Anyone who tried it before will tell you that it is not easy to write a business essay. It has to be precise and quote substantiated, researchable data. The purpose of these types of essays is to show that you have a comprehensive knowledge of the subject. For that reason, choose your topic with care and only select subject matter you feel confident to write about.
You should plan what you’re going to write about in order to produce a good quality paper so first of all, do a thorough analysis of the subject. This will serve to give your essay definition which is important when creating a good essay outline. It’s important to note that there are a few important aspects of a thesis essay at this point. They are as follows:
a) The subject matter of the essay should match the title
b) Don’t exceed your word count
c) Make a plan of the essay
d) Write a summary of the content of each paragraph
e) Make sure your essay flows naturally
While you’re writing the essay outline what will form the main body of your thesis. You can diverge into just one part of the whole subject at a later point but plot each paragraph first. Research thoroughly and ensure your data is accurate before you incorporate it into your work. Give examples and good, coherent arguments for each point you make and make use of keywords that will focus the reader on your subject matter.
Obviously your final draft is the most important part of the essay. This is where you can lose marks so ensure you’ve double checked everything; grammar, spelling, punctuation, your sources and references. Ask your tutor or supervisor to proof-read it for you and ask him/her to point out where it could be improved.
Writing a business essay will present you with a good opportunity to understand and interpret date and then write about it. This in itself is good experience of writing about subjects that could form your future career.
If you want to write a good business essay, follow these guidelines:
- Analyze the subject. First, it will help you to define the topic and outline the essay.
- Regardless the scope of the assigned topic, point out:
- The subject (general sphere of investigation)
- The limiting words (help you to narrow the subject)
- Direction words (guide your actions)
- Plan your writing.
- Prepare the outline
- Develop several perspective structures for presenting the main body of the business essay. After a while, choose the most appropriate and stick to it in the course of the essay.
- Plan the macrostructure of the essay and then build up the microstructure of every paragraph.
- Write a detailed outline, pointing out the key words for each part of the business essay.
- Write the first draft of the business essay.
- Give a critical analysis of the assembled data. You must provide reasonable proof of your arguments and support it with the specific examples. In your customyou must cover opinions for and against the presented argument. Make sure that the subject is discussed logically throughout the business essay.
- Proofread for punctuation and spelling errors
HERE IS THE LIST OF A FEW IMPORTANT ESSAYS
- BLACK MONEY
- CREDIT CARD
- DEBIT CARD
- ROLE OF COMPANY SECRETARY
- INDUSTRIAL DEVELOPMENT AND ENVIRONMENTAL POLLUTION
- MULTINATIONAL CORPORATION
- INFORMATION TECHNOLOGY
- POPULATION EXPLOSION AND FAMILY PLANNING
- STOCK EXCHANGE
- ROLE OF CONSULTANCY ORGANIZATION
- WOMEN ENTREPRENEURS
- COMMERCIAL PAPERS
- ADVERTISEMENT USES AND ABUSES
- FOREIGN INVESTMENT IN INDIA
There is hardly a thing or commodity whose price has not gone up in the recent times. Rise in prices has become a common feature in India and the people are reconciled to this fact. Rise in prices is called inflation.
There are various factors that contribute to this rise in prices. Some are natural factors like unfavorable weather conditions which affect the food production and lead to the shortage of commodities in the market. With more money chasing fewer goods, the prices take to the wings.
Compounding this natural problem are other man-made problems like hoarding which contribute to the escalation of prices. The moment the trading community senses a shortage of certain commodities or products, especially the essential commodities; they resort to large scale hoarding. They release the hoarded commodities after escalation of the prices and make a neat margin over their investment in the hoarded commodities. Though the government has the necessary powers to check hoarding it does not have the necessary manpower to contain the despicable acts like hoarding.
Apart from the natural factors and the man-made factors like hoarding that add to the rise in prices or inflation, the government too contributes its bit to the escalation of prices by imposing higher taxes on raw materials and finished products. With the government nature and hoarders adding their bit to the inflationary trends, is it any surprise then that rise in prices has become a common feature in India?
