IBMR B School Journal Volume 2

IBMR RESEARCH JOURNAL OF COMMERCE AND MANAGEMENT, Vol 2
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www.ibmr.edu.in
2019
VOLUME- 2
IBMR RESEARCH JOURNAL
OF
COMMERCE &
MANAGEMENT
VIDYABHARATI FOUNDATION’S
IBMR COLLEGE OF BBA, BCA, B.COM AND POST
GRADUATE STUDIES IN COMMERCE &
MANAGEMENT

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NAME: IBMR RESEARCH JOURNAL OF COMMERCE & MANAGEMENT
PUBLISHED BY: VIDYABHARATI FOUNDATION’S IBMR COLLEGE OF BBA, BCA, B.COM AND
POST
GRADUATE STUDIES IN COMMERCE&MANAGEMENT, VIDYANAGAR.
HUBBALLI -21
EDITOR IN CHIEF: Dr. SADANAND HAVANAGI
YEAR: 2019
PRICE: Rs. 250
Copy Right: Chairman Vidyabharti Foundation, Vidyanagar, Hubballi
First Edition: 2019
No. of Copies: 500
ISBN NO:

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IBMR Research Journal of
Commerce and Management
Chief Patrons
ShriVinaychandraMahendrakar, Founder and Chairman, IBMR Group of Institutions
Mrs Suma Mahendrakar, Director Trustee, IBMR Group of Institutions
Directors
ShriRiyazBasari, Executive Director, IBMR
Dr.N.B.Mudhnur, Director, IBMR
Editor in Chief
Dr SadanandHavanagi, Director, Institute of Business Management and
Research
Editor
Dr VikramKulkarni, Principal, IBMR College of Commerce – BCOM
Co-editors
Dr.ChidanandBadiger, Principal, IBMR College of Commerce – MCOM
Prof Arogyaswami K, Principal, IBMR College of Business Administration
Prof Shweta M, Principal, IBMR College of Computer Application
EDITORIAL BOARD

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IBMR Research Journal of
Commerce and Management
Sl
No
Paper Title
1
A study on correlation between Nifty and Commodities with respective to gold, silver,
platinum and natural gas
2 Challenges and Opportunities of Rural tourism
3 Digital platforms for growth
4 Impact of Non-Banking Financial Companies (NBFCs) On Indian Economy Growth
5
Legal system, intellectual property rights and economic prosperity: a conceptual study
on indian economic and intellectual property right
6 Inter-continental cooperation: a study of india vis-à-vis brics
7 Make in india, skill india,digital india,smart cities initiatives
8
A Study of Customer Satisfaction and Perception towards the Services of Co-Operative
Banks and private banks
9 Shadow Economy, A Bird’s Eye View With Special Refrence To Indian Context
10 Potentiality for Industrial Development in Bhatkal - A Comprehensive Study
11 Role of Technology in women Empowerment
12 Rural Entrepreneurship And Rural Development
13 Rural Tourism at Savandatti –“Next Tourism Destination”
14 Rural Entrepreneurship And Rural Development
15
Sustainable Agriculture And Food Safety
With Special Reference To Tamilnadu State Economy
16 Women Empowerment In Karnataka: A Case study
Volume: 02 Issue Number: 1 250/- Oct 2019
CONTENTS

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A study on correlation between Nifty and Commodities with respective to
gold, silver, platinum and natural gas.
SUMAN KUMAR Y V
BASAVARAJ SULIBHAVI
Abstract
India is heading a remarkable change in its item derivative operations, Forward Market
Commission, the indicated Regulator of Commodity advertise in India, since September 28th
2015, met with Stock market controller Securities Exchange Board of India. The main
objectives of this study are the correlation relationship between the selected commodities
with benchmark NIFTY to understand the relationship between dependent (NIFTY) and
independent variables (Gold, Platinum, Silver and Natural Gas).
This study is based on secondary data. Data’s collected from money control and bullion
market. Calculation of correlation and regression analysis on the historical data. This study
shows that correlation of selected commodities and Nifty, Gold and nifty are perfect negative
correlation, in the year 2015 the Silver and Nifty seems to be invers, a small drop in nifty
resulted in huge fall in silver price. Nifty and Natural Gas move opposite direction for the
period 2012 to 2015 hence investors will not get high returns. Platinum and Nifty is a blend
of both positive and negative pattern.
Regression analysis shows P value and significant F value (statistically significant), look at
significant F ( 0.001 ), if this is value is less than 0.005, regression if significant F is greater
than 0.05. It’s probably better to stop using this set of independent variables. Delete a
variable with a high P value (> than 0.05) and return the regression until significance F drops
below 0.05. Most or all p values should be below 0.05.
Nifty and Gold move almost in same direction for the period 2012 to 2015. It is interesting to
observe that gold and nifty behave in a positive correlation .The bench mark index Nifty and
Gold is in the nature of inverse observe that gold and nifty behave in a positive correlation in
the year 2016, relationship. And is a mix of both positive and negative pattern. Nifty and
Sliver move almost in same direction for the period 2012 to 2015. It is interesting to observe

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that silver and nifty behave in a positive correlation. In the year 2016, the pattern seems to be
invers,a small drop in nifty resulted in huge fall in silver price.
Keywords: Commodities, Gold, NIFTY, Correlation, Platinum, Silver and Natural Gas
Need for the study
Many studies have been made in the field of investment. Income level even though same but
the field of work and the increase of a particular segment differ from one another which in
turn affects savings and investment priorities in the commodity market.
1. To understand the economy and the performance of each commodities.
2. Sustaining high level of investment of development of stock market.
Objective of study
• To study the correlation relationship between the selected commodities with benchmark
NIFTY
• To understand the relationship between dependent (NIFTY) and independent variables
(Gold, Platinum, Silver and Natural Gas).
• To study the role and recent developments of commodities in Indian markets
SCOPE OF THE STUDY
1. This study applications on commodity alone among nifty.
2. The main focus on potential investors and those who invest regularly on commodity
futures their returns, risk and expectation towards commodity futures
REVIEW OF LITERATURE
There have been number of hypothetical and exact reviews that give prove on the relationship
between Indian Stock Market and Indian Commodity Market. An elaborative audit of a
similar which was before completed by Industry specialists and different Scholars had been
done. The exploration and discoveries of the same had been painstakingly examined and in
support of this venture think about had been gotten.
1. Michel Robe (2008) concentrated the connection between Securities exchange and Item
Advertise in his audit called Products and Values: A "Showcase One" He used component
association and recursive co-coordination systems and he found that the connection between

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the benefits on the investable Ware and Value records has not changed out and out in the
latest fifteen years.
2. Another Financial expert, SakthiVel Rani Jr. what's more, MariappanSelvarani September
23, 2010 An Examination of the Dynamic Connection between Product Advertise and
Budgetary Market: Indian security grandstand has seen an impact that started in December
2005 and rejuvenated all through 2006-07. It went to the most imperative in January 8, 2008,
then started declining from October 2008, however is recovering at this point. India's present
day advancement pulled in more remote wander which was the genuine clarification for the
impact. The current overall fiscal withdraw has impacted the Indian market most exceedingly
awful by low participation in the market in view of sharp enthusiasm for liquidity and a
contrasting slant with independent from peril taking. The rot of mechanical era took after by
low enthusiasm for product influenced item promote as well. The purpose of this paper is to
show how the financial crisis impacted the product grandstand. Is there any relationship
among thing and cash related market? For this audit, the records of MCX, MCX Agra, MCX
Vitality, and MCX Metal are considered for item market, and Clever and Dow Jones for cash
related market. The results will help in picking the game plan for business and better
cognizance of the market association.
3. Michel Robe (2008) concentrated the connection between Securities exchange and Ware
Advertise in his audit called Products and Values, Another Business analyst, SakthiVel Rani
Jr. furthermore, MariappanSelvarani September23, 2010. An Examination of the Dynamic
Connection between Item Showcase and Money related Market.
4. Sushmita Bose (2008) in his audit called Item Future Market in India – An Investigation of
Patterns in the National Multi Product Lists found that there is similar esteem improvement in
the Indian Ware auxiliaries Market to the Indian cash related subordinates Market. He
furthermore found that concerning association with the Indian Securities exchange record by
the Indian Item Showcase the level of association is certain and truly high around 70%. He
furthermore find that Multi thing records, which have higher prologue to metals and
essentialness things, with clear and profitable esteem dispersal in national and widespread
markets, bear on like the Equity records as far as effectiveness and stream of data.
5. Another Financial expert, Brajesh Kumar and Priyanka Singh June 1,2008 Instability
Demonstrating, Regularity and Hazard Return Association in Garch-in-Mean System: The
Instance of Indian Standard and Ware Showcases This paper relies on upon a correct
examination of eccentrics, risk quality and consistency in peril return association of the
Indian standard and product marketplaces. This examination is coordinated by strategy for

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the Universal Autoregressive Restrictive Heteroscedasticity in the despicable model
(GARCH-in- Mean) displayed via Engle et al. (1987). An efficient approach to manage
demonstrate eccentrics in returns is shown. Unsteadiness gathering and unbalanced landscape
are dissected for Indian standard and product markets. The peril return association and
consistency in risk arrival are moreover looked into finished GARCHin-Mean showing in
which incidental fakers are used for return and also flimsiness condition. The observational
effort has been finished on marketplace record S&P CNX Clever for a historical of 18 years
from Jan 1990 to Dec 2007. Gold expenses from 22nd July 2005 to twentieth Feb 2008 and
Soybean from Oct 2004 - Dec 2007 are furthermore measured. The stock and thing
grandstands returns exhibit relentlessness and bundling and uneven properties. Riskreturn
relationship is certain however irrelevant for Clever and Soybean where as tremendous
optimistic relationship is found by virtue of Gold. Consistency in peril and arrival is in like
manner create which suggests the unbalanced method for return, i.e. negative association
among's entry and its unsteadiness. Sushmita Bose (2008) in his survey called Product Future
Market in India, Another Financial expert, Brajesh Kumar and Priyanka Singh June 1,2008
Unpredictability Displaying, Regularity and Hazard Return Relationship in Garch in Mean
Structure.
Theoretical background of study:-
History of Commodity Market:-
The historical background of self-possessed item companies in India backtracks to the 19th
century when Fibre Trade Connotation began forecasts exchanging 1875, about 10 years after
them on-going in Chicago. Over the period datives showcase created in a few items in India.
Taking after Fibre, subordinates switching began in oilseed in Mumbai (1900), crude jute and
jute merchandise in Kolkata (1912), Wheat in Hapur (1913) and Bullion in Mumbai (1920).
Conversely many expected that backups drove inconsequential theory and were horrible to
the strong working of the fair for the fundamental things, realizing to limiting of product
decisions exchange and cash reimbursement of items prospects after opportunity in 1952. The
assembly approved the Advancing Contracts (Direction) Act, 1952, which oversaw contracts
in Products wherever all through the India. The exhibition confined decisions trading
Products nearby cash reimbursement of forward trades, version a staggering hit to the product
subordinates publicize. Under the showing only those affiliations/connections, which are

