Unit IV

Audit of Computerized Systems& Forensic Audit

Q1) Explain the role of service sector in Indian economy.   5

A1) The role of the services sector in India's GDP and economic restart

India's service sector is considered to be the backbone of the national economic structure and has continuously functioned as the wall of the Indian economy. Throughout this sector, the Indian economy excels at providing large-scale employment to young and middle-aged people, including trade, hotels, restaurants, real estate, insurance, custody, communications, financing, business and personal services. And construction related services. Given the 55.39% contribution from the service sector to India's total value added in the 2019-20 fiscal year, the Indian service sector has played an important role in the development of the Indian economy.

In addition to India's major contributors to GDP, the services sector has recently attracted significant foreign investment. According to the quarterly fact sheet on foreign direct investment from April 2000 to December 2020 (“FDI”), the FDI to the service sector from April 2000 to December 2020 alone totaled 500,505 Cr. Occupies. 16% of total foreign investment inflows compared to a cumulative FDI of 26% for telecommunications, trade, electricity, hotels and tourism, non-traditional energy, information and broadcasting, consulting services, education, maritime and air transport, etc. %to.

Government initiative to ease FDI in the service sector

The services sector is a major contributor to India's GDP, the Government of India understands the importance of driving growth in the services sector and was very generous in determining FDI caps in the services sector industry. .. Below is a brief description of some of the initiatives the Government of India has taken for further development of the service sector and FDI.

(A) memorandum of understanding signed between the Ministry of Communications and Information Technology and the Department for Digital, Culture, Media and Sports of the United Kingdom was signed by the Federal Cabinet on November 4, 2020 to cooperate in the field of telecommunications / information and communication technology. ;

(B) The Government of India also announced in September 2020 that it would inject Rs 200 billion into public sector banks through bond capital recapitalization.

(C) The Government of Tamil Nadu has announced a new electronics and hardware manufacturing policy in line with the old policy of increasing the state's electronics production to US $ 100 billion by 2025. By skill-up and training more than 100,000 people by 2024.

(D) The Government of India also increased the incentives offered under the Service Export Scheme (SEIS) from India by 2% under the Interim Review of Foreign Trade Policy (2015-2020).

In addition to the above, the Government of India has also formulated an integrated FDI policy that will come into effect on October 15, 2020. This policy provides the services sector with maximum leverage to facilitate the process of investing in the services sector. .. The caps / caps for most activities carried out by the industry in the service sector have been raised to 100%, the maximum possible, and the investments received will most likely go through automated routes, making it even easier. It is convenient for investors.

Q2) What are the problems faced by service sector in Indian economy? 8

A2) If you have a business of services or a plan to start your company, it is undeniable that the problem is part of the result and is a parcel.

Often they are ignored or not processed at all. But in the truest sense, there is much we can learn from the challenges. The problems faced by the service department are the same.

Service companies and companies need to rely heavily on the quality of service because they have no physical products to show, feel, or touch.

Keeping up with and maintaining quality is a challenge in itself. After all, new prospects will only come to business if we can give them a better experience.

That said, it's important to understand the problem and find a clear solution to keep your business running.

Here are 10 critical issues facing the service business and clear solutions to tackle. These exercises won't overwhelm you when a business problem is knocking on your door.

10 serious problems facing service departments with clear solutions

1. Insufficient business development skills

Business development is a very important skill not only to expand the business but also to acquire new customers.

SMEs find it difficult to decide on an expansion plan because they don't know how much to invest in expanding their business. They may be experts in the field, but they may lack the knowledge to run the entire business.

Large companies have adopted business development modules, but they can't keep up with them in a timely manner.

2.     Sale mark

Receiving those terrible sales calls and meeting salesmen in person has always plagued us. Why? At that time, we are not looking for them.

Emails flooded to buy services from service companies, even if they are one of the best companies, push the brand away. They certainly aren't fun to read.

I'm not saying that this approach is wrong or outdated. If you have a plan for your approach, you can reach your goals without being kicked.