In the recent times the rate of inflation has been hovering around 4 to 5 per cent. This is, of course, the official rate of inflation. But the rising prices in the retail market do not actually reflect this modest rate of inflation as these figures relate to the Wholesale Price Index and have no relation to the exorbitant retail prices.
To keep the prices of essential commodities under control, and within reasonable limits, the Indian government had constituted the Cabinet Committee on Prices and the Special Committee of Secretaries on Monitoring Prices. These bodies monitor the prices and supplies of essential commodities regularly. Apart from these, the Department of Consumer Affairs monitors the prices of 12 essential commodities viz; wheat, rice, sugar, arhar, gram, groundnut oil, mustard oil, vanaspati, salt, tea, potatoes and onions on a daily and weekly basis. Those commodities that are in short supply are imported.
Though the government’s steps to check inflation are laudable, these measures will have a positive impact on the prices only when they are coupled with a massive drive against hoarders, black marketers and anti-social elements. The unprecedented rise in the prices of onions and tamarind in 1999 testifies to the power of the hoarders who can play havoc with the market. Unless hoarding and black marketing are effectively checked, prices will continue to rise.
Illegally earned money is called black money. It is the result of hoarding, smuggling, tax evasion and dealing in immovable property for which the consideration is paid in black. It has been beyond the control of the Government. The black money has already created a serious problem in our country.
The Indian economy stands badly shattered because of the huge amount of this tainted wealth lying in the coffers of the rich. It has given rise to parallel economy operating in the country. As a result, the prices continue to raise in spite of all government efforts to control them. The poor go on becoming poorer while the rich go on becoming richer. The gap between the haves and the have nots is widening every day.
Black money is used by the rich in various evil activities. They use this money for corrupting and demoralizing social and political life. They display it in ostentatious living and wasteful luxuries. They bribe Government officers and lead them to corruption and dishonesty. They purchase political bosses and control the strings of the Government. Thus the entire social structure comes to be badly polluted.
It is difficult to form an exact idea of the amount of black money in circulation in the country. Searches and raids by Income Tax authorities are conducted from time to time. Such raids yield crores of rupees. But the people are, at times, cleverer than the Government. They seek the aid of the best legal brains and get the law twisted in their favor. Most of the offenders use all their money and influence and go scot free whenever they are caught. The Government has, at various times, announced some voluntary disclosure schemes for unearthing the black money. These schemes have proved successful to a very limited extent. What has come to the surface is believed only to be the tip of the huge iceberg lying hidden underneath. The 1997 Voluntary Disclosure Scheme announced by the Government of India unearthed a big amount of black money as the tax rate in this scheme had been reduced to thirty per cent.
The black money, according to some reliable estimates has gone up to Rs. 10,000 crores in our country. It is to a great extent responsible for a great rise in prices because the purchasing power of the people has increased. People having black money are leading a life of luxury whereas the poor people are leadinng a miserable life. Some leading economists of the country have suggested stringent measures to the government to unearth black money but successive governments have been rejecting those measures. The vested interests always stand in the way of effective measures and get them diluted.
The government of the day appears to be doing its best to unearth black money. A number of steps have been taken. Taxation structure and system have been made easier. At different times, the government has brought forward several schemes and asked the people to declare their wealth. There has been some success. A lot soil remains to be done.
It must be clear to all that the nation cannot shut her eyes to this state of affairs. Smugglers and black-marketers can no longer be tolerated. They are striking at the very roots of our democratic structure. All steps to weed the black money out of circulation must be taken as early as possible. The government must come down with a heavy hand on smugglers, tax evaders, black-marketers and hoarders. Black money is a curse. It must be rooted out from public life.
With increasing globalization, numerous corporate entities catering to the various industry spectrums have been seen emerging on the Indian economic scene. Increasing competition among the corporate houses coupled with the opening up of the economy brings with it the complexities in the running of an organization. It is here that the role of a Company Secretary is so important to an organization or business house, since he is competent to provide sound advice on corporate, legal, secretarial, administrative and even tax related matters. While a Company Secretary can aspire to get employment opportunities in government accounts or law departments, he can also become a Chairman or Managing Director of a Company or be a part of the esteemed Board of Directors of a Company.