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surrendered overhaul from the Administration, are permitted to organize forward exchange
oversaw products. The exhibit envisions three tire controls:
(i) Conversation which deals with advancing trading products can coordinate exchange on
ordinary preface;
(ii) Advancing Markets Commission gives authoritative mistake under the strengths relegated
to it by the chief Administration.
(iii) The Focal Branch of Administration Customer Undertakings, Service of Purchaser Issues,
Nourishment also Open Appropriation is a complete managerial master.
The products upcoming market continued demolished and continued latent for around four
phases till the new thousand years after the Administration, in an aggregate change in a
system, on-going viably hopeful thing publicize. After Progression and Globalization in 1990,
the Administration set up a leading body of trustees (1993) to take a gander at the piece of
prospects trading. The Panel (controlled by Prof. K.N. Kabra) endorsed agreeing prospects
exchange 17 product groups. It in like manner proposed fortifying Forward Business sectors
Charge, and sure changes to Advancing Contracts (Control) Act 1952, chiefly letting elective
trading items and enlistment of vendors with Advancing Business sectors Contract. The
Legislature recognized the dominant part of these proposals and prospects' trading was
permitted in every optional item. It is promising decision since comprehensively the item
cycle is on rise and the next period being moved as the season of Products.
Product conversation India accept an imperative part where the expenses of any item are not
settled, composedly. Earlier simply the purchaser of convey and its merchant in the
marketplace tried upon the expenses. Others certainly not had a say.
Now, thing connections are essentially hypothetical in landscape. Before finding the esteem,
they reach to the creators, last-customers, and level the selling money related experts, at a
popular level. It transports an esteem straightforwardness and danger organization in the
fundamental market. A noteworthy differentiation among a common closeout, wherever a
lone barker reports the offers and the Trade is that people are fighting to purchase and also to
offer. By Employment guidelines and by law, no one can offer under an advanced offer, and
no one can offer to offer advanced than somebody else's lesser offer. That retains the market
as capable as could be permitted, and retains the representatives on their toes to guarantee no
one gets the buying or arrangement earlier they do. Later 2002, the things upcoming market
in India has skilled a sudden impact the extent that best in class exchanges, number of
products considered subordinates trading and furthermore the estimation of prospects trading
products, which overlapped $ 1 trillion stamp in 2006. Since 1952 till 2002 item datives shop

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was in every way that really matters imaginary, beside approximately insignificant doings on
OTC start.
In India near 25 seen upcoming relations, of which around are three domestic level multi-
thing relations. Later a gap of practically 3 decades, Legislature of India has permitted
advancing trades in things done Online Ware Trades, a change of old-style occupational
known as Adhat and VaydaVyapar to empower better peril degree and movement of products.
The three exchanges are: Domestic Ware and Subsidiaries Trade Restricted (DCDEX)
Bombay, Multi Ware Trade of India Constrained (MCX) Bombay and National Multi-Item
Trade of India Constrained (NMCEIL) Ahmedabad. Near are other nearby item relations
organized in unlike shares of India.
Outline for commodity amendable futures in India:-
The item prospects operated product connections are controlled by the Administration under
the Advancing Contracts Directions Act, 1952 then the Tenets encompassed nearby under.
The controller aimed at the products exchange is the Advancing Business sectors Contract,
orchestrated at Bombay, which goes below the Service of Shopper Undertakings
Nourishment besides Open Dispersion
Forward Markets Commission (FMC):-
The item prospects traded product connections are overseen by the Administration under the
Advancing Agreements Controls Act, 1952 besides the Tenets encompassed nearby under.
The controller for the items exchange is the Onward Business sectors Contract, orchestrated
at Bombay, which goes below the Service of Shopper Undertakings Nourishment besides
Open Dispersion
Multi Commodity Exchange of India Limited (MCX)
MCX is an autonomous and de-mutulized exchange with changeless revamping from
Administration of India, taking Head Quarter in Mumbai. Key stake holders of MCX are
Monetary Technologies (India) Limited, SBI, Union Bank of India, Corporation Bank of
India, Bank of India and Canara Bank. MCX inspires internet exchanging, clearance and
payment operations for product prospects advertise the nation over.
MCX started of conversation Nov 2003 and has invented vital union with Bombay Bullion
Link, Bombay Metallic Exchange, Flush Extractors Reminder of India, heartbeats Traders
Reminder and ShetkariSanghatana.

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Data Analysis and Interpretation
Yearly returns of Gold, Silver, Natural Gas, Platinum
Year Gold Sliver Natural
gas
Platinum Nifty
2012 9.53% 13.34% 30.21% 13.07% 25.38%
2013 -17.72% -26.14% 41.15% 3.38% 7.37%
2014 -1.01% -18.95%-18.95% -23.87% -9.78% 28.12%
2015 -4.37% -4.88% -7.15% -23.75% -2.86%
2016 10.94% 21.05% 60.00% 5.97% 2.86%
Multiple correlation table:-
Nifty Ret Gold Ret Silver Ret natural ret Plat Ret
Nifty Ret 1
Gold Ret -0.21975 1
Silver Ret 0.003224 0.25405 1
natural ret -0.07635 0.002378 -0.00322 1
Plat Ret -0.04061 0.322501 0.460018 0.042276 1
The above table show that multiple correlation of selected commodities and nifty value,
selected commodities like Gold, Silver, Natural Gas and Platinum. The multiple correlation is
5 years data’s from 2012 to 2016. Gold and Nifty correlation is -0.21975, Sliver and Nifty
correlation is 0.003224, Natural Gas and Nifty correlation is -0.07635, Platinum and Nifty
correlation is -0.04061.Gold and nifty correlation is negative correlation, silver and gold
correlation is positive correlation, natural gas and nifty correlation is negative correlation.
Gold and silver, Gold and natural gas, Gold and platinum correlation are 0.025405,-
0.002378,-0.00322 and 0.042276 respectively.
Findings:-

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 Nifty and Gold move almost in same direction for the period 2012 to 2015. It is
interesting to observe that gold and nifty behave in a positive correlation .The bench mark
index Nifty and Gold is in the nature of inverse observe that gold and nifty behave in a
positive correlation. In the year 2016, relationship. And is a mix of both positive and
negative pattern.
 Nifty and Sliver move almost in same direction for the period 2012 to 2015. It is
interesting to observe that silver and nifty behave in a positive correlation. In the year
2016, the pattern seems to be invers, a small drop in nifty resulted in huge fall in silver
price.
 Nifty and Natural Gas move opposite direction for the period 2012 to 2015.
 The above chart delineates that Nifty and platinum. Platinum consistently diminish from
2012 to 2015 and Nifty in 2013 it diminish up to 7.37% and it increment 28.12% and
again diminish - 2.86% in 2016 both Nifty and platinum increment in positive way clever
increment + 2.86 platinum increment 5.97%.However, the above chart is a blend of both
positive and negative pattern.
 Correlation between Gold and Nifty from 2012 to 2016. Correlation between Gold and
Nifty is perfect negatively correlation.
 Correlation between sliver and nifty from 2012 to 2016. In 2012, 2013, 2014, correlation
values are negative like -0.005,-0.007,-0.15 respectively. In 2015 the correlation value is
positive 0.048 and again it comes to negative.
 Correlation between Natural Gas and Nifty. In all the five years correlation values are
negatively so relation is perfectly negative correlation.
Suggestions:-
 Returns on Gold is observed to be impressive during 2016 with positive movement
compare to NIFTY and hence investors will get high returns. It is suggested to investors
that always to track the benchmark market i.e., NIFTY as Gold is reciprocal in direction.
So, investors can buy Gold during the market consolidation or market down trend phase.

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 Returns on Sliver is observed to be extraordinary during 2016 with positive movement
compare to Nifty and hence investor will get high returns.it is suggested to investors that
always to track the standard market.
 Natural Gas returns in 2016 is higher than the Nifty. Hence investors will get high returns.
 Returns on Platinum is observed to be low impressive during 2012 to 2016 with negative
movement comparing Nifty and hence investor will not invest in Platinum.
Conclusion:-
This project is based on secondary data. Data’s collected from money control and bullion
market. In this project I calculated correlation and regression analysis on the base historical
data’s. This project shows that correlation of selected commodities and Nifty, Gold and nifty
are perfect negative correlation, in the year 2015 the Silver and Nifty seems to be invers, a
small drop in nifty resulted in huge fall in silver price. Nifty and Natural Gas move opposite
direction for the period 2012 to 2015 hence investors will not get high returns. Platinum and
Nifty is a blend of both positive and negative pattern.
Regression analysis shows P value and significant F value (statistically significant ), look at
significant F ( 0.001 ), if this is value is less than 0.005, regression if significant F is greater
than 0.05. It’s probably better to stop using this set of independent variables. Delete a
variable with a high P value (> than 0.05) and return the regression until significance F drops
below 0.05. Most or all p values should be below 0.05.
Reference:
Ankrim, E. &Hensel, C. (1993). Commodities and Equities: A “Market of One”. Financial
Analysts Journal, 49(3), 20–9.
Black, F. and J. C. Cox, 1976, “Pricing Collateralized Debt-Commodity Obligation”, Journal
of Finance 31, pp. 351-367.
Erb, C., and Harvey, C., (2006) „Conditional Return Correlations between Commodity
Futures and Traditional Assets,‟ Financial Analysts Journal, Vol. 62, 2, 2006, pp. 69-97.
Hull, J. and White, A., 2004, “Conditional Correlation and Volatility in Commodity Futures
and Traditional Asset Markets”, Journal of Derivatives 2, pp. 8-23.
Manning, C. and P. Bhatnagar. (2004). „The Movement of Natural Persons in Southeast Asia:
No. 2004 ⁄ 02 (Canberra: Australian National University).

