sector because it is one of the fastest growing industries in India and RECEIVED ON: 14/11/2022
provides a successful demand scenario for investments. The analysis ACCEPTED ON: 10/12/2022
comes to the conclusion that there may be a potential boom for e-trade in Reference to this paper
India if the government establishes a legal framework and shield for it and should be made as follows:
India's international trading partners are authorized to expand their
basic rights such as intellectual property (IP), sequestration, preventing Negi, Vijay Singh (2022),
fraud, client protection, etc. “Prospects of Growth in E-
Key Words: Govt. intervention, Internet security, E-Retail and E-trade, Commerce in India and
Growth, Market Composition, IP. Security Framework”,
11, No. 2, pp: 493-499.
DOI: 10.46333/ijtc/11/2/15
Prospects of Growth in E-Commerce in India and Security Framework
Vijay Singh Negi
1. INTRODUCTION
The cutting edge of exchange nowadays can be online commerce. It implies mercantilism when it
comes to goods and services obtained online and through technology. It refers to a website of the
merchant who, using a digital go-cart or digital hand basket system, offers goods or services
directly to customers from the portal and accepts payments via credit card, debit card, or
electronic fund transfers. E-business is the practice of conducting business using the internet and
data technologies like electronic information sharing. Additionally, E-Commerce refers to the
migration of business to the World Wide Web. E-commerce has almost completely taken over as
the most popular online activity. E-commerce isn't exactly defined in a single way, although it
generally refers to any marketable activity that is carried out, connected to, or assisted by
electronic communication. Consumer service and new product design are only two examples of
the completely various business sectors presently visible in e-commerce products. It enables new
types of data-driven business strategies for working with and communicating with customers,
such as online order taking, online marketing, and online customer service. The internet is now
used by E-trade as at least one aspect of the sale lifecycle. Additionally, it can lower costs
associated with managing orders and communicating with a wide range of suppliers and trading
partners—areas that traditionally add significant costs to the price of goods and services. E-
commerce has a substantial opportunity for developing countries like India. Even though it is still
in its early stages in India, even the most gloomy predictions point to a boom. The number of
businesses engaging in international trade has increased over the most recent period. Important
Indian gate sites have also changed their focus from focusing on marketing earnings to e-
commerce. Currently, many locations offer a wide range of services and goods, including food,
digital widgets, laptops, and other items, in addition to beverages, chat cards, and movie tickets.
The time for true e-commerce in India has therefore come with the launch of inventory exchanges.
Rao, M. (2006) while analysing the “Factors affecting increase of e-trade in India” concluded that
there became a near affiliation among on-line buy and availability of data approximately the
vendors, hence, recommended that greater data will increase respondents’ consolation stage for
on-line trade.
Gnana (2006) came to the conclusion that many businesses are now using e-trade as a substitute
or additional route, while the cost of doing so varies in different industries. For instance, a typical
business in India selling cars is not yet ready to engage in significant e-trade.
Gupta (2014) provides a thorough explanation of electronic business while distancing it from e-
business in her essay "E-Commerce: The Role of E-Commerce in Today's Business." The paper
explains the several internet businesses models, such as B2B, B2C, B2G, and C2C, while
narratively delving into the specifics of each.
3. OBJECTIVES OF RESEARCH
[i] To describe the current status and e-support commerce's systems in India. Since e-
commerce is new to many segments and has a lot of potential, there is a need for a lot of
facilitation.
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Vijay Singh Negi
[ii] Assess the existing and future developments in Indian e-commerce, i.e., where we are now
and where we are going in terms of growth and development.
[iii] To classify the challenges that Indian retailers experience at the early stages and peak levels
of e-commerce.
Both primary and secondary sources are taken into account when conducting this investigation.
The sections that followed introduced these collections of knowledge. Primary data was acquired
by purposefully pre-arranged online surveys from consumers to conduct quantifiable inquiries. A
survey was designed containing age, orientation, educational capacity, and information regarding
the respondents' preferences.
In terms of the secondary data, supplementary data have been acquired from various
publications, journals, theses, and websites. This study is based on secondary data that was
gathered from a variety of online resources, including academic papers, www.statista.com,
government publications from India's Ministry of Commerce, etc.
5. ANALYSIS
Table 1: Present Market Segments of E-commerce
Category Specification
Digital Population as of January 2020 687.6 million
E-Commerce Market Size by 2027 200 Billion USD
Active E-commerce Penetration 74%
E-commerce Share in Retail 7%
Share of online shoppers who Prefer Mobile Wallets 32%
Category of online retail with the Highest Penetration Rate Electronics
Flipkart Revenue 436.15 Billion INR
Most popular E-Payment Service Paytm
Source: Statista.com 2020
Table 2: share of E-Commerce to GDP
Year GDP
2016 0.71
2017 0.76
2018 0.90
Table 3: Number of Internet Users in India from 2016 to 2018 with a forecast until 2023
Year No. of Internet Users
2023 660
2022 634
2021 601
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Vijay Singh Negi
2020 564.5
2019 525
2018 483
2017 437.4
2016 295.39
Table 4: Digital Buyers in India 2014-20 (In Millions)
Year No. of Buyers
2014 54.1
2015 93.4
2016 130.4
2017 180.1
2018 224.1
2019 273.6
2020 330
6. FUTURE TRENDS OF E-COMMERCE IN INDIA

India has several capabilities in the e-trade sector due to the country's expanding internet user
base and favourable market circumstances. The market value of the Indian e-trade industry,
which has been expanding exponentially, reached roughly 22 billion dollars in 2018. By the year
2030, it was anticipated that this number would reach 350 billion US dollars.
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Vijay Singh Negi
7. E-BUSINESS WEBSITES IN INDIA
In India's e-commerce market, there is tremendous competition. The market is crowded with local
and international companies competing for the largest market share. With more than 500 million
dollars in sales as of April 2017, Amazon India had overtaken other online marketplaces in the
USA. The prominent players in the neighbouring market have been Flipkart and Myntra. The
majority of respondents agreed in a poll conducted in May 2020 to roughly allow e-trade
structures to offer goods in India after the coronavirus lockdown.
8. INCREASING ANALYSIS OF E-COMMERCE IN INDIA
A few reasons are cited for the growing surge in the e-commerce industry. A few of the numerous
factors that contributed to the rise in virtual income in India include the digitization of the
financial system and the availability of cheap internet to people. In India, it was anticipated that e-
commerce revenue will increase by 25% in 2018. However, it was anticipated that the growth rate
would experience a slight decline in 2022. As a result, the possibility for increasing sales has also
expanded. In India, the average retail e-commerce sales generated per consumer in 2018 were
more than 50 US dollars. It was anticipated to make a 75 U. S. dollar profit by the year 2024.
9. GOVERNMENT INITIATIVES
The Indian government is working hard to make the country's online economy worth $1 trillion
by 2025. Below is a list of some of the significant government initiatives that are enabling the swift
growth of e-business in the nation.
■ Focus on government e-business (Gem) Digital India
■ Bharat Net and Digital India
■ Draft e-business technique and encouraging FDI guidelines.
10. FINDINGS
With case examples to back them up, we have discussed many facets of e-commerce in this essay.
In order to further expand the marketability of the E-business region in India, it can be
determined that numerous game plans interventions are necessary.
■ Due to high challenge, unsuitable structure, slight edges, and high utilitarian expenses, a
substantial portion of players in the E-exchange region of India have yet to reap the
benefits.
■ International companies such as Walmart, Alibaba, and others are keen to break into the
Indian e-commerce business, and their investment might genuinely strengthen the sector's
infrastructure and supply chain.
■ Although web transactions and online commerce have been surpassed by the United
Payments Interface (UPI) framework and the Digital India initiatives.
■ To manage the growing E-exchange interest, India has to show more attention in improving
its technical infrastructure. To build a solid E-exchange system, stockrooms, sortation
facilities, and a successful last-mile assignment network are required.
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Vijay Singh Negi
11. CONCLUSION
Although the first phase of the development of e-trade in India was characterized by low internet
penetration, a small on-line purchasing customer base, slow internet speed, low consumer appeal
of online purchasing, and insufficient logistics infrastructure, the e-trade in India has the ability to
adorn its growth within the second phase given the current business environment. The main
factors that increased e-trade in the second segment are the LCCs' access to the Indian aviation
market, the development of OTAs, online price tag booking programs, the launch of multiple
online retail websites, building a strong market presence, utilizing social media for branding
purposes, connecting with customers for feedback, and promoting new product launches, among
other things. After looking at business trends as a whole, it is clear that e-commerce is becoming
an important tool to verify the explosive growth of the Indian economy. It has the potential to
lead India toward becoming an economic giant. E-trade presents an alluring option for the
retailers to expand given the fast growing internet usage. In order to do this, additional funds
must be invested in India's infrastructure, revolution, and recreational activities.
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[1] Alaghi, K. (2020). “Financial Leverage and Systematic Risk.” African Journal of Business
Management , 5 (1), pp. 39-43.
[2] Awais, M., & Samin, T. (2012). “Advanced SWOT Analysis of E-Commerce.” International
Journal of Computer Science Issues, 9(2), pp. 569-574.
[3] Burson, R. (1998). “Tools you can use for imprived ratio analysis.” San Diego Business
Journal , 19 (49), pp. 19-23.
[4] Cristina, I. (2013). “Comparison of profitability for pharmaceutical Romanian listed
companies using DuPont identity.” The USV Annals of Economics and Public
Administration , 13 (1), pp. 78-83.
[5] grandviewresearch.com. (2020, April 30). Online Grocery Market Size, Share & Trends
Analysis Report By Product Type. Retrieved April 6, 2022, from
www.grandviewresearch.com: https://www.grandviewresearch.com/industry-
analysis/online-grocery-market
[6] Gupta, A. (2014, January). “E-Commerce: Role Of E-Commerce In Today's Business.”
International Journal of Computing and Corporate Research, 4(1).
[7] Herciu, M., Belascu, L., & Ogrean, C. (2011). “A DuPont Analysis of the 20 Most Profitable
Companies in the World.” International Conference on Business and Economics Research ,
1, pp. 45-48.
[8] Laxman, B., & Doiphode, D. Y. (2016). “A study on profit margin, asset turnover and its
impact on stragy using DuPont model.” International Journal of Research in Finance and
Marketing , 6 (5), pp. 79-91.
[9] Liesz, T. J. (2004). “Really modified Du Pont analysis : five ways to improve return on
equity.” The Economics Review , 81 (3), pp. 231-243.
[10] Qureshi, M. M. & Yadav, S.K.S. (2020). “A Comparative Financial Analysis Between World
Top Two E-Commerce Companies: Amazon and Alibaba.” International Journal of Trade
and Commerce-IIARTC, 10(2), pp. 256-268.
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Vijay Singh Negi
[11] Sharma, U.C. & Sharma, Mayank (2020). “Study of Consumer Willingness for Buying
Apparels through Ecommerce Platforms: A Conjoint Analysis.” International Journal of
Trade and Commerce-IIARTC, 9(1), pp. 245-254.
[12] Thapliyal, A.B. & Gairola, Vikas (2012), “Customers Attitude towards Online Retail
Shopping - An Empirical Study,” International Journal of Trade and Commerce-IIARTC,
1(1), pp. 149-161
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Female Foeticide and Female Infanticide in India: A Serious

Challenge for the Society
Sudeshnaa*, Gopi Chandb
aInstitute of Legal Studies, Chaudhary Charan Singh University, Meerut, U.P., India
bFaculty of Law, Meerut College, Meerut, U.P. ,India
E-mail: gchand.1161@gmail.comb
Abstract
Status of woman in different human societies of the world is different. It
is developed under the developed society, when the woman is occupy a PAPER/ARTICLE INFO
unique position. It is discriminatory and prejudicial. India is one of the RECEIVED ON: 02/12/2022
countries where the sex ratio is unfavorable to female. Discrimination ACCEPTED ON: 31/12/2022
against woman in matters like access to education, healthcare and Reference to this paper
nutrition has been cited as the major reason for the greater sickness and should be made as follows:
mortality rate among Indian female as compared to their male
counterparts. It has never been possible for men and women to live in Sudeshna & Chand, Gopi
practical equality. The Constitution of India has discarded all sex (2022), “Female Foeticide
discrimination, sex equality and liberty. It has been made a fundamental and Female Infanticide in
right and the states are directed to remove all sex inequalities and India: A Serious Challenge
impediments to their personal liberty. And give equal status and for the Society”,
opportunity of every person male and female both. Other legal provision
such as pre- Conception and Pre- Natal diagnostic techniques
11, No. 2, pp: 500-514.
(Prohibition of sex selection) Act 1996 and Medical Termination of
Pregnancy Act 1971 are given some provision regarding to female
foeticide and female infanticide. The main object of the PC PNDT Act is
to ban the use sex selection technique after conception. The main object of
MTP Act is to legalizes abortion processes and promotes access to safe
abortion services to the woman. In this paper the researcher include the
definition of female foeticide and infanticide, causation, legal provision,
and measures of female foeticide and infanticide.
Key Words: Human Societies, Discrimination, Inequality, Impediments,
PNDT, MTP, Legalizes Abortion.
DOI: 10.46333/ijtc/11/2/16
Female Foeticide and Female Infanticide in India: A Serious Challenge for the Society
Sudeshna, Gopi Chand
1. INTRODUCTION
Discrimination is the main issue of against girl progress in the world. It has become a social evil, It
is like a right of violation, we all must be stopped, why doth girl not get love and respect like
boys? The status of women in different human society of world is different. Hindu considered
man and women represent the two aspect of one person. Hindus used to worship goddesses in
the past, but there is currently no real gender equality at the national or international level in our
culture. The Universal Declaration of Human Rights, adopted by the United Nations, outlines
these fundamental human rights. Some of the fundamental freedoms recognised by the UN and
UNHR include the right to equality and nondiscrimination, nationality, personal property,
education, employment, and freedom of movement.1
But inspite of these rights the girl has no status. All human rights are related to every boys and
girl. They give equal protection of boys and girls. They developed of childhood and child growth,
they have given equal status of boys and girl because the children have need a special care,
protection and healthy. The recognized standard is the UN convention on the right of the child
(CRC), which was drawn in 1989, CRC include the four principal for the child rights like-
A. Rights of equality
B. Right to survival and healthy development
C. Right to Right to participation
D. Right to best interest of the child
2. HISTORICAL ASPECT OF FEMALE FOETICIDE AND FEMALE INFANTICIDE

An Ancient time the gender studies is different in India, The evil of female foeticide is not a new
problems, it is a very old problems It has been a practiced from the decades. The main cause of
the trouble started with patriarchal society and it is religious factor that men are support to look
after their parents in the old age and son is one who performed all the religious rituals at the time
of funeral of parents. It has been said, that man who have not any son he cannot attain moksha,
son guarantees that parents are blessed with direct passage to heaven and giving birth to a girl
child is seen by many as watering to the neighboring lawn and birth to a male child is being seen
with great reputation and pleasure. When the birth of female child has never been welcomed and
she is like a burden, and considered as paraya dhan and even blessing given to the Hindu woman
in India on her wedding day by the loved ones and relative of family as “Doodho-Nahao-Pooto-
Phalo”so our mental status is very low for a woman than of a son. In some area there is one
tradition of “Kua Pooja” which is a ceremony only when a baby boy born in a family. All these
traditions show the discrimination attitude towards female child. It explained that before
technology, it is use to be that the birth of child were hidden because of female infanticide.
Abortion is a significant social issue in our society because it results in the continued killing of
unborn children among people who can either afford or do not have access to technology or
medical facilities. Practice of sex selection is strong in India from the ancient time and continue till
date, and this leads to girls shortage in our society, It is use in village or metro cities by the
illiterate person, because it is only a myth that this practice is continue used by the poor and
1 Jyotsna Tiwari, Child Abuse and Human Rights, Isha Books, 2nd volumes, Edition v 2004, P .2.
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illiterate person, who are leading the way. Sex selection means the practice of determining is the
sex of the unborn foetus development in the mother `s womb and eliminating. In addition to the
technological mouse, low status of women and girls is a factor in sex selection.
3. DEFINITION OF FEMALE FOETICIDE AND FEMALE INFANTICIDE

Female Foeticide means when the parents are killing the baby girl in mother` womb, it is called
female feoticide, In other word some family misused of the advancement technology in medical
science. This medical science is badly used in sex selection and if the embryo is female, the person
killing the girl in mother`s womb, it is called female foeticide2.
Female feoticide band on sex determination testing is a relating new practice, sex selection in any
act of identifying the sex of the feotus and elimination of feotus if it is a female child, it is called
female foeticide.
i. Sex Selection
According sec 2(o) Sex selection is a process in which a sex of a embryo is detected by a text, this
proceeding is called sex selection. After selection the parents founds that if the unborn child is a
female they destroyed of the feotus in mother`s womb. This act permits the sex selection in certain
condition and permit use of such techniques like chromosomal, abnormalities, genetic metabolic
diseases, haemoglobinopathies, congenital anomalies etc.3
ii. Female Foeticide
The killing of a female foetus at any stage of pregnancy after determining its gender is known as
female foeticide.
iii. Female Infanticide
Female infanicide means intentionally killing of a baby girl after her birth.
4. CAUSATION OF FEMALE FOETICIDE AND FEMALE INFANTICIDE
Female foeticide and infanticide is a social evil. This is affected of our society. Female foeticide is
not only about misuse of technology, but also it shows the low status of woman and girl. Some
social causes of female foeticide are as follows-
i. Dowery Death
Dowery death is the main cause of female foeticide in our society. Due of dowry anxiety among
lower class families, several girls are killed while still in their mothers' wombs. They worry that
they won't be able to afford to pay the dowry for their girls' marriages when they are destitute.
ii. Desire of a Son
Some family desire only male child, they think that son is the main sources of income, and the
girls are the symbol of spend money. Son earn the money and the girls spend the money, There
are many custom in Hindu marital life, which tend to suggest a lower status of woman such as
2 S.C. Dr Tripathi and Vibha Arora,Law Related to Woman and Children,Central Law Pub, 4 th Edition 2010,
P.271
3 PNDT Act 1994, Universal law Pub, P.9.
-502-
parading the girl before the boy and his family for facing their marriage donation (kanyadaan) at
the time of marriage dowry given by the girls side to the boys side compulsion.
iii. Law Status of Woman in the Society
Indian woman have been brought to become a servant to serve the man, house hold decision
making power and freedom of movement of woman are very limited, she has no right than man,
on the other hand they worship this mother, and on the other they disregard their sister daughter,
mother and wives, the man and women are equal, it is not true. In modern time Indian society is
getting spend a new style life. In our constitution provided equal opportunities to men and
woman, but in really the woman has facing many problem.
Jawaharlal Nehru said “you can tell the condition of a nation by looking at the status of its
woman”. The world celebrated International woman`s day on 8 th march, A question arises here,
that how far the status of woman changed, no it is not,4
iv. Education
Illiteracy is the main cause of the female foeticide, an uneducated person has different views they
thought that girls are burden.
v. Small Family
Every person wants small family because they do not have sufficient means for earning. They
believe in nuclear not a joint family.
vi. Gender Discrimination
Gender Discrimination is also root cause of female foeticide, Gender discrimination means to
discriminate the between the boys and girls. It is a very important issue in the society for parent
and grant parent to have a boy baby in the female beside having a son. Son and daughter are born
from the same mother`s womb, it is not in the hand of the mother that she can only wish the boy
on his birthday. Because the chromosome from which a boy is born is not found in the woman,
yet the whole society considers the women responsible for it. And only mother is the culprit.
vii. Advancement in Technology
Our science has become very advanced in present time. This service ability have made this
veritably easy task for parents. Compared to before, it is now considerably simpler to determine
the foetus' gender. This further demonstrates how the makers of the high-tech equipment and
tools used to conduct these tests profit off the suffering of prospective parents and their unborn
child. It is well known that many hospitals establish long-term contracts with the companies that
produce this kind of medical equipment. The lower economic echelons of society can easily access
and afford the ultrasound technology used in amniocenters. It is also conveniently accessible in a
nearby hospital with medicase credentials; regrettably, the ultrasound's accuracy is not always
100% until the foetus is 20 weeks along, at which point the kid is usually aborted by the parents.
4 Dr. Jayesh kumar N. Barot, Status of women in India, Sarth Pub,1st Edition 2012, P.137.
-503-
■ Conceptus
According to sec 2b(a)- Concept us is any product of conception at any stage of development from
fertilization until birth including extra embryoganic membranes as well as the embryo or foetus.
■ Embryo
According to sec 2b (b) embryo means a development oriented human organism up to the end of
8 weeks or 56 days after conception.
■ Foetus
According to sec 2b(c) feotus means a human organism during the period of its development
beginning on the 57 day following fertilization or creation and ending at the birth.
■ Genetic Counseling Center
Means any place, hospital, institute, nursing home, where the genetics advice has been given to
the patients.
■ Genetic Clinic
Any facility utilised to perform prenatal diagnostic operations, whether a clinic, hospital,
institute, or nursing home, is referred to as a genetic clinic.
■ Pre-Natal Diagnostic Procedures
Section 2(i) defines pre-natal procedures as all gynaecological, obstetrical, or medical procedures
such as ultrasound, fetoscopy, taking or removing samples of amniotic fluid, chorionic villi,
embryo blood, or any other tissue or fluid of a man or of a woman before or after conception for
being sent to a genetic lab or genetic clinic for conducting any type of analysis or pri-natal
diagnostic test for selection of sex before.
5. SEX RATIO IN INDIA FROM 1901 TO 2021
Female foeticide and infanticide is not a new concept, where female embryos or foetus are
destroyed before the born. Between 35 and 40 million girls and women are missing from the
Indian population as a result of selective abortion. The gender ratio of girls to boys has fallen to
fewer than 800:1000 in several states. Certain traditions, such as the desire for sons and the
decision to either pay a sizable dowry for their daughters or stop having daughters, have
gradually reduce sex ratio day by day. Female infanticide was the customary method of getting
rid of unwanted girl babies. It is wrong and immoral to kill a girl baby while she is still an infant.
It goes against God's law. Why infanticide and female foeticide are on the rise. Since the start of
the 20th century, the sex ratio has constantly shifted in favour of males. This sex ratio is
decreasing day by day in some states. It was in these states that private clinics for foetal sex
determination were founded, and selective abortion started to gain popularity in the late 1970s.
According to the 2011 population census, there are 940 females for every 1000 males in the
population. In 2011 in India Compared to the census 2001 statistics, the sex ratio for 2011 indicates
an increased trend. According to the 2001 Census, there were 933 girls than 1000 males. India's sex
ratio has been declining for decades as of 2011. In India, the state of Haryana has the lowest sex
ratio. And there are 877 females than males out of every 1000.
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6. LEGISLATIVE PROVISION REGARDING TO FEMALE FOETICIDE AND INFANTICIDE IN INDIA
I. Constitutional Provision
The Constitution is a basic fundamental of our nation. It contains unique legal provisions that
outline the main responsibilities of the state's governing bodies and specify the rules by which
they must function. The main purpose of the constitution to provided the basic rights and
equality of the every person.5
The Constitution's provisions for equality before the law and equal protection under the law for
all people, rather than gender equality as an ideal, have been found. The judges did not agree that
men and women were equal, and equality is always intended to be between equals. They did not
believe that gender equality was an illegal inequality.6
Protection of Life and Personal
Article 21 of the Constitution states that only in cases when legal procedures have been followed
can someone be deprived of their life or personal freedom. In this article the two things has been
define, one is right to life, and second is personal liberty.
Right to life means Right to life with dignity. This right has been provided every person, means
male or female both.
In Maneka Gandhi vs Union of India7 In this case the Supreme Court held that the expression
personal liberty has the widest amplitude and it covers a variety of rights which go to constitute
the personal liberty of men.
Life: It is very difficult to define the right to life. The right to life which is the most fundamental of
all human being. It must have a wider application. In the 5 th and 14th Amendments of the US
Constitution, which says that no person shall be deprived of his “life liberty or property without
due process of law”.
In case Munn vs Illinois8 In this case Justice Field has been spoken about the right to life. The
word "life" refers to something greater than just animal existence. The prohibition against its loss
applies to all the limbs and faculties that are used to enjoy life. The clause also forbids the
mutilation of the body through the removal of an eye, an arm, a leg, or any other organ that
serves as a conduit for the soul's communication with the outside world.
This statement has been repeatedly quoted with approval by our Supreme Court (Kharak singh
vs State of U.P.AIR 1963 SC 1295.1301 1305) and also it has been further expanded in Francis
Coralie Mullin vs UT of Delhi 9 In this case, the court determined that any act that impairs a
person's ability to use any limb or capacity, either permanently or temporarily, would fall under
art. 21's prohibition,
5 Mamta Rao, Law relating to women and children, Eastern book company, 2nd Edition2008, P.53.
6 S.P. Sathe, Gender constitution and the courts, Essays in honour of lotika Sarkar, Eastern book co,
Lucknow, 1999.
7 AIR1978 SC597
8 24 L Ed 77 94 US113 (1877)
9 1981, SCC 608 AIR 1981 SC 746.
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In Bandhua Mukti Morcha vs Union of India10
In this instance, the court ruled that everyone in
this nation has a fundamental right to a life that is free from all forms of exploitation.11
II. Indian Penal Code, 1860
(a) Causing Miscarriage: According to section 312
If a person intentionally causes a woman to miscarry while she is carrying a child, they may be
punished with three years in prison, a fine, both, or both if they did not do so in good faith to save
the woman's life. If the woman is also quick to become pregnant, they may be punished with
seven years in prison, a fine, and both if they did so.12.
Explanation: A woman who intentionally miscarries within the meaning of this clause.
Miscarriage: Miscarriage is the synonymously of abortion. When an ovum is removed during the
first month of pregnancy, before the placenta has developed, this is called an abortion. Section
312, which deals with pregnancies that have been terminated illegally. Perhaps this was done to
save the conservative and traditionally bound Indian society's feelings.
In 1974 the Austrian Constitution courts refused to recognise right to life to unborn life 13. The
European Convention for the Protection of Human Rights and Fundamental Freedom, which
stated that everyone's right to life shall be respected by law, presented the court with the dilemma
of determining whether or not unborn life is covered by article 2 of the European Convention or
not. Because certain states did not recognise a right to life for beings who were not yet born, the
court rejected the Austrian Government's request to include unborn life in its definition of the
phrase "everyone" and held that the term is only meant to refer to human beings who are born. 14
(b) Causing Miscarriage without Woman's Consent
According to sec 313, Every individual who engages in abortion without the agreement of a
pregnant woman, regardless of whether the woman is imminently pregnant or not, shall be
punished with life imprisonment, or with imprisonment of either description for a term that may
extend to ten years, with a fine, or with both.
(c) Death Caused by Act Done with Intent to Cause Miscarriage
According sec 314 whoever, with intent to cause the miscarriage of a woman with child, does any
act which causes the death of such woman, shall be punished with imprisonment of either
description for a term which may extend to ten years, and shall also be liable to fine.
If act done without Women`s Consent: If the act is done without the consent of the woman, shall
be punished either with imprisonment for life, or with the punishment above mentioned.
10 1984 AIR SC.