In lay man’s terms a Company Secretary is a professional whose role in a corporate set up is that of an advisor for legal matters. The job of a company secretary also includes ensuring that the company law procedures are strictly followed and adhered to under all circumstances. Company Secretary guides the Board and the Chairman to make the best use of their responsibilities under various law matters.
A Company Secretary acts as a mediator between the company, its board of directors, stakeholders, government and regulatory authorities. A Company Secretary is a professional, who has expertise in corporate laws, capital markets, security laws and corporate governance. He/She is the one who advises Board of Directors on the kind of practices to be adopted in corporate governance.
A Company Secretary is an important official who ensures that best management practices and work ethics are followed to create wealth creation for the company. He/She is the one who represents the company for internal and external stakeholders, co-ordinates the policies of the company and management function, guides on the strategic decisions for the betterment and growth of the company like merger, acquisition and joint collaboration.
The latest talk around the world or rather the world over is the credit card where the saying goes ‘flash it and pay later’. In the credit cards the card’s authorized person can shop ‘anywhere, anytime and whenever’ and buy whatever and can pay the money later. This single phrase is enough to lure many into obtaining a credit card.
The credit card craze has hit the world many. The credit card craze has hit the world hard and is still brewing like a storm. The credit card has seen a lot of companies investing in this business and these companies range from Visa, Master Card, and so on and all these companies are huge companies whose involvement in this credit card business has given the business the much needed vibe or in the proper terms ‘a huge boost’.
Credit Card does not mean ‘free’ credit. In effect, what we are doing is merely postponing payment, while it looks real good to have to pay only one or two thousand a month on our card, it should not be forgotten that we are paying interest on the amount that we ‘revolve’ from one billing cycle to the next.
But there is one precaution we should add. We should always settle a credit card in full for two good reasons. First and foremost, if we are not able to pay up now, we should not have spent it in the first place. Second, the credit charges tend to be extremely high, ranging from 2 percent to 3 percent per month.
The credit card craze has created a tremendous change in the lifestyle of people as they don’t have to carry cash around the places they go and which may cause a theft of the money. A simple credit card is enough to buy all the goods they want and pay the money later.
This has caused a big change in the world where traditional rules are being replaced by new ones which are being used to change the world we live in rapidly and giving rise to rising diplomats who can spend as they please and are not hard pressed for cash and hence live a newer and different lifestyles which is different from the past ones thus giving rise to the phrase- ‘Credit cards- creator of a new lifestyle’.
It is said that many people fall into a debt trap. But if we are careful with our expenses, credit cards can be handy thing to have around. Hence, we need to consider the term ‘responsible usage’ and understand the actual significance of living on credit.
If we use the cards carelessly we will really fall into a debt trap. Now it is up to us how we use them. We must not forget that credit card is a boon if we handle it with care but a bane in absence of our sensibility.
Industrial pollution is pollution which can be directly linked with industry, in contrast to other pollution sources. This form of pollution is one of the leading causes of pollution worldwide; in the United States, for example, the Environmental Protective Agency estimates that up to 50% of the nation’s pollution is caused by industry. Because of its size and scope, industrial pollution is a serious problem for the entire planet, especially in nations which are rapidly industrializing, like China.
This form of pollution dates back to antiquity, but widespread industrial pollution accelerated rapidly in the 1800s, with the start of the Industrial Revolution. The Industrial Revolution mechanized means of production, allowing for a much greater volume of production, and generating a corresponding increase in pollution. The problem was compounded by the use of fuels like coal, which is notoriously unclean, and a poor understanding of the causes and consequences of pollution.
There are a number of forms of industrial pollution. One of the most common is water pollution, caused by dumping of industrial waste into waterways, or improper containment of waste, which causes leakage into groundwater and waterways. Industrial pollution can also impact air quality, and it can enter the soil, causing widespread environmental problems.
Because of the nature of the global environment, industrial pollution is never limited to industrial nations. Samples of ice cores from Antarctica and the Arctic both show high levels of industrial pollutants, illustrating the immense distances which pollutants can travel, and traces of industrial pollutants have been identified in isolated human, animal, and plant populations as well.