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Mauro, P. (1995), „Impact of Performance of Commodity Markets on Equity Markets in
India‟, Quarterly Journal of Economics, 110, 681–712.
Kulkolkarn, K., T. Potipiti and I. Coxhead.(2007). „Immigration and Labour Market
Outcomes in Thailand‟mimeo, Thammasat University and University of WisconsinMadison.
Robin. M .Green wood (2005)“A cross sectional analysis of the excess co movement of stock
returns” Finance research paper no.05-069 of Harvard business school.
Sanjay Sehgal and AsheeshPandey(2012) “Strategic Allocation, Asset Pricing and Prior
Return Patterns: Evidence from Indian Commodity Market”, Vision 16(4) 273–28, SAGE
Publication
Challenges and Opportunities of Rural tourism
Varadaraja.D & Dr.Shivappa

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Abstract:
Tourism gives relaxation to the mind and it refreshes and provides enthusiasm to body,
People want to enjoy natural environment as this will satisfy a wide range of personal needs.
Tourism is promoted as a stress reliever and a way to renew both body and soul. Natural
environment is retained by rural area and this is promoted as rural tourism. The rural tourism
describes local people’s culture, traditions and their lifestyles. Rural tourism enhance the
rural communities and would leads to the sustainable human development. The main
objective of this paper is o clearly identify the role of rural tourism in India and the initiative
taken up by the ministry of tourism, government of India. This will create local employment
and makes advancement of remote areas and possible ensure sustainable economic
development.
Keywords: Rural tourism, challenges, opportunities.
Introduction:
Tourism is the activities of people traveling to and staying in places outside their usual
environment for relaxation, business or other purposes for not more than one consecutive
year. Tourism encompasses outbound tourism, inbound tourism and domestic tourism.
Tourism constitutes a wide variety of sectors that provide diverse products and services to
visitors. However, these businesses also provide products and services to local residents.
Now a day’s, new emerging trend is service sector is rural tourism.
Rural tourism is essentially an activity which takes place in the country-side. Unlike the
conventional tourism, the rural tourism is experience-based, nature and environment-friendly
and is strictly based on preservation of our culture, heritage and traditions.
The benefits of rural tourism are multi-folded. Along with the creation of alternate source of
income, it also helps in the revival of the local arts and handicrafts. It helps women
empowerment, poverty alleviation and improves the standards of living of the rural folk. That
is the reason, Government of India is giving a lot of importance to emphasizing the
development of this form of tourism and is offering lots of incentives and subsidies for the
same. With almost 74 percent of the population living in rural India and almost 7 million
villages, India is ideally suited for this form of tourism. With all major cities in India

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becoming urban jungles, people are on the lookout for escape route and this form of tourism
would definitely help.
Another major advantage is that rural tourism can be an up market experience both for
domestic and international tourists. This is one of the primary reasons that the Home-Stay
concept introduced by Karnataka Tourism has been a resounding success with more than
3,000 Home-Stays in place.
Literature review:
Rathore (2012) found that rural tourism will emerged as an important instrument for
sustainable human development including poverty alleviation, employment generation,
environmental regeneration and development of remote areas and advancement of women
and other disadvantaged groups in the country apart from promoting social integration and
international understanding. It can help inflow of resources from urban to the rural economy.
Ray (2014) concludes eastern India is yet to make a true mark. The number of domestic and
foreign tourist visiting Kamarpukur, West Bengal and the neighboring states has been on the
rise in the last few years. The rising trend may yield some satisfaction. But a comparison with
other states and regions in India shows that the eastern region particularly Kamarpukur has
failed to measure up to its potential. The reason is simple. While other states are doing all
around publicity to attract tourists, Kamarpukur is lagging behind in its visibility campaign.
Indolia (2012) opined that there is a need of proper marketing plan in rural tourism and it
could bring lots of benefits to our society. It could be a sustainable revenue generating project
for rural development of our government. It can help inflow to resources from urban to the
rural economy. It can prevent migration of rural people to urban areas. Both short-term and
long-term planning, implementation and monitoring are vital in avoiding damage to rural
areas.
Raj (2013) stated that Tourism plays an increasingly important role in the development of
communities. The benefits of tourism include both tangible (e.g. job creation, state and local
tax revenue, etc.) and less tangible (e.g. social structure, quality-of-life, etc.) community
effects. In addition, tourism can, and often does, result in less desirable effects on the
economic, social, and environmental fabrics of communities. These benefits and costs
provide ample opportunity for creative public policy debate. But still we can see that most of
the rural areas are Un tapped. Thanks to television, today a customer in a rural area is quite
literate about myriad products that are on offer in the market place.

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OBJECTIVES: The main aims of the study are:
1. To give an overview of tourism in India.
2. To clearly identify the role of rural tourism in India and the initiative taken up by the
ministry of tourism, government of India.
3. To give an overview of rural tourism in Karnataka.
4. To identify the challenges and opportunities in rural tourism.
5. To offer suggestions for the development of rural tourism.
Present status of tourism industry in India
Today tourism is the largest service industry in India, contribution 6.23 percent to the
country’s GDP It accounts for 8.78 percent of the total employment. According to official
estimates the Indian tourism industry has out-performed the global tourism industry in terms
of the foreign tourist numbers and revenue generation. India saw more than five million
annual foreign tourist arrivals and 562 million domestic visitors. India has also made to the
list of rising stars as one of the most preferred tourist destinations. The tourism industry in
India generated about USD 100 billion in 2008 and that is expected to increase to USD 275.5
billion by 2018 at a 9.4 percent annual growth rate. The ministry of tourism is the main
agency for the development and promotion of tourism in India and maintains the “Incredible
India” campaign. The government has revised its economic reforms and has implemented
several measures for the benefit of tourism. KSTDC is actively promoting Eco-tourism which
needs to be further promoted aggressively to help preserve and sustain India bio-diversity.
According to World travel and tourism council, India is set to emerge as a tourism hotspot
during 2009-2018. It boasts of the highest 10 year growth potential. According to the travel
and tourism competitiveness report 2009 released by the world economic forum, India is
Ranked 11th
in the Asia pacific region and 62nd
overall, moving up three notches on the list of
the worlds attractive destination. It is ranked the 14th
best tourist destinations for its natural
resources and the 24th
for its cultural resources. It boasts of many world heritage sites, both
natural and cultural, rich fauna, and strong creative industries in the country. India is ranked
37th
for its air transport network. The Indian travel and tourism industry ranked 5th
in the long
term (10-year) growth and is expected to emerge as the second largest employer in the world
2019.

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Moreover, India has been ranked the “best country brand for value–for-money” in the country
Brand Index (CBI) survey conducted by future brand, a leading global brand consultancy.
India also claimed the second place in CBI’s “best country brand for history”. It is ranked
five in the best country brand for authenticity and art and culture, and the fourth best new
country for business. India made it to the list of “rising stars” or the countries that are likely
to become major tourist destinations in the five years, led by the United Arab emirates, China
and Vietnam.
Rural Tourism in India:
The form in which rural tourism is now taking shape can be traced to an International
Conference and Exhibition on Rural Tourism in India organised by Federation of Indian
Chambers of Commerce and Industry (FICCI) in association with the Udaipur Chambers of
Commerce and Industry in Udaipur (Rajasthan) in 2001. The basic concept of rural tourism
was envisaged with benefit accruing to local community through entrepreneurial
opportunities, income generation, employment opportunities, conservation and development
of rural arts and crafts, investment for infrastructure development and preservation of the
environment and heritage. Early movers in adopting the concept of developing and promoting
rural tourism have been Rajasthan and Kerala. The outcome of this workshop was a
collaborative effort by the Union Ministries of Tourism & Culture, Rural Development, Other
Nodal Agencies and FICCI to plan a 10-year project to market and develop the concept of
Rural Tourism in India. A survey commissioned to A F Ferguson for the study for the above
project estimated that every one million additional visitors to the country could translate into
Rs 4300-cr of revenue for the industry. Besides, every one million of additional investment
into the tourism sector has the potential of generating 47.5 jobs. And every direct job leads to
the creation of another 11 indirect jobs.
In an effort to further build on the concept the Ministry of Tourism identified another 55 sites.
Government of India has thus come forward with a scheme under which financial assistance
would be extended up to Rs.50 lakhs for promoting rural tourism in one centre. The
permissible activities under the scheme are improvement of surroundings, roads, illumination,
sewerage, wayside amenities, refurbishment of monuments and signage etc.
The recognition of rural tourism as an alternative to mainstream is a recent concept. The
government (at centre, state, local level), the tourism industry as well as groups/ organisations

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on the ground are putting in concerted efforts to see that these models of community-based
tourism finds success. However, caution must be heeded in relation to the impacts that this
may have on the environment and the people of the region, and therefore to fore-plan the
negation / minimisation of the negative impacts
Initiatives of the Ministry of Tourism
Initiative of the ministry of Tourism has been great influence on promotion of rural tourism.
IT is focusing on the rural tour circuits. The ministry is focusing on home stay arrangement
with greater push for foreign as well as native tourists. Rural Holiday circuits which are now
being focused are Hodka, Kachchh District, (Gujarat), Kumbalanghi, Ernakulam District,
(Kerala), Aranmula, Pathanamthitta District, (Kerala) Karaikudi (Chettinad), Sivaganga
District, (Tamil Nadu) Pochampalli, Nalgonda District, (Andhra Pradesh), Banawasi, Uttar
Kannada District, (Karnataka), Pranpur, Ashok Nagar District, (Madhya Pradesh), Naggar,
Kullu District, (Himachal Pradesh). Source: The report of the Tourism ministry, Government
of India 2011. The Rural Tourism centers which are around main cities with better
connectivity are promoted actively India can do better if standards of accommodation
provided at rural tourism centers can meet the expectations of comfort needed by
international tourists.(Market research division, ministry of tourism, government of India.
2012). Heavy emphasis is being given by Ministry of Tourism, Govt. of India while financing
the schemes. Some of the centers have really come up very well like Raghurajpur in
(Orissa) ,Lachen in North District (Sikkim) , Samode, Jaipur,(Rajasthana) Aranmula (Kerala),
Pranpur (Madhya Pradesh) to name a few centers which are ready to accept international
tourists.
Tourism in Karnataka: An overview
Karnataka is situated in the Southern part of India, and the state of Karnataka spreads over
the Deccan plateau. Karnataka is the eighth largest state in India in both area and population
(source: census 20111). It was formerly known as Mysore. On November 1, 1973, the name
Mysore was changed to Karnataka. The name of the land Karnataka has come from
“Karinadu”, meaning the land of black soil say the scholars while some others hold that
“Karunadu” also mean beautiful country. The state of Karnataka is situated between 74O
E
and 78o
E longitudes and between 11o
N and 18o
N latitudes. The topography of Karnataka is
largely a reflection of the geology of the State. The sahyadris are covered with evergreen