11 V.N. Shukla`s, Constitution of India, EBC, 12th Edition 2013, P.208.
12 Pillai`s PSA, Criminal Law, Lexis Nexis, 14th Edition 2019, P. 752.
13 Bonda the impact of Constitution law on the protection of unborn human life, Some comparative remarks,
6 human right 233 (234, 235) 1977.

14 K. D. Gaur, Criminal Law Criminology and Administration of criminal justice, Universal law pub, 3rd
Edition 2015, P. 772

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(d) Act done with Intent to Prevent Child being Born Alive or to Cause it to Die after Birth
According to sec 315 If any person does any act before the birth of a child with intention to
preventing the child from being born alive or will cause his death after birth, he shall be punished
with imprisonment of either description for a term which may extend to ten years, or with fine, or
with both. If such act is not done in good faith with the intention of saving the life of the mother.
(e) Causing Death of Quick Unborn Child by Act amounting to Culpable Homicide
According to sec 316 If any person does such an act as to cause death. That persons hall be guilty
of culpable homicide, if such act causes the death of any living unborn child he shall be punished
with imprisonment for a term which may extend to ten years, and fine also.15
III. Medical Termination of Pregnancy Act, 1971
There are so many laws related to child protection for example, Indian Penal Code, constitution,
family laws, PNDT Act, MTP Act, Juvenile justice etc. Law and contained some provision
regarding the termination of pregnancy. Abortion was a crime which the mother parents as well
as the Gynaecologist could be punished except where it has to be done to save the life of the
mother. To save the pregnant women`s health, medical termination of pregnancy act (MTP Act),
is passed in 1994 by the Parliament. The Medical termination of pregnancy act provides for the
termination of certain pregnancies and by the registered medical practitioners. This act is legalize
abortion only when there is some risk of the female's life or a grave injury to her physical or
mental health but not to legalize the illegal abortion with the intension to commit the act of female
foeticide through pre-natal determination. This abortion can only be performed by a registered
medical practitioner when pregnancy does not exceed 12 weeks. But if is over 12 weeks and
within 20 weeks, then it is performed by two registered medical practitioners in a government
hospital, nursing homes, centres approved by the Directorate of Health Services (DHS), or by
Chief Medical Officer (CMO) of District16. It is duty of the doctor to be satisfied that there are
justifiable grounds for the operation.
IV. When a Woman can be Terminate the Pregnancies by the Registered Medical
Practitioners
There are some conditions are mentioned in the law when a pregnant woman can get herself
aborted:–
i. When the pregnancy is danger for the life of women or may cause grave injury to her
physical or mental health.
ii. When the economic condition is not well.
iii. When the social environment is not suitable for the pregnancy.
iv. In cases of rape a woman can also abort the child, if she doesn't want that baby.
v. To prevent the birth of a child with serious deformity, mental, physical abnormalities e.g.,
congenital anomalies, genetic metabolic diseases, etc.
15 Pillai`s PSA, Criminal Law, LexisNexis, 14th Edition 2019, P. 752 – 756.
16 Section 4 of Medical Termination of Pregnancy Act 1971
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vi. When pregnant woman is not mentally sound than the guardian can give written consent
for abortion of such women.
vii. When the risk to the health of the pregnant woman by reason ground.
When the act does not permit the termination of pregnancy after 20 weeks. Nonetheless, a
licensed doctor may choose to end a pregnancy in the following circumstances:-
a) where the pregnancy period is not longer than 12 weeks,
b) Whenever a pregnancy is more than 12 weeks but not more than 20 weeks, if at least two
licenced medical professionals have formed a sincere opinion that:-
i) if the pregnant woman's life is in danger or if pregnancy is likely to result in physical or
mental harm.
ii) If there is sufficient reason to believe that the child, if born, will experience bodily or
mental suffering and would also be severely disabled.
Even so, no pregnancy may be aborted without the woman's agreement, or in the event of a
woman under the age of 18, or if the woman is insane, without the written consent of her
guardian.17
The Government of India constituted many committee and policy in 1964,which is liberalisation
of miscarriage contained in Section 312 of the IPC, which makes induced abortions illegal except
to save the life of woman. The Shanti Lal Shah Committee submitted its report in 1970, which
shows the various situations under which pregnancy could be lawfully terminated.
The MTP Act 1971 and the MTP Act amendments 2021 is below18
Part MTP Act 1971 The MTP Amendment Act 2021
Place where Pregnancy may be Terminated

According to section 4 of MTP Act that the pregnancy can be terminated either at a hospital which
is established or maintained by the Government or at place which is approved by the
Government or District level committee constituted by that government.
17 Section 3(4) of Medical Termination of Pregnancy Act 1971, Universal Law, Edition 2017. P. 64.
18 Medical Termination of Pregnancy (MTP) Amendment Act, 2021.
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Provided that the District Level Committee shall consist of not less than 3 and not more than 5
members including the Chairperson as the Government may specify from time to time.
V. The Pre-Conception and Pre-Natal Diagnostic Technique (Prohibition of Sex Selection)
Act, 1994
Our medical science has become more advance now a days. In the 21 st century the blessing with a
female baby hardly brings cordial happiness on the majority of Indian societies. But this medical
technology is badly used in killing the girl in mother`s womb. In recently the Parliament has
passed the PNDT Act (Pre-Natal Diagnostic techniques (Regulation and Prevention of misuse)
Act 1994). The main object of this act is prohibition of sex selection, before and after conception.
And regulation of prenatal diagnostic techniques (e.g., amniocentesis and ultra-sonography) for
the detection of genetic abnormalities, by restricting their use to only registered institutions. Pre-
conception and pre-natal diagnosis (Prohibition of sex selection) Act, 2002 is the most recent
revision to this law, which was amended in 2002 and went into effect in 2003. The main object of
this act is prohibited of sex selection before or after conception, and this act is also used in
detecting some genetic abnormalities.
i. Object of PNDT Act
This act regulates the use pre-natal sex determination technique. This act permits the use of pre-
natal sex determination technique for the purpose of detecting genetic or chromosomal disorder
or certain congenital anomalies or sex linked genetic diseases. This act has following objective:-
a) To prevent female foeticide by stopping the misuse of pre-natal diagnostic procedures for
foetus sex determination.
b) To restrict the promotion of prenatal diagnostic methods for the identification or
determination of sex.
c) To permit the use of such techniques only under the certain conditions by the registered
Institutions, hospital, nursing home.
d) The purpose of this act is who violates the legislation provision they must be punished.
ii. The Salient Features of this Act
a) To absolute prohibited of the sex selection and sex determination.
b) The use of prenatal diagnostic techniques only by the rule and regulation.
c) These can be used only for the specified conditions, like some abnormalities in the foetus.
d) Only registered clinics, hospitals, nursing homes and laboratories can be conduct of these
tests. The clinic shall display a copy of the registration certificate appropriately.
Maintaining thorough patient records in accordance with prescribed forms is required.
e) Only licenced medical professionals covered by this act, including MDs, gynaecologists,
paediatricians, and medical geneticists, are permitted to perform certain diagnostic
procedures, including ultra sonography.
f) No person conducting this pre-natal diagnostic procedures with free consent of pregnant
woman and her relatives.
g) To prohibited the advertisement of sex determination tests.
h) Only licenced doctors should be allowed to purchase ultrasound equipment.
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i) If any person who violate these provisions will be punished under thisact.
j) All offence under this act are cognizable, non-bailable and non-compoundable (sec 27).
k) Only Appropriate Authority has power to search, seize and seal clinics under this act (sec
30).
iii. Prohibition of Sex-Selection
According to sec 3(a), No one, including a specialist or group of specialists in the field of
infertility, should perform, or cause to be conducted, or assist in conducting by another person,
sex selection of a woman or man or both, or on any tissue, embryo, concept, fluid, or gametes
obtained from either or both of them.
iv. Prohibition on Sale of Ultrasound Machines, etc., to Persons, Laboratories, Clinics, etc.
not Registered under the Act
According to sec 3(b), Any person who is not registered under this act. They will not sell any
ultrasound equipment, imaging equipment, scanners, or other tools to genetic counselling centres,
genetic laboratories, or genetic clinics that can identify the foetus' gender.19.
v. Determination of Sex Prohibition :
After the enforcement of the PCPNDT Act, there are certain guidelines for the Sex Determination
which is under:–
a) Ultra sonography and other prenatal diagnostic procedures, including those used in
genetic counselling centres, laboratories, or clinics, may not be used to determine the
gender of a foetus.
b) Ultra sonography is one of the prenatal diagnostic methods that cannot be used to
determine a fetus's gender by anyone or by anyone else.
c) No one may, under any circumstances, cause or let to be caused the selection of sex either
before or after conception.
Hence, pre-natal might be defined as occurring before birth. According to the law, these tests can
only be used to identify any physical or mental defects in a foetus. These methods involve the
examination of blood, bodily fluid, such as amniotic fluid from amniocentesis, and tissue from a
pregnant woman or the foetus. These tests are used by the pregnant women in following
condition:–
a) If the mother is worried about having children with physical and mental disabilities.
b) If the mother suffers from a medical condition, such as a mental disease, mental
retardation, or one of the inherited forms of anaemia,;
c) The pregnancy is not stable.
d) If the Pregnant woman takes some chemicals, drugs, radiation and the unborn child is
defected.
e) The age of pregnant women must be 35 years.
Sec 3(b) of Pre-Conception and Pre- Natal Diagnostic Techniques (Prohibition of Sex Selection ) Act 1996,
19
Universal Law pub 2017, P. 9.

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f) The doctor can do this test if the woman gives her consent in writing, and the doctor will
give a copy of that written consent to the woman and keep a copy with her.
vi. Punishment for that Person who Violation of the Act
a) For a doctor who misuses these techniques for the determination of sex selection :
b) If they are found guilty for the first time, they face a three-year prison and a fine of up to
Rs. 10,000. The Medical Council will suspend your registration for five years after your
first offence.
c) 5 years in prison and a fine of Rs. 50,000 are the penalties for a second offence. In the
event of further violations, permanent removal.
d) Persons seeking to known the sex of the foetus :–
e) For a first offence, 3 years in prison and a fine of up to Rs. 50,000.
f) A punishment of Rs. 1,000,000 and five years in prison for a subsequent offence. The
pregnant woman herself is considered innocent under the Act, unless and until proved
otherwise. It is presumed that she will have been compelled to undergo sex
determination tests by her husband and relatives.
g) Those who advertised services for sex determination or selection. 3 years in prison and a
punishment of up to 10,000 rupees, plus a daily fee of 500 rupees for any subsequent
violations.
The Supreme Court ordered the Center to fully execute the PC and PNDT Act after taking a firm
stand against the sex-selective discriminatory practises of the medical community and the
potential link to the use of prenatal sex determination. The Mahila Sarvangeen Utkarsh Mandal
(MASUM), Dr. Sabu George, and the Center for the Inquiry of Health and Allied Topics (CEHAT)
submitted a public interest petition, which resulted to the order. The act's effective execution in
these cases was decided. Supreme court passed an order on 2001 which aims at ensuring the
implementation of the act, plugging the various loopholes and launching a wide media campaign
on the issue.
7. EFFECT OF FEMALE FOETICIDE AND INFANTICIDE
There will have the biggest effect of female foeticide and infanticide, the number of girls in the
society will be reduced to a great extent and the development of the whole society will stop,
because the girls are main part of the society. And the sex ratio will gradually decrease, which
will have a profound effect on the coming generations. The number of girls in the families will be
decreasing day by day, and girls will not to be available for the marriage of boys, due to which
the families will not be able to move forward.
8. SUGGESTIONS
■ There is a popular saying in the society, that a man and a woman are two wheels of the
same vehicle, to prove this proverb correct.
■ In ancient times, women were worshiped in the form of Goddess Lakshmi and Saraswati in
the society, but in today`s society, women are eliminated in the womb, it is a socially and
criminally punishable offense for which more stringent laws should be made, is required.
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■ It should be the aim of us morally and legally that there should be no discrimination of any
kind between men and women.
9. CONCLUSION
We are living in a new era, where the man and woman are equal. And they have equal status in
our society. But it is not true. We had worship of a girl like a Goddess in ancient time, but now a
days the situation has become change. Where the girls will not be available for the marriage of the
sons, so it will be a big challenge for human being, because they do not thing from where will the
daughter -in -low come for their sons. It would be opposite of nature, because it is rule of our
nature, that male and female both are necessary for development. Individuals who adhere to the
long-standing culture of son preference and think that only sons, not females, are eligible to
receive Pyre Pindadana and Mukhagni. Yet, people's attitudes can change nowadays, especially
in regards to how important it is for females to grow up in families. The right to life is a
fundamental human right as well as one guaranteed by the Indian Constitution. No one, whether
they are a doctor or the parents of a newborn, can exercise this authority without a legitimate
justification that is specified by the law. The primary contributor to this issue is the development
of technology. We invent a new technology for the betterment of the society but people start to do
the misuse of technology and when the misuse of any technology has been started, it's became a
curse for humanity and the result of this is we face the problem of girls shortage in present time in
form of female foeticide and female infanticide. To eradicate the problem of female foeticide,
women empowerment is necessary in an economic or political area and promotion of gender
sensitive health education. The main reason behind this problem is the structure of the society
because our society is male dominant society and women are subject to violence within the house
or outside the house. The attitude of society towards girls needs to be change because they are
also the big part of Indian population and we cannot deny the importance of the girls in our life.
They are us as a mother, they love as a wife and always ready to protect as a sister.
Both husbands and wives should be the targets of the policies to stop this behaviour. In fact, while
it has been determined that women are to blame for sex-selective neglect that results in mortality,
men are also somewhat to blame. „„It's almost like first step toward eradication of humanity itself
because if there are no mothers, there will be no children, and there is going to be nobody ever
born‟‟. Someone men's desire for sons, and their wives also desire for sons, so this is the main
reason that used this technique, and if that babies is a girl, they abort to her.
There are so many cases are registered in the court, A few prosecution have been launched in
West Bengal, Bihar, Chandigarh, Tamil Nadu and Haryana. In Punjab, some action had been
initiated in the last few months. And gladly Haryana witnesses the country's first conviction for
using sex determination technologies on a complaint filed in 1997. This grim warning was issued
by a sub-divisional Magistrate in Faridabad on March 28, while sentencing two persons to two
years rigorous imprisonment each for violating the PC and PNDT Act, 1994. This is the first
conviction since the inception of the Act. In India, according to census of 2011 there are 940
females per 1000 males, This condition is so critical. Now this is high time for society to realize the
voice of females alarming to take the initiative for saving the girl child's life through the proper
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implementation of PCPNDT Act,1994.In the light of the above discussion the following may be
suggested to eradicate the problem of female feticide:-
■ Before there can be any improvement in the status of women, the law needs to be applied
correctly and with greater severity.
■ Pre Conception and Pre Natal Diagnostic Technique Act, 1994 to be publicized among
doctors and public at large.
■ The doctor's licence should be suspended or revoked if they participate in satiating a
client's demand through female foeticide.
■ High fines are levied on businesses that specialise in selling medical devices used in
unlicensed clinics and hospitals for unlawful sex determination and abortion.
■ Provisions made for high fines for those doctors and parents who are involving in female
foeticide.
■ Strictly action should be taken against „parents‟ who knowingly try to kill or attempt to
kill of unborn child.
■ We should aware through the campaigns, seminars and workshops of all sisters, mothers,
and women about the sex selective abortion.
■ Amend the existing laws that have a gender bias so that the myth of male superiority can
be exploded.
■ Government should make more law and polices for the safety and protection of unborn
child and girls.
In addition to the aforementioned, it needs to be ingrained in people's thoughts that she is a
woman's life partner as well as a daughter, sister, mother, and wife. Even then why is this
discrimination with of a girl. When girls go missing in a society, then a child is denied the right to
life even before birth only because of she is girl, Discrimination against girls begins even before
the child is born and lasts the rest of her life, all the way to death. We should not discriminate
against girls because if we have daughters then we have a family and if we have a family then it is
family and if we have a family then it is a society, so we should pay attention to the safety of more
and more girls. It becomes a matter of utmost concern and requires immediate action when a girl
child is deprived of her fundamental right to survive, develop, participate, and be protected. So
we protect the girl because she is our future and she also is the part of our family. Together we all
have to end this evil so that we can create a civilized society.
REFERENCES
[1] DR. S.C. Tripathi and Vibha Arora, Law Related to women and children, central law pub,
4th Edition 2010.
[2] V.N. Shukla,Constitution of India ,EBC,12th edition 2013.
[3] Dr Jayesh kumar, NBarot, Status of Women in India, Sarth Pub, 1st edition 2012.
[4] Mamta Rao, Law Relating to Women and Children, Eastern book Co, 2nd edition 2008.
[5] S.P. Sathe, Gender Constitution and the Courts, Essays in honour of lotika sarkar , Eastern
Book Co, Lucknow, 1999
[6] PSA Pillai‟s, Criminal law, Lexis-Nexis, 14 Edition 2019.
-513-
[7] KD Gaur, Criminal law Criminology and Administration of criminal justice, Universal law
Pub, 3rd Edition 2015.
[8] Kumar , Ashok (2017), Millennium (Sustainable) Development Goals 4, 5 and 6: A Study of
Maternal and Infant Mortality in BIMARU States of India on the Precise Course,
[9] Ratan Lal & Dhiraj Lal, The Indian Penal Code, Lexis Nexis, 34th Edition 2014.
[10] Justice Palok Basu, Law Relating To Protection Of Human Rights, Modern Law
Publications, Edition -2004.
[11] Pre-Conception and Pre-Natal Diagnostic Techniques Act 1994.
[12] Medical Termination of Pregnancy Act.1971.
[13] Prasad, Dwarika (2016), Surrogacy in Contemporary India: Issues and Challenges,
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Bank Micro Finance to Support Creative Entrepreneurship in an Emerging