Industrial pollution hurts the environment in a range of ways, and it has a negative impact on human lives and health. Pollutants can kill animals and plants, imbalance ecosystems, degrade air quality radically, damage buildings, and generally degrade quality of life. Factory workers in areas with uncontrolled industrial pollution are especially vulnerable.
A growing awareness of factory pollution and its consequences has led to tighter restrictions on pollution all over the world, with nations recognizing that they have an obligation to protect themselves and their neighbors from pollution. However, industrial pollution also highlights a growing issue: the desire of developing nations to achieve first world standards of living and production. Those countries that are already industrialized want to keep their place in the World Economy, and those that aren’t want a better position in the world economy eg China. As these countries industrialize, they add to the global burden of industrial pollution, triggering serious discussions and arguments about environmental responsibility and a desire to reach a global agreement on pollution issues.
A multi-national company, or commonly known as a MNC, is a firm that operates in more than one country, with a headquarters in one particular country. These companies are usually among the largest firms in the world, often selling billions of dollars worth of goods and services, and employing hundred thousands of workers across the globe. The profit and income flows that they generate can reach well into billions of pounds per year
As countries adopt a more open outward-oriented approaches to achieve economic growth and development, the role of multinationals are becoming increasingly important. Many foreign firms are looking to locate part of the production process in other countries where they can benefit from cost advantages. These might be cheaper sources of labor, raw materials and components or have preferential government regulation.
Many governments now days are trying to woo these big multinationals to build a plant or set up an office in their countries. In efforts to persuade these multinationals to do so, the government may offer many incentives such as low taxation, in favor of a company to lower production costs.
There are many advantages that a company can gain by expanding their business overseas and becoming a multinational corporation. These advantages include large supply of cheap manual labor, which they can employ at low wages, which is the main attraction multinationals see in countries like China and India. As a result, countries like China and the like are home to the biggest manufacturing plants, employing manual workers at low wages. Among the multinationals that own massive plants in China are Philips, Fisher-Price and Dell.
Another advantage that a company can gain by becoming a multinational is cheaper distribution costs, as goods no longer need to be sent from the only country where the company’s factory is. For example, if a computer hardware company based in the UK sets up its factory in Taiwan, they no longer need to export their goods from the UK for the Asian market. This can significantly contribute to lowering the production cost.
A country that plays host to a multinational will enjoy a good share of benefits, which stimulates the national economy growth. However, these countries also face a good deal of uninvited problems by having a giant multinational operating in their country.
Multinationals may provide training and education for employees thus creating a higher skilled labor force. These skills may be applied to other industries of the host country. Often management and entrepreneurial skills learned from multinationals are an important source of human capital, contributing to the outward growth of the national economy.
Multinationals will also contribute tax revenue to the government and other revenues if they purchase any existing national assets.
Having said that, countries may also face uninvited problems by encouraging the expansion of multinationals into their countries. The attraction for the multinational may be the large supply of cheap manual labor that they can employ at low wages. This may contribute to the exploitation of worker’s rights. It will also not lead to the transfer of management skills, as all the senior management and planning of the company is handled by the expatriate workers.
As many multinationals are very large and have considerable power they can exert influence on governments to gain preferential tax concessions and subsidies and grants, which could also lead to corruption in the government. Multinationals have been known to bribe government officials as to escape their taxes owed to the government.
The Stock Exchange is the market where stocks, shares and other securities or other long-term commitments or investments are bought and sold. In a modern capitalist economy, almost all commodities, even the smallest, are produced on a large scale and large scale production implies large amounts of capital. To fulfill this requirement, the joint stock company or the corporate form of organization is ideally suited to secure large amounts of capital from all those who have surplus funds and who are willing to take risks in investing in companies. An investor who puts his savings in a company by buying its securities cannot get the amount back form the company directly. The only way the capital invested in stocks and shares of a joint stock company may be realized by its owner is through the sale of those stocks and shares to others. So for the existence of a capitalist system and for the smooth functioning of the corporate form of organization, the stock market is, therefore, an essential institution.