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forests. They drop abruptly towards the Arabia Sea, thus forming a natural barrier between
the plateau and the coastal region. Four passes provide access to the coast. They are
SubramanyaGhat, CharmadiGhat, ShiradiGhat, and famous AgumbeGhat. The Western
Ghats slope gently towards the Bay of Bengal. This is the plateau region drained by the two
principal rivers Krishna and Kaveri. The average elevation of the plateau is about 610 meters
above sea level.
Karnataka is attracted with a slogan one state many world this includes everything that
interests the visitors. The wildlife sanctuaries at Bandipur, Nagarahole and Dandelli, the
RanganatittuBird‟s sanctuary 5 km from Srirangapatna which is itself a well known tourist
center., hill stations like Nandi hills and Kemmannagundi and Mercara, Beach resorts like
Karwar, Ullal, Malpe, Maravanthe, the world famous Brindavana Garden at
Krishnarajasagara, Monolithic statue of Gommateshwara at Shravanabelagoala, GolGumbaz
with its whispering gallery at Bijapur, the Jog falls and other waterfalls at ShivanaSamudra,
Magod,Unchelli, Halguli at Yallapur, Abbi falls at Madikeri and other places indicates the
variety and richness of the attraction at Karnataka state retains the interest of the
visitors.There are many places of historic and religious importance which are also attracting
lot of tourists. The great Acharyas, viz.Shankara, Ramanuja and Madawa preached in this
region. Great reformers such as Sri Basaveshwara, Mathematicians like Bhaskaracharya,
Saint Poets like Purandaradasa and Kanakadasa, great writers like Pampa, Harihara and
Kumaravyas have all enriched the heritage of Karnataka.
Karnataka Rural Tourism Identified by Ministry of Tourism
State Rural Place District Purpose
Karnataka
KokkareBellur bird sancuary Mandya Eco-tourism
Attiveri Bird Sanctuary Uttara Kannada Eco-tourism
Banavasi Uttarakannada
Stone Machinery, Wood
carving, Musical Instrument
Anegundi Koppal Banana Fibre craft

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Coorg Kodagu Coffee plantation
Source: Ministry of tourism government of India
Opportunities
75% for the respondents are interested for rural tourism, if the trip can bring pleasure and
relaxation of body and mind. Once in a year, urbanites have expressed their interest to go for
rural tourism. Especially to those area where there is beauty of natural elements like
mountains, forests, sea, lakes and the like. Along with that traditional customs, handicraft of
the rural folk, traditional foods and their hosting style of the cultural programmes. Rural
tourism in India has great future, since it not only provides natural elements of beauty but
also the indigenous local traditions, customs and foods. Direct experience with local people
can be a unique selling proposition to attract tourists. Every state in India has some unique
handicraft, traditions and foods. The Rural tourism should not go for a mass marketing. Rural
tourism should develop different strategy for different segment to be successful. Trying to
appeal everyone is a common mistake. To be effective and successful, marketer need to focus
on particular segment or segments at a time.
Major stake holders of rural tourism
 Family Family’s top preference is entertainment and natural tourism. Cultural tourism
is the next choice. All five types of rural tourism i.e. natural, cultural, health,
ecotourism and village tourism are interesting for the families.
 School Children The school children are interested for excursion, sporting activities
like skiing, trekking, camping, river rafting etc. They are interested to study flora and
fauna, the native exotic species of rural India. They are also interested to study the
cultural and traditional values of rural India.
 Foreigners Foreign tourists are interested in any type of rural tourism. But they are
mostly interested in cultural tourism and health tourism. The tour operators have to
market them efficiently and effectively.
 Corporate They are interested in natural tourism with entertainment and health
tourism to come out from the week day’s pressurized work in office.

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 Restaurants Due to the development of tourism in Kodagu , the number of
restaurants are increasing day by day. Thus providing various job opportunities for
unemployed. The income of the restaurants is increasing steadily, thus increasing the
wages of the workers working there from the trained people, like manager to the
untrained sweepers, cook and others.
 Home stays: Home stays are a very important means to earn income and to generate
employment in rural areas. Home stay is a form of tourism that allows the visitor to
rent a room from local family to better learn and live. Home stays can occur in any
destination of the worldwide; some countries do more to encourage home stays than
other as means of developing their tourism industry. Hosting a home stays allows the
local family to earn some additional needed income. Home stay has linkage effect. It
generates large scale employment opportunities in different ways.
 Lodges: The rapid growth of lodges is also the result of growth in tourism. It has
created several job opportunities even for the illiterates. The lodges which were
almost vacant with dust are now found to be always full of tourists because of the
tourism growth
 Transportation: Taxies are in great demand as the tourists always want taxies as
means of transportation. The taxi owners and drivers are paid whatever money they
demand from the tourists. This has also created several job opportunities.
 Shopkeepers and street traders: The number of shops and street traders is
increasing, thus providing job opportunities for the untrained and unskilled.
Challenges
1. The success of rural tourism depends on the projects & destinations. The rail road
connectivity plays a decisive role in the success of such tourism. The Government
should see that destinations chosen should be very near to nearby rail junction of road
terminal.
2. Mobile towers should not be install near to the bird sanctuary, the signals emits from
the tower is harmful to the birds.
3. While choosing a destination as a rural tourism spot government should see that such
a place is famous for its arts crafts festivities customary tradition unique handicrafts
etc.
4. Government should have to take immediate action against forest caught by fire and
which destroys bio-diversity.

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5. The role of capacity building programs is very significant. The rural local people
should be trained to project their place as unique touring destinations.
6. Government should provide financial assistance and makes adequate supply of
required raw materials to manufacture banana fiber handicrafts.
7. Retain local folk culture and set the platform to exposure. It attracts tourists more than
any other sophisticated tour location.
8. Most of the rural tourism projects fail to succeed because they give priority for
commercialization of the destination.
9. Most of the projects fail to succeed because the businessmen instill urban glance to
rural setting & disregard the distinctiveness on a rural setting. Once the rural area
turns into an urban / semi urban neighborhood the rural destination loses its
originality & charm.
10. The promotion of urban housing patterns while the rustic rural flavor which could
have given locals good opportunities of employment & hospitality loses its charm.
11. With the growth of tourism, money making has landed firmly in the people. Home
stays have substituted the place of forests. Green land is slowly being converted to dry
land.
12. There is shortage of rented houses due to the development of home stays .The rents
have also reached its peak value and the middle man is struggling to survive, being
unable to pay the rent.
13. With the development of tourism sector, only tourism spots are developed, whereas
other regions are lagging behind the mainstream of economic growth.
14. With the growth of tourism the increase of theft and other illegal activities are also
increasing.
15. Proper details of a person are not demanded in home stays, as their main intention is
only moneymaking. As a result it leads to various terrorist activities.
16. The rates of each and every commodity are increasing as the demand for the goods is
also increasing. This has made common man to struggle for life.
17. Tourism leads to demonstration effect, as a result youths are completely westernizing
themselves adopting western culture and neglecting our precious cultural.
18. Agriculture will be neglected when rural tourism starts to grow, it provides job
opportunities even to the untrained, and the agricultural lands are converted into home
stays, resorts commercial sites etc.

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Suggestions
1. Government should encourage some traditional artisans or folk dancers living there
and try to develop the same as a rural tourism venture.
2. Governments should recognize importance of rural tourism at priority and help in
creating healthy competitive business environment.
3. Government should try to generate data for decision-making bodies investing for
developing the human resources, create adequate facilities and suitable infrastructure
like accommodation, roads, airport facilities, rail facilities, local transport,
communication links and other essential amenities become essential for development
of rural tourism.
4. The village council can be persuaded to make some traditional huts with western
commodes so that the tourists can be made to stay and experience the real village life.
5. Private sector should take initiative for the rural tourism development and government
should exercise control over on it.
6. Customer complaints are needed to be handled with at most care and on priority. A
Specially trained police force should be entrusted with the task of providing security
to tourist.
7. Tourism department and the district administration are required to work towards the
objective of delivering the positive customer experience by co-creating the training
and development programmes for the different stakeholders.
8. Quality accommodation near the tourist spot need to provide in association with
public private partnership.
Conclusion:
Proper marketing and planning will emphasize rural tourism and it makes rejuvenation to
rural area and it brings lot benefits to the society and local people. Rural tourism will rise as a
critical instrument for sustainable human development including poverty alleviation, local
employment generation, environmental regeneration and development of remote areas and
advancement of women and other disadvantaged groups in the country apart from promoting
social integration and international understanding. It can help inflow to resources from urban
to the rural economy. Environmental management, local involvement, sound legislation,
sustainable marketing, and realistic planning are crucial for development of rural tourism.
The government should promote rural tourism to ensure sustainable economic development
and positive social change.

