“COMMERCE IS A WIDE TERM CONSISTING OF ALL THOSE

ACTIVITIES,WHICH ARE NECESSARY FOR SALE,TRANSFER

OR EXCHANGE OF GOODS AND SERVICES.”

 IT PROVIDES THE NECESSARY LINK BETWEEN PRODUCERS AND CONSUMERS TO

ENSURE PROPER DISTRIBUTION OF GOODS.

SUPPLY OF GOODS AT THE RIGHT PLACE,IN THE RIGHT QUANTITY AND AT

THE RIGHT TIME.

o THE HINDERANCES MAY BE IN RESPECT OF PERSONS,PALCE,

TIME,RISK,FINANCE AND INFORMATION
 ROLE OR FUNCTIONS OF COMMERCE

 COMMERCE PLAYS A VITAL ROLE BY REMOVING THE FOLLOWING

HINDERANCES IN THE EXCHANGE OF GOODS AND SERVICES:

1) HINDERANCES TO PERSONS:THIS HINDERANCE OCCURS DUE TO LACK OF

CONTACT AND COMMUNICATION BETWEEN PRODUCERS AND
CONSUMERS.

o COMMERCE REMOVES THIS HINDERANCE THROUGH ‘TRADE’.

o TRADE PROVIDES AN ORGANISED MARKET WHERE THE BUYERS AND SELLERS CAN
CONTACT EACH OTHER.
2) HINDERANCES OF PLACE:THIS HINDERANCE OCCURS DUE TO
GEOGRAPHICAL SEPARATION BETWEEN PRODUCERS AND CONSUMERS.
o THE PRODUCER NEEDS TO MAKE HIS GOODS AVAILABLE TO CONSUMERS
WHO ARE SCATTERED IN DIFFERENT CORNERS OF THE COUNTRY.
o COMMERCE REMOVES THIS PROBLEM BY MEANS OF ‘TRANSPORT’.
o TRANSPORT MOVES GOODS FROM THE PLACES OF PRODUCTION TO THE
MARKETS FOR SALE.

3) HINDERANCES OF TIME:THIS HINDEANCE OCCURS DUE TO TIME GAP

BETWEEN PRODUCTION AND CONSUMPTION OF GOODS.STORAGE AND
WAREHOUSING ACTIVITIES REMOVE THE HINDERANCE OF TIME BY
FACILITATING HOLDING OF STOCKS OF GOODS TO BE SOLD AS AND WHEN
REQUIRED.

4) HINDERANCES OF RISK:THIS HINDERANCE OCCURS DUE TO LOSS OR

DAMAGE DUE TO THEFT,FIRE,ACCIDENTS,ETC.PROTECTION AGAINST
THESE RISK IS PROVIDED BY ‘INSURANCE’ OF GOODS.
5) HINDERANCES OF FINANCE:THIS HINDERANCE OCCURS DUE TO
REQUIREMENT OF CAPITAL TO UNDERTAKE THE ABOVE
ACTIVITIES.COMMERCE REMOVES THIS HINDERANCE THROUGH ‘BANKING
AND FINANCING INSTITUTIONS’.THEY PROVIDE THE REQUISITE CAPITAL TO
CARRY ON VARIOUS ACTIVITIES.

6) HINDERANCE OF INFORMATION:THIS HINDERANCE OCCURS DUE TO LACK OF

PRODUCT AWARENESS ON THE PART OF CONSUMERS.ADVERTISING MAKES
IT POSSIBLE FOR PRODUCERS AND TRADERS TO INFORM CONSUMERS
ABOUT THE GOODS AND SERVICES AVAILABLE IN THE MARKET.

HENCE,COMMERCE IS SAID TO CONSIST OF ACTIVITIES OF REMOVING THE

HINDERANCES OF PERSONS,PLACE,TIME,RISK,FINANCE AND INFORMATION IN
THE PROCESS OF EXCHANGE OF GOODS AND SERVICES.
 ‘MAKE IN INDIA’ IS AN INITIATIVE LAUNCHED
BY THE GOVERNMENT OF INDIA ON 25th
SEPTEMBER 2014,TO ENCOURAGE NATIONAL
AS WELL AS MULTINATIONAL
COMPANIES(MNCs) TO MANUFACTURE THEIR
PRODUCTS IN INDIA.THE MAJOR OBJECTIVES
BEHIND THE ‘MAKE IN INDIA’ INITIATIVE ARE
JOB CREATION AND SKILL ENHANCEMENT IN
25 SECTORS OF THE ECONOMY,WHICH ARE AS
FOLLOWS:
1) AUTOMOBILE 11) IT AND BUSINESS PROCESS MANAGEMENT
2) AUTOMOBILE COMPONENTS 12) LEATHER
3) AVIATION 13) MEDIA AND ENTERTAINMENT
4) BIOTECHNOLOGY 14) MINIG
5) CHEMICALS 15) OIL AND GAS
6) CONSTRUCTION 16) PHARMACEUTICALS 21) SPACE AND ASTRONOMY
7) DEFENCE MANUFACTURING 17) PORT AND SHIPPING 22) TEXTILES AND GARMENTS
8) ELECTRICAL MACHINERY 18) RAILWAYS 23) THERMAL POWER
9) ELECTRONIC SYSTEMS 19) RENEWABLE ENERGY 24) TOURISM AND HOSPITALITY
10) FOOD PROCESSING 20) ROADS AND HIGHWAYS 25) WELLNESS