3.     Expert advices

Having an expert on your team alleviates a lot of pressure. You can use your personal expertise to expand your possibilities and move your challenges forward.

There are many business opportunities in the service sector. Understanding these winners and using them in best practices is what professionals do for their business.

Therefore, having an expert is not a good thing, but it is a must.

4.     Friendly relationships with intimate clients

Few of our many clients are very close to us or family members.

It will be difficult to leave the business.

Some people become intimate after providing long-term service. Therefore, you need to understand how to approach your clients without breaking good relationships.

5.     1 hourly billing structure

There are several service businesses that work and provide services on an hourly basis. This system has major drawbacks.

Employees can leverage to work longer, just to extend the billing cycle. In this way, they can charge more for their service.

The client, on the other hand, does not know how long it will take to complete the task. They may feel fooled and find your competitors for future engagements.

6.     Appropriate management acquisition

SMEs do not have a good plan in case the person in charge of the company becomes incapacitated, retires, or dies.

This causes havoc in the company and disrupts all businesses.

It is important to pass on your knowledge and skills to the right successors so that your business can be saved on a rainy day.

The value remains in the name of the company. Therefore, all care must be taken to continue working.

7.     Marketing layout

The business is more focused on current clients to give them a positive experience. This is a great approach. Because all the experience with our clients is important and helps us to attract new customers. It's a good start, but getting new clients involved is essential to keeping your business up and running.

8.     Listening skills

In most cases, companies don't listen to their customers and fail badly. Listen to your clients and audience. Ask questions and try to solve their problems.

You will learn more by listening than by speaking.

If you are a good listener, you will be given more priority in this highly competitive industry.

9.     Clear business goals

Having clear business goals will not only help your business grow, but it will also last in the long run.

If our goals aren't clear, how can we expect our viewers to understand the messages we share? You should know what your destination is and learn on a journey.

10.  Participation in the business community

Many small businesses do not understand how much impact the business community can have on a company. You will be able to meet wonderful people and be shocked by how much they want to work with you.

Beyond the ordinary, connect with people of similar interests. By taking this extra mile, you will stand as fame in your industry.

Q3) What are the challenges faced by service sector?    8

A3) Challenges facing Indian service sector companies

As a sector (as of 2018) that brings a significant amount of FDI and employs 31.45% of India's employment population, the services sector is 55.39% of India's Gross Value Added (GVA) at current prices in 2008. It is said to be contributing.

September 28, 2020 8:32 IST | India Info line News Service

Indian service sector companies are made up of some of the most important sectors of the Indian economy, but the segments are rarely talked about. These include travel and hospitality, beauty and wellness, healthcare, finance, business, real estate, transportation, logistics, and technology and telecommunications service providers, most of which fall into the SME / MSME and startup segments. With easy access to the latest technology enablers, service-focused businesses are growing even faster.

As a sector (as of 2018) that brings a significant amount of FDI and employs 31.45% of India's employment population, the services sector is 55.39% of India's Gross Value Added (GVA) at current prices in 2008. It is said to be contributing. However, the recent pandemic and the resulting blockade have hit SME / MSME and start-ups, as well as service-focused companies. The new Atmanirbhar Bharat Abhiyaan, FM Nirmala Sitharaman, has announced a profitable package for the Rs20 Lakh Crore, but this initiative has redefined the parameters of the MSME segment to bring manufacturing and service units to sales-based terms. Integrated. Microunit less than Rs5cr. "Small unit" with sales of less than Rs50cr. Sales of less than Rs100cr and "medium-sized unit". Turn over.