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References
1. Indolia, Umakant Singh. "Rural tourism in India: Potential and Prospects." International
Multidisciplinary e-journal, 2012: 201-211.
2. Raj, Vinay. "Rural tourism in India: Issues and challenges in marketing strategy of
community tourism." International journal of Management and social science Research,
2013: 1-4.
3. Rathore, Nisha. "Rural tourism impact,Challenges and opportunities." Zenith
International journal of business economics and management research, 2012: 252-260.
4. Ray, Nilanjan. "Rural tourism issues and challenges: A case from Kamarpukur, India."
International journal of Business quantitative Economics and applied Mangement
Research, 2014: 90-106.
5. Ganji, Prasannakumar Madiwalappa. A study on customer experience management in
Karnataka state tourism development corporation (KSTDC). Davangere: Davangere
University, 2017.
5. www.tourism.gov.in
6. www.coorghallimane.com
7. www.tourmyindia.com
8. www.census2011.co.in

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DIGITAL PLATFORMS FOR GROWTH
Ms.Shruti M Gurav
Abstract: This paper deals with Digital platform for growth in India. It shows the scenario
of digital platform in India. Digital India has been introduced to ensure smooth
implementation of E- governance in the country and transform the entire ecosystem of public
services through the use of information technology, there is no better way to promote
inclusive growth other than through the empowerment of citizen. Digital India initiative to
transform the country into a digitally empowered society and a knowledge economy with
launch of this initiative, the government aims to reach out to citizens in the remotest of
location & make them part of India’s growth story. This platform helps citizen to exchange
ideas and suggestions with the government and make India growth.
Keywords: Digital India, Growth, Citizens,
INTRODUCTION
Digital Indiaprogrammeis one of the foundation programmes of Indian Government, and was
launched by the Government of India on July 1
st
, 2015. This campaign focuses on digital
development of the country by providing the citizens with such facilities and services so that
they are all connected to each other virtually and electronically. The aim is to provide the
citizens with such digitally and electronically advanced means so that the rural areas are
connected to the urban areas through network devices and services. The programme is
designed to ensure that the government services are accessible even to the poor and
downtrodden people, through electronic means, thereby, fastening the rendering of services
and improving the quality of life of even the lowest stratum of society. To accomplish the
vision, steps are being taken to improve the digital infrastructure in the country and to
increase the access to network devices through increased band width and advanced digital
technologies. Initiatives are also being taken to increase the digital literacy of the population
so that the majority of citizens become capable of operating digital gadgets and equipment.
This will boost the generation and growth of employment opportunities in the country. To

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connect the whole country virtually, major innovations and advancements need to be done in
technological field so that the country moves towards being a digitally empowered economy.
DEFINATION
A digital platform refers to the software or hardware of a site. For example, Facebook is a
digital platform. Quora is digital platform .Twitter is digital platform. Instagram is a digital
platform.etc.
OBJECTIVES
1. To study the concept of Digital India.
2. To study the pillars of Digital India for its implementation in India.
3. To know the impact of Digital Programme in India.
4. To study the how this Digital platform helping the citizen in their work or
business.
METHODOLOGY
The Research Methodology used for the paper is below:
Secondary Data: For this research secondary data is being used such as publication and
various websites.
Descriptive research: It attempts to describe systematically information through the
observation of group study.
PILLARS OF DIGITAL INDIA
The digital India programme is based on 9 pillars, those are:
1. Broadband highways – All the three of Broadband for all – Rural, Broadband for all –
Urban and National Information Infrastructure (NII) are covered in this.
2. Universal access to mobile connectivity – Providing access to all through penetration of
networks and filling all the gaps existing in connectivity structures.
3. Public internet access programme– Common Service Centers (CSCs) and Post Offices
providing multiple services are the two components that are covered under this.
4. E-governance – Government Process Re-engineering and restructuring by using technical
and IT tools, so that efficiency and transparency can be improved in governance. It is

28 | P a g e
essential to fasten and simplify the government processes to transform governmental
sectors technologically advanced and efficient.
5. E-kranti– Efforts have to be made at all the levels of governance to enhance the efficiency
of delivering and ease of accessing of government services by people by providing online
access to services. The aim is to move government and citizenry closer and within reach
of each other.
6. Information for all – Information must be available for everyone through electronic
means or network based resources. Regular interactions of government with citizens are
essential through social media sites or web based programmes, for good e-governance.
7. Electronics manufacturing – Electronic equipment’s are the basic requirement for the
programme to be implemented successfully. Manufacturing indigenous technology is
important to attract investment in the sector and to reduce imports.
8. IT for jobs – Providing training to youth in IT sector to enhance their employability skills
and improving their prospects in securing a good job in today’s digitally changing
environment.
9. Early harvest programmes– These programmes are those which run with a deadline with
in which they have to be completed. The time span for these programmes consist of a
short time period, i.e., within 3 years.
IMPACT OF DIGITALISATION IN INDIAN ECONOMY
1. Agriculture Sector: Digitalization will lead to the improvement of the sector’s
performance. Indian economy depends on the agriculture sector with it being one of
the three wheels driving the economy. Automation can help in improving
performance by:
 Availability of information – Automation of the sector will lead to the
availability of doing efficiently. Reliable information can be provided to the
farmers due to timely and accurate information.
 Better employment – Digitalization will lead to better utilization of human man
power in the sector. There is over employment in agriculture and if the
performance of the sector is improved as a whole then the same work can be done
by less people and the remaining manpower can be employed in other productive
activities thereby increasing GDP as a whole is shown in Figures.

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 Price control and cost cutting – Timely and correct information about prices,
inputs as well as outputs, in different markets, and cutting of costs due to better
utilization of resources, will lead to increased profits in the sector.
 Increased returns and investment – Better agricultural facilities will lead to
increase agricultural produce there by increasing the returns of the sector. Good
prospects for the sector will lead to increase in investment.
 Agricultural literacy – With the help of automation, farmers have increased
access to the information they require or any knowledge they want to acquire
regarding farming. This increases the level of agricultural literacy in the country
thereby improving the future prospects for agriculture.
2. Industry Sector: The Government of India aims at digitalizing the sector to improve
sectoral performance, so as to increase the share of the sector in GDP and also the
increasing returns in the sector will lead to increase in the overall growth rate of GDP
and economy itself.
 Ease in purchase and inventory control – The procurement of raw materials will
become an easy and effective process by automation. One can procure the desired
quantity and quality of materials at competitive prices. Automation of ordering,
billing and payment systems, leads to better inventory control, thereby reducing
inventory management costs.
 Wider customer base and market reach – Customer base for goods is increasing
due to availability of products through various online sources like online shopping
portals, i.e., myntra, jabong, snap deal, or company’s web pages, i.e., reliance trends,
woodland, pantaloons, Adidas etc.
 Employment variations – The employment scenario will be dual impacted. On one
hand, digitalization will lead to unemployment because of machines replacing man
power. And on the other hand, new jobs will be created as the sector will move
towards growth and expansion. The job requirements and specifications will change
with the changing scenario.
3. Service Sector: Services are invisible in nature. There is no physical product but
services are rendered to people. Digitalization has the most impact on service sector
as digitalization of services improves their effectiveness to a large extent.
 Aviation – The facilities like online booking of tickets, online passport application
through Passport Seva Kendra’s, price discounts on advance bookings, FDIs,

30 | P a g e
increased tourism due to online marketing of tour packages, reduced ticket costs due
to increase in competition, etc.,
 Banking and finance – The increased ease in performing banking activities and
managing bank accounts due to numerous digitalized facilities provided by banks like,
mobile banking, NEFT, online banking, etc. has improved the future growth prospects
for the banking sector.
 Retail – Retail is growing after digitalization of services like online bill payments by
card swiping, online shopping sites and web pages, online marketing, cost discounts
on some particular cards etc.
 Infrastructure – Infrastructural developments pick up pace with the help of
digitalization. It saves a lot of paper work, man power, time and cost savings, etc.
 Education – Application of digital methods to education enhances the learning
processes for students, teaching experience and ease for teachers and the overall
learning procedures.
 Telecommunications – Telecommunication sector is growing speedily after the
introduction of new technologies in the sector like, Smartphone’s, tablets, i-pads,
android systems, windows operated systems, etc.
Challenges for Digital India for Growth
Few of the challenges faced in the successful implementation of Digital India Programme are
1. Lack of education – Majority of population in the country is still not qualified enough
to use digital devices and technology. Most of people are not capable of using a simple
mobile phone.
2. Lack of infrastructure and required technology – The India still lacks the basic
infrastructure required to move digitally ahead. The technological infrastructure and
technology required for the campaign is still not available that easily in the country.
3. Financial and technical issues – India is still a developing country. For a plan like this,
huge financial resources are required and the country somehow lacks in that area. Technical
issues like firewalls, filters, anti-virus software’s, protection from hackers etc.
4. High costs – The electronic devices and internet services are still by and large very
costly for an average Indian citizen.
Conclusion
Digitalization improves effectiveness and efficiency of work being done. Digitalization of
governance activities, i.e., e-governance, enhances quality of life of its citizenry by increased

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transparency in Government departments and easing service delivery. It increases speed and
reduces time duration requirements for performing various activities and functions cutting of
cost and increased market span enhance profit margins hence can accentuate returns in the
sectors. It enables transparency in all the systems and processes thereby improving quality of
life.
References
1. https://en.wikipedia.org/wiki/Economy_of_India.
2. https://en.wikipedia.org/wiki/Digital_India.
3. http://digitalindia.gov.in/content/about-programme.
4. How Digital India will be realized: Pillars of Digital India.
http://117.239.114.223/content/programme-pillars.
5. 22. http://www.icytales.com/7-challenges-implementing-digital-india/

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IMPACT OF NON-BANKING FINANCIAL COMPANIES (nbfcs) ON
INDIAN ECONOMY GROWTH
Dr.ChidanandBadiger, HOD and Asst. Professor at IBMR,
Hubli
Dr.VikramKulkarni, Asst. Professor at IBMR, Hubli
Abstract:
A robust banking and financial sector is critical for activating the economy and
facilitating higher economic growth. Financial intermediaries like non-financial companies
NBFCs have a definite and a very important role in the financial sector, particularly in the
developing country like India. They are the vital link in the system. After the proliferation
phase of 1980s and early 1990’s, the NBFC’s witnessed consolidation and now the number of
NBFC’s eligible to accept deposits is around 600, down from 40,000 in early 1990’s. The
number of asset financing NBFC’s would be even lower, around 350, the rest are investment
and loan companies. Almost 90% of assets financing NBFC’s are engaged in financial
transporting equipments and the balance are in financing equipments for infrastructure
projects. Therefore the role of non-banking sector is both manufacturing and service sector is
significant and they play the role of an intermediary by facilitating the flow of credit to end
customers particularly in transportation and other unorganised sectors.
KEYWORDS: Financial intermediaries, Economic Growth, Financial Services, Developed economies,
Lease Finance.
Introduction
Non-Banking Financial Company (NBFC) in India begin in a small way in the 1960’s
to serve the need of the saver and investor whose financial need where not adequate covered
by the existing banking system in India. The NBFC’s begin to invite fixed deposit from
investor and work out leasing deal for large industrial firms. In the early decade, there

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operation on a limited scale and could not make a significant impact of financial system.
However between 1980’s and 1990’s, NBFC’s where well entered and begin to attract a large
number of investors owing to them customer friendly reputation.
The copu up NBFC’s is fast growing with multiplication of financial services. Some
of NBFC’s are also engaged in underwriting through subsidiary unit and by offering allied
financial services including stock broking, investment banking, assets banking and portfolio
management.
Non-Banking Financial Companies are those companies, which are not banking
companies under the banking regulation act, but carry out financial activities of providing
finance; these companies may or may not accept deposit from the public. These provide lease
finance, housing finance, trade in share, general loan and advance for share trading, hire
purchase especially automobiles.
In recent times, NBFCs have emerged substantial contributors to the Indian
economies growth by supplementing the effort of banks and other financial institutions. They
pay key role in the direction of saving and investment in wave of rapid industrial
development and liberalization of financial sector; key financial institutions and professional
have promoted financial institutions to create a diversified and competitive financial system,
NBFC’s intermediate between saver and investor. These companies’ also known as financial
companies, lease companies, loan companies, etc.
The last few years have been significant developments in the financial sector that
have raised competition across the world. Non-banking financial companies(NBFCs) have
perhaps felt the pressure most. Consquently, top run NBFC’s are changing tack initiating
moves to become financial super markets. They are seeking to provide as many services as
possible and their fate will be decided by how successful they are.
Review of Literature
Non-banking financial companies(NBFCs) , spread all over the country, and registered with
reserve with reserve bank of India and authorised to accept public deposits have joined hands
and formed a Self-Regulatory Organisation(SRO) under the name of Financial Industry
Development Council(FIDC). FIDC is registered as company u/s 8 of Companies Act, 2013.