The first organized stock exchange in India was started in Bombay (where currently, about 70 per cent of the total corporate business is transacted), followed by Ahmedabad in 1894. The Calcutta Stock Exchange was started in 1908 to provide a market for shares of plantations and jute mills. Currently, under the Securities Contract (Regulation) Act of 1956, the Government of India has recognized 22 stock exchanges in the country. The most common characteristic features of these stock exchanges all over the world are: It is a place where securities are bought and sold ;It is an association of persons whether incorporated or not. Both genuine investors and speculators buy and sell shares. The securities of corporations, trusts, governments, municipal corporations etc. are allowed to be dealt at the stock exchanges.
The stock exchanges play a dominant role in accelerating the pace of economic development of a country by initiating a variety of steps like ensuring liquidity of capital, providing ready market for trading and evaluation of securities, mobilizing surplus savings, helping raising new capital, provide platform for public debt and act as a clearing house of business information.
The stock exchanges in India suffer from a number of weaknesses. There is no proper integration between all the stock exchanges. This results in large variation in share prices. The dominance of financial institutions like the LIC, GIC, UTI creates bullish tendencies by buying shares in large quantum or bearish tendencies by unloading shares in the market Discretionary character of fixing the margin and the system of settlement and carry forward (badla) produce high price fluctuations and excessive speculation. Trading activity favors brokers and adversely affects the genuine investors.
Women owned businesses are highly increasing in the economies of almost all countries. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status in the society. Skill, knowledge and adaptability in business are the main reasons for women to emerge into business ventures.’ Women Entrepreneur’ is a person who accepts challenging role to meet her personal needs and become economically independent. A strong desire to do something positive is an inbuilt quality of entrepreneurial women, who is capable of contributing values in both family and social life. With the advent of media, women are aware of their own traits, rights and also the work situations. The glass ceilings are shattered and women are found indulged in every line of business from pappad to power cables. The challenges and opportunities provided to the women of digital era are growing rapidly that the job seekers are turning into job creators. They are flourishing as designers, interior decorators, exporters, publishers, garment manufacturers and still exploring new avenues of economic participation. In India, although women constitute the majority of the total population, the entrepreneurial world is still a male dominated one. Women in advanced nations are recognized and are more prominent in the business world.
Women entrepreneurs face a series of problems right from the beginning till the enterprise functions. Being a woman itself poses various problems to a woman entrepreneur, The problems of Indian women pertains to her responsibility towards family, society and lion work.
The tradition, customs, socio cultural values, ethics, motherhood subordinates to ling husband and men, physically weak, hard work areas, feeling of insecurity, cannot be tough etc are some peculiar problems that the Indian women are coming across while they jump into entrepreneurship.
21st century is the century of telecom, IT and financial institutions. Women’s expertise in all these industries has made them emerge as a force to reckon with.
Many of these industries are headed and guided by women as pioneers and mavericks. They have ventured to build enterprises, to discover their relevance and meaning of life in themselves. But still in relation to the women population. The trend has not been spectacular.
As per 1991 census, only 185900 women accounting for only 4.5% of the total self employed persons in the country were recorded. Majority of them are engaged in the unorganized sector like agriculture, agro based industries, handicrafts, handlooms, and cottage based industries.
There were more than 295680 women entrepreneurs claiming 11.2% of the total 2.64 million entrepreneurs in India during 1995-96. This is almost double the % of women (5.2%) among the total population of self employed during 1981.
The present rate of 30% success of EDP training was likely to go up to 45% with growing experience and improved techniques of training and follow up. The women were to be given training in self employment/entrepreneurship of shorter duration as well as some training in trade and skill areas.
In order to mobilize such of women entrepreneurs, a number of activities such as motivational drive; preparation of information material; conducting training; creation of women industrial estates/areas/sheds; creation of common marketing exposition centers, training of trainers/ promoters; use of mass media, etc are required. Combined effect of all these is bound to accelerate the process of women entrepreneurship development.