This merger and revenue-based business reassignment continues to overlook certain sector challenges and needs, making it even more difficult for services sector companies to take advantage of the benefits of financial bailout packages. . And when they try to compete for attention in an unequal arena, they can even be lost. During a crisis when the sector urgently needed a special focus and customized solution by the government, they were merged and lost in a pool of sales-based business medium, small and micro unit revaluations of rice field. This needs to be changed, especially due to the following major differentiators for companies in the service sector:

This is a recognition-driven industry. In contrast to the tangible "products" that are at the heart of the manufacturing and trade businesses, companies in the service sector often address the subjective and intangible aspects of increasing customer satisfaction. This makes it a highly recognizable and image-driven business where effective customer engagement is critical to survival. The COVID-19 pandemic and blockade completely hampered the customer experience interface and pushed it completely into the digital domain. Today, manufacturing and trading can continue to function by relying on excess inventory, but the business implications for service companies will soon be apparent. It's also a sector where it can take longer than usual to get back to business, given that many services aren't necessarily on the mandatory list due to the fear of COVID.

People-centric and crisis-sensitive: Being a people-centric sector, service providers are suffering far greater losses and blockages are restricting staff movement. In addition, the health crisis has a direct impact on service levels, hampering customers and thus affecting inflows of funds. It also reflects the sustainability and long-term strength of the business. This sector, which otherwise sees a stable workforce, tends to lose many talented people during the crisis.

Both of the above factors are unique challenges that place companies in the service sector on distinctly different levels of survival requirements. A well-thought-out approach with special attention to financial support and interests specifically directed to this segment is the need for time! These include:

Faster access to loans: It's a misconception that services companies aren't as investment incentives as they are in manufacturing and trading. This is an inaccurate assumption. This is especially true in today's economy, where technology is highly dependent and there is a fiercely competitive era of skill-up, regular training, and gradual improvement of the systems and processes needed to maintain relevance. It's an inaccurate assumption. Moreover, unlike the manufacturing industry, which requires large investments in real estate, machinery and equipment, the service industry, which lacks tangible assets, undermines the credibility of many companies' loans. Creditors, primarily banks and financial institutions, are hesitant to provide loans because there is no clear ROI that the manufacturing and trading sectors can easily provide. Even nowadays, government-announced schemes and packages set aside the service sector and do not perform due diligence. Therefore, manufacturing and trading companies tend to benefit from faster and easier lending, but services companies also need access to platforms and financial institutions that can quickly track approval of lending requirements.

Tax exemption period: The service sector has traditionally been one of the heaviest tax sectors, including multiple direct and indirect taxes, import taxes and luxury taxes. It is also one of India's largest contributors to GDP. However, the restructuring of the SME / MSMSE business based on sales has technically made the service sector part of a larger pool, allowing government bailout packages to be leveraged, but mentioning the tax exemption period. Not. Currently, companies in the service sector are classified as the best GST brackets from 18% to 20%, but manufacturing sectors tend to enjoy GST in the range of 1 to 15%, agricultural technology or professional and essential identification. We also enjoy a tax exemption period in our department. Manufacture. Such considerations are less affected by the crisis than the manufacturing industry, but remain equivalent, but not available for the service industry.

As a major contributor to India's GDP, a major source of FDI and one of India's prominent job creators, service sector companies have not only individual references and definitions, but also individual bailout packages.

Q4) Explain the growth of service sector in India.     5

A4) Services encompass a sequence of monetary sports which includes transportation, trade, tourism, telecommunications, banking, insurance, actual property, authorities and protection. According to Adrian – Payne, 4 elements are concerned withinside the increase of the offerings zone. They are demographic, social, monetary and political.

1. Demographic modifications: Life expectancy is growing, ensuing in an boom withinside the retired population. This zone is growing new call for for journey and amusement, healthcare, nursing and existence insurance. With the improvement of recent cities and regions, the want for infrastructure assist offerings is growing.
2. Social extrude: The growing group of workers of ladies has led to conventional home obligations being executed outdoor the home. The developing range of double-earnings families is using call for for customer offerings which includes retail, actual property and private monetary offerings. As earnings extended, residing requirements improved. Small households who double their earnings spend on amusement, journey and hospitality offerings.