Economy: A Case Study on Bangladesh NGO Foundation (BNF)
Muhammad Mahboob Ali*
aDhaka School of Economics, Constituent Institution of University of Dhaka, Dhaka, Bangladesh
E-mail: pipulbd@gmail.com
Abstract
The research has been undertaken to study micro finance received by
rural folks as to that is to adding in their personal incomes through PAPER/ARTICLE INFO
creative micro and small enterprises. Besides, this study also seeks to RECEIVED ON: 15/11/2022
develop an alternative approach. The study discovered that the business ACCEPTED ON: 21/12/2022
process, particularly in grameen (rural) areas, has strategic impacts on Reference to this paper
the growth of businesses, assisting entrepreneurs. As a result, the author should be made as follows:
suggests raising more money to support and promote creative
entrepreneurship so that the underprivileged and destitute might develop Ali, M.M. (2022), ―Bank
successful firms. The author also makes the argument that social Micro Finance to Support
networking can be used to convert micro savings into micro investments. Creative Entrepreneurship
The author also recommends setting up of community banking at the in an Emerging Economy: A
grass root level social networking and financial empowerment of people. Case Study on Bangladesh
Key Words: Community Banking, Creative Entrepreneurs, Social NGO Foundation (BNF)‖,
Networking, Micro Savings, Personal Income, Micro Finance, Micro and
Small Enterprises, Empowerment of People. 11, No. 2, pp: 515-531.
DOI: 10.46333/ijtc/11/2/17
Bank Micro Finance to Support Creative Entrepreneurship in an Emerging Economy: A Case Study……….
Muhammad Mahboob Ali
1. MICROFINANCE SUPPORT BY GOVERNMENT
Governmental microfinance may serve as a facilitator but sometimes may create bottlenecks,
depending on political interference, misappropriation of funds, higher interest rate and lack of
monitoring. In the financial market, a clear sharing of responsibilities among the state and the
profit and non-profit private sectors could certainly enhance the efficiency of the financial system.
The state must foster a conducive environment (Lapenu, 2009). Khan (2008), but the relationship
between NGOs and the government of Bangladesh is often beset with uncertainty and confusion.
But nowadays under public-private partnership, the government and NGOs are working in
various fields as complementary to each other in Bangladesh. He also says that, by allowing
NGOs to become partners, the government may actually be questioning the basis of its own
legitimacy. Alamgir (2009) said that the Bangladeshi government took on multiple roles,
including resource provider, micro credit programme implementer via various agencies,
facilitator, and regulator. Bangladesh's successive administrations have made eradicating poverty
a key priority by fostering economic expansion, job creation, the advancement of education, the
enhancement of human potential, and the provision of various social services and infrastructure.
Matsebula and Sheefeni (2022) described that macroeconomic policy maker can use financial
inclusion as a tool to retain macroeconomic stability. The macroeconomic environment's stability
and modest rural infrastructure development have also contributed to the expansion of the rural
economy.
In Bangladesh, Palli Karma-Sahayak Foundation (PKSF), an apex development organization, was
recognized by the Government of Bangladesh (GoB) in May 1990, for sustainable poverty
decrease through employment generation. Established in 2000 as an autonomous and ‗not-for-
profit‘ organization by the Government of Bangladesh, the Social Development Foundation
(SDF) has grown to become a useful organization devoted to poverty mitigation. The largest
service-oriented institutional system of the GOB, the Bangladesh Rural Development Board
(BRDB) is directly involved in rural development and poverty alleviation efforts in Bangladesh. It
is a division of the Ministry of Local Government, Rural Development, and Cooperatives (LGRD
& C). Since its founding in 1982, the BRDB has been successful in organising 5.3 million people
into informal groupings and cooperative societies. It invented the two-tier cooperative structure
and is still successfully using it to reduce rural poverty in Bangladesh (BRDB, 2017). The Small &
Medium Enterprise Foundation, commonly referred to as SME Foundation, is a limited
corporation that has been granted a not-for-profit organisation licence by the Ministry of
Commerce and registered under the Companies Act (Act XXVIII) of 1994. It operates in
accordance with the rules outlined in the memorandum and articles of association. The SME
Foundation is a leading institution for SME growth in the nation and was founded by the
government of Bangladesh under the Ministry of Industries (SME Foundation, 2017).
Culturally-based entrepreneurship for creative purposes creates a link between cultural activities
and entrepreneurship as a way for people or organisations to make money. For the poor, micro
and small-scale activities offer opportunity to add value. It takes enthusiasm, community
involvement, and awareness among the target groups to improve their living situations as well as
incentive to produce benefits for society to foster creative entrepreneurship.
-516-
In Bangladesh, a modest sum of money can make a difference in a poor family's ability to escape
the low level equilibrium trap. The poor and marginalised people can battle poverty and enhance
their standard of living by utilising creative innovation on a micro and small scale.
By partnerships with other organisations, the Bangladesh NGO Foundation (BNF) was
established as a government entity in 2004 and began operating in 2005 with the goal of assisting
those in need. There are 1120 partner groups in total, 14% of which work in the field of creative
micro and small businesses to provide improved living conditions and social welfare. Rural areas'
creative entrepreneurship may have a spillover effect.
Palli Sanchay Bank (Rural Savings Bank), a specialised financial organisation founded to
encourage rural residents' savings and investments, has opened 100 locations nationwide. On
June 22, 2016, the prime minister, Sheikh Hasina, launched 100 Bank branches via video
conference from her Gonobhaban home. The primary goal of the Bank was to free the
impoverished from the shackles of so-called "micro credit," which will never assist a person
escape the cycle of poverty. She hoped that the Bank would encourage individuals to save and
invest money in order to reduce poverty and strengthen the rural economy. The "One Home, One
Farm Project" (Ekti Bari EktiKhamar), which was started by the Department of Rural
Development and Cooperative in 2009 for five years, aims to turn every rural house into an
agricultural farm by utilising the nation's rich biodiversity and ecosystem. Palli Sanchay Bank was
established in conjunction with this initiative. (Bangladesh Awami league, 2017)
2. MILESTONES OF BNF
a) Year of engagement of partner organizations with BNF: 2005
b) Total grants distribution (including special projects) €123,737,470 (cumulative figure) since
2005 to till now.
c) Total beneficiaries (including special projects of cumulative) 9.32 Million (Women 5.83
million, Men 3.49 million).
d) Of 1,120 partner organisations, 158 of them are BNF partners and engage in creative
entrepreneurship.
3. BNF’S ACTIVITIES ON CREATIVE ENTREPRENEURSHIP

By sending funds to the people it supports through its partner organisations, BNF aims to allow
them to better their standard of living, promote social justice, and lessen income disparity. The
BNF encourages rural residents to engage in creative business through 158 Partner groups.
Partner organisations include NGOs involved in dance, folk singing, handicrafts, sewing
instruction, multimedia and creativity, etc.
It believes that culture and innovation have positive impact on creative and artistic
entrepreneurship along with innovation processes. As such the study intends to see whether
BNF‘s grant has generated any sort of income and raised productivity in rural areas, especially for
those who are in miserable conditions. Though there are many government and autonomous
organizations working, but we consider our study mainly on BNF. On the basis of above
discussion, the research question of the study is whether grants of government organization
through its partner organizations among rural poor income group can help raise their income
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levels through creative nano and micro enterprises as an alternative to bank supported
microfinance? Also, can we develop an alternative approach for downtrodden people of
Bangladesh so that micro savings can be transformed to micro investment through social
networking and thereby expedite the process of setting up of community banking at the grass
root level.
I. Existing Thought on Microfinance
De Bruin (2005) outlined the establishment of the promotion of the creative industries in New
Zealand within the larger national context of the Growth and Innovation Framework of the
government. It's an intriguing case to look at in the film industry as a result of The Lord of the
Rings: The Return of the King's Oscar victory and other critical praise. The topic proceeds within
an integrated multi-level entrepreneurship framework after defining the nature of
entrepreneurship in the creative industry. According to the Rabobobank (2005), the financial
industry may significantly contribute to the reduction of poverty in developing nations by
improving the impoverished sectors of society's access to financial services. Small and medium-
sized firms (SMEs), as well as farmers, should be prioritised in order to create sustained economic
growth in these areas. United Nations (2006) argued that institutions, policies and practices that
work well in one country may not work at all in another. Strategies for building inclusive
financial sectors have to be creative, flexible, and appropriate to the national situation and
nationally owned. While necessarily designed at the national level, such strategies should
nevertheless build on the lessons learned in other Country contexts and the resulting
considerations of good practices. According to the United Nations (2006), institutions, policies,
and practises that are effective in one nation might not be effective at all in another. The
development of inclusive financial sectors requires innovative, adaptable, suitable for the national
context, and domestically owned strategies. Such initiatives should build on the lessons
discovered in other Nation contexts and the ensuing considerations of good practises, even
though they must unavoidably be designed at the national level. The following issues with
microcredit were compiled by Karnani (2007) from various studies: Microcredit tends to cause
more harm than good to the poorest; microcredit is insufficient for the enterprises it is intended to
assist. Microloans are more advantageous to borrowers living above the poverty line than to
borrowers living below it. According to Dollinger (2008), marketing helps entrepreneurs succeed
in two ways: first, it specifies how the firm's resource advantages will be identified and
communicated, and second, it plays a significant role in developing a lasting competitive
advantage. The rise of designated creative locations in recent years, according to Foord (2008), is
evidence of policy practitioners' conviction that, despite local conditions, they can also mobilize
creativity to alter their economies and communities. Kochanek (2009) observed that while
Bangladesh may be a long way from becoming an Asian tiger it does offer substantial potential of
economic growth and development provided it can maintain some semblance of political
stability.
According to Phillips (2010), self-employment and contract work may exaggerate the oversupply
of artists, but they do not explain why oversupply has been a structural characteristic of artistic
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cultures for such a long time. He added that it's undeniable that the growth of the Internet has
made it possible for more artists to support themselves through their work because their audience
is potentially lot wider. According to Teece (2010), the core of a business model is how an
organisation provides value to customers, persuades them to pay for that value, and turns those
payments into profit. This definition of a business model reflects management's assumptions
about what customers want, how they want it, and how an organisation can be structured to best
meet those needs, be compensated for doing so, and make a profit. According to Chambers and
Vejle (2011), a business incubator essentially comprises of a development programme and a
variety of business development services. They essentially take the shape of counsel, and thus
might qualify as a "virtual incubator." But, a fully bloomed incubator also provides a physical
space and a geographic centre for networking, collegiate proximity, and targeted region coverage.
According to Müller et al. (2011), there are two distinct areas within the craft and trade sector that
are involved in the culture and creative industries that stand out in key ways: enterprises that
specialise in contemporary fields of activity (such as arts and crafts/applied arts, the built
environment, design, and creative services) and enterprises whose activities centre on historical
buildings and objects, and frequently help preserve traditional cultures. According to
Scherdinand Zander (2011), the study of creativity, innovation, and the process of transformation,
where the new aims to take the place of the old and traditional, may be done effectively and
successfully through the study of art and the artistic process. According to Arvidsson and Niessen
(2015), a key subject in social research has been how to become productive within consumer
society. The relationship between consumer culture and new kinds of immaterial production has
been characterised as "creativity" in neoliberal discourse. Bangkok's fashion markets, according to
authors, represent a form of creativity where innovation is highly socialised rather than focused
on the idea of individual genius and individual intellectual property; where participation is
widespread rather than elite-based; and where the Western notions of creativity's ambiguous
relationship between creation and commercial success is replaced by an acceptance of markets
and commerce as vehicles for self-expression.
According to Marinova and Borza (2015), the cultural and creative industries are a significant
source of original ideas, which helps an economy's capacity for innovation and the creation of
new goods and services. According to Ahmed (2016), entrepreneurship is the process or act of
seeing market opportunities and assembling the resources needed to seize them in order to
generate long-term profit. More specifically, it is the process of starting a business, providing
value, investing the necessary time and effort, accepting risks of uncertainty, and holding on to
rewards like financial and personal independence. According to Jahan and Ullah (2016), social
entrepreneurship is both a developing area of hybrid action and a catalyst for more extensive
reevaluations of the functions and limitations of the market, the state, and civil society. According
to Coeckelbergs (2020), greater awareness is necessary since it will increase support for
partnerships by educating people about microlending. According to Bharti and Malik (2022), the
effectiveness of micro financial institutions increases in a number of categories when social output
is taken into account.
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II. Alternative Thought on Microfinance
Social networking is the practice of increasing the number of one's commercial and/or social
connections by cultivating relationships with disparate individuals, frequently using social media
in addition to social capital, social business, and social investment. The best candidates to bring
about that innovation are social entrepreneurs (Leadbeater, 1997). This is a social structure made
up of individuals or groups of individuals who are connected to one another, for instance,
through relationships. A "social network service" is usually used to describe these networks when
they are described in a database and with a web interface. Yet, social media and web interfaces
are not present in the traditional system; instead, social capital, social business, and social
investment coexist there. Alliances can be viewed from a social network perspective, and the
descriptive and normative conclusions can be very insightful for sociological, organisational, and
strategic management theories. Our understanding of the alliance behaviour of enterprises will be
more accurate if we take social network variables into consideration. This will also have
significant consequences for managerial practise, many of which have not yet been fully
investigated (Gulat, 1998). According to Acemoglu and Ozdaglar (2009), a social and economic
network is a collection of individuals or groups of individuals who have a consistent pattern of
connections or interactions with one another: Facebook, friendship networks, corporate
partnerships, inter-family marriages, and job markets. As a result of the accessibility of computers
and computer networks, which enable us to collect and analyse massive amounts of data,
network research has undergone a significant transformation in recent years, moving from the
analysis of single small graphs (10–100 nodes) to the statistical properties of large scale networks
(million–billion nodes). According to Gangopadhyay and Dhar (2014), sharing sensitive
information online and the evolving notion of "social networking" in the internet era make social
networking and online privacy critical issues. According to Riggio (2014), social intelligence (SI) is
primarily learned in the ways that are listed below. SI develops through interaction with others
and from observing successes and failures in social contexts. The terms "tact," "common sense,"
and "street smarts" are more frequently used to describe it. According to Lake and Huckfeldt
(1998), politically relevant social capital is created in personal networks as a byproduct of social
contacts among citizens, and higher levels of this social capital increase a citizen's propensity to
participate in politics. Also, the degree of political expertise present in a person's network of
contacts, the regularity with which political interactions occur there, and the size or breadth of the
network all influence the generation of politically relevant social capital. The benefits of either
human capital or organisational engagement do not easily account for the results of social
interactions inside networks. In actuality, social interactions are crucial. Social networking thus
benefits from social intelligence and social entrepreneurship. Teenagers' development of social
intelligence should include social interaction. It makes the case that parents may have a
significant impact because older generations' social circles are still mostly restricted to individuals
from other backgrounds, ethnicities, and upbringings. (Source:
http://movingonmagazine.co.uk/has-too-much-social-networking-stunted-your-social-
intelligence/ (viewed on 1st January,2017). A new business's potential to succeed frequently rests
on the entrepreneur's capacity to build a network of helpful connections.
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According to Leadbeater (1997), social entrepreneurs should take the lead in developing self-help
programmes, particularly by encouraging local, national, and international twinning relationships
across projects to exchange resources including staff, contracts, and ideas. According to liberal
feminists, the ideal level of gender arrangement is one that enables people to pursue a way of life
that suits them and is also respected or accepted by society as a whole (Ritzer, 2001). Liberal
feminists, on the other hand, are largely opposed to structural change. However, some liberal
feminists believe that since individual women are powerless to effect change, government
intervention is necessary. According to Bar et al. (2002), senior executives' social networks account
for 11-22% of the variation in how much a corporation engages in alliances. Moreover, findings
indicate that various networking features are favourably correlated with the frequency of
interfirm relationships (propensity to network, strength of ties, and network prestige). Only a
small percentage of women who received credit had the ability to manage their loans, according
to Hunt and Kasynathan (2002). Several women took out loans in their own names and gave their
husbands, sons, or son-in-law the full sum of those debts. Swain (2006) examined the possible
effects of a microfinance organisation called the Self Help Group in rural India using an
experimental research approach (SHG). The process through which women defy prevailing
norms and culture to significantly increase their well-being is described as the concept of
women's empowerment. Williams and Durrance (2008) discovered that, in numerous examples of
community technology, both the usage of technology and the use of social networks had a direct
impact on one another. Perron (2011) looked at each individual technique taken by businesses,
government agencies, philanthropic organisations, and institutional and private investors to
provide the capital needed to sustain growth, as well as their availability and unique legal
capabilities and restrictions. The struggle against poverty and income inequality requires such
measures more than ever. According to Bhattacharya et al. (2014), social networking has had an
impact on the marketing process, and modern marketing operations are heavily reliant on this
phenomenal social networking process. The impact of social networking on market signalling has
also received attention, which lowers the likelihood of asymmetric information inside a market
and lowers the likelihood of market failure for a specific product. According to Riggio (2014),
networking or speaking groups are effective at fostering the development of fundamental
communication skills. Focus on improving your listening skills by practising "active listening,"
which involves reflecting on what you think the speaker said in order to be sure you understood
what they said. Study social circumstances and your own actions most of all. Study your social
triumphs and mistakes to improve. According to Yang et al. (2014), social intelligence and
technology examine the roles of information, the Internet, and mobile technology in enhancing
our knowledge of human behaviours and social interaction in human society at the individual,
interpersonal, and community levels—building a sustainable social environment, developing
social intelligence, and having practical applications with significant impacts on resolving societal
problems like health, security, and energy. Ali et al. (2016) proposed the creation of an integration
fund to promote creative entrepreneurship so that underprivileged individuals can develop
creative business models through the process of financial inclusion, thereby eradicating poverty.
He continued by saying that teenagers' social intelligence development should include social
interaction. Parents, it was argued, may have a significant impact on children's development
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because older generations' social circles tend to be less tolerant of people from diverse
backgrounds, ethnicities, and upbringings. According to Ali et al. (2016), more thorough and
practical policies should be developed for the growth of social companies, especially for
entrepreneurs who are self-driven. According to their research findings, the rural poor are
organised and cooperating in self-reliant community-based organisations that guarantee social
welfare and Pareto optimality. Public-private and foreign strategic alliances can serve useful
purposes in the small and medium enterprise sector with a special emphasis on micro enterprises
of the country. Not only small and medium enterprises but also micro enterprises should get
special priority and inclusion through financial organisations for developing proper pathways to
poverty alleviation.
3. RESEARCH GAP
Most of the aforesaid studies provide existing thoughts on microfinance from their respective
authors‘ own perspectives. Bangladesh is playing a vital role to reduce poverty by various
governmental and non-governmental micro financial institutions. But, we choose BNF, which
provides smaller amounts with transparency, accountability and fairness and also it does not lend
money rather gives grant through partner organizations. As such the study intends to see
whether the BNF model works or not as an alternative to bank sponsored microfinance. Further,
the study tries to develop an alternative approach based on the discussion on alternative thought
on microfinance in literature review part on social networking and empowerment of people.

Following objectives have been set:
a) To evaluate the effects of nano and microcredit on the target populations involved in the
process of innovation and creativity;
b) To investigate the use of nano and micro organisations by creative entrepreneurs in rural
areas to produce income and sustainability at the local level;
c) To examine alternative to bank supported microfinance
d) To provide an alternative approach so that micro savings can be transformed to micro
investment through social networking and, thereby, expedite the process of community
banking.
5. METHODOLOGY OF THE STUDY
In Bangladesh, a lot of governmental agencies are working with microfinance. But we choose only
BNF. It has facilitated the research work. The BNF partners who work with creative
entrepreneurship utilising BNF funds were used to select the sample. Data from both primary
and secondary sources have been examined. Also, two Organizations were investigated, and 40
surveys were given out. 33 replies were usable as a result. Chi-square test was performed using
this data. Two case studies on the aforesaid NGOs namely i.e. Mallika Mhila Unnayan Sangstha
(MMUs) and Trinamool Unnayan Sangsthawere studied through field investigations. Both
quantitative and qualitative analyses have been conducted. Time period of the study was from
1stJanuary to 15th May, 2016.
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6. HYPOTHESIS TESTING
Ho1: BNF grant fund does not have an impact on business process through the creative micro
and small enterprises through right form of training.
Ha1: BNF grant fund has an impact on business process through the creative micro and small
enterprises through tight form of training.
Ho2: BNF does not give proper amount of grant through installments.
Ha2: BNF gives proper amount of grant through installments.
Ho3: BNF does not help increase social networking for marketing purposes or arranging
programs through partner organizations.
Ha3: BNF helps increase social networking for marketing purposes or arranging programs
through partner organizations.
7. QUANTITATIVE RESULTS (CHI-SQUARE RESULTS)