Empowering women entrepreneurs is essential for achieving the goals of sustainable development and the bottlenecks hindering their growth must be eradicated to entitle full participation in the business. Apart from training programs, Newsletters, mentoring, trade fairs and exhibitions also can be a source for entrepreneurial development. As a result, the desired outcomes of the business are quickly achieved and more of remunerative business opportunities are found. Henceforth, promoting entrepreneurship among women is certainly a short-cut to rapid economic growth and development. Let us try to eliminate all forms of gender discrimination and thus allow ‘women’ to be an entrepreneur at par with men.
A glance at any newspaper will reveal hundreds of advertisements. Some are elaborate, full-page displays, while the majority are in the more economical classified sections. People and firms advertise for all sorts of reasons. We can read about job vacancies, new products, people wanting to sell or purchase houses and cars, announcements of births and deaths, lonely hearts looking for partners, home services and others. The list goes on, and expanding every day.
The uses of advertisements are undisputed. Large companies depend heavily on advertisements to make their products known to the consumers.
For an employer looking for workers, advertisement provides one of the most efficient methods of getting them. How else can an employer let job-seekers know that there are jobs available? Through advertising in the newspaper, the whole country can be effectively reached and the best of the job-seekers selected. It is the same when people want to sell or buy houses, cars and other things. Through advertisements they can come in contact with people not normally met in normal daily life. Again the best buyers or sellers can be picked out and the most suitable bargains reached. In short advertisements enable people to widen their choices and chances in whatever they wish to obtain or discard. As useful as it is, advertisements are sometimes abused by unscrupulous people.
Misleading the public is the most common form of abuse of advertisement. Consider some of the deceptions employed by advertisers:
In the midst of an international sports meet we see the omnipresent sign of a popular-brand cigarette. Everyone knows that smoking does nothing good for one’s health. Yet these advertisers blatantly ignore facts and promote their products nonetheless. Even the authorities turn a blind eye to the whole affair. Nowadays the advertisers have begun to disguise their advertisements. Instead of the direct approach to cigarettes, they go in a roundabout way by advertising fashion, good-living and other aspects of “success”.
Furthermore how much of what they advertise are based on truth? Does using a certain brand of shampoo eliminate dandruff? My personal experience is a definite no. Does consuming certain food make us healthier? Then why are the hospitals always full? Does using a certain brand of soap powder really make clothes cleaner? Does owning a certain type of car really make the owner happier? Such things we must ask, if we do not want to be taken in by the advertisements.Thus we see that advertisement can be useful as well as it can be destructive. It depends on how it is used. People advertise because they need to. It is only when they advertise falsehood and misleading information that abuse comes in. We cannot escape this onslaught of advertisements, but we can use our own intelligence to weed out the bad ones.
Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer.
Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.
Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.
Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major deciding factor.
If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti trust, ethical and environmental laws and received fines worth millions. The problem is that the amount of money these companies are making outweighs the fines applied. Billion dollar profits blind the companies to their lack of business ethics, and the dollar sign wins.
A business may be a multi-million seller, but does it use good business ethics and do people care? There are popular soft drinks and fast food restaurants that have been fined time and time again for unethical behavior. Business ethics should eliminate exploitation, from the sweat shop children who are making sneakers to the coffee serving staff that is being ripped off in wages. Business ethics can be applied to everything from the trees cut down to make the paper that a business sells to the ramifications of importing coffee from certain countries.
In the end, it may be up to the public to make sure that a company adheres to correct business ethics. If the company is making large amounts of money, they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics, but in this competitive world, they are becoming very few and far between.
Export and Prosper’ has now become a slogan for the rapid and self-reliant growth. It is export promotion only that holds out the promise in such countries. We in our country, in particular, cannot ignore the launching of export promotion drive, for in the early stages of our planned economic development imparts are inevitable. The solution of making payment of imports lies in making payments from our own export earnings.
In a developing economy like ours export promotion is a precondition for economic development and also for evolving a self-reliant and self-generating economy, Export promotion will be useful in many ways. First of all, it will be useful in removing the unfavorable position of balance of trade. Secondly, it will be helpful in providing markets for certain goods and extending domestic markets for certain other goods. Thirdly, export promotion will form the basis for the success of our development projects and economic planning. And lastly, export promotion will render the benefits of large-scale production available to the producers which, in its turn, will reduce the cost of production strengthening further the export promotion base.