The degree of aspiration has extended due to communiqué and journey. As a result, each youngsters and adults are making new needs on gaining knowledge of centers so as to gather the competencies they want to compete. A complicated and hastily converting environment. This paved the manner for expertise and records-primarily based totally offerings.

c.      Economic Change: Globalization is using call for for telecommunications, journey and records offerings. This is full of the fast modifications delivered approximately with the aid of using new records technologies. Increasing information in the financial system has caused extended reliance on specialised carrier providers. Advertising and advertising studies is now a specialised characteristic that helps all sectors of the financial system.

d.     Political and felony issues: Governments have grown in length and created a big infrastructure for the carrier zone. With the increase of worldwide trade, the call for regulation and different expert offerings is growing and crossing country wide borders.

The producer arms over restore and maintenance, facts processing. Data processing offers arousal and logistics offerings to specialised reassets that have been formerly finished in-house. Liberalization has additionally created new paths for increase. The slowdown in agricultural and business increase and the presence of great unemployment have led human beings to search for jobs in casual offerings. This is mainly proper in city regions in which the retail, transportation, restores and carrier centers of trivial pavement are booming.

The tempo of increase in carrier productiveness may be very important, as the general increase of the financial system now relies upon at the carrier zone. Therefore, the authorities are on top of things on this area.

Q5) Why offerings develop in India?       8

A5) Following is the reasons:

1. Economic wealth: One of the important thing elements withinside the increase of call for offerings is monetary wealth. According to an NCAER survey, the dimensions of middle-earnings clients is developing hastily and the share of very bad families is declining. Rural families’ withinside the high-earnings class are developing at a far quicker tempo than city families’ withinside the corresponding class. The monetary liberalization manner has had a high quality effect on Indian families. Their earnings and spending were boosted, growing call for plenty items and offerings.
2. Changing Women's Roles: Traditionally, Indian ladies were confined to own circle of relatives’ sports. However, because the instances have changed, so has the conventional manner of taking into consideration society. Women at the moment are allowed to work. They are utilized in protection offerings, police offerings, postal offerings, software program offerings, scientific offerings, medical institution offerings, amusement industry, commercial enterprise manner outsourcing and extra.

The share of running ladies is developing hastily. The converting function of ladies has created many markets for merchandise and offerings. Earning ladies opt to lease offerings to limit the myriad roles they want to perform. The call for ladies calls for carrier groups to take a extra modern approach.

c.      Cultural Change: Change is the underlying philosophy of tradition, and the place of extrade in Indian tradition isn't uniform. But over the last century, the elements of extrade are significant. The emergence of the nuclear own circle of relatives machine in location of the conventional shared own circle of relatives machine has created a call for plenty offerings which includes education, scientific care, amusement, telecommunications, transportation and tourism. Significant modifications in wondering tactics associated with funding and amusement attention have created a fantastic call for offerings.

d.     Revolution: For the past 15 years, India's 6aste has dominated the field of information technology. IT has become one of the country's major service businesses. India has the largest software skills population in the world. Not only the domestic market but also the international market is growing significantly. Recognizing the potential in this area, many state governments such as Karnataka, Andhra Pradesh, Madhya Pradesh , Maharashtra and Delhi have already made significant advances in information technology, making IT the highest priority segment state. Ace has a bright future growth.  Population, industrialization and indiscriminate consumption affect the balance of natural resources, the environment and ecosystems. Because of this, there is an ecological imbalance and various service organizations have been promoted to adopt social marketing. Thousands of rupees for research to develop new technologies that can protect rare animals and birds, pollute water, save oil and energy, promote the effective use of natural resources and protect the environment.

e.     Market Development: Over the last few decades, the population of wholesalers and retailers has increased domestically. Urban India has become a cluster of wholesale and retail trade. In sub-urban areas, retailers spread to every corner of the street, and in rural areas, there are quite a few retailers. A new kind of organization has emerged to provide marketing services. The government also provides marketing services to smallholders, artisans, and other traditional business units such as “Promotion of regulated markets, export promotion councils, development committees, etc.”

f.        Market-Oriented: Changes in competitive conditions and the position of supply and demand have forced manufacturing organizations to shift their philosophy from production-oriented to market-oriented. A market is a service feature added to an organization. Market pressure has forced manufacturing organizations to have additional marketing research, accounting, auditing, financial management, human resources management, and marketing research departments. These are all service features.