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The main objective of the regulatory body is towards code of conduct, besides presenting a
unified phase of this sector.
The role of NBFCs in creation of productive national assets can hardly be undermined. This
is more than evident from the fact that most of the developed economies in the world have
relied heavily on lease financing route in their developmental process. NBFCs due to their
inherent strengths in the areas of fast and easy access to market information for credit
appraisal, well-trained collection machinery, close monitoring of individual borrowers and
personalised attention to each client as well as minimum overhead costs are in a better
position to cater to their segments.
Types of Non-Banking Financial Companies(nbfcs)
The NBFCs that are registered with RBI are basically divided into various categories,
depending upon its nature of business: -
1) Loan company
2) Investment company
3) Asset finance company
4) Hire purchase company
5) Mutual benefit financial company
6) Residuary non-banking company
7) Potential nidhi company
8) Chit fund company
Objectives of the study
1) The main objective of this paper is to analyze the Impact of Non-Banking Financing
Companies(NBFCs) Unorganised sector of India. It also aims at examining the determinants of
micro financing, banking and financial sectors.
2) The present study has been undertaken to study, analyse and identify success factors, limiting
factors and failure factors of the development of financial system in Indian Economy.
Research Methodology
This is descriptive research paper based on secondary data. Data has been found out through
different books, research papers, magazines and various other websites.

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Table -01: Numbers of NBFC’s Registered with RBI
End
June NBFCs NBFCs-D
2005 8,451 679
2006 13,815 776
2007 14,077 784
2008 13,489 710
2009 13,764 604
2010 13,261 507
2011 13,014 428
2012 12,968 401
2013 12,809 364
2014 12,740 336
2015 12,630 308
2016 12,409 297
2017 12,385 271
Table-02 : Ownership pattern nbfcs
Sl No Ownership NBFCs-Nd-si Deposit taking NBFCs
A Government
Companies
09(2.4) 07(2.6)
B Non-government
companies
366(97.6) 266(97.4)
Public limited
Companies
198(52.8) 263(26.3)
Private limited
Companies
168(44.8) 03(1.1)
Total No. Of Companies (A+B) 375(100) 273(100)

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Table-02 shows that the ownership pattern of NBFCs- ND-SI as well as deposit taking
percentage of non-government companies (public and private) were 97.6% and 97.4%
respectively in NBFCs-ND-SI and deposit taking NBFCs as against government companies
have share of 2.4% according to the above details, the NBFCs in India have been
predominantly non-government in nature.
Resource profile
NBFCs in India procedure resource formatting their financial requirements through owned
funds (comprising share capital and surplus), public deposits and borrowings.
Table 03- Resource profile of nbfcs
Year Owned Funds Public Deposits Borrowing and other liabilities Total
2005 8,026.60 19.85% 9,784.70 24.20% 22,620.60 55.95% 40,431.90
2006 6,665.70 17.80% 8,338 22.26% 22,448.40 59.94% 37,452.10
2007 4,089.50 15.97% 5,350.90 20.90% 16,163 63.13% 25,603.40
2008 7,605 20.17% 5,035 13.35% 25,069 66.48% 37,709.00
2009 6,741 20.67% 4,317 13.24% 21,556 66.09% 32,614.00
2010 6,750 20.02% 3,926 11.64% 23,044 68.34% 33,720.00
2011 6,787 20.51% 2,667 8.06% 23,641 71.43% 33,095.00
2012 8,258 17.20% 2,042 4.25% 37,699 78.54% 47,999.00
2013 11,870 16.42% 2,038 2.82% 58,385 80.76% 72,293.00
2014 12,845 17.01% 1,941 2.57% 60,730 80.42% 75,516.00
2015 18,000 15.40% 12,000 10.27% 86,900 74.34% 1,16,900.00
2016 22,500 18.10% 10,000 8.05% 91,800 73.85% 1,24,300.00
Note: Figures in parenthesis and percentage share in total.
Over the period 2005 to 2016 reliance on outside had increased at expenses of the owned
funds. Thus, it may be seen from table-03 that while relative share of owned funds in total
funds nose dived from 26.4% in 2009 to 18.1% in 2012, that outside funds recovered sharp
increase from 73.6% to 81.9% during the corresponding period. So as to increase Networth
and upto 40% to a group of NBFCs had been increased for as single NBFC borrower with
effect from April 1, 2007.
Deposit profile of nbfcs

37 | P a g e
Table-04 Aggregate of deposits of NBFCs As on March
Year Rs in crore
2004-2005 20,428.93
2005-2006 19,342.70
2006-2007 18,064.64
2007-2008 18,822.00
2008-2009 20,100.00
2009-2010 19,644.00
2010-2011 20,576.00
2011-2012 24,697.00
2012-2013 24,400.00
2013-2014 21,565.00
2014-2015 17,247.00
2015-2016 11,964.00
2016-2017 10,100.00
Deposits of NBFCs in India have recorded tremendous progress, indicating growing
popularity of these companies among public at large, thus if may be seen from table-04
shows that the deposit of the reporting NBFCs surged from Rs 119 crore as on march in 1970
to over Rs. 24,500 crore as at march end 2011, recording almost 200 times increase during
the period. This can be attributed to simplified sanction procedures, orientation towards
customers, attractive rates of return on deposits and flexibility and timeliness in meeting the
credit needs of specified sectors like equipmentsleasings and hire purchase. However, amount
of deposits garnered by NBFCs declined steeply and continuously to reach low level of Rs.
10,100 crore as on march end 2017.
Activity-wise profile of deposit:-
Table-05 Activity-wise profile of deposit of NBFCs
Sl
N
o
Nature of
business 2012 2013 2014 2015 2016
1 Equipment 1,172 5.74 1,450 8.02 511 2.54 4,727 14.3 3,489 9.15

38 | P a g e
leasing(EL) .91 % .21 % % 8% %
2
Hire
Purchase(HP)
3,339
.78
16.3
5%
3,659
.19
20.2
3% 3,539
17.6
2%
20,50
0
62.3
8%
28,68
2
75.2
0%
3
Investment
and Loan(IL)
4,455
.80
21.8
1%
785.8
2
4.35
% 329
1.64
% 2,894
8.81
% 2,987
7.83
%
4 RNBCs
10,64
4.27
52.1
0%
11,62
5.24
64.2
8%
15,06
5
75.0
2% 3,926
11.9
5% 2,667
6.99
%
5 Other NBFCs
816.1
7
4.00
%
564.1
8
3.12
% 636
3.17
% 816
2.48
% 317
0.83
%
Total
20,42
8.93
100.
00%
18,08
4.64
100.
00%
20,08
0.00
100.
00%
32,86
3.00
100.
00%
38,14
2.00
100.
00%
Table-05 shows that the pre-dominance of RNBCs in total deposits held by all NBFCs has
been the characteristics features of the NBFCs operating in India. It may be observed in over
the period 1999-2003 RNBCs has been significant surge in the relative share of the NBFCs
from 52.2% in 1999 to 75% in 2003. However, the period of 2005-2006. Hire-Purchase(HP)
emerged as a large NBFC group, constituting as high as 51.8% in 2005 and 74.6% at the end
2006.
Asset Profile of nbfcs
Table-06 Asset composition of nbfcs-D
Sl
No Components 2007 2008 2009 20
1 Loan and advances 8,090.00 31.60% 8,592.00 28.74% 13,398 35.53% 12,363
2 Investments 2,882.40 11.26% 3,302.00 11.05% 4,338 11.50% 3,817
3 Other financial assets 14,630.70 57.14% 18,001 60.21% 19,973 52.97% 16,574
4 Total 25,603.10 100.00% 29,895.00 100.00% 37,709.00 100.00% 32,754.00
Table-06 shows that the development of funds of NBFCs-D sector in India. It can be seen
from the this table that funds of NBFCs are utilized in the form of loan, investment and other
financial assets. In the year 2001 loan and advances in total assets of NBFCs-D were 31.2%

39 | P a g e
which increase to 39% in 2012. The percentage of investment in 2001 was 11.3 which
decrease to 8.5 and other financial assets investments in 2001 was 17.7 which increased to
52.5 in 2012. It is interested to note from the above table that more than half of the funds of
these companies are invested in other financial assets.
Table-07 –Activity-wise development of assets of nbfcs (as at march end)
(Rs in crore)
Sl
N
o
Nature of
business 2010 2011 2012 2013 2014 2015 2016
1
Loan &
Inter
coporate
deposits
8,0
90.
00
31.
60
%
13,
710
.00
34.
42
%
4,1
09
10.
90
%
5,4
85
16.
75
%
6,9
64
19
.3
4
%
1,3
77
3.9
2%
21,
073
27.
91
%
2
Investment
s
2,8
82.
40
11.
26
%
4,3
34.
00
10.
88
%
2,2
08
5.8
6%
2,4
22
7.3
9%
1,8
90
5.
25
%
1,1
60
3.3
0%
14,
813
19.
62
%
3
Hire-
purchase
8,3
41.
00
32.
58
%
13,
202
33.
14
%
22,
163
58.
77
%
19,
929
60.
85
%
20,
500
56
.9
4
%
28,
682
81.
69
%
35,
647
47.
20
%
4
Equipment
Leaseing
3,1
87.
00
12.
45
%
3,1
12.
00
7.8
1%
7,9
96
21.
20
%
3,7
44
11.
43
%
4,7
27
13
.1
3
%
3,4
89
9.9
4% 585
0.7
7%
5
Other
assets
3,1
02.
50
12.
12
%
5,4
75.
00
13.
74
%
1,2
33
3.2
7%
1,1
73
3.5
8%
1,9
22
5.
34
% 404
1.1
5%
3,3
98
4.5
0%
Total
25,
602
.90
10
0.0
0%
39,
833
.00
10
0.0
0%
37,
709
.00
10
0.0
0%
32,
753
.00
10
0.0
0%
36,
003
.00
1.
00
35,
112
.00
10
0.0
0%
75,
516
.00
10
0.0
0%