Table: 1(a) Relation between Discovery & Productivity with Right Training
Do your Organization give
Do your NGO
right Training for Creative
Play Role for
Entrepreneurship Total
Discovery &
Agree Strongly
Productivity
Agree
Agree 5 4 9
Strongly agree 5 19 24
Total 10 23 33
X2=3.736
P=0.068
From Table: 1 (a) At a level of confidence p=0.068, it has been observed that there was widespread
agreement that NGOs played a useful role in innovation, productivity, and providing the
appropriate skills for engaging in creative entrepreneurship. This shows that our alternative
hypothesis—that the BNF fund has an impact on business processes through inventive micro and
small firms and the appropriate kind of training, is accepted.
Table: 1(b) Relation among getting Fund Amount of Installment with BNF Give Proper
Amount of Donation
Does BNF Provide Agreed
Amount Grant
Amounts Received Total
Agree Strongly
Agree
0 2 1 3
200,000-275,000 2 16 18
276,000-450,000 3 0 3
610,000-1,000,000 1 2 3
Above 1,000,000 2 4 6
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Total 10 23 33
X2=12.588on
P=0.028
From Table: 1(b), it is seen that there is agreement that there is significant association between
receipt of the agreed amounts at .05 level of confidence (p=0.028). This indicates that our
alternative hypothesis is agreed i.e. BNF gives agreed amount of grants through installments.
Table: 1(c) Relation among BNF assistance to marketing purposes or arranging programs and
BNF assistance for social networking
BNF Assistance for Whether BNF helped for
Marketing Purposes Social Networking
Total
or Arranging Agree Strongly
Programs Agree
Yes 2 11 13
No 7 13 20
Total 9 24 33
X =1.528
2
P=0.204
(Source: Author‘s calculation)
From Table: 1(c) we observe that there is disagreement that association between assistance for
marketing purposes or arranging programs and assistance for social networking (p=0.204). So we
accept the null hypothesis i.e. BNF does not help create social networking.
8. RESULTS OF THE FIELD INVESTIGATIONS (QUALITATIVE ANALYSIS)
The study on two NGOs and their beneficiaries has generated the following results:
Grants were given to Mallika Mhila Unnayan Sangstha (MMUS), a partner NGO of BNF, for the
implementation of programmes on employment creation for underprivileged and distressed
women through training on the development of handicrafts like block and boutique print, art
made from jute and sackcloth, embroidery, tailoring, art made from bamboo stalks, etc.
The women who were chosen were among the impoverished, troubled, defenceless, widowed,
crippled, and jobless. They received materials for free and assisted in raising awareness about a
variety of social issues, including polygamy, child marriage, domestic violence, ending dowry,
treating women with cruelty, stopping the trafficking of women and children, and stopping
terrorism caused by drug abuse and acid throwing.
A large number of beneficiaries have been able to use the skills they have learned through
training to produce and market very high-quality handicrafts in the local markets thanks to the
MMUS programme, "Handicrafts development and generation of self-employment," which has
been funded by BNF since 2009 until the current financial year. Their products are so well-known
that they supply a variety of items for the showrooms of numerous Dhaka-based businesses.
In the district of Mymensingh, Trinamool Unnayan Sangstha (TUS) has been active. It received
funding for initiatives aimed at reducing poverty and enhancing the skills of women and teenage
girls. Thirty young girls received the tools they needed to get started producing and selling
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shopping bags. Another 30 adolescent girls received training in tailoring and block boutique after
which eight of them were chosen through a competitive examination and each received a sewing
machine, sewing supplies, and materials for creating artistic works on fabrics. Comparable
instruction in tailoring was provided to 40 teenage females throughout the third and fourth
phases for a total of five months, following which each of them received a sewing machine. With
the help of these machines, each beneficiary is now able to make both their own clothes and
garments in response to customer requests.
Fatema Akhter (Muna), a recipient of this Trinamool Unnayan Sangstha (TUS) initiative, has long
resided in the slum beneath the recently built foot over bridge in ward No.16 of Mymensingh
town close to the railway station at Natakghar Lane (Spanning Natakghar lane to Shibbari
turning). She began dating Rafiqul Islam (Chanu), who once resided in the railway quarters at
Natakghar Lane, when she was residing here. Chanu and she later got married as a result of this
connection. A daughter kid was born to her a year after the wedding. Chanu began acting quite
harshly towards his wife after the birth of this child, and she later learned that he was a heroin
addict. Chanu suddenly beat her up one day and vanished, leaving her at her mother's house. She
thereafter began living in terrible hardship.
Fatema enrolled in the TUS training programme for the development of sewing and tailoring
skills for teenage girls and women in extreme poverty as a part of their development programme.
Fatema finished the course by receiving instruction for two to three hours every day without
having to pay a fee. She received a two-month follow-up training three months after the initial
programme, at the conclusion of which she and the other nine beneficiaries each received a
sewing machine. Fatema is currently producing garments and shopping bags in her own shop
with the use of this machine, earning EUR 2/day. She supports her daughter's free education in a
neighbourhood kindergarten while funding the welding training of her younger brother. She
received assistance for this from a nearby older citizen. Her current only goal is to use her
earnings from tailoring and other jobs to educate her kid and raise her to be a responsible adult.
She is hopeful that BNF would provide instruction on sewing and tailoring machines for many
more young girls who are extremely destitute and who have been abandoned by their husbands
like she was. When speaking with the author, she shared her hope that TUS training will enable
more women to start their own businesses sewing gowns from the comfort of their own homes,
raise families, and become financially independent.
9. OBSERVATIONS
The study found through its fieldwork at Mallika Mhila Unnayan Sangstha that innovation and
entrepreneurship benefit rural communities. This can not only teach individuals how to provide
for their basic necessities but also raise awareness and social awareness among rural residents.
Actually, BNF grants give participants the chance to develop their independence. The removal of
social vices and escaping the poverty trap are further benefits of this. Rural residents become
aware of and abstain from immoral behaviour as a result of lobbying efforts.
Fatema's life was full of struggle, but thanks to the help she received, the study's field
observations at Trinamool Unnayan Sangstha revealed that she is currently doing well. Artistic
advancements led to changes in lifestyle and opportunities for self-employment. So, there is a
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distinction between the advantages of nano-credit and the establishment of nano and micro
creative companies. The recipients' long-term incomes have increased as a result; in the latter
scenario, they are no longer living hand to mouth. Self-employment, self-esteem, and self-dignity
can actually be gained with a little stipend. For those who are on a low income, this is
encouraging.
10. ANALYSIS OF THE FINDINGS
It is clear that the innovative nano- and micro-enterprise process, particularly in grameen (rural)
areas, has a strategic impact and business proliferation not only for individual welfare but also for
social welfare.
The recipients also work to spread the word about doing good deeds and abstaining from bad
ones. Drama and folk music are also used in social campaigns since they are entertaining as well
as raising awareness of social issues. The ability of artists to make money is crucial. Hence,
creative entrepreneurship can be used to promote self-esteem, self-dignity, self-development, and
self-reliance in rural areas. And donations from BNF delivered through their partner
organisations can start this.
According to Chambers and Vejle (2011), business incubators generally provide development
programmes and a variety of business development services that are absent in the nation's rural
areas. As a result, creative entrepreneurs in Bangladesh lack access to effective company
development services and struggle with poor supply chain management. Our research has led us
to the conclusion that low income creative entrepreneurs generally require business incubators as
well as both domestic and international ties. BNF might step forward to establish business
incubators and build connections for creative entrepreneurs on the domestic and international
levels.
According to the study, poor people's creative entrepreneurial ideas have given items a new
dimension and variety that are consistent with sustainability.
Social media does not now encourage creative and artistic entrepreneurship in a favourable way.
Social media users who are journalists or volunteers should take the initiative to support cultural
enterprises online. Also, there needs to be action taken because in rural areas, persons who
engage in independent creative entrepreneurship do not receive any support or compensation
from the public or private sectors.
The creative entrepreneurs are usually motivated by the country‘s cultural heritage and history.
Moreover, creative entrepreneurship can be used as a campaign against militancy and terrorism.
Arvidsson and Niessen (2015) make the accurate observation that the embrace of markets and
trade as means of self-expression replaces creativity. We have also seen this in our analysis.
All of this is only possible when inventive businesspeople outperform their rivals and
successfully implement their business ideas and strategies.
11. DIFFERENT FRAMEWORK OF MICROFINANCE
This alternative paradigm aims to create a perspective on how social networking encourages
empowerment. Throughout the study, various aspects of empowerment are discussed, such as
social networking, social capital, business and social investment, social and emotional
intelligence, social enterprises, and micro savings that are converted into micro investments. The
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role of social media in the twenty-first century has increased, and it is crucial for interpersonal
interaction. Environmental scanning is essential for conducting business, particularly to simplify
the business process and boost local economies. When people have the opportunity to make
decisions and purchase things, their sense of empowerment increases.
Technology, innovation saving and investment are key concepts. Community banking can help
expedite the process of social networking and ultimately empowerment of people.
In Figure:1 This strategy is based on the conversation that was just had in this section about social
networking and people's empowerment through the conversion of micro savings into micro
investments with the aid of community(societal) banking.
(Source: Concept of a Model built by Muhammad Mahboob Ali, 2016)

Figure: 1 Social Networking and empowerment of people through transformation of Micro
savings to micro investment with the help of community banking.
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12. SUGGESTIONS
a) Organizations that are public, autonomous, or private who are aiming to reduce poverty by
promoting non-farm activities may establish business incubators that can coordinate
education, guidance, and financial assistance for aspiring entrepreneurs in the performing
arts and creative sectors.
b) More money needs to be raised to assist entrepreneurship that is encouraged and inventive
so that the underprivileged can participate in cutting-edge commercial operations.
c) NGOs should support creative businesses, and customers/audiences should pay a
reasonable price.
d) Public-private-foreign cooperation can offer valuable proposals to consumers of artistic
goods in both domestic and international markets, and BNF can enlist the aid of mosques,
temples, and churches to encourage more rural residents to adopt cutting-edge economic
practises and escape poverty.
e) Bangladeshi expatriates can donate directly to the BNF's bank account; this should be made
easy for them. This fund might strengthen BNF's innovative efforts to aid the
underprivileged.
f) Through encouraging creative entrepreneurship, products, services, and event
developments might grow.
g) Even in rural areas, persons engaged in the artistic entrepreneurship process must consider
a business plan that includes cost effectiveness and operational efficiency. No one can start
a business of any kind without marketing and profit margins that are realistic.
h) The BNF may want to function as a catalyst in advancing strategic business plans and the
implementation of innovative specialty activities in the artistic and creative industries.
i) Joint ventures on a national and international scale can create visibility, networks, and
opportunities for promotion, enabling creative entrepreneurs to operate with more zeal,
enthusiasm, aptitude, and competence.
j) In order to give students actual experience in business management, marketing, finance,
economics, leadership and organisational development, tourism and hospitality
management, etc., relevant business labs should be incorporated in business studies.
k) The development of community banking may be aided by taking the proper steps to
convert micro savings into micro investments through social networking and other
channels.
l) The government must act to build community banking among low-income groups in order
to promote financial inclusion and the conversion of micro savings into micro investments,
where social networking can play a crucial role.
m) Post offices may be utilised to conduct local banking around the nation at minimal cost so
that individuals with low incomes can benefit more.
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[2] Ahmed, Momtaz Uddin (2015). ―Entrepreneurship and economic Development: A
Discourse on selected conceptual issues‖, Daffodil international University Journal of
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“AGAMI” a Complete Range of Student Banking Services Segment

of BRAC Bank Limited: An Analysis
Raida Chowdhury Zilik*
East West University, Bangladesh
E-mail: 2020-1-94-009@std.ewubd.edu
Abstract
In order to meet the financial demands of school, college, and university-
going students, "AGAMI" A Comprehensive Range of Student Banking PAPER/ARTICLE INFO
Services offers a seamless student banking service that includes bank RECEIVED ON: 25/11/2022
accounts, student loans, study-abroad credit cards, and student file ACCEPTED ON: 30/12/2022
services. On Wednesday, BRAC Bank introduced "Agami," a set of Reference to this paper
services to assist students with their ambitions to pursue an education should be made as follows:
overseas. Four helpful features are included with "Agami" for students: a
student file, a credit card for study abroad, a savings account, and Zilik, R. C. (2022),
education insurance. „Agami‟ also offer students with educational loan ““AGAMI” a Complete
coverage of up to Tk 20 lakh. One of the many advantages of having a Range of Student Banking
student bank account is the flexibility it provides for online banking. Services Segment of BRAC
Some of the key advantages of a student bank account include the ability Bank Limited: An
Analysis”, International
to apply for loans to pursue higher education, zero maintenance fees,
Journal of Trade and
reward points, and multi-currency debit/credit cards. That‟s why this
student banking segment is very popular for a student, they want this No. 2, pp: 532-539.
service for their better future.
Key Words: AGAMI, Financial Demand, Student, BRAC.
DOI: 10.46333/ijtc/11/2/18
“AGAMI” a Complete Range of Student Banking Services Segment of BRAC Bank Limited: An Analysis
Raida Chowdhury Zilik
1. INTRODUCTION
The fastest-growing bank in 2004 and 2005 was Bangladesh's BRAC Bank Limited, which has
institutional shareholdings from BRAC, International Finance Corporation, and Shorecap
International. At the end of 2005, BRAC Bank had assets that were up 103% and liabilities that
were up 65%, with an operational profit that was up 84% from the previous year 2004. The bank's
management is of the opinion that this industry can do the most to hasten the creation of jobs in
Bangladesh. BRAC, a national, private organisation, began as a modest, almost exclusively donor-
funded relief and rehabilitation effort Fazle Hasan Abed launched to help the nation recover from
the trauma and damage of the Liberation War and was primarily concerned with resettling
refugees coming from India. In terms of sustainable human development, BRAC has now
established itself as an autonomous, essentially self-financed model. IFC was founded in 1956
with the goal of fostering sustainable private sector investment in underdeveloped nations to
fight poverty and enhance people's quality of life. The main multilateral source of loans and
equity finance for initiatives in the developing world's private sector is IFC. I must complete an
internship as a requirement for the MDS programme in order to gain real-world experience, and I
must then write a report on that experience. This report was created by the East West University
Department of Economics to finish the MDS programme. Students will benefit from using Agami,
a financial service that BRAC Bank Limited has introduced, in a number of ways, including lower
interest rates when taking out loans, a charge-free account, free debit cards, and cheque books.
There will also be financial consulting available to help students make the most of their future.
Also, TARA receives benefits for women. Brac Bank always provides extra benefits thanks to the
Agami service's growing popularity within its epically targeted customer base. In addition, this
portion will inspire women and girls of all ages to shatter preconceived notions of gender roles
and to go along the path of freedom and prosperity for a promising future.
2. BACKGROUND OF THE STUDY

“AGAMI” a Complete Range of Student Banking Services Segment of Brac Bank Limited which is
the part of the retail banking. To work in the student Banking I also have to do the other related
department work which are retail Banking. As a MDS student I know that now a day‟s student
banking is very important in student‟s daily life and near future. Retail banking to meet banking
needs of individuals. Alternative delivery channels, student banking services, and direct sales
forces that literally deliver retail banking items to customers' doorsteps. Retail focuses primarily
on ensuring "service excellence" across all points of service, starts routine research projects
through the Service Quality Unit, and creates superior service offers for cherished clients. Our
institutional systems is mainly text-based system, the inclusion of practical orientation program is
an exception to the norm, values and so on. We will be ready to understand real-world situations
from sensible information and start a career with some sensible experience. A professional course
is a Masters in Development studies (MDS). The course is intended with an excellent blend of
critical and theoretical aspects for my career in development sectors. This reason I have to
professionally maintain my RM ship relation to my customers.
Field experience is crucial for MDS students to learn anything new. What I learned in my course
is a reflection of how I act in my professional and everyday life. Employment condition include
-533-
internships. The amount of work that students must do is broad. Defined institution to increase
their hands-on knowledge and internship experiences. As part of my degree requirements, I was
assigned to the Brac Bank Limited (BBL), Gulshan Branch, for my internship. In this circumstance,
I was tasked with writing a report on the “AGAMI” A Complete Range of Student Banking
Services Segment of Brac Bank Limited. Basically, I reflated Bank‟s student banking retails
products and education loan System, Student file bank service, zero maintains account system for
student, and Current Status BBL student Banking Performance, and Own skill are highlighted in
this report.
3. SCOPE OF THE STUDY
BRAC Bank Ltd., a full-service commercial bank with local and international institutional
shareholders, is driven principally by the pursuit of market niches that conventional banks have
not historically filled. BRAC Bank has been working to offer top-notch services via an online
banking platform to a wide spectrum of consumers dispersed around the nation. Since BRAC, one
of the greatest private development organisations in the world, is one of its major shareholders,
the bank's goals are in line with those of BRAC, giving it a special advantage. BRAC Banks wants
to provide mass financing by improving everyone's access to economic possibilities in
Bangladesh, with an emphasis on underserved businesses in both the rural and urban sectors.
During my internship at Gulshan Branch, the report is created on the observation and studies.
According to the study I will concentrate on the background of the company, Student banking
sector, Education loan systems etc. improving local and international student banking sector
which helps the students become take their first steps for bright future in opening a zero
maintains account and emphasis on education Loan disbursement considering and student file
opening my subjects. I have to also guide them how to digital banking is so easy and save their
time.
4. OBJECTIVE OF THE STUDY

The population of Bangladesh is largely made up of students. A student needs to have financial
literacy in addition to civic education and academic literacy. Financial literacy and money
management abilities are included in financial knowledge. In order to increase their level of
financial literacy, Bangladesh's banking sector has implemented school banking. School banking
is not a brand-new idea. School banking strives to provide important financial literacy to pupils
right away. The lesson can begin at home, and the knowledge they gain lasts until their last day of
school. You can instruct them on how to handle their finances and put money aside for the future.
You'll eventually see that your child is developing fundamentally. So that Brac Bank „‟AGAMI‟‟
segment for student banking is give the best solution for the student banking and this are
Introducing students to the modern banking system, Preparing them for future banking
customers or employees, Capital formation through saving money, Owning massive savings after
a certain period, Boosts the habit to save from an early age, Getting knowledge about how to
manage money which can be helpful for the future, Learning financial literacy and so on
important financial support for students.
-534-
5. Methodology
Both primary and secondary sources were used to produce this informative report.
Primary Sources: During my internship period I was assigned in the Agami savers account
opening is my core work in BBL. Then we arrange some campaign Student account opening all
over Dhaka City‟s University like DIU, NSU, DU, UIU, UITS, and AIUB and so on. I saw student
accounts now days more important because of their tuition fees transfer. I looked at the accounts
whose volume was opening the most. I saw that students who live in far away their family they
open a student account more. I speak with those involved in these processes. During my three
months there, I opened 150 accounts and talked with customers and clients about the reasons they
were opening a specific kind of account. I was able to gain insight into their own thought
processes. I spoke with several senior product managers at the BRAC Bank Limited main office to
learn more about the Agami products, their structures (personal loans, student loans, etc.), and
how they would benefit the economy.
Secondary Sources: On the internet, there were a lot of stories concerning BRAC Bank and its
actions. That was helpful to me. Also, I was able to better comprehend the banking process and
the growth cycle thanks to annual reports and quarterly reviews. BBL authorities provided me
with some information specifically to assist me in writing this article.
AGAMI in BRAC Bank: Students banking main focus on brac bank is in near future these
students are their big customer because of after graduation they do job, business, freelancer, or
they the focus on their carries in abroad and BRAC bank know that remittances is important role
for economic development and it plays for the progress of economy by creating developing
countries opportunity. Also, BRAC Bank focuses on woman for TARA agami saver account which
is most popular and profitable for woman because this segment woman‟s gets extra benefits. Due
to societal and religious barriers, allowing women to work has always been a contentious issue in
many nations. Nonetheless, numerous studies have shown a strong correlation between a
country's economic growth and the number of women working. Girls are now permitted to
attend school, and women are now allowed to work in a variety of fields in our nation.
Particularly young women have begun to enter the workforce more frequently. Women's
participation in the paid labour force increased from 15.8% to 23.9%, according to the labour force
survey conducted in 1999-2000. According to a 2015 survey by the Centre for Policy Dialogue,
51.7% of women who earn money think they can spend it without asking anyone else, while 41%
claim they require permission from their families. This study also revealed that women provided
76.8% of all paid and unpaid work during the 2013–2014 fiscal year. It is clear that women are
essential to developing Bangladesh's economy, and we need a financial product to meet the
unique needs of this growing market.
Categories of AGAMI Products in BBL: All AGAMI Products in BBL will be grouped into five
categories for the purpose of classification namely.
i. Agami personal loan
ii. Agami savers account
iii. Agami student file service
iv. Agami study abroad credit card
v. Future star account
-535-
Agami Personal Loan: The BRAC BANK Agami Personal Loan is here to assist you realise your
goals of going to college. Particulars of this loan include A loan of up to BDT 1,040,000 (130% of
the total tuition charge of BDT 800,000) may be given. As an illustration, if the tuition fee is BDT
800,000. The highest loan amount is 20 lac BDT. Five years to pay back, Loan will be disbursed in
phases, for instance: If someone requests that the loan be issued in 8 equal phases, BDT 100,000
(or BDT 800,000/8), will be the disbursement amount for each phase. Students may apply for
loans at the time of acceptance or at the start of any semester. Reasonable monthly payments and
interest savings at the start of the loan term make up a convenient repayment schedule. The
requirements for eligibility for this loan are extremely straightforward: the only minimum
monthly income requirement is BDT 20,000, and parents and legal guardians of all professions are
eligible to apply.
Agami Savers Account: Account opening with BDT 250 only, zero account maintenance fee, free
multi-currency debit card facility, monthly interest earning opportunity on any balance, welcome
vouchers from reputable lifestyle and restaurant partners, double reward points on Thursday on
debit card transactions for both Agami and TARA Agami Account holders, double reward points
on Friday on debit card transactions are just a few of the attractive features of this student-
friendly savings account (TARA Agami Account holders). However, the eligibility requirement
for this account is students between the ages of 18 and 25.
Agami Student File Service: For students travelling to another country for higher education,
BRAC Bank Student File Service is a practical and specialised option. Any student pursuing
higher education must send money abroad for their tuition, living expenses, and other costs. The
student and his or her family can transfer the expenses without any hassles thanks to BBL Student
File Service. Students can take advantage of reasonable file opening and renewal fees, preferential
discounts for TARA and senior citizen customers, officers specifically assigned to helping
students open accounts at branches across the nation, easy and quick fund transfers, NOCs issued
within 24 hours, and study abroad credit card options.
Agami Study Abroad Credit Card: For students pursuing higher education at international
schools, an exclusive Study Abroad Credit Card is available. With money endorsed to the card,
they will be able to use it for both emergencies and daily living expenditures. The features of this
credit card are the first year's annual fee is completely waived (until September 2022). Friend-
referral programme: You can earn a reward of BDT 500 for each successful referral of a BBL
Student Credit Card user. Possibility of receiving a signature or platinum credit card. Other
features include the ability to purchase double benefit insurance, a 10% refund on student file
opening and renewal fees, 500 additional reward points for every endorsement of USD 5,000 or
more, and more. 90% of the Fixed Deposit is accessible as the card limit in the case of a secured
card.
Future Star Account: This account is an attractive savings plan to create a better future for your
kids. This programme has a lot of fun components that will inspire your kids to start saving. All
minors under the age of eighteen are entitled to open this account, which may be managed by
their legal guardians on their behalf. Those from Bangladesh who are under 18 years old may
-536-
open this account. Account Facilities: Account opening minimum of BDT 100; no maintenance fee;
interest on any amount; attractive interest on monthly balance; opportunity to earn monthly
interest; access to all banking services at 187 BRAC Bank branches and 448 ATMs nationwide;
transaction alert facilities on parent's phone; Astha Banking App to conduct all banking
transactions without entering branches; and SMS Banking, e-Statement, and 24 hour customer
service.
6. LIMITATION OF THE STUDY