g.     Healthcare Awareness: In India, the healthcare market is growing significantly. Life expectancy growth is the result of people's awareness of health issues. The growth of fitness clubs, diagnostic centers, and medical counselling and health information sites reflects the growing demand for healthcare services. Governments and social organizations have launched large-scale campaigns to raise awareness of medical services among illiterate and rural residents. Therefore, the growth of health-related services.

h.     Economic Liberalization: The economic liberalization of 1991 has brought about many changes in the Indian scenario. Withdrawal and privatization policies have put an end to state-owned monopolies in many service areas. Multinationals have been allowed to enter the Indian market. Free lending policies and low interest rates have motivated many to become self-employed. The entry of multinational corporations has created fierce competition in various sectors such as banking, insurance, power projects, telecommunications, hospitality sectors, medical services, entertainment, air transportation and courier services. The well-established flow of service technology from different parts of the world has changed the attitude of Indian consumers towards sources.

i.        Rampant migration: One of the key reasons for service growth in India is rampant migration from rural to sub-urban and urban areas. By moving to urban areas in search of work and livelihoods, cities and towns are expanding, and businesses such as real estate, leasing, transportation and infrastructure services are expanding rapidly.

j.        Export Potential: India is considered a potential source of services. India has many services in different parts of the world, including banking, insurance, joint transportation data services, accounting services, construction labor, design, entertainment, education, health services, software services and tourism. Tourism and software services are one of the country's major foreign currency earners and have a very high growth rate compared to other sectors.

k.     Service Taxes: The growth of the service sector has attracted government attention as a source of taxes. Over the years, the number of services subject to service tax has increased. Service taxes are levied on hotels and restaurants, transportation, storage, telecommunications, financial services, real state, business services, social and personal services.

Q6) What is digital economy.       5

A6) The virtual economic system, which refers to an economic system primarily based totally on virtual computing generation, is turning into identified as doing commercial enterprise via markets primarily based totally at the Internet and the Worldwide Web. The virtual economic system is the net economic system, the brand new economic system, or the internet economic system. Increasingly, the virtual economic system is intertwined with the conventional economic system, making it tough to depict clearly. This outcome from billions of every day on-line connections among people, businesses, devices, data, and processes. It is primarily based totally at the interoperability of people, organizations, and machines that stems from the Internet, cellular generation, and the Internet of Things (IoT).

The virtual economic system is supported with the aid of using the unfold of statistics and conversation generation (ICT) in all commercial enterprise devices to growth productivity. Digital transformation of the economic system affords conventional notions approximately the shape of businesses, how customers get services, statistics and items, and the way states want to evolve to those new regulatory challenges. It is weakening.

The virtual economic system is likewise called the brand new economic system. This refers back to the economic system wherein virtual computing generation is utilized in financial activity.

The time period "virtual economic system" turned into first noted in Japan with the aid of using Japanese professors and studies economists’ withinside the midst of Japan's recession withinside the 1990s. In the west, the time period continued, created with the aid of using Don Tapscott's 1995 E book, Digital Economy: Promises and Dangers withinside the Age of Networked Intelligence. This turned into one of the first books to discover how the Internet should extrade the manner we do commercial enterprise.

According to Thomas Mesenbourg (2001), 3 key factors of the idea of the "virtual economic system" may be identified.

E-commercial enterprise infrastructure (hardware, software, telecom, networks, human capital, etc.),

E-commercial enterprise (the way to do commercial enterprise, the method that an organisation includes out over a community thru a computer),

E-commerce (for example, forwarding items whilst a ee-e book is bought on-line).

Q7) Define E-Commerce.        5

A7) Electronic trade (digital trade) is the shopping for and promoting of products and services, or the transmission of price range and statistics, especially thru digital networks, the Internet. These enterprise transactions arise enterprise-to-enterprise (B2B), enterprise-to-enterprise (B2C), consumer-to-consumer, or consumer-to-consumer. The phrases e-trade and e-enterprise are frequently used interchangeably. The time period e-tail is likewise once in a while utilized in reference to the transactional approaches that make up on-line retail shopping.