40 | P a g e
Table-07 shows that the Loans and Inter-Corporate deposits has claimed at most of the assets
NBFCs in 2001, which decrease to 3.9% in 2006, but increases to 27.9% in 2009. The
percentage share of investments assets was 11.3 in 2010, which decreases to 4.5 in 2006 but
increases to 19.6 in 2009. In contrast, percentage share of hire purchase assets rises from 33.4
to 80.7 during the corresponding period, but decreases to 47.2 in 2016. The percentage share
of other assets was 11.3 in 2010, which decrease to 1.1 in 2010 but increases to 4.5 in 2016.
Activity- wise distribution of assets of NBFCs reveals that the major portion of the assets
nbfcs are in the form of hire-purchase assets.
Conclusion
As for financial performance of the NBFCs, it is interesting to find that over the years
profitability and financial health of these institutions have remarkeably improved. But there is
still great scope for the NBFCs to improve their earning through expanding their fee-based
business. NBFCs represent and extremely heterogenous group of intermediaries concerned
with mobilization of resources and their profitable development. NBFCs played the role of
intermediaries between the savers and the investors. However in the last few decades
importance and nature of financial intermediation has undergone a dramatic transformation
the world over. The dependence of bank credit to fund investments is giving way to rising
sources through a range of market based instruments such as a stock and Bond Markets. New
Financial products and instruments like Mortgage and other Assets backed securities,
Financial futures and Derivative instruments like swaps and complex options. Besides
transferring resources from savers to investors, these instruments enable allocation of risks
and re-allocation of capital to more efficient use. The increase in the breadth and depth of
financial market is also conincided with a pronounced shift among the ultimate lenders who
have moved away from direct participation in the financial market to participation through
range of intermediaries. These developments in international markets have been remirrored in
the financial market in India.
Finding/suggestion
NBFCs have been playing a very important role for both macroeconomics perspective and
the structure of the Indian financial system. NBFCs are the perfect or even better alternatives
to the conventional bank for meeting various financial requirements of a financial enterprise.
They offer quick and efficient services without working one to go through the complex rigma

41 | P a g e
role of conventional banking formalities. However, to service and to constantly grow, NBFCs
have to focus on their core strengths while improving on weakness, with the opening of
financial sector to overseas investors, there will be spate of tie-up for requisite expertise and
technology transfers. NBFCs having professional expertise and strong infrastructural base
can take advantage of this opportunity.
References
1. Advani: Investment and Securities Markets in India, Himalaya Publishing House,
New Delhi.
2. L M Bhole: Financial Market and Institutions, Tata Mcgraw Hills, New Delhi
3. D C Ghose: Banking Policy in India, Allied Publications, New Dehli
4. M U Khan: Indian Financial System, Tata Mcgraw Hills, New Delhi
5. R M Shrivastava: Management of Indian Financial Institutions, Himalaya Publishing
House, New Delhi
6. Dr. Preeti Singh: Investment Management( Security Analysis and Portfolio
Management), Himalaya Publishing house, Mumbai.
7. G Ramesh Babu: Financial Markets and Institution, Concept Publishing Company Pvt.
Ltd.
8. Gurhsara Singh Kainth: Managing Rural Finance in India, Concept Publishing
Company Pvt. Ltd.
Legal system, intellectual property rights and economic prosperity: A
Conceptual Study on Indian Economic and Intellectual Property Right
-Ms.CHAITRA.S
Abstract:

42 | P a g e
Throughout history many societies have deemed intellectual creations—technological
inventions, artistic, and literary works—as the property of inventors and authors. Intellectual
property rights (IPRs) give the owners of intellectual property the legally enforceable power
to prevent others from using an intellectual creation or to set the terms on which it can be
used. The major categories of this includes patent, copy right, trade mark and designs. All
these major categories of Intellectual Property include ‘n’ number of items.
In today’s industrial countries, IPRs are part of the institutional infrastructure that encourages
private investments in formal research and development (R&D) and other inventive and
creative activities. In contrast, most developing countries have not relied on IPRs protection
as a major mechanism to foster innovation. Moreover, to the extent that there is significant
inequality in the control of proprietary rights across nations, developing countries have
traditionally preferred rapid dissemination of knowledge at the expense of the protection of
IPRs of foreigners. During this period WTO found its time to create a separate agreement
which exclusively governs Intellectual properties. The introduction of Agreement on Trade
Related Intellectual Properties TRIP’s by WTO on 1st
Jan of 1995 was a need of the hour.
During the past decade, the intellectual property field has seen tremendous changes, with
profound implications for developing countries. These changes relate on the one hand to
international policy shifts and on the other hand to the emergence of new technologies.
As economy is growing and importance of innovation is increasing the protection of
Intellectual Property was at vital importance. So for this reason in the India context
Intellectual Property Right is protected under various categories of Act’s viz., Patent Act,
Copyright Act, Trademark etc.,.
In this competitive era increase in Intellectual Property indicates growth of economy, as it
means more innovations and Research and Development works are taking place and the
number of discovers and new endeavours are increasing.
This paper aim’s at understanding of how increased rate of Intellectual Property is one of
economic growth indicator by taking the reference of various statistics.

43 | P a g e
Introduction:
Intellectual Property (IP) is a category of property that includes intangible creations of
the human intellect, and it mainly includes copyrights, patents, trademark, trade secrets,
publicity rights, moral rights, etc.,. artistic works like music and literature as well as some
discoveries, inventions, words, phrases, symbols and designs all these can be protected as
intellectual property.
The term intellectual property began to be used after 19th
century and it became more popular
and common late by 20th
century as a result of WTO and its TRIPS.
The main purpose of intellectual property law is to encourage the creation of a wide variety
of intellectual goods. To achieve this, the law gives people and businesses property rights to
the information and intellectual goods they create, usually for a limited period of time.
Because they can then profit from them, this gives economic incentive for their creation.
Types of intellectual property:
Some of the important Intellectual Properties are as follows:-
Patents:
A patent is a form of right granted by the government to an inventor, giving the owner the
right to exclude others from making, using, selling, offering to sell, and importing
an invention for a limited period of time, in exchange for the public disclosure of the
invention.
Copyright:
A copyright gives the creator of an original work exclusive right. Copyright can apply to a
wide range of creative, intellectual or artistic works however it does not cover ideas and
information themselves, only the form or manner in which they are expressed.
Industrial design rights:
It protects the visual design of objects that are not purely utilitarian. An industrial design
consists of the creation of a shape, configuration or composition of pattern or colour, or
combination of pattern and colour in three-dimensional form containing aesthetic value.

44 | P a g e
Trademarks:
A trademark is a recognizable sign, design or expression which
distinguishes products or services of a particular trader from the similar products or services
of other traders.
Trade secrets:
Trade secrets are a formula, practice, process, design, instrument, pattern, or compilation
of information which is not generally known or reasonably ascertainable, by which
a business can obtain an economic advantage over competitors and customers. There is no
formal government protection granted; each business must take measures to guard its own
trade secrets.
Growth of intellectual property in india:
Inferernce:
During FY2015-16, the total number of Intellectual Property Rights (IPR) stood at
251,420 Trademark applications accounted for the largest share of 82.70 per cent, with the
total number of applications standing at 285000 in FY16 Patent & design applications
accounted for 14.10 per cent (35,447 applications) & 3.20 per cent (8035) share, respectively.
The twin states of Telangana& Andhra Pradesh topped the list of Indian states for filing

45 | P a g e
patents. According to Intellectual Property India Report, 2015, Andhra Pradesh recorded 532
patents while, Telangana recorded 459 patent applications, witnessing an increase of 25 per
cent over the previous year.
Industries wise research & development
growth:
Inference:
It is clear that India is fast emerging as a global R&D hub. Until 2005, Tier-1 cities
were the favourite destination for MNCs due to availability of rich talent, favourable policies
& better quality of life However, post-2005, MNCs have started expanding to Tier2 cities, as
they offer benefits such as higher catchment area, lower attrition & cost arbitrage R&D
related investments & processes attain easier approval from regulatory authorities, globally.
This has also increased focus on new generics India’s R&D ecosystem has grown at a
phenomenal pace in the last 10 years. 42 per cent of the Global 500 R&D Spenders have
centres in India, with the figure expected to reach 49 per cent by 2020 India has emerged as

46 | P a g e
the most preferred destinations for innovation in Asia & the 3rd
biggest globally, with
'Silicon Valley' of East Bengaluru leading the charge.
New national intellectual property rights (ipr) policy 2016:
This policy has been released with a vision that envisages an India where creativity and
innovation are stimulated by Intellectual Property for the benefit of all. IP promotes
advancements in Science and technology, arts and culture, biodiversity resources. As
knowledge is main driver of development and knowledge owned is transformed into
knowledge shared.
A balanced IPR system in India can foster creativity and innovation and thereby promote
entrepreneurship, enhance development enhance access to healthcare food security enhance
environmental protection so on.
The new IPR policy endeavours for a “creative India; innovative India”.
Main objectives of new ipr policy:
The policy is having the following seven main objectives:
1. To increase public awareness about IPR and their economic, social and cultural
benefits.
2. To stimulate creation of IPR in the country.
3. To create a strong legal and legislative framework around IPR.
4. To modernize administration and management of IPR 5.
5. To promote commercialisation of IPR.
6. To strengthen enforcement and adjudication mechanism around IPR.
7. To expand Human Capital Development.
In order to achieve above objectives new IPR has come up with certain
measure viz.
 The policy is entirely compliant with the WTO’s agreement on TRIPS.
 Reducing the time taken on clearing the backlog of IPR applications from
current 5 to 7 years to 18 months by March 2018.