My internship period in BRAC Bank Limited is 6 months. Throughout my internship, I did my
best to gain a grasp of the entire banking process. Yet, there were several restrictions that
prevented me from fully learning and comprehending the banking process. So, it takes time and
money to do good research. This report would have been more interesting if I had been allowed
more time to spend at the bank interviewing staff and clients because I was working full-time for
six months. They had no reason to respond to my questions, and some chose to ignore them since
they were wasting their time. It would have been really beneficial if they had received
compensation for answering my queries.
7. FINDINGS
However, it has been located that everyone the technique regarding establishing an account, a
wonderful deal or private judgment is required by means of the banker to verify the purchaser.
Greater care should be taken in case of student file documents problem then this are restricted
groups concerning the files because its remittance issue. The banker client dating is the remaining
key to fulfillment, so the consumer needs to be selected accurately. But BBL student banking
product „‟AGAMI” are very easy and quick service given to the students. Now a days students
are very concern their future that‟s why they want a student account for their bright future,
students are came and told that they want to open a student account for DPS, FDR purpose and
another who are interest for further study on abroad they open a student file and BBL student
loan is very easy and quick solution for a student because any one can easily apply this loan and
successfully continue their study. Lastly BBL student banking AGAMI segment is best solution
for all kind students because this segment design that starting with the farmer‟s son toupper class
will get this benefits.
8. RECOMMENDATIONS
This study examines students perception only in the University of Benin, there is need for their
perception to be studied across more universities as it would help in developing a more robust
literature on this subject. Since the regression result obtained in this study shows that the
demographic variables selected do not provide the major explanation for variation in students‟
perception of banks‟ service quality in the University of Benin, it is recommended that further
study be conducted to ascertain the major causes of variation in perception. The improvement of
student banking is essential for the better future of student. Student banking make up a
significant portion of the GDP because it‟s already related in remittance issues, which is boosting
the growth of our country's economy. AGAMI loans enable students to invest in a one steps in
better future. Mostly in student banking, both men and women must be involved in a nation's
-537-
progress. Students are empowered by tuitions and some freelancing works which helps them
become self-employed. Student banking development is one of the areas in which Bangladesh has
to improve for overall growth. Consider the suggestion for further superior change. Enable the
AGAMI loan digital process so that individuals can quickly access the service. Customers should
be analyzed by the bank so that they can minimize risk.
9. CONCLUSION
We have come a long way from the days when banks just served as money-lending and deposit-
taking institutions. The result of evolving financial activities and lifestyles is modern banking. As
a new bank in Bangladesh's private banking market, BRAC Bank continually strives to overcome
challenges posed by conventional business-oriented thinking and develop cutting-edge solutions
tailored to its customers' needs in order to maximize their benefits. Inaugurated on July 4, 2001,
BRAC Bank Limited is a third-generation bank with the goal of enhancing economic activity in
the nation by offering the best financial service. BRAC Bank capitalises on its online banking
software and cutting-edge IT infrastructure to preserve its competitiveness. For a portion of my
course requirement, I was given permission to write a report on customer satisfaction with the
Student Banking service and the roles of BRAC Bank Ltd. It has a long way to go since it is a new
bank. The bank's overall performance is satisfactory despite minor shortcomings.
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January-June 2022, Volume 11, No. 2, pp. 540-547
Universal Banking in India: A Comparative Study between ICICI

Bank and SBI
Richa Aggarwala*, Shubhra Gargb
aDepartment of Commerce, C.C.S. University, Meerut, U.P., India
bDepartment of Commerce and Business Administration, M.M.H. College, Ghaziabad, U.P., India
E-mail: richa2820@gmail.coma, shubhragarggupta@gmail.comb
Abstract
Banks are the most important part for the modern economy. It is essential
for each and every person to meet their financial needs in person or for PAPER/ARTICLE INFO
business. Nowadays, banks provides many banking and financial services RECEIVED ON: 15/11/2022
of different kinds along with routine banking services of saving and ACCEPTED ON: 20/12/2022
withdrawal under same roof to make the life of the people simpler and Reference to this paper
easier like insurance, loan, investment, advisory etc. Universal banks can should be made as follows:
be defined as the banks cum financial institutions which provides vast
variety of financial products or services under one shelter that are Aggarwal, Richa & Garg,
available in the market. In this paper, we have tried to study as whether Shubhra (2022), “Universal
people are aware regarding different services or products which their Banking in India: A
banks offer them and do they know that their own bank is a universal Comparative Study
bank or not. Two universal banks ICICI and SBI have been taken. between ICICI Bank and
SBI”, International Journal of
Key Words: Universal Bank, ICICI Bank, SBI, Financial Institution,
Trade and Commerce-IIARTC,
Financial Products and Services.
Vol. 11, No. 2, pp: 540-547.
DOI: 10.46333/ijtc/11/2/19
Universal Banking in India: A Comparative Study between ICICI Bank and SBI
Richa Aggarwal, Shubhra Garg
1. INTRODUCTION
Universal Banks can be defined as those banks which provides a wide range of financial
services, along with commercial banking services like Mutual Funds, Auto loans, Factoring,
Credit Cards, Retail loans, Investment banking, Merchant Banking, Housing Finance, Insurance
etc.
In Universal Banking, a big bank operates with an extensive network of branches, provides
variety of banking and financial services, participates directly in the Corporate Governance of
firms etc. In a nutshell, the term. This concept is most common in European countries. It is a
place where all financial products are available under one roof. The topic of universal banking
first came up in 2000, when ICICI spoke to the RBI on the timeline and potential choices for
becoming such a bank.
George Benston’s (1994) study was the first one in the field of universal bank. The study
covered a distinguishing study of European and US. The best performer is Germany when it
comes to UB. The reason behind is that, permit was given to all the financial institutions to start
their working in all the EC countries. On the contrary, US were having and served by specialised
banks. There were primary laws in US like Glass- Steagall Act of 1933 which restricts universal
banking in US.
Berger, Allen N. And Gregory F. Udell (1995) found out that when banks become more complex
and large in size then they are becoming by and large like a universal banks. They can also
decrease the supply of credit to small scale businesses. Thus, with the help of this, Williamson-
type of diseconomies can be decreased. The data supported the fact that large banks will not
going to provide financial assistance to small scale businesses.
Calomiris (1995) had postulated 3 queries in his paper. These queries were: elaborated Universal
Banking, why it is an effective measure for enterprises framework for financial institutes and
proof that supports or contrasts the view of universal banking which reduces financing costs for
the economy. Universal banking is elaborated as a financial system which is composed of large
scale banks and they work in a network.
3. SCOPE OF STUDY
i. Comparative position of two universal banks i.e. ICICI Bank and STATE BANK OF
INDIA is studied in this paper, to understand the difference between the working of both
the banks.
ii. The research would highlight the customer‟s perceptions and awareness regarding
different kinds of products and services which are available in their respective banks.
iii. 50 ICICI Bank customers and 50 clients of a public sector bank (SBI Bank) participated in
the study.
iv. Only Noida city was used for the sampling for the study.
4. OBJECTIVE OF RESEARCH
■ To study the concept of universal banking in India for selected public sector bank i.e. SBI
and private sector bank (ICICI).
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■ To examine the risk exposure of banks.
■ To do a comparative study of ICICI bank and SBI as an Universal banks.
■ To study the position of banks in terms of the progress made in the direction of Universal
Banking.
The study is a mixture of exploratory and descriptive research work in which main focus is to do
a comparative study between ICICI bank and SBI. The data studied is mainly primary in nature.
6. RESEARCH HYPOTHESIS
H0: There is no significant difference in the working of ICICI bank and SBI as universal bank.
H1: There is a significant difference in the working of ICICI bank and SBI as universal bank.
7. LIMITATIONS OF THE RESEARCH
■ For the sake of protecting the privacy of their data, some respondents may not have
provided truthful answers.
■ Only samples from Noida city were used to gather the primary data needed for the study.
■ Non-response from the respondents can be ruled out in primary research.
8. SAMPLE OF THE CUSTOMERS

100 questionnaires were distributed and responses are studied from the data collected.
9. DATA ANALYSIS AND INTERPRETATION

I. Analysis of ICICI bank and SBI on the basis of the BANKING AND FINANCIAL
services available
Table: 1, for ICICI Bank
SI Banking and Financial Yes (Knows NO (Knows Cannot Say (does
No. Services that the that the services not whether the
services are is not offered) bank provides the
Provided) services or not)
1. Education Loans 44 4 2
2. Pension Payments 45 0 5
3. Locker Facility 49 0 1
4. Agriculture and Rural Credit 40 2 8
5. Loan against Gold 0 0 50
6. Housing Loans 50 0 0
7. Loan against
50 0 0
Share/Debentures
8. Any NRI Services 32 8 10
9. Wholesale Banking Services 44 0 6
10. Tax Payment 49 0 1
11. Project Finance 50 0 0
12. Telephone & Electricity Bills
50 0 0
Payment
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13. Internet Banking 50 0 0
14. Gold Banking Services 45 0 0
15. Letter of Credit 39 4 7
16. Pre-paid cards for payment
40 0 10
disbursements (Smart Card)
17. Microfinance 40 0 0
18. Credit Card 50 0 0
19. ATM Card 50 0 0
20. Investment Banking 45 0 5
22. Insurance (Life & General) 46 0 4
23. Mutual Funds 49 0 1
Source: iosrjournals.org, Universal Banking in India: A Comparative Study between the Selected
Private Sector and Public Sector Banks. (Author: Ruchi Jain and Ardra R Nair).
Interpretation: This table demonstrates whether or not individuals are aware of the banking and
financial services and products offered by the bank. The above table demonstrates that not all
items, such as loans secured by gold and gold banking services, which received 0% in favour of
them while being offered by ICICI Bank, are known to the public.
Table: 2, for SBI Bank
SI Banking and Financial Yes (Knows NO (Knows that Cannot Say (does
No. that the the services is not whether the
Services services are not offered) bank provides the
Provided) services or not)
1. Education Loans 50 0 0
2. Pension Payments 50 0 0
3. Locker Facility 50 0 0
4. Agriculture and Rural Credit 44 0 6
5. Loan against Gold 0 0 50
6. Housing Loans 50 0 0
Loan against
7. 50 0 0
Share/Debentures
8. Any NRI Services 46 0 4
9. Wholesale Banking Services 48 0 2
10. Tax Payment 48 0 2
11. Project Finance 49 0 1
Telephone & Electricity Bills
12. 50 0 0
Payment
14. Gold Banking Services 0 19 31
15. Letter of Credit 23 12 15
16. Pre-paid cards for payment 23 15 12
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disbursements (Smart Card)
17. Microfinance 22 8 20
18. Credit Card 50 0 0
19. ATM Card 50 0 0
20. Investment Banking 46 1 3
22. Insurance (Life & General) 50 0 0
23. Mutual Funds 45 5 5
Source: iosrjournals.org, Universal Banking in India: A Comparative Study between the Selected
Private Sector and Public Sector Banks. (Author: Ruchi Jain and Ardra R Nair).
Interpretation: The aforementioned table clearly demonstrates that despite being clients of one of
India's most well-known banks, the consumers still aren't aware of the services and products
offered by the bank (as the clients chosen were primarily less educated than the clients of ICICI
BANK).
II. Analysis of ICICI Bank and SBI on the basis of Awareness on the Concept of Universal
Banking
III. Analysis on the basis of Diversifies Services being Provided by the Bank will help in
Optimum Utilisation of Resources – Both Manpower and Infrastructural.
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IV. Analysis on the basis of a Bank who Provides All Kind of Banking and Financial
Services Under one Roof
V. Analysis on the basis of the Degree of Fast and Efficient Customer Services of the Bank.
VI. Analysis on the basis of Ability to Meet Changing Needs of the People by Bank.
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10. FINDINGS
From the analysis it is found that the awareness regarding the concept of universal banking is less
in SBI. It might be possible that some people are not aware about universal banking term but
knows regarding the various products and services which are provided by the bank. The concept
of offering wide range of products and services under one-roof is a recent concept. It is initially
started by ICICI bank in the year 2002. The ICICI bank's greater customer focus and more
courteous and well-trained staff contributed to the increased customer satisfaction.
11. CONCLUSION
It is found that the concept of universal banking is not very popular among people. Many
customers are not even aware about the wide range of products and services provided by their
own bank. Due to this ignorance the banks may also lose customers to competitor bank. ICICI
bank is more customers oriented and is promoting their products and services well comparatively
to that of SBI.
REFERENCES
[1] Agarwal, Pragya & Jain, Divya (2016). Contactless Payment System in India: A Study
of Mobile Banking. International Journal of Trade and Commerce-IIARTC, 5 (2), 339-
345.
[2] Balyan, Rachna & Baliyan, Deepa (2014). Electronic Banking Practices of Private Sector
Banks in India: A SWOT Analysis. International Journal of Trade and Commerce-
IIARTC, 3 (2), 269-274
[3] Sbankaran, S. (2011). Universal Banking by DFI: Handy But no solution to NPA's.
Business Line, 2.
[4] Puri, M. (1994 b), "Commercial Banks in Investment Banking: Conflict of Interest of
Certification Role?" Unpublished working paper, New York University
[5] Rajan, Raghuram, (1992 a), "Insiders and Outsiders: The Choice between Informed
and Arm'slength debt", Journal of Finance, Vol 47, pp. 1367-1400.
[6] RBI (2002). Universal Banking : Introduction, RBI rules and regulation
[7] Universal Banking in India. Retrieved January 2012, from www.banknetindia.com.
[8] Khan S.H , Harmonising the Roles and Operations of Development Financial Institutions
and Banks„ (1998), Indian Banking: A Transition Towards Universal Banking Framework,
April 2011
[9] Sbankaran, S. (2011). Universal Banking by DFI: Handy But no solution to NPA's, Business
Line, 2
[10] Rajan, Raghuram, (1992). Insiders and Outsiders: The Choice between Informed and Arm's
length debt. Journal of Finance, 47, pp. 1367-1400.
[11] Rajan, Raghuram, (1992). A theory of the costs and benefits of universal banking, mimeo,
University of Chicago.
[12] Rajan, Raghuram, (1994). An Investigation into the Economics of Extending Bank Powers,
mimeo, University of Chicago.
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[13] Rajan, Raghuram (1994). Why Bank Credit Policies Fluctuate: A Theory and Some Evidence.
Quarterly Journal of Economics, 109, pp. 399-442.
[14] Roe, M. (1994). Strong Managers, Weak Owners, Princeton University Press, Princeton, N.J.
[15] Rosenbluth, Frances (1989). Financial Politics in Contemporary Japan.
[16] Sharpe, S. (1990). A symmetric Information, Bank Lending, and Implicit Contracts: A
Stylized Model of Customer Relationships. Journal of Finance, 45, pp. 1069-1088.
[17] Walter, I. and A. Saunders, Universal Banking in the United States, Oxford University
Press, New York.
[18] White, E. (1986). Before the Glass-Steagall Act: An Analysis of the Investment Banking
[19] Approach to Universal Banking. (2007, February). Retrieved January 2012,
fromwww.banknetindia.com.
[20] BNV Parthasarathi. Consolidation of Indian Banks challenges. The ICFAI University Press.
[21] Kamal, Sehgal (IIFT). (2011, October). Universal Banking the Road Ahead. Retrieved
January 2012, from www.indianfoline.com.
[22] M. Guruprasad. Banking in the New Millennium.
[23] M.S. Gupta. (October 2006). The Universal Banking Introduction concept, pros, and cons.
Journal of Professional Banker, pp. 24-27.
[24] RBI (2002). Universal Banking: introduction, RBI rules, and regulation
[25] Universal Banking in India. Retrieved January 2012, from
www.banknetindia.com/banking/ubfeature.htm.
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Hospitality and Tourism Distribution System: A Case Study of

Accor Hotel Group
Rehana Parvina*, Kaniz Marium Akterb
aDhaka School of Economics, Bangladesh
bSchool of Business Management, University Utara, Malaysia
E-mail: rehanaparvin23@gmail.coma, kanizmakter@gmail.comb
Abstract
Although hospitality and tourism marketing is relatively new,
contributing to the global economy greatly. Hospitality and tourism PAPER/ARTICLE INFO
distribution is not as same as other service marketing, due to the extreme RECEIVED ON: 22/11/2022
visibility of its sales. Therefore, in addition to the brands, successful ACCEPTED ON: 31/12/2022
companies run a distribution system, which has to become more powerful Reference to this paper
and leverage the close fit among the direct reservation channels. Those should be made as follows:
companies, thus, can respond more effectively to the customers'
increasing shift to online room booking practices, for instance. These Parvin, Rehana & Akter, K.
efforts are to pursue in the years ahead with an ambitious capital M. (2022), “Hospitality and
expenditure program to retain control over the customer relationships. Tourism Distribution
The hotel and tourism distribution system, finally, offers a variety of System: A Case Study of
systems and methods to maximize company revenue. The main objective Accor Hotel Group”,
of this study is to identify the factors to be considered in designing the
hospitality and tourism distribution system, which can be followed by
11, No. 2, pp: 548-558.
others.
Key Words: Hospitality and Tourism Distribution, Marketing,
Customer Relationship, Economic Impact, Information and Knowledge.
DOI: 10.46333/ijtc/11/2/20
Hospitality and Tourism Distribution System: A Case Study of Accor Hotel Group
Rehana Parvin, Kaniz Marium Akter
1. INTRODUCTION
According to data, tourism is the world's largest industry and the fourth-largest export item.
According to recent studies, over the next ten years, tourism will grow by 4.5% annually. After
COVID-19 and the war in Ukraine has been triggering a costly uncivilized crisis that demands a
peaceful solution. https://wttc.org/research/economic-impact (viewed on 25, November, 2022)
whereas Travel & Tourism's contribution to GDP decreased by over US$4.9 trillion in 2020 (-
50.4% turn down), it grew by US$1 trillion (+21.7% move up) in 2021. Due to persistent mobility
constraints, the Travel & Tourism sector's contribution to the global GDP fell from 10.3% in 2019
to 5.3% in 2020. The proportion rose to 6.1% in 2021. According to Aharon et al. (2021), the
uncertainty caused by the pandemic in terms of the spread of the disease, its lethality, the amount
of time needed to create vaccines, anonymous economic rumours, etc., played a significant role in
determining whether the value of warm equity rose or fell.
Structure on the power of Accor Hotel Group side and of Accor Hotel Group integrated
ecosystem of most important brands, modified services & specialist solution, they sever novel
position to reimaging hospitality and motivate novel conduct to knowledge the earth. Zimbabwe
and Dubai gained worldwide recognition as top tourist destinations. The administration of Dubai
built a socioeconomic culture that is solely dependent on the travel and tourism industry. They
plan to invest US$70 billion in the travel and tourism industry. Unlike other industries, the
hospitality and tourist sector is entirely global in scope. In order to appeal to customers
worldwide, enterprises in this sector now create their goods and services as specifically as
feasible. Consumers dominate this industry to the point where businesspeople are under intense
customer pressure. The successful businesses respond to client demands by offering them
distinctive goods and services at competitive prices and in a fair amount of time. Today's
hospitality businesses bundle travel and sightseeing with food and drink to entice customers.
These businesses' sales, marketing, and promotional strategies are all highly distinctive and
tailored.
Successful managers place a high priority on customer happiness over profit maximisation
although most corporate organisations set their goals for maximising profits. As a result, they
developed their marketing plans to increase client happiness, which in turn will increase
consumer loyalty. Since there is fierce competition among the businesses in the hospitality and
tourism industries, customer retention is the most difficult problem to solve. Due to the very
worldwide character of the industry, most businesses strive to make their goods and services as
specialised as possible in order to draw in overseas clients. Also, businesses use marketing
methods to identify client demands and wishes, appraise them, and then meet those demands to
win over customers' loyalty. For instance, clients typically demand a single travel and
accommodation package. Those who work in organisations should therefore be sufficiently
knowledgeable about both business ideas and hospitality marketing.
A distribution platform is a potent catalyst for increased hotel performance and bookings,
increasing hotel income. Generally speaking, the platform includes the implementation of a multi-
channel strategy matched to each guest need and booking procedure. The guest experience has
lately changed as a result of the digital revolution, which has also changed the way hotels are
distributed. Businesses analyse the intricacy of this dynamic market, make investments in their
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websites and mobile applications, and link hotels to their most well-liked partner travel websites
while negotiating the best possible conditions. Also, several loyalty programmes within the
hospitality and tourist business are crucial in fostering relationships with favoured customers. In
order to optimise revenue, the system provides its hoteliers with a number of systems and
techniques.
Figure 1: Travel and Tourism Sectors Economic Impact 2022.
(Source: https://wttc.org/Portals/0/Images/Reports/2022/EIR2022-Infographic-Maps-Global-
2020.jpg, viewed on 14 Decemebr, 2022)
2. METHODOLOGY
The study focuses on the hospitality and tourism industry's marketing and distribution network.
As a result, the Accor hotel group, a hospitality and tourism corporation, has done some analysis.
The organisation was chosen for its operational breadth in the hospitality and tourism industries,
and in particular because it has a cutting-edge distribution system for these industries.
Information for this qualitative study was gathered from secondary sources such as research
papers, articles, annual reports, journals, business websites, online publications, catalogues, etc.
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3. ACCOR HOTEL GROUP AT A GLANCE
With the opening of the first Novotel in Lille Lesquin in 1967, Accor began its venture into the
hotel and travel industries. Since its debut, Accor brand hotels around the world have grown
from one hotel to 4,426, from one country to 92, and with 180,000 workers. Almost 130 million
meals are delivered annually by Accor, which has 145,000 owned, leased, and managed rooms,
11,600 meeting rooms, and a total capacity of 1 million people. There are more than 6,000 new Le
Club Accor hotels members joining every day, 183 million visitors every year use Accor booking
sites, and 1 booking is made on an Accor website every three seconds.
In order to improve market share and revenue, Accor successfully manages properties,
guarantees occupancy rates, and works to build particular relationships with customers. A wide
range of accommodations, from luxurious to affordable, are offered by Accor's diverse array of
hotel brands, which includes Sofitel, MGallery, Novotel, Suite Novotel, Pullman, Adagio,
Mercure, ibis, all seasons/ibis Styles, Etap Hotel/Formule 1/ ibis budget, hotelF1, and Motel 6.
The Group provides approximately 45 years of experience and knowledge to its clients and
partners. Team members have been motivated by a pioneering spirit of conquest ever from the
opening. This mindset, which is essential to Accor's success, has over time defined the Group's
culture and served as the glue that links their team members while appreciating their differences
in ages, cultures, and positions. The culture of Accor is also influenced by a dedication to the
highest performance standards as well as an ongoing concern for people.
Every day in Accor brand hotels around the world, the company's five core values—innovation as
a trademark, the spirit of conquest as a growth engine, performance as the secret to ongoing
success, respect as the cornerstone of all relationships, and trust as the cornerstone of
management—are shared and expressed. In order to support team members during the Group's
continuing transformation and development, managers make use of these values. As a solely
focused player in the hotel industry, the group owns, operates, and franchises hotels ranging
from budget to luxury on all five continents. The strategy of Accor is supported by four pillars:
i. a potent marketing strategy that revives Accor's brand and Economical Hotels' business.
ii. Accor's three strategically connected businesses—hotel owner, operator, and franchisor—
display exceptional operational experience across all market categories and geographical
areas.
iii. The Group's business performance is enhanced by a value-creating asset management
approach that also supports expansion and optimises the balance sheet.
iv. A development plan with the objective of strengthening the Group's current dominance
in Europe and Latin America and elevating it to the top of the pack in Asia-Pacific,
particularly China.
Accor's company clearly recovered in 2012, as evidenced by results that were significantly better.
The Group has the resources necessary to accelerate its rate of expansion and establish itself as the
industry leader in all areas of operation. It is fully committed to hotel operations and is supported
by a very strong financial position. It will accomplish this goal while adhering to its obligations to
shareholders, keeping in touch with them, and giving them comprehensive, open information.
With the intention of setting the global standard for the hospitality sector and offering clients a
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distinctive, consistently upgraded hotel experience, Accor pursued its transformation and
established the framework for further expansion.
In terms of operating excellence and hotel distribution, Accor improved its performance. Le Club
Accorhotels, the rebranded loyalty programme for Accor, now boasts 8.3 million members
worldwide, including more than 2 million in Asia. Also, 60% of Accor's revenues come from
central booking systems, a statistic that is constantly rising and helps the company to keep a
direct line of communication open with its clients. The environment in which large service
organisations operate is changing at a faster rate and with a wider range of change as customers
adapt, and Accor and its brands are doing the same. As a result, Accor Group has accelerated its
own transition. The advent of digital technology has altered visitor behaviours and conduct.
Today's guests desire more connection with the brands and are more knowledgeable about the
hotel options. They seek for brands that are attentive to their requirements and truly understand
them because they want more than just their practical demands to be met. Customers today,
whether wealthy or not, can book a room in any hotel category, from budget to fancy. Economy
brands must therefore come up with increasingly creative strategies to please customers. That is
the secret to building customer preference and distinctiveness.
The future growth benchmarks that Accor will reach on its way to becoming the industry
standard in hospitality have been outlined. The Group generated strong growth in 2012 and
intensified its transformation, which is being driven by three strategic drivers: the brands,
distribution, and development. The ibis family's deployment in particular helped to expand the
brand portfolio, which spans every market from luxury to economic. The brands are more
enticing and better positioned, and they are backed by a strong distribution network and a loyalty
programme with more than 10 million participants. The difficulty in distribution for Accor is to
develop personal connections with customers in order to foster intimacy and loyalty.
4. ACCOR DISTRIBUTION SYSTEM