With the impressive industrial development since independence India’s foreign trade has undergone a complete change and is no longer confined to a few countries trading in few commodities. The number of commodities exported from the country is now more than three thousand as against fifty at the time of independence. Similarly, there has been a great increase in imports on account of the development needs of the country. During recent years there has been a substantial increase in the imports due to rise in the oil prices.
The exports from the country have not only gone up but also witnessed an increasing diversification in recent years. The largest share of India’s exports goes to OPEC countries. Next in the rank are the countries of European common Market. The major items of India’s exports are jute manufactures, iron ore, raw cotton, cotton manufactures, coffee, spices, leather and leather manufactures, handicrafts, tobacco etc. ,
To impart dynamism to the country’s efforts to expand and diversify exports, a series of measures have been put into operation.
The measures taken to boost the country’s export have been very useful. However, the export promotion drive has not attained the desired result. The main reasons for this slow progress are: (i) higher cost of production of Indian goods making it difficult to compete in the foreign markets, (ii) tendency of Indian exporters in general, to earn profits by supplying inferior quality products, (iii) heavy custom duties imposed by the government, (iv) increasing availability of substitutes Indian goods, (v) lack of proper publicity, and (vi) lack of prompt and reliable data on several aspects of international trade.
The slow progress of India’s export promotion drive should be a matter of serious concern for all those who understand the significance of export promotion. The international trade has become increasingly complex with more and more developing countries vying with other and with developed countries to wrest as great a share of the world market as possible. There exists a wide scope for the exports of Indian goods. All that we need in our country is the will to capture the foreign markets.
IMPACT OF LIBERALISATION ON INDIAN ECONOMY
The Indian government headed by P.V. Narsimha Rao adopted the policy of economic liberalization in 1991 with the aim of bringing prosperity to the country. Since then foreign investment worth billions of US$ has been made in the country but all this has only resulted into more poverty. The rural poverty has increased from 32 percent to 40 percent, and in States like Bihar, Maharashtra, Karnataka and UP, the poor have become poorer. The economic liberalization policy has only helped the rich, who already had the infrastructure and resources, to corner huge sums of money without creating more job opportunities. The employment level has, therefore, gone down during all these years of liberalization.
Thousands of industrial units are lying closed, rendering millions of workers jobless. The new ventures are all going for very high tech projects, having a high degree of automation requiring minimal labor requirement. Every entrepreneur wishes to work with least labor component. As a result of all this the overall employment scenario has become very grim.
No wonder, then, that the forces of nationalism in India are against those who favor liberalization. India has an annual GDP of $300 billion, vast natural resources, and as many highly educated, skilled middle class citizens as the total US population. For almost half a century, India’s GDP grew by an average of less than 4 percent a year. Taiwan’s GDP grew by an annual 8 percent during the same period, and South Korea’s by 9 percent. Foreign direct investment in China, the world’s largest Communist country, is now running at $37 billion a year, in India the figure is $2 billion. In India, the share of unemployed within the labor force is gradually on the rise, from 4.3 percent in 1991 to 5.5 percent in 1995. In the last two years, unemployment definitely must have gone up as the labor content of production has been declining. With employment opportunities stagnating and simultaneous growth in population, unemployment would naturally rise steadily. The Planning Commission of India has estimated that the labor force between the ages of 15 and 59 years would rise from 294.6 million in 1992 to 393.02 million in 2007. Creating jobs for them would really be a difficult task.
Even in China, where the process of liberalization is said to be quite successful, the problem of joblessness has emerged as a big social problem, in spite of the fact that around 70 million unemployed are covered by the “unemployment insurance”. In China there are 150 to 160 million jobless people in the cities and villages. The high rate of unemployment is a direct consequence of the new path of economic liberalization, or the so called, economic development. In the process of improving productivity, updating equipment and upgrading technology for modernization, and of course for profit maximization, they resort to laying off workforce making industrialization or the modernization a curse for these workers.
The process of the so called ‘economic liberalization’ can never succeed in India if judicious use of resources, including the foreign investment, is not made and, if the labor force is neglected the way it is presently being done.