47 | P a g e
 Approve trademark applications within one month by 2018. Currently, a
trademark approval takes around 13 months on average
 To review the policy in five years in consultation with stakeholders.
 The Policy also seeks to facilitate domestic IPR filings, for the entire value
chain from IPR generation to commercialisation. It aims to promote research and
development through tax benefits.
 A nodal agency will be formed as the department of industrial policy and
promotion (DIPP) for all IPR issues which also includes Copyrights related issues
which are currently under the ambit of the Human Resource Development (HRD)
Ministry.
 The Policy also seeks to facilitate domestic IPR filings, for the entire value
chain from IPR generation to commercialisation. It aims to promote research and
development
 It will continue to utilise the legislative space and flexibilities available in
international treaties and the TRIPS Agreement
 Special thrust on awareness generation and effective enforcement of IPRs,
besides encouragement of IP commercialisation through various incentives.
Economic prosperity:
There are certain changes in Indian economy which is indicating that it will lead to growth
and prosperity and can soon reach new heights in innovation and creativity by fully investing
in research and development.
Some of these positive economic prosperity signs are:
 India is Sixth-largest R&D investor: India's R&D spends is estimated to reach USD71.5
billion as compared to previous years USD66.49 billion. India became the world’s 6th
largest annual R&D spending country, accounting for 3.53 per cent of global R&D
expenditure R&D spending in India is anticipated to grow from 0.9 per cent to 2.4 per cent
of the country’s GDP from2016 to 2034 respectively

48 | P a g e
 Rapidly growing overseas investment: Cumulative overseas direct investments by India
grew at a CAGR of 38.78 per cent, during FY08-16, reaching USD289 billion during FY16
from USD21 billion in FY08, this resulted the global car makers are also looking to move
their R&D investments in India
 Pharma and health care sector driving R&D growth: India’s pharmaceutical industry,
which accounts for about 1.4 per cent of the global pharmaceutical industry in value terms
& 10 per cent in volume terms, is expected to remain a major R&D growth driver Indian
healthcare sector, one of the fastest growing industry, is expected to advance at a CAGR of
22.87 per cent during 2015–20 to reach USD280 billion Contract research is one of the
fastest growing segment in the Indian healthcare industry. CRAMS industry is estimated to
reach USD18 billion in 2018 and expected to witness a strong growth at a CAGR of 18-20
per cent during 2015-18. Indian pharmaceuticals market is estimated to reach around
USD30 billion in 2015. The country’s pharmaceutical industry is expected to expand at a
CAGR of 12.89 per cent over 2015–20 to reach USD55 billion
 Information Technology (IT): India is seen as a product development destination.
Companies are off shoring their product responsibilities including complex services like
product management. Apple has submitted 5 applications with the Indian Patent Office in
2016, for innovations related to digital payments. Face Book is also looking to tap into the
mobile wallet market of the country.
 Automobiles: India is the 6th
largest auto market in the world & is poised to become the 3rd
largest by 2020. Research is being carried out by individual companies as well as industry
associations.
 Biotechnology: By 2025, India’s biotech industry is estimated to increase to USD100 billion
from USD27.58 billion in 2016. Protein & antibody production & fabrication of diagnostic
protein chips are promising areas for investment. Stem cell research, cell engineering &
cell-based therapeutics are other areas, wherein India will cash in its expertise
 Agriculture: India has the potential to become a major producer of transgenic rice & several
Genetically Modified (GM) or engineered vegetables. Hybrid seeds, including GM seeds,
represent new business opportunities in India based on yield improvement. According to
International Service for the Acquisition of Agri-Biotech Applications, India has the fourth
largest area covered under genetically modified crops. In India, 11.57 million hectares of
area is covered under genetically modified crops which are majorly dominated by BT cotton.

49 | P a g e
In the Union government Budget, under the Accelerated Irrigation Benefit Programme
(AIBP), would ensure to complete 23 irrigation projects.
Conclusion:
In May 2016, the Ministry of Commerce and Industry and the Department of
Industrial Policy and Promotion released the long-awaited National Intellectual Property
Rights Policy. This document outlines the strategic direction and policy goals of the Indian
government with respect to the protection of IP for the foreseeable future. Of note is that the
Policy addresses a number of important gaps in India’s national IP environment, including
the need for stronger enforcement of existing IP rights by building new state-level IP cells
and investing more resources in existing enforcement agencies; strengthening administrative
capacities at India’s IP offices including by reducing processing times for patent and
trademark applications; and the need to introduce a legislative framework for the protection
of trade secrets. And while comprehensive reform and execution in these areas would mark a
notable improvement to India’s national IP environment, the Policy dismissed the need for
more extensive legislative reform. Specifically, it did not address the challenges and
uncertainties rights holders face when it comes to protecting their patent rights (particularly
in the biopharmaceutical sector), modernizing existing copyright laws, or introducing
international best practices and new sector-specific IP rights such as regulatory data
protection for submitted biopharmaceutical test data.
References:
1. Reserve Bank of India, R&D Magazine, International Monetary Fund, World Bank,
CIA Fact Book, OECD,
2. R&D spending estimate by Battelle and R&D Magazine,
3. U.S. Chamber International IP Index, Fifth Edition, February 2017
4. ARAI, Business Standard, India Law Office, Deloitte, TechSci Research
5. IBRF Report 2016
6. www.legalservicesindia.com/article/article/intellectual-property-rights-in-india
7. Backus, David K., Patrick J. Kehoe and Timothy J. Kehoe (1992), In search of scale
effects in trade and growth. Journal of Economic Theory, Volume
58(2),.http://dx.doi.org/10.1016/0022-0531(92)90060-U

50 | P a g e
8. Deardorff, A. V. (1992), Welfare effects of global patent protection. Economica,
Volume 59(233).
9. Janjua, Pervez Z. and GhulamSamad (2007), Intellectual property rights and
economic growth: The case of middle income developing countries. The Pakistan
Development Review, Volume 46(4), Part II (Winter), pp. 711-722.
10. Smith, P. J. (1999), Are weak patent rights a barrier to U.S. exports? Journal of
International Economics,
Inter-continental Cooperation:
A Study Of India Vis-À-Vis Brics
C. N. M.
Lavanya
And
Dr.Shivappa
ABSTRACT
Politics is inextricably linked to economics. Regional groupings have gained a lot of
prominence of late. There have been many waves of Regional Trading Agreements (RTAs),
with the current wave supposedly being the third wave. It is in this context that the grouping
of Brazil, Russia, India, China and South Africa (BRICS) is very relevant. India laid
exclusive emphasis on South-South cooperation that is meant to accrue mutual benefits to the
members concerned. This study seeks to study the role of India vis-à-vis various nations of
BRICS. The initial cautious approach of India during the formation of BRICS got transposed
in the subsequent years, wherein it has played a proactive role.
KEYWORDS: India, BRICS, regional groupings
INTRODUCTION:
There is a discernible shift in the balance of power from developed to developing world. In
their quest for equitable development, emerging economies are confronted with many
challenges. The term BRIC was coined by Jim O’Neill, the former Chairman of Goldman

51 | P a g e
Sachs in 2001. BRICS was founded in 2006, but the grouping’s first formal Summit was
held in Russia in 2009. South Africa joined BRICS in 2010. BRICS is a case of inter-
continental cooperation. It is a key stakeholder in the worldwide agenda of this century. The
growing significance of BRICS in today’s global economy can be attributed to their huge
share in world population and world trade. Thakur (2014) stated that in spite of many
inherent differences, the connecting thread among BRICS nations is the significance of
offsetting the US/Western influence.
OBJECTIVE AND METHODOLOGY:
The objective of this paper is to analyse the relations of and role played by India with its
partners in BRICS. As regards methodology, a pair-wise analysis of India with each of the
other members of BRICS is done. The sectors that have potential for creation of or increase
in trade are spelt out. Subsequently, the achievements and concerns of this grouping, in
addition to the broad outlook are also looked at, in this paper. The information has been
obtained from secondary sources.
In this regard, the role of India vis-à-vis the other four member nations is analysed below:
India – Brazil:
India and Brazil have been representatives of the developing world at the negotiations of
World Trade Organization (WTO). The ‘Zero Hunger Strategy’ of Brazil has reaped success
in poverty alleviation and reduction of inequalities via the development of small and
profitable farms and disbursal of cash to the poor by means of creative payment system. The
social schemes in Brazil are purported to be among the most effectively targeted. While
India can learn from these schemes, Brazil can derive some learning out of India’s
manufacture of the world’s cheapest car and tablet. In addition to the aforementioned
sectors, viz., poverty reduction and social innovation, there could be cooperation between
the two countries in housing and healthcare sectors, to name a few.
The cooperation could not only be at the governmental level, but also at the private sector
level, fostered by the Chambers of Commerce such as Confederation of Indian Industry (CII)
and Federation of Indian Chambers of Commerce and Industry (FICCI). India and Brazil
can offer knowledge-sharing on agriculture and food security programmes in other

52 | P a g e
developing nations. For instance, the two said countries are progressively engaging
themselves in developmental action in Africa.
India-Russia:
Russia has been a traditional ally and a strategic partner of India. A wide swath of sectors
such as defence, space exploration, electronics and Information Technology (IT) are areas
with a great potential for increase in trade. The opportunities should be leveraged in such a
manner that the Russian science and technological concepts get hatched by the Indian IT
ecosystem.
Clearly defined Public-Private Partnerships (PPP) can make the cut in areas such as
biotechnology and nanotechnology. Joint Ventures between IT organizations and scientists
can be developed, which in turn, could foster venture capital firms to fund the collaborative
Indo-Russian projects. Eg. While Russian scientists possess the expertise in programmes
related to embedded systems, Indians have tremendous experience in terms of outsourcing.
India-China:
The popularity of the term ‘Chindia’ (a portmanteau word denoting China and India) in the
early years of the new millennium indicates the rise of these two emerging economies and
their ability to redraw the contours of international political environment. India intends to
stabilize the multilateral environment via counteracting China in the seething issues
between India and Pakistan. Only China, among the BRICS countries, is a permanent
member of UNSC with a right to veto. India and South Africa have claims for membership
of the Council. Notwithstanding the irritants in the diplomatic relations between India and
China, issues such as border dispute, Tibet and South China Sea, both the countries can
support each other in strategic economic relations.
The legacy of complex relationship with China can also be smoothed out as both are
member countries. Other issues, viz., food and energy security, coupled with terrorism are
also a part of the negotiating table. Zhang (2010) illustrated the manner in which China is
emerging as a powerhouse in the global arena in terms of its relationship with USA and
Russia, its progressive engagement in South-East Asia and attention on enhancing its soft
power. China emphatically partook in the establishment of Asian Infrastructure Investment
Bank (AIIB) and One Belt, One Road (OBOR) policy, now rechristened The Belt and Road

IBMR B School Journal Volume 2

IBMR B School Journal Volume 2

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