The Accor Central Distribution System connects all participants in the industry by offering a real-
time picture of the different factors that must be taken into consideration when making a
reservation, including rates, availability, and images and descriptions of the hotels. The Accor
Central Distribution System solutions connect the hotel to all reservation systems required to
improve performance, and go beyond simply being a database connected directly to distribution
channels (the hotel property management system and revenue management tools). By ensuring
that hoteliers can sell their rooms at the correct price and at the right time for a specific customer,
the system optimises room occupancy rate and raises average rate.
To effectively respond to the guests' increasing move to online room booking practises, the
system must now become stronger and harness the close fit among direct reservation channels.
This year, in particular, Accor is increasing access to its websites through a significant number of
mobile applications. More than half of their sales in 2012 came via the central booking system,
with roughly 28% of those transactions occurring online. Le Club Accorhotels, Accor's reward
programme, now boasts more than 10 million members. An extensive capital expenditure
programme will be implemented in the coming years to continue these efforts and maintain
control over Accor's client connections. The problems of enhancing unique relationships with
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clients, ensuring occupancy rates, and successfully managing hotels to boost market share and
revenue must be overcome by Accor every day.
In 2012, Accor Distribution Systems contributed 63% of the company's hotel revenue. Shown
in Figure: 2
In Table: 1, the study shows Accor Group First-quarter 2022 revenue of €701.
In € millions Change Change
Q1 Q1
(LFL) (1) (LFL) (1)
2021 2022
vs Q1 21 vs Q1 19
South Europe 17 38 123% -27%
North Europe 10 30 167% -47%
ASPAC 20 24 18% -55%
IMEAT 11 32 185% 0%
Americas 15 33 103% 22%
Total 73 158 106% 33%
(1) Like-for-like: at constant scope of consolidation and exchange rates
Source: https://press.accor.com/first-quarter-2022-revenueof-e701-millionup-85-like-for-like/?lang=en
(viewed on 14 Decmeber, 2022)
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In 2021, the Group reported consolidated revenue of 2,204 million Euros, an increase of 34% like-
for-like over FY 2020, according to Karantzavelou (2022). This growth is actually broken down
into a 36% increase in hotel services and a 29% increase in hotel assets & other. To compare with
RevPAR, which is always expressed as the change from FY 2019, the like-for-like reduction in
revenue from FY 2019 is (42%).
5. DIGITAL HOSPITALITY
With the only central booking system that is entirely online, Accor is at the cutting edge of
innovation worldwide. Online sales increased and made up around 28% of the total in 2012.
Accor increased its online visibility and made investments in mobile e-commerce services. The
central distribution system's powerful features are available to assist the hotels and partners in
maximising their efficiency.
Today's visitors are frequently "multi-connected," having access to the internet at home, at work,
and when travelling. They have the most recent models of smartphones and tablets, which are
steadily and quickly gaining in popularity. At every stage of the guest experience, Accor has
implemented cutting-edge solutions in response to this radical shift in behaviour.
Online sales, which have double-digit annual growth, are crucial to hotel distribution. In light of
this climate, Accor regularly updates its hotel booking website, accorhotels.com. The portal
provides a wide variety of features that make it simpler to find and draw clients at crucial stages
of the search and booking process. 28 versions, 13 languages, 16 location mini-sites, 8 million
monthly views, 14 brand websites (sofitel.com, MGallery.com, ibishotel.com, and so on), and 4
professional user sites make up accorhotels.com, a multi-brand portal with 14 hotel brands (B2B).
Call centres serve as a key lever for increasing revenue. More than 3 million contacts, 300,000
calls, and 30,000 emails in 15 languages are managed by Accor's 9 platforms in places like Paris,
Bangalore, Dalian, Sao Paulo, Sydney, and Rabat.
6. CONSTANTLY INTERACTING WITH GUESTS

Accor and its brands are creating permanent, direct, interactive guest relationships through e-
commerce sites and social media. E-commerce site income increased again in 2012 and made up
27.8% of the total combined revenue. This success was attributed to a dynamic, multichannel
strategy that included cutting-edge, efficient e-commerce sites, mobile applications for all
operating systems, and an expanding social media presence. During every phase of their journey,
guests benefit from enhanced usability, seamlessness, and recognition.
■ Accorhotels.com attracted 9 million visitors a month in 2012
Customers will receive the best deals and the widest selection of hotel rooms thanks to our multi-
brand platform. The site, which is regularly updated, provides new services for internet users,
such as quicker, more effective multi-criteria hotel search functions. A guest profile records
preferences and allows for tracking of both advanced reservations for hotel services other than
rooms and breakfast as well as room reservations.
■ The websites for 14 hotel brands, which had 126 million visitors in 2012, are extending this
digital ecosystem.
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These websites, which operate as showrooms and points of interaction between brands and their
customers, are continually changing, as seen by the following developments throughout the
course of the year:
■ a new Sofitel website that is more adaptable, comprehensive, and has more images;
■ the websites mercure.com and novotel.com now offer Russian and Polish as new languages;
■ a brand-new, first-of-its-kind long-stay booking feature on adagio-city.com.
7. A GROWING PRESENCE IN NEW MEDIA

300,000 people downloaded the Accorhotels.com app in 2012, while more than 12 million people
visited the website. The telephone is becoming a more and more necessary tool for making hotel
reservations as a result of the exponential increase in the most recent generation of smartphones
and the introduction of mobile broadband. Mobile devices are increasingly being used to make
online reservations because they are great for last-minute searches. Accor has made investments
to adapt its websites for mobile phones and to provide free applications for reserving a room with
just a few clicks. As a result, the company has been successful in increasing the number of rooms
purchased by mobile phone by more than double in just one year. The Accorhotels.com app was
first made available for iPhone, then BlackBerry, and is now accessible for Android. The app
allows phone users to effortlessly book a room, access promotional deals, do a geolocalized
search, and manage ongoing reservations all in a completely secure environment.
There are several benefits to developing new interactions between brands and their customers
thanks to new media. They support an open, interactive type of communication that ushers in a
new age in the travel industry. According to a study of business visitors in Europe, 49% of them
post comments on social media. Online users contribute as brand advocates and experts by
sharing their experiences. With the ability to post and access Trip Advisor reviews for more than
3,500 hotels directly on Accorhotels.com, Accor was a pioneer in this field.
The service reached a milestone in 2012 when it reached 165,000 Facebook fans and 63,000 Le
Club Accor hotels members. Now, visitors may link their Accorhotels.com profiles to their
Facebook accounts. As a result, users can suggest a hotel to a friend, who can subsequently give
them their feedback. Accor can be found on Twitter as well. The hotel brands have also been
highly active, with Sofitel, for instance, utilising international online events to successfully build
and maintain a true brand community. The Magnifique Cities by Night and 80 Magnifique Nights
Facebook promotions brought in close to 50,000 new fans. One of the busiest Facebook pages on
the market, Sofitel's fan following has increased by 300% over the past year.
8. A POWERFUL SALES ORGANIZATION TO SERVE HOTEL OPERATORS

To aid its hotels in the struggle for revenue, Accor commits significant resources. The TARS
central booking system, to which all the hotels are connected, is the centre of this procedure.
Additionally, the businesses coordinate events all year long to improve their reputation and draw
in as many visitors as possible.
i. TARS: The Hub of the Accor Distribution System
The Travel Accor Reservation System (TARS) keeps proving how important it is every year. The
challenge is significant: to attract more guests and enable the hotels to boost income by giving
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them low-cost access to new distribution channels. TARS, which accounted for 48 million hotel
stays in 2012, produced almost 50% of Accor's hotel revenue. For all hotels, TARS acts as a potent
booking and performance driver. It also provides a guarantee of over-market revenue per
available room for Accor's partners, franchisees, and investors (RevPAR). The system gives hotels
access to reservations made through its direct channels, specifically:
■ websites operated by the Group, including the Accorhotels.com portal, mobile
applications, and websites for each hotel brand. They produce one booking collectively
every three seconds;
■ The nine call centers worldwide that provide booking services in 15 different languages
Our business partners, which include well-known international travel agency networks,
significant participants in the online travel industry, and conventional tour operators, also
market rooms.
ii. The Key Role of Corporate Sales
Accor is a significant player in the business travel market, generating bookings through sales
teams in more than 50 nations, including important rising markets like China, Brazil, India,
Indonesia, and Russia. A proactive approach of collaboration with international organisations,
such as the Association of Corporate Travel Executives and the Global Business Travel
Association, is also enhancing the visibility and market share of Group hotels with the top
corporations in the globe.
iii. Reinventing the Guest Relationship with Digital Technology
In order to give guests a friendlier welcome and a more carefree, customised experience, Accor is
consistently investing in innovative technology. Visitors can indicate their interests and habits for
hotel stays by creating an online profile on Accorhotels.com. In order to enhance the visitor
experience and provide the appropriate services for each stay, hotels can access this information.
The TARS booking system, revenue management systems, customer relationship management
systems, and guest satisfaction management systems are all connected to an integrated platform
that Accor hotels can use. This innovative technology, which offers hotel owners a completely
secure solution that increases revenue, saves time, and maximises access to cutting-edge
technologies like smartphone-based check-in/check-out services and electronic invoices, has
already won the support of more than 2,200 Accor hotels. The brands also reaffirmed their
different characteristics throughout the year and highlighted their promotions:
■ The second phase of Sofitel's Life is Magnifique marketing campaign, which takes the
guise of a travel journal, has begun. The advertisements highlighted the hotels, each of
which contributes to the narrative of the upscale brand;
■ MGallery launched a fresh brand film and ran numerous advertising efforts all year long;
■ Suite Novotel introduced an ingenious buzz campaign called "12.21.2012 Revival" that
was linked to the supposed end-of-the-world announced in the Mayan calendar;
■ Several French television programmes were sponsored by Aparthotels Adagio;
■ Mercure, Suite Novotel, and other budget-friendly brands advertised their unique
seasonal deals;
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■ Happy Click was a three-month promotion run by ibis Styles that gave travellers in 11
countries a 10% discount on hotel reservations made through Accor websites. A unique
coded voucher used in the offer was distributed in hotels, posted on Facebook, and
included in the monthly newsletter. The objective was to reward Facebook subscribers
and fans while accelerating the increase of bookings made through Group websites.
iv. Showcasing the Brands
In a market with intense competition, a brand's strength and appeal are crucial in shaping
consumer preference. Large-scale advertising efforts have therefore been created, particularly for:
■ Accorhotels.com is the website. In the top markets for Accor hotels, such as Germany,
Brazil, France, and the United Kingdom, as well as in Austria and Africa, the
advertisement was broadcast on television and online;
■ the ibis family, who made great use of print, billboard, and television advertising
throughout 56 nations. The campaign's subject of "pleasant sleep" was chosen to coincide
with the rollout of a new visual identity for the ibis, ibis Styles, and ibis budget brands.
9. CONCLUSION
The new Distribution Excellence (DEX) programme was created by Accor hotels' distribution
system primarily for hotel general managers and revenue managers. The course aids hotel
managers in comprehending the main concerns and difficulties brought by by distribution
channels and reservations procedures. Also, it offers guidelines for formulating a plan and
creating practical distribution strategies for their hotels. The main factor that makes Accor hotels
appealing to partners is their booking and distribution system, which works in favour of and in
harmony with the brands. The guest experience is always being improved because to the digital
revolution. Bangladesh has to learn from the global marketing strategies for hospitality.
With more potent brands and the knowledge gained from operating hotels for more than 40
years, Accor is the dominant force in all market segments globally. With a brand portfolio that
spans all market sectors, Accor is able to offer hotel accommodations that are suitable for any
traveler's needs and financial situation. The brands are adapting more quickly to forge emotional
connections with clients and to give them chic, modern interiors in response to swiftly shifting
consumer patterns. The significant initiative to rejuvenate the Group's budget hotels is the most
revealing illustration of this transition. Every day, brands innovate to develop unique connections
with consumers and incorporate their new routines. The dominance of Accor Hotels is supported
by strong, appealing brands that inspire preference among their partners and clients. Accor hotels
create even more intriguing innovations to make the hotels enticing in order to give guests an
amazing hotel experience. All market sectors, from luxury to economic, are affected by this.
Knowledge and information are crucial for sustainable company operations.
REFERENCES
[1] Accor Annual Report (2012). Accor Communication and External Relations Department.
[2] Accor: Reaching for the Impossible, Accor Corporate Communications and External
Relations Department, in Collaboration with Le Cherche Midi Editeur
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[3] Aharo, D.Y. et al. (2021) COVID-19, government measures and hospitality industry
performance, PLOS One, https://doi.org/10.1371/journal.pone.0255819,
[4] https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0255819 (viewed on
Septemeber, 2022)
[5] Bolton, R. N. and Bhattacharya, C. B. (2000). Relationship Marketing in Mass Markets,
Handbook of Relationship Marketing, Jagdish N. Sheth and AtulParvatiyar (Eds.), Sage
Publications: Thousand Oaks, CA
[6] Gummesson, E. (2002). Relationship marketing and a new economy: it's time for de-
programming, Journal of Services Marketing, 16(7), pp. 585-589.
[7] https://press.accor.com/first-quarter-2022-revenueof-e701-millionup-85-like-for-
like/?lang=en(viewed on 14Decmeber,2022)
[8] http://loyaltyandcustomers.com/2010/03/10-tips-for-building-customer-loyalty/
[9] https://wttc.org/research/economic-impact(viewed on 25 Novemebr,2022)
[10] https://wttc.org/Portals/0/Images/Reports/2022/EIR2022-Infographic-Maps-Global-
2020.jpg, viewed on 14 Decemebr,2022)
[11] Karantzavelou, V. (2022). Accor’s full-year 2021 results: The Group reported a
consolidated revenue of 2,204m. euros, https://www.traveldailynews.com/hotels-
lodging/accors-full-year-2021-results-the-group-reported-a-consolidated-revenue-of-
2204m-euros/(viewed on 14 December,2022)
[12] Kotler, P et al. (2010). Principles of marketing: A South Asian Perspective, 13 thEdn, Pearson
Prentice Hall, New Delhi.
[13] Kotler, P & Keller, K L (2008). Marketing Management, 13 thEdn, Prentice Hall, New Delhi.
[14] Mage, G. N. (2010). Empirical Estimation of Customer Loyalty in Tourism Industry,
International Research Symposium in Service Management.
[15] Palmer, A., Beattie, U. M. & Beggs, R. (2000). A structural analysis of hotel sector loyalty
programmes, International Journal of Contemporary Hospitality Management, 12(1), pp.
54-60.
[16] Peter, J P and Donnelly Jr, J H (2004). Marketing Management: Knowledge and Skills,
7thEdn, McGraw Hill, New York.
[17] Rahman, Kazi Turin, Arif, Md. Zahir Uddin (2020). Working from Home during the
COVID-19 Pandemic: Satisfaction, Challenges, and Productivity of Employees.
[18] Reichheld, F. F. (1996). The Loyalty Effect, Harvard Business School Press, Cambridge.
[19] Rust, R. T. & Zahhrik, A. (1993). Customer Satisfaction, Customer Retention & Market
Share. Journal of retailing, 69(2), pp. 193-221.
[20] Saif, Samira Binte (2022). International Organizations Humanitarian Coordination and
Activities in the Sector of Micro, Medium and Small Enterprises in Bangladesh.
[21] Weiermair, K. (2000). Tourists' perceptions towards and satisfaction with service quality in
the cross-cultural service encounter: implications for hospitality and tourism management,
Managing Service Quality, 10(6), pp. 397-409.
[22] www.Accorhotels.com.
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July-December 2022, Volume 11, No. 2, pp: 559-562
BOOK REVIEW
Environment and Development Economics

Essays in Honour of Sir Partha Dasgupta
Scott Barrett, Karl-Goran Maler & Eric S. Maskin

Published by: Oxford University Press;
Great Clarendon Street, Oxford, OX2 6DP, United Kingdom
ISBN: 978-0-19-967785-6
Pages in Book: 432
Year: 2014
US$ 130
Book Reviewer:
Razia Sultana*
E-Mail: 2022-2-94-008@std.ewubd.edu
Sir Partha Dasgupta is an Indian-British economist who holds the positions of Visiting Professor
at the New College of the Humanities in London and Emeritus Frank Ramsey Professor of
Economics at the University of Cambridge in the United Kingdom. He is also a fellow of St. John's
College in Cambridge. This book pays tribute to Partha Dasgupta and the discipline of
environment and development economics that he helped build. The interaction of social and
natural systems is a topic of discussion. Additionally, it addresses the intricate processes through
which resources continue to be overused and people continue to live in poverty. This volume
offers a distinct viewpoint on the environmental challenges that matter most to developing
countries since it includes contributions from some of the most eminent economists in the world
in addition to experts from those countries.
Scott Barrett, the author, is a Columbia University Lenfest-Earth Institute Professor of Natural
Resource Economics. At Columbia University, he is the inaugural Lenfest-Earth Institute
Professor of Natural Resource Economics. He is also the School of International and Public
Affairs' vice dean. At the Yale University Center for the Study of Globalization, he was a
prestigious visiting fellow.
DOI: 10.46333/ijtc/11/2/21
Razia Sultana
Professor Emeritus Karl-Goran Maler is a researcher and a former director of the Stockholm
School of Economics. He also served as the director of the Beijer Institute of Ecological Economics
at the Royal Swedish Academy of Sciences. His areas of study include economic analysis of
dynamic, complex ecological systems and well-being measurement. He shared the 2002 Volvo
Environment Prize with Professor Partha Dasgupta.
Adams University Professor at Harvard is Eric Maskin. He and L. Hurwicz and R. Myerson
shared the 2007 Nobel Memorial Prize in Economics for their work developing the theory of
mechanism design. Additionally, he has contributed to the fields of political economy, social
choice theory, game theory, contract theory, and other branches of economics.
There are 20 chapters in this book. Partha Dasgupta attempted to clarify the idea of sustainable
development in Chapter 1 and identified ways to make it relevant for making investment and
policy decisions. He made a connection between the idea and his prior studies on population
growth and exhaustible resources, as well as his early work on cost-benefit analysis and project
evaluation. The integral of discounted social wellbeing into the far future must not decrease for
progress to be sustainable, he discovered.
India and the World" is the second chapter. We have discovered that Partha Dasgupta was mostly
Indian despite being born in Dhaka, which at the time was a part of India. Additionally, Partha
Dasgupta's father was the eminent Indian economist A. K. Dasgupta, therefore he tried to link to
India and the rest of the globe through economic notions. As a researcher, he drew inspiration
from his observations, and as an Indian citizen, he possessed extensive information and expertise
regarding the economic climate. Amita Shah also discusses the numerous linkages between
India's natural resources and poverty in this chapter. She uses irrigation as a nice illustration of
this. This leads us to the conclusion that GDP can serve as a measure of intergenerational well-
being.
We discovered in Chapter 3 that social and ecological systems are complex adaptive systems
because human behavior influences changes at the aggregate level, which in turn influences
human behavior. The sustainability of vital ecological systems has been significantly impacted by
the human economy, which will have an impact on the level of welfare that human societies can
achieve. The institutional study of development cooperation was covered in chapter 4. This
chapter examines how many instances of collective action failure lead to underdevelopment.
These issues are examined using a paradigm for institutional analysis and development. The
chapter outlines strategies for reducing or overcoming the unfavorable incentives of development
assistance.
Chapter 5 discussed how people in rural Nepal are thinking globally and acting locally in relation
to the climate change, cook stoves, coughs, and colds. In families in Nepal, biomass is the primary
fuel source used in conventional stoves for cooking. This chapter provides proof that better stoves
can reduce respiratory illnesses, medical expenses, cooking, fuel-wood usage, and greenhouse gas
emissions using survey data.
Chapter 6 primarily focuses on Joseph E. Stiglitz's remarks on This commentary's principal
concern is the lack of widespread adoption of upgraded cook stoves, despite the fact that their
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Razia Sultana
personal advantages outweigh their price. The argument goes on to claim that adopting better
cooking stoves has enormous social benefits.
Red Wells vs. Green Wells and if they matter are the main topics of Chapter 7. It also looks at how
Bangladeshi households use water that has been poisoned with arsenic. In Bangladesh, arsenic in
groundwater is a significant public health issue. People are suffering a great deal because of this
risk. Safe tube wells were designated as green and unsafe tube wells as red in a government
initiative. Additionally, it demonstrates that information provided by private and non-
governmental organizations is more effective than that of the government.
Then, the chapter 8 is based on David Starrett's comments on the chapter 7. This discussion
focuses on the reasons why people do not move to safe wells even when the private benefits
outweigh the expenses. Forest Degradation in the Himalayas: Determinants and Policy Options is
the title of chapter 9. Options for policy are discussed in the chapter's conclusion. This chapter
presents the findings of a ten-year study on forest degradation in India and Nepal's mid-
Himalayan region. The analysis is supported by research done in the Indian states of Himachal
Pradesh and Uttaranchal as well as statistics for Nepal.
Geoffrey Heal's comments on "Forest Degradation in the Himalayas" are the basis of chapter 10.
In discussing the value of forests as a part of natural capital, the remark emphasizes the
advantages for influencing the carbon cycle and the global climate. Linking local and global
governance is the main difficulty in reducing deforestation and forest degradation. Then, Chapter
11 is founded on an optimum contract for Benin's co-managed forests that monitors illegal
exploitation.
Comments made by Eric Maskin on "An Optimal Contract" are the focus of Chapter 12. Rewards
have an equal role in motivating behavior as do negative incentives (punishments). The co-
management system would probably be more successful and efficient if positive incentives were
taken into consideration during the analysis. "Why Cooperation is Better: The Gains to
Cooperative Management of the Argentine Shortfin Squid Fishery in South America" is the title of
chapter 13. The ecological and financial effects of cooperative vs non-cooperative management of
this fishery are examined in this chapter using game theory. The findings imply that modern
fishery management is consistent with uncooperative conduct.
The comments made by Peter Hammond in "Why Cooperation is Better" are the foundation of
Chapter 14. The commentary reframes the issue of transnational fishing in a more general
dynamic environment, modeling the fishery as a Markovian game, and characterizing the ideal
harvesting strategy using dynamic programming.
"Occupational and Environmental Health Impacts from Mining in Orissa, India" is the title of
chapter 15. The effects of mining on the environment and public health in Orissa, India, are
empirically estimated in this chapter. It has been discovered that mine workers are less
susceptible to fever but more susceptible to respiratory illnesses. People who live close to the
mine, however, are shown to be more susceptible to fever and waterborne illnesses. The
development of mining must therefore be supported by a cost-benefit analysis and go hand in
hand with the necessary legislation.
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Razia Sultana
Next, Robert Solow's comments on "Occupational and Environmental Health Impacts" are
covered in chapter 16. The commenter wonders if additional study will be able to determine the
effects of increased income from mine development on health. Additionally, it underlines that a
study's findings. Then comments made by Shanta Devarajan on "Estimating the Value of
Statistical Life" are covered in Chapter 18. The commentary points out that the chapter is
predicated on well-known truths, particularly the notion that rational people will maximize their
own utility. The consequence is that the results produced by conventional techniques might be
skewed.
"Natural Resources and Chronic Poverty in India: Interface and Policy Imperatives" is the title of
chapter 19. This chapter examines the critical elements affecting how India's natural resources and
poverty interact. Understanding the political economy of policymaking is crucial for addressing
both poverty and the sustainability of natural resources in India because poverty is concentrated
in a small number of areas.
"Comments by Kanchan Chopra on Natural Resources and Chronic Poverty" is the last chapter
20. The essay examines the connections between natural resources and poverty via the prism of
several ecosystem services. It largely focuses on how India's recent economic success has resulted
in the depletion of priceless resources like groundwater.
After reading this book, I want to mention that it's a good one for understanding the economies of
other nations. Readers gain confidence from book reviews. It can truly aid in our understanding
of the idea of the environment and the development of the economy from several angles.
Additionally, it will be useful in understanding our course. I learned a lot from this book and
expanded my knowledge.
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July-December 2022, Volume 11, No. 2, pp: 563-568
BOOK REVIEW
Entrepreneurship Development and International Trade with

BIMSTEC

Published by: Mohammad Masfiqullah;
Dhaka, Bangladesh
ISBN: 978-984-96503-2-4
Pages in Book: 212
Year: 2022
US$ 100
Book Reviewer:
Faharia Parvez*
E-Mail: 2022-2-94-007@std.ewubd.edu
The "3rd International Conference on Entrepreneurship Development and International Trade

with BIMSTEC" organized by the Entrepreneurial Economists Club, Dhaka School of Economics,
was held on January, 2022, and is the basis for the book "Entrepreneurship Development and
International Trade with BIMSTEC.” The especially appreciate Prof. Anisul M. Islam and Prof.
(Dr.) Parul Khanna. The conference proceedings have been double-blind peer reviewed with 34
scientific pieces focusing on the issue. The "Entrepreneurial Economists Club" of the Dhaka
School of Economics organized this international conference to give academics, student scholars,
and practitioners from home and abroad, BIMSTEC, and other nations the chance to attend and
present. Based on this the book was written and I am giving a short review of this book.
The articles' main topics include the Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation and entrepreneurial development (BIMSTEC). It is an international
organization that promotes socioeconomic cooperation among its eight member nations,
Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan, and Nepal, which border and border
the Bay of Bengal and the Indian Ocean. Entrepreneurial opportunities and challenges, the impact
of the Padma Bridge, the Sustainable Development Goals, foreign direct investment, financial
inclusion and economic development, digital innovation, socio-intercultural entrepreneurship
and capacity building, leadership, export opportunities of ready-made garments (RMG) to
DOI: 10.46333/ijtc/11/2/22
Entrepreneurship Development and International Trade with BIMSTEC
Faharia Parvez
Middle Eastern nations (from development finance), decentralized governance of women in
India, and IPOs free trade were just a few of the many topics covered in the articles.
A nation's economic and social progress depends heavily on entrepreneurship. People with
entrepreneurial spirit, talents, and ability are assets of a nation in both the capitalism and mixed-
capitalist models of growth. Entrepreneurship is a distinguishing attribute. These businesspeople
do make an effort to put innovative concepts into practice, create new enterprises and industries,
and substantially contribute to the generation of money and jobs, as well as to the social and
economic growth of a nation. For businesses to flourish and establish long-lasting roots in the
nation, they require the care and assistance of several state and non-state companies, agencies,
and organizations. In light of this, it was imperative that the BIMSTEC hold this significant
conference on entrepreneurship development. Hamid H. Kazeroony, South Africa, in his book
Research and Forecasting for Entrepreneurship, focuses on the expansion of the entrepreneurship
model in management current likely opportunities for prospect research discovered on the
present local and worldwide situation. It was an international conference with attendees from
both BIMSTEC member nations and other nations. Academics, students, researchers,
policymakers, business professionals, and others delivered presentations at the conference on a
wide range of conference-related issues. The EEC of DSCE will shortly publish the conference's
proceedings in the form of a book. The well-organized "International Conference" on
Entrepreneurship Development and International Trade with BIMSTEC, which was put together
under the capable direction of Prof. Dr. Muhammad Mahboob Ali, took place on January 15 and
16. Thousands of authors and well-known people from around the world attended the
conference. The goal of the conference proceedings is to share fresh findings and original research
in the area of BIMSTEC's Entrepreneurship Development and International Trade.
'SDGs, Climate Change and Future of Humanity', paper as penned by Qazi Khaliquzzaman
Ahmad, Bangladesh, freedom fighter, Economist, Social Thinker, Expert on Environment and
Climate Change, aimed to highlight the Sustainable Development Goals (SDGs),As the 20th
century wore on, many nations throughout the world saw slowing economic development, stark
and widening inequality threatened domestic and international peace and security, and climate
change became so severe as to be an existential threat to mankind. There was a general
understanding that a worldwide agreement on how to handle these complex problems was
necessary. In order to achieve this convergence about the process of formulating a sustainable
development program for acceptance by the UN and implementation by all nations of the globe,
the Rio+20 UN Conference on Sustainable Development, held in Rio de Janeiro, Brazil in 2012,
created a momentum. The UN asked all its member countries as well as UN and other
international, regional and national institutions to submit their ideas for an SDGs. climate change
was worsening Sustainable Development, held the world. The General Assembly endorsed the
OWG's overall plan, known as the "2030 Agenda for Sustainable Development" for the years
2016–2030, on September 25, 2015, which included 17 Sustainable Development Goals and 169
objectives. As it was intended, the program's goal was to launch a process to address important
economic, social, and environmental issues in an integrated manner with a view to ensuring
everyone was included, or that no one was left behind, participation, equity, human freedom and
dignity, and harmony between humans and nature in the process of development. Therefore, a
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Faharia Parvez
brief definition of sustainable development is economic growth that is both socially acceptable
and ecologically responsible. As the impact of climate change on both human and environmental
systems began to become overpowering by in both national and international discourses on
economic growth and human development during the 1980s, it was becoming more and more
noticeable. Global discussions and talks on how to implement this Convention take place within
the framework of this Convention. To address challenges related to climate change on a global
and national level. The Convention was initially intended to concentrate primarily on mitigation.
As the amount of fuel used increased, the amount of greenhouse gases (GHGs) released into the
atmosphere also increased. The first industrial revolution-IR about 1760 brought about a
concentration in the atmosphere of the greenhouse gases (GHGs) that fossil fuels generate, which
in turn caused the Earth to warm and the process of anthropogenic global warming to start. This
has been taking place because the concentration of GHGs in the atmosphere retains part of the
heat from the Sun. By this point, the fourth IR period about 2016 has begun, although GHG
emissions have continued to rise throughout.
The chapter, "The Road to Digital Economy: Bangladesh Perspective," is written by Muhammad
Mahboob Ali, and he talks about how the digital economy may serve as a bridge to help
businesses create jobs. Global connectivity is evolving due to the digital economy, which is
brought about through COVID-19. The planet underwent transformation to become a global
community. The process by which a business or supporting institution increases global pressure
or starts functioning on a global scale is now being worked through by the global system.
Regarding the forces that will eventually change employment opportunities with the help of
machine learning, digitalization, artificial intelligence, Internet of Thinking, Block chain
technology, big data, etc., socio-economic and technological forces of the world are all pending
jointly in the 4th Industrial Revolution.5th Industrial revaluation is very quickly surpassed 4th
industrial revaluation.
Where he also talks about how, Global economic conditions are changing gradually, and the
diversified character of the global economy is changing with society, cultural heritage, and
environmental diversity as a result of population shift brought on by pandemics that altered
lifestyles. The methods used for the applications ranged from online reviews, food retail chains,
and e-health. They also included data mining, simulation, and expert systems. Online learning
has been essential throughout the epidemic. Economic psychoanalysis is the study of
economically viable plans that are made easier by digital processes. Data-driven innovation must
be used by governments in both developed and developing nations. The digital economy is
making it simpler to do both local and international commerce. Outsourcing, foreign direct
investment, and investment policy are all becoming more user-friendly. The local, regional, and
global economies will be stimulated to act by synchronizing the goals and targets while accurately
taking into account social welfare and human values. A form of cost-effective analysis known as
behavioral economics relates emotional approaches into individual behavior to make financial
supervision more understandable.. As a result, global transformation has been taking place. The
establishment of the digital economy, with its distinctiveness, stability, and existence, is the main
focus of a financial psychoanalysis of the global economic foundation made possible by
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Faharia Parvez
connectedness via the internet. A financial structure that is to be backed by digital computing
ability is referred to as a "digital economy." Although there may be discrimination in how large
and CSMES businesses behave from one side to another of the marketplace stand on the Internet
and allow credentials to be linked with additional credentials by hypertext links, this enables
human resources to look for in order by moving from one act to another.
The chapter on Women Entrepreneurship was written by Parul Khanna and Surbhi Rattan, who
stated that the rise of female entrepreneurs has given the field of entrepreneurship a new
perspective. Women's entrepreneurship has several practical, sociological, and financial
advantages. Even though women make up over half of the population in India, they still
participate in entrepreneurship to a very little extent. The study intends to analyze the prevalence
of women entrepreneurs in India in an effort to understand the idea, profile, and dynamics of
women entrepreneurship in India. Highly referenced research articles on women's
entrepreneurship, especially in the Indian context, were among the criteria used to choose the
current research on the subject. For the purpose of review, the most recent research studies that
are accessible on Google Scholar, EBSCO, and Proquest have been chosen.
Women entrepreneurs make up a diverse population that spans a range of ages and
demographics. Additionally, they face a variety of gender-specific and gender-neutral difficulties
when they set up and run their businesses. Entrepreneurial activity is fairly low in India and is
largely centered in states like Tamil Nadu, Kerala, Andhra Pradesh, West Bengal and
Maharashtra. Decoding policy requirements and actions that would improve an environment that
encourages women entrepreneurs in India is urgently needed.
Throughout Bangladesh's history, several economists have made significant contributions to the
discipline. But Qazi Kholiquzzaman Ahmad is one of a select group of economists in Bangladesh
who have made contributions that have altered Bangladesh’s culture, economy, anthropology,
political will, and knowledge of the environment while also inspiring new businesspeople. Qazi
Kholiquzzaman Ahmad is an economist and development theorist who has dedicated his life to
fighting poverty, empowering young and underprivileged people, and establishing rural
economic programs around the nation.With the help of Professor Dr. Muhammad Mahboob Ali,
Qazi Kholiquzzaman Ahmad developed the Entrepreneurship Development program at the
Dhaka School of Economics with the goal of developing entrepreneurs as a driving force to
address the demands of business and the economy. In order to enhance students' entrepreneurial
thinking, the Entrepreneurship Program collaborates and participates with national and
international organizations and educational institutions. Additionally, it seeks to develop
entrepreneurship-related competences, skills, attitudes, and abilities via academic excellence. The
goal of this study is to provide a framework for evaluating the effectiveness of a variety of
educational programs.
Mostafa K. Mujeri discussed the health care system in Bangladesh in the chapter Establishing
Universal Health Care System in Bangladesh: Challenges and Pathways. Three broad frameworks
can be used to analyze the evolution of the healthcare system in Bangladesh: health sector policies
and programs; (ii) the healthcare industry and the growth of medical facilities and staff; and (iii)
the volume and pattern of health expenditure and its trend and composition. Throughout
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actuality, there are several sources of healthcare in the nation. In addition to the services offered
by the government, there are private providers, conventional and alternative healthcare
organizations, as well as licensed and unlicensed drug dealers. Modern private care is also
delivered by licensed professionals and government-employed physicians who work in private
practice.
Excellent article entitled “Entrepreneurship Economics Programme under University of Dhaka
through Dhaka School of Economics: To service for the nation” were jointly written by Rehana
Parvin, SaraTasneem, Shamim Ahmad. The article described entrepreneurial education of the
country and continuous development programmes with the help of Indian educationists,
entrepreneurs so that dissemination of knowledge and skill during COVID-19 and after math as
well as ongoing Russia -Ukraine war is feasible. Prof. Muhammad Mahboob Ali is working as
neuclueas for the expansion of entrepreneurial education in Bangladesh for which he did first
Post doctorate in Nearesuan University, Thailand and also get practical exposure from Indian
different start ups. Prof. Mahboob is a great friend of India.
In the last chapter, S. Jobayear Ahmed writes, "Work Stress Management during COVID-19: An
Analysis of BRAC," about how the work stresses among employees are increasing during COVID,
which is common for all types of employees. Therefore a study was conducted in the essence of
understanding the extent of work stress of employees of various organizations in Bangladesh and
the extent of support they receive from their offices. The objective of the study was to explore the
work stresses employees face during COVID and to understand the Organizational Support they
receive to combat with the stressors and subsequently analyze that how the biggest NGO in the
world had tackled the COVID 19 stresses among its employees. Therefore to conduct the study a
detailed thematic analysis was conducted and a questionnaire was developed. All the key
informants believed that the supervisor's care about the employees exhibited through their
empathy, tone of voice and eagerness of attitudes help to offset the work pressure and
recommended for guideline, health and safety training. All the informants mentioned that EAP
can add value to work and organizational support result into positive outcome by generating
safety, ownership, dedication and improves productivity.
To sum up my book review, Regardless of the employment, the workload and accompanying
stress have grown. Another significant stress is in addition to the uncertainty of job losses. The
mismatch between work and life while working from home causes conflicts and issues with
intimate partners, which eventually has a negative impact on employee motivation. In many
instances, supervisors are growing strict with the workers, which may go against the idea of
caring for the workers. The businesses should look at participatory planning and target setting for
the workloads with respect to the concerns, safety, privacy, and capacity of others since the caring
attitude of the supervisors and colleagues greatly helps to enhance productivity. Supervisors
must also use caution and compassion for the employees' health and wellness.
In such a case only can the organization expect to flourish with the positive synergy and the work
teams can perform beyond the highest level of excellence. In the scenario of COVID -19 the
initiative by different organizations may be either appreciated or criticized. I want to thanks the
editor of the book Prof. Muhammad Mahboob Ali, PhD, Post Doctorate for his hard work and
-567-
Faharia Parvez
tried to collaborate India-Bangladesh joint education and business management process
wonderfully. Prof. Parul Khana’s mind mapping is a very good inclusion in the book.
Rohyinga issue should be solved for the greater sake of stability of geo-political reason and they
should go back to their homeland with national identity from Bangladesh and BIMSTEC should
actively work as a regional cooperation where India should lead the organization for south Asia.
The book will get wide recognition in the world.
-568-
AUTHOR GUIDELINES
As a guide, papers must be between 3,000 and 3,500 words in length and contained within 12-15 pages,
including tables and references. A title of not more than fifteen stories should be provided.
Please use the checklist provided below to ensure that your paper meets the requirements before
publication. In non-compliance with these guidelines, your paper will be excluded from being
published.
Please send us your paper in word format, not PDF files.
All submitted Research manuscripts must follow the pattern given below:
Article Pattern-
• Title (Maximum 120 Characters)
• Author Name, Affiliation, and Email ID
• Abstract (Maximum 200 words)
• Keywords (Maximum Five)
• Introduction
• Literature Survey
• Problem Definition
• Methodology / Approach
• Results & Discussion
• Conclusion
• Future Scope
• References
• Each Author (s) Short Profile with Photo(s)
• The covering letter should list all authors' names, affiliations, email addresses, and telephone
numbers with brief abstracts and keywords. The corresponding author should be indicated.
INSTRUCTIONS FOR PREPARATION OF MANUSCRIPTS
XXXX1*, YYYY2 and ZZZZ3
Department, Affiliation, City, Country, Email ID
1
Department, Affiliation, City, Country, Email ID

2
3Department, Affiliation, City, Country, Email ID
________________________________________________________________________________________________
Received: Accepted:
________________________________________________________________________________________________
Table 1: Font Sizes and Styles
Item Font Size Font Style
Title 18 Bold, Capitals, Book Antiqua
Authors' names 12 Regular
Affiliations, addresses, email addresses 9 Regular
Abstract 9 Bold
Section Headings 10 Bold
Body Text 10 Regular
References 9
Fig./Table Caption 10 Regular
Reference bullet [1], [2] ... Regular
Line Spacing 1.0 pt
Paper Size A4
DETAILED AUTHORS' GUIDELINES
Abstract:
The abstract is typically a single paragraph. The abstract should be considered an independent
document. The abstract does not rely upon any material in the body of the report. Similarly, the
body of the information does not rely upon any material in the abstract. The first sentence should
clearly state the objective of the experiment. If the investigation is based on a hypothesis, which is
preferable, the hypothesis should be displayed, followed by statements describing its basis and
evaluation. The sentences that follow explain how the investigation was carried out. The
following sentences illustrate the experiment results as precisely as possible without being
verbose. The final sentences discuss the significance of the products and their impact on the field
of study.
Keywords: The most important terms describe your research domain and the specific problem
area investigated.
1. INTRODUCTION:
The Introduction requires a short review of the literature about the research topic. The
Introduction is then best constructed as a descriptive funnel, starting with broad issues and
slowly focusing on the work at hand. Perhaps three to four paragraphs are needed. One approach
may begin with one or two sections that introduce the reader to the general field of study. The
subsequent paragraphs then describe how an aspect of this field could be improved. The final
paragraph is critical. It clearly states, most likely in the first sentence of the section, what the
present study will answer the experimental question. The hypothesis is then displayed. Next,
briefly describe the approach that was taken to test the theory. Finally, a summary sentence may
be added stating how your question's answer will contribute to the broad field of study.
2. LITERATURE SURVEY:
This section includes a short history or relevant background of the research area being addressed
or the Research Gap. All citations in the Review of Literature must be detailed in the Reference
Section. How the detail of reference is to be mentioned may be referred to in the below-mentioned
Heading "Reference." All citations must be given in Reference Section.
3. METHODS:
This section should briefly describe the methods used in your study. Each technique should be
described in a separate section. In a single area, Begin with a statement of the study's materials,
indicating each material's vendor and vendor contact information. This information is critical so
that readers can repeat the work in their institutions. Next, describe, in separate sections, each
essential procedure and technique used in the study. Keep explanations brief and concise. If a
specific experimental design is utilized, describe this design in the second section of the Methods,
after the materials section.
Similarly, if a theoretical or modeling component is utilized, it should also be incorporated in the
Methods' initial portion. Finally, remember to describe the statistical analysis methods used to
analyze the results, most likely in the Methods section's final section. Although it is typically not
recommended, passive voice is probably appropriate in the Methods section.
4. RESULTS:
The Results section presents the experimental data to the reader and is not a place for discussion
or interpretation. The data itself should be delivered in tables and figures (see below). Introduce
each group of tables and figures in a separate paragraph where the overall trends and data points
of particular interest are noted. You may want to indicate the placement of a specific table or
figure in the text. For experimental studies, key statistics such as the number of samples (n), the
index of dispersion (SD, SEM), and the index of central tendency (mean, median, or mode) must
be stated. Include any statistical analysis performed and indicate specific statistical data, such as
p-values. Note that each table and figure in the paper must be referred to in the Results section. Be
succinct.
5. DISCUSSION:
The discussion section, often the most difficult to write, should be relatively easy if the previous
suggestions are followed. In particular, look to the last paragraph of the Introduction. If the work
has characterized a phenomenon by studying specific effects, use the results to describe each
product separately. If the work has presented a hypothesis, use the results to construct a logical
argument supporting or rejecting your idea. If the work has identified three main objectives, use
the products to address these objectives. A well-defined study described in the Introduction,
along with supporting results presented in the Results section, should ease the construction of the
Discussion section.
Begin the Discussion section with a brief paragraph that again gives an overview of the work.
Summarize the most important findings and, if applicable, accept or reject the proposed
hypothesis. Next, identify the most interesting, significant, remarkable findings presented in the
Results section and contrast them in light of other studies reported in the literature. It is often
informative if a discussion of the potential weaknesses of the interpretation is also included.
Finally, at the end of the Discussion section, consider the other works in the literature that address
this topic and how it contributes to the overall field of study.
6. CONCLUSIONS:
Again, first, introduce the work and then briefly state the significant results. Then display the
multiple points of the discussion. Finally, end with a statement of how this work contributes to
the overall field of study.
7. ACKNOWLEDGMENTS:
Provide a brief statement acknowledging the efforts of any participants or consultants who are
not included as authors of the manuscript. State all of the funding sources for the work, ensuring
that the statement adheres to the funding institution's guidelines.
8. REFERENCES:
Include all references that have been cited in the text. The references should be well considered to
contain all critical sources and previous studies supporting or motivating the present work.
However, do not include extraneous references to cite particular authors or journals. It may be
appropriate to cite previous publications from your laboratory, but this should be done
judiciously.
You must use the reference format mandated by the Journal to which you submit the manuscript.
Software packages make citing literature particularly easy. Use small (lower case) letters to denote
them.
Example: Yadav (2005a), Yadav (2005b).
Other references should follow the following formats
Books:
[1] Yadav, S.K.S. (2008), Principles of Economic Development, Arvind Prakashan, Meerut, India.
Business Magazine:
[2] "Three Letter Acronyms That Mean Business," (April 2007) Benef of Business- IT Magazine,
SFY Group Vol-1 Issue 4
NewsPaper:
[3] Times of India, New Delhi Edition, Column 3, Page-7, Date 08/07/08
Chapters in Edited Books:
[4] Gupta, S.K. (2008), 'Development of Financial Services.' In R. Prasad (Ed.) The framework of
Financial Services (pp. 45-70). New York: Free press
Journals & Periodicals:
[5] Gupta, S. and Sharma, T.P. (2010), 'Stock Market and Indian Economy,' International Journal of
Trade & Commerce-IIARTC, Vol.1, No.1, pp.08-24.
Reports:
[6] National Stock Exchange (2010), Report of NSEI. Committee on Delisting of Shares-
Chakravarty Committee.
Electronic/Internet Information
WEBSITES: Pearson, R. (2010) Online Development study guide,
http:\\www.dev.ac.usa\schools\skills\refern.htm, Date accessed 10/07/2010.
CD ROMS: Lewis, D. (2009) A Guide to Financial Literature, CD-ROM, USA: Sunshine Publishers.
Use (ed.) for one editor and (ed.s) for multiple editors.
When listing two or more works by one author, use XXXX (YYYY, YYYY), such as after Agarwal
(1997, 2001), etc., in chronologically ascending order...
Indicate (opening and closing) page numbers for articles in journals and chapters in books.
Note that italics are used only for titles of books and names of journals. Double quotation marks
are used for titles of journal articles, book chapters, dissertations, reports, working papers,
unpublished material, etc.
Bibliography:
Each author (s) provides their short profile with photo(s).
Tables and Table Captions:
Tables should generally be included in a separate section after the References section. The tables
should be headed with a caption and title in bold (i.e., Table 1: Material Properties), followed by
a sentence or two that describes the content and impact of the data included in the table. The table
itself should be formatted so that the data is clearly presented and easily interpreted by the
reviewer; however, the table is likely to be reformatted by Journal to conform to its standards.
Ensure that each table is referred to in the manuscript text; this will most likely occur in the
Results section and the Introduction, Methods, or Discussion sections.
Figures and Figure Captions:
As with the tables, figures can also be placed separately after the References section. Again, clarity
is the critical factor, especially with images and graphs. All photos should be as large as possible
and include accurate scale bars. The charts should be large, with data points and axis labels in a
large font. Legends can be included within the graph or in the caption. All figures need a caption.
The caption should identify the model in bold (i.e., Figure 3), state a brief title to the constitution,
briefly present the significant result or interpretation that may be made from the model (this may
be modified from the Results or Discussion section text), and finally state the number of
repetitions within the experiment (i.e., n=5) as well as what the data point represents (i.e., the data
are means and the associated error bars represent standard deviations). As with the tables, make
sure each figure is referred to in the manuscript text.
Authorship and Originality:
Finally, we have assembled some points to consider in regards to the authorship and originality
of manuscripts submitted for publication
Plagiarism is, unfortunately, a significant concern among editors and publishers. Therefore, be
sure of the sources of all data and text if the article is based upon prior work, the reference that
previous work properly. An original research paper can not contain previously published data in
any form without a proper citation.
Authorship and authorship order must be agreed upon by all authors and any other person who
participated in the work but are not included as an author.It is not permissible to submit a job
translation of a previously published paper.
NOTE:
Author(s), while preparing manuscripts, must strictly adhere to Authors' Guidelines. If the manuscript is
not per the authors' guidelines, it will be returned to the author (s). Documents will be accepted to
understand that they have not been submitted, received, or published elsewhere. If copyrighted material is
used, the author should give prior information to the editor-in-chief and submit the necessary copyright
release along with the manuscript. IJTC-IIARTC will not be responsible for any charges for obtaining the
release of copyright required if any.
All the manuscripts will be peer-reviewed, and only the recommended documents by reviewers will be
published. Authors may be asked to revise the manuscript within a stipulated period. The revised
manuscript should be submitted along with a coverpage outlining the changes introduced to the document.
After submitting the revised manuscript, proofs will be sent to the corresponding author. Authors should
carefully check their proofs and return them within three days of receipt. No interim requests will be
entertained.
International Journal of Trade and Commerce- IIARTCis a Journal of Social Science and
Humanities. It is biannual (Jan-June & July-Dec.) and bilingual Journal of Indian Institute of
Advanced Research in Trade and Commerce.
Copyright of the published research papers vest in the editors. The objective is to ensure complete
copyright protection and disseminate the research papers, and the Journal, to the broadest
possible readership. Authors may use the research paper elsewhere after obtaining prior
permission from the chief editor.
Research Papers related to humanities and Social Sciences are Invited for Publication in the
Journal. Research Papers, Book Review, Subscription, and another query should be sent to :
Prof. (Dr.) S. K. S. Yadav, 121/1A, Gali No.-2, Pragati Nagar, Meerut, Pin-250001, Mob. 09411023524,
you may also email your research paper and suggestions at sudhiryadavmeerut@gmail.com
NOTE:
1. All copy Right Reserved To International Journal Of Trade & Commerce And Society
For Global Studies & Research
2. All the articles/ Research Papers are published only after the board of Editorial Advisors
and the Double-Blind Peer Review Committee's proper approval. The editors cannot be
held responsible for errors and any consequences arising from using the information in this
Journal. Refer to Disclaimer Clause as follows:
Disclaimer Clause:
The Journal wishes to clarify that the contributors are solely responsible for the information,
data, and opinions in their articles/ research papers. The editorial board and editors accept no
responsibility or liability for consequences of any inaccurate or misleading information of data
opinion or statement.
STATEMENT ABOUT OWNERSHIP & OTHER PARTICULARS ABOUT
ISSN- 2277-5811(PRINT) & ISSN- 2278-9065(ONLINE)
FORM IV
(As Required by Rule 8 of Registrar's Act)
Place of Publication: Meerut/Pune

Periodicity of Publication: Bi-Annual
Publisher: Indian Institute of Advanced Research in Trade and
Commerce-IIARTC
Nationality Indian
Address: 121/1A, School Lane, Pragati Nagar, Meerut, U.P., India
PIN: 250001
Owner's Name Professor (Dr.) S.K.S. Yadav,
Printer's Name and Address M/s Shree Prakashan S.R. No. 48/1/17,
Waghjai Nagar Ambeygaon(K.H.) Katraj, Pune-46
Maharashtra, India, Mob.: +91-9422566159
I, Professor (Dr.) S.K.S. Yadav declares that the particulars given above are correct to the best of
my knowledge and belief.
31st December 2022 Professor (Dr.) S.K.S. Yadav

Reg. No. 2121 (Delhi)
INTERNATIONAL JOURNAL OF DEVELOPMENT STUDIES (IJDS.) ISSN 0975-5799

Bi-Annual Journal of Gandhian Institute of Studies, Varanasi (INDIA)
Fellow Colleagues, Scholars, and friends

It gives me enormous gratification and great privilege when I approach a letter like you who has
significant exposure to DEVELOPMENTAL STUDIES. It gives me immense pleasure to INVITE
YOU to contribute A RESEARCH PAPER for the bi-annual edition of this Global Journal of
International Journal of DEVELOPMENT STUDIES (IJDS), a peer-reviewed multidisciplinary
journal. With our inception in 2009, we have successfully brought out five numbers with
important papers, articles, and manuscripts in our Journal. The themes are multidisciplinary in
every Edition of "DEVELOPMENT STUDIES." It includes all the areas of Science, Medical and
Health, Political economy, Social, Cultural, Organizational and cognitive impacts of Development
Economics, Trade, Commerce, Management, Economics, Geography, Sociology, Law, Women
Studies, Center for Agriculture and Rural Development, Globalization, NREGA, Humanities,
Cooperative Management, Retail, FDI, Sustainable Development inter-alia, Information
Technologies, Engineering and various Multidisciplinary concerns and advances currently being
discussed around the world. This publication expands the frontiers of the body of knowledge
regarding the impact of developing economies, assisting researchers and practitioners in working
out more effective systems for managing human development. The forthcoming issue would be
an attempt to reach out to academicians, industry professionals, policymakers, citizens, opinion
leaders, media persons working on the economy. It provides an opportunity for scholars to knock
their intellectual capacities for personal and professional expansion. The Journal is going to cater a
huge number of articles. Conclusion: Many academicians and working professionals from India
and other parts of the world are directly and indirectly associated with it. The theme can be from
any field. The Editorial Team of this Journal is a battery of well-established academics with
substantial publication. I request you to submit abstract (250 words in Times New Roman) with a
full paper of at least 10 to 15 pages and send it by email/CD and a hard copy by post as early as
possible up to 30th April for our June volume, and 30th October for December volume for our
numbers eagerly awaited all over India and outside India. We shall be highly grateful to you for
the kind cooperation and help extended by you towards the mission of expanding knowledge
undertaken by the International Journal of Development Studies (IJDS.) ISSN: 0975-5799. The
Journal welcomes expressions of all shades and opinions.
Complete Information about the Journal Visit: www.rsmeena.com/ijds
All correspondence should be addressed to:
Dr. R.S. Meena, New F-1, Hyderabad Colony, Banaras Hindu University, Varanasi-221005 (India)
Email: ijdsindia@gmail.com Resi.: 91-0542-2575724 (O): +91-0542-6701307[Direct], Mobile:
(+91) 09415813184
ABOUT THE AUTHORS
Zakir Hussain, Political Economist on Middle East, He has been associated with a number of renowned
think tanks, including National Labour Institute, Manohar Parikar Institute of Defence Studies and
Analysis, National Maritime Foundation, Indian Council of World Affairs, offered consultancy to E&Y,
ILO, IOM-EU and worked as Chief Economic Researcher with the UAE Emabssy in India and worked hard
with the team which materialized the Comprehensive Economic Partnership Agreement between India and
the UAE.
Mohammed Saiful Islam, M.Phil. Research Fellow, Department of Marketing, Faculty of Business
Studies, Jagannath University, Dhaka-1100, Bangladesh, and MA in International Business, University of
Greenwich, United Kingdom
Md. Zahir Uddin Arif, Professor, Department of Marketing, Faculty of Business Studies,
Jagannath University, Dhaka-1100, Bangladesh
Nawazeesh Muhammad Ali , PhD Researcher, International Political Economy and Development
(IPED), Rangsit University, Pathum Thani, Thailand
Wanakiti Wanasilp, Assistant Professor, International Political Economy and Development (IPED),
Rangsit University, Pathum Thani, Thailand
Esther Baroi, MDS Student of School of Economics, East West University, Bangladesh
Mohd Mohsin Qureshi, Research Scholar, Department of Commerce and Business Administration,
Meerut College, Meerut, U.P., India
S.K.S. Yadav, Principal, National [P.G.] College, Bhongaon, District Mainpuri, U.P., India
Mohd. Rizwan, Professor, Department of Defence Studies, Meerut College, Meerut, U.P., India
Z. Bhatnagar, Research Scholar, Department of Defence Studies, Meerut College, Meerut, U.P., India
Sanjay Kumar, Professor, Department of Defence Studies, Meerut College, Meerut, U.P., India
Md. Irshad Ali Tanwar, Research Scholar, C.C.S. University, Meerut, U.P., India
Akhil Kumar Mittal, Associate Professor, S.S.V. (P.G.) College, Hapur, U.P., India
Arushi Jain, Research Scholar, Department of Commerce and Business Administration, Meerut College,
Meerut, U.P., India
Pankaj Kumar Bharti, Assistant Professor, Department of Commerce and Business Administration,
Meerut College, Meerut, U.P., India
Vinay Arya, Assistant Professor, Department of Commerce and Business Administration, Meerut
College, Meerut, U.P., India
Vijay Singh Negi, Associate Professor, Department of Commerce, Government P.G. College, Dakpathar,
Vikasnagar, Dehradun, U.K., India
Swati Panwar, Assistant Professor, Department of Commerce and Business Administration, Meerut
Megha Sharma, Assistant Professor, Department of Commerce and Business Administration, Meerut
Shivani Tripathi, Research Scholar, Faculty of Law, Banaras Hindu University, Varanasi, U.P., India
Vaishali Siddhu, Research Scholar, Department of Commerce and Business Administration, Meerut
Sudeshna, Assistant Professor, Institute of Legal Studies, Chaudhary Charan Singh University, Meerut,
U.P., India
Gopi Chand, Professor, Faculty of Law, Meerut College, Meerut, U.P. ,India
Muhammad Mahboob Ali, Professor, Dhaka School of Economics, Constituent Institution of University
of Dhaka, Dhaka, Bangladesh
Raida Chowdhury Zilik, Research Scholar, East West University, Bangladesh
Richa Aggarwal, Research Scholar, Department of Commerce, C.C.S. University, Meerut, U.P., India
Shubhra Garg, Associate Professor, Department of Commerce and Business Administration, M.M.H.
College, Ghaziabad, U.P., India
Rehana Parvin, Assistant Professor, Dhaka School of Economics, Bangladesh
Kaniz Marium Akter, Doctoral Student, School of Business Management, University Utara, Malaysia
Razia Sultana, Research Scholar, East West University, Bangladesh
Faharia Parvez, Research Scholar, East West University, Bangladesh
EDITOR–IN-CHIEF, IJTC-IIARTC
Professor (Dr.) S.K.S. YADAV, M.Com, C.A. Inter, Ph.D., FDP

Professor (Dr.) S.K.S. Yadav at present Principal National [P.G.] College,
Bhongaon, District Mainpuri, U.P., India and former Associate Professor in
Faculty of Commerce & Business Administration, Meerut College, C.C.S.
University, Meerut, U.P., India. He is having about 30 Years of Teaching
Experience at UG and PG Level. His several research papers have been
published in National and International Journals. He has contributed many
papers in National and International seminars. Nineteen candidates have been
awarded Ph.D. under his supervision. He has also completed a major Research
Project sponsored by UGC, New Delhi. He has authored four books on
Corporate Accounting, Hindi and English Editions, Cost Accounting, Hindi and English Editions, Published
by Kedarnath Ramnath & Sons, Meerut. He was Programme officer of NSS for 5 years in Meerut College,
Meerut. He organised 5 camps of NSS. He is also editors of many reputed Journals published in India. He is
Coordinator of Computer Lab. of Commerce Department. He is Examiner of different Universities of India.
He has served in IPM Lucknow as Assistant Director, Associate Professor in IMS, Roorki, Sr. Research
Associate in Indian Institute of Finance, New Delhi, Lecturer in A.K. P.G. College, Shikohabad, He has also
audited many companies during his article ship in C.A. study.
DEPUTY CHIEF EDITOR OF IJTC-IIARTC
Prof. NGBOAWAJI DANIEL NTE

Prof. Ngboawaji Daniel Nte studied Journalism, Social Work/ Community
Development, Development Sociology, Social Policy and Criminology and Police
Science. He is an expert in Security and Intelligence Studies with special interest in
Terrorism and Counter Terrorism, Intelligence Management, Middle East Studies
and Peace Studies. He is a prolific researcher/writer and has over a hundred
publications in national and international journals, besides book chapters and
conference papers. He is also on the editorial/review board of over fifteen
international journals in Nigeria, the USA, United Kingdom, India, Turkey and
Bangladesh. He is at present editing four books on School Safety, Contemporary Issues in Global Security,
Competitive Intelligence and Society, Culture and Security. Prof. Nte has a knack for cross border education
and currently the African regional representative of American Heritage University of Southern California
and Visiting Professor at Be-great University College of Homeland security and Homeland Security, Ghana.
He is presently the Global Executive President of Global Intelligence, Peace and Security Institute.
Dr. DHARMENDRA YADAV

Dr. Dharmendra Yadav is an Assistant Professor in the Department of
Mathematics at Vardhaman (P.G.) College, MJP Rohilkhand University, Bijnor,
U.P. (India). He received his PhD degree in Inventory Management from C.C.S.
University. His major research fields include production and operation
management, supply chain and logistics management, inventory management etc.
His articles have appeared in journals such as OPSEARCH, International Journal
of Systems Sciences, Asia-Pacific Journal of Operational Research, International
Journal of Operational Research, Control and Cybernetics, International Journal of
Mathematics in Operational Research, International Journal of Procurement Management, Yugoslav Journal
of Operations Research, International Journal of Operational and Quantitative Management.
Volume - XI | Number - II | July - December, 2022

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INTERNATIONAL JOURNAL OF TRADE & COMMERCE-IIARTC

Professor (Dr.) S.K.S. Yadav

INDIAN INSTITUTE OF ADVANCED RESEARCH IN TRADE AND

SOCIETY FOR GLOBAL STUDIES & RESEARCH(SGSR)

INTERNATIONAL EDITORIAL BOARD

NATIONAL EDITORIAL BOARD: EDITORS

NATIONAL EDITORIAL BOARD: MANAGING EDITORS

NATIONAL EDITORIAL BOARD: ASSISTANT EDITORS

Please accept the Subscription for a period of ................................................................................................ ....Years.

Bank Account No. [Current A/C]: 4842005500000237

Professor (Dr.) S.K.S. Yadav, Editor-in-Chief,

Bank Draft No:...............................................Bank Draft...........................................................................................................................

Bank Drawn on:...........................................................................................................................................................................................

Deepening Ties of India-UAE Relations: Role of CEPA

https://www.icwa.in/showfile.php?lang=1&level=3&ls_id=5157&lid=878, accessed on 14 October 2022.

Today, 30 July 2018, https://www.businesstoday.in/latest/economy-politics/story/uae-commits-75-billion-

9 India-UAE CEAP document is available on Ministry of Trade and Commerce website.

years”, PIB, 18 Feb 2022, https://pib.gov.in/PressReleasePage.aspx?PRID=1810279

13 “The India-UAE: Comprehensive Economic Partnership Agreement”, Ministry of Economy, UAE,

Zawaya, 2 August 2022, https://www.zawya.com/en/economy/gcc/uae-jobs-at-least-10-000-highly-skilled-

Deloitte, September 2022.

(UAE) Unveiled”, 27 March 2022. https://pib.gov.in/PressReleasePage.aspx?PRID=1810279.

years”, PIB, 18 Feb 2022, https://pib.gov.in/PressReleasePage.aspx?PRID=1799439.

February 2022, https://www.business-standard.com/article/current-affairs/gem-and-jewellery-sector-to-

Zawaya, 2 August 2022, https://www.zawya.com/en/economy/gcc/uae-jobs-at-least-10-000-highly-skilled-

24 https://www.mofaic.gov.ae/en/missions/new-delhi/media-hub/image-gallery/cepa, 19 Feb 2022.

https://pib.gov.in/PressReleasePage.aspx?PRID=1862136, accessed on 26 Sept 2022.

https://pib.gov.in/PressReleasePage.aspx?PRID=1862136, accessed on 26 Sept 2022.

White House Statement, released on 14 July 2022, https://www.whitehouse.gov/briefing-room/statements-

Times, 21 September 2022, https://economictimes.indiatimes.com/news/india/india-uae-france-keen-on-

Washington, 27 September 2022, https://www.mei.edu/publications/us-and-i2u2-cross-bracing-

Impacts of Competitive Price Reduction Policy on Consumers’

Source: Light Castle Partners Primary Research (2019)

Statistics for Mean Variance Std. Dev N of Variables

AFFECTION 6.5150 1.7586 .5493 .6769

7. LIMITATIONS OF THE RESEARCH

8. FURTHER RESEARCH OPPORTUNITIES

Small and Medium Enterprises (SMEs) Financing Through One

Technology transfer, Viability and Beneficiaries

Connecting savings with Requires monitoring Responsibility to the

Found significances to Confine credit to the Preparing semi-formal

Credit officers of the Provide funding to If any sort of

Source: Prepared by the authors based on grameenbank.org

SME Loan Commercial Banks

1. Apply for 1. Monitoring of 1. Analysis of SME:

3. OBJECTIVES OF THE STUDY

4. METHODOLOGY OF THE STUDY

Total Correla .99 .91

Total Correla .95 .87 .95

Repa Correla 0.0 0.1 0.0 0.0 -

belo Correla 0.2 0.1 0.2 0.2 0.11 -

GNI Correla 1.0 .91 .99 .95 - 0.0 0.21

Inflati Correla 0.1 0.2 0.1 0.1 - .37 - 0.1

Popul Correla - - - - 0.00 - - - - -

Pover Correla - - - - 0.15 - - - - - .83 -

(Source: Computed by the Authors‟)

Variables Coefficient T stat. Sig

Variables Coefficient T stat. Sig

Sample: 2004 - 2020 Number of obs = 17

GNIPercapita Coef. Std. Err. t p> |t| [95% Conf. Interval]

Sample: 2004 - 2020 Number of obs = 17

PovertyRate Coef. Std. Err. T p> |t| [95% Conf. Interval]

Sample: 2004 - 2020 Number of obs = 17