Over the ultimate decade, the proliferation of e-trade structures together with Amazon and eBay has contributed to the considerable increase of on-line retail. In 2007, e-trade accounted for 5.1% of overall retail sales. In 2019, e-trade accounted for 16.0%.

How does e-trade work?

E-trade makes use of the Internet, permitting clients to get entry to and skim on-line shops and order services and products via their devices.

When an order is placed, the consumer's internet browser interacts with the server web website hosting the web save website. Data associated with orders is relayed to a critical pc referred to as the Order Manager, that's transferred to a database that manages stock levels, a service provider gadget that manages price information (the use of programs together with PayPal), and a financial institution pc. Before returning to the order supervisor. This is to make certain that the save's stock and consumer price range are enough to manner the order. After the order is validated, the order supervisor notifies the save's internet server, which shows a message informing the consumer that the order has been efficiently processed. The order supervisor then sends the order statistics to the warehouse or achievement branch in order that the service or product is efficiently shipped to the consumer. At this point, tangible and / or virtual merchandise can be shipped to the consumer or granted get entry to the service.

Platforms that host e-trade transactions can also additionally consist of on-line marketplaces wherein dealers without a doubt signal up, together with Amazon.com. A software program as a service (SaaS) device that lets in clients to "rent" their on-line save infrastructure. Or an open supply device for groups to manipulate the use of in-residence development.

Q8) What are the effects of digital economy?     5

A8) Impact of the digital economy

We are now firmly in the age of the digital economy. In the past, you had to line up in the transportation department to renew your vehicle registration, but now you can connect online, reducing the hassle that once felt like a hassle. This is just one example of how we moved into the digital economy, but how will it be affected by what is now considered the Fourth Industrial Revolution?

1. Big data

You may not know it, but we record the details as data. Google in particular knows almost all the time about Android phone users. Where you spend most of your time, the time you spend communicating, the time you spend in restaurants, and so on. This may sound scary, but it's data that helps businesses. The best way to know your tastes and therefore customize their user experience for you. If you're enjoying a golf opportunity, what Google knows is that you'll be exposed to far more golf literature than the average Joe.

However, digitally recorded data is also directed, for example, to climate change decisions. Through the digital economy, farmers and governments will be able to use large amounts of recorded data to determine weather patterns and information such as when people eat more during the year.

b. People are connected

With socioeconomics, people have far more connections with each other. Social media not only provides a platform for people to connect with others, but it also provides another market. Therefore, you can now access the City Index to trade CFDs and see what other traders are doing and what calls they are making using social platforms.

Companies such as Uber and Airbnb are now using a concept called the sharing economy. In this concept, everyone connects digitally to share products and services. This is a trend that can rise in the digital economy. This is because we are always aware of the needs of other users based on connectivity.

The digital economy also ensures transparency because there is always a digital path. Block chain technology is here to further enhance this. This is a surefire way to make sure you have a trail and your information is kept safe. With this technology, payments are always secure, but elections are always quite contested and uncorrupted. Crypto currencies are probably the hottest champion of block chain technology, proof that we can live from a purely digital decentralized economy all day long.

c.   We value time

Perhaps the greatest effect of this modern phenomenon is to give us more time. The digital economy provides us with answers to questions that we had previously had to research and form experience to answer. Convenience is also a key factor to consider when discussing the digital economy. You no longer have to drive or use public transport to accomplish what you once had to do. To check your bank balance, just pick up your Smartphone.

d.   Government jumps in

As in the previous example of renewing a vehicle license, this is just one of the features that the government is adopting digitally. Healthcare, crime reporting, taxes and many other day-to-day operations have become the digital realm. Few things can't be paid online today. The government sector is also notorious for paperwork failures, but digital can help eliminate these problems and increase efficiency.

The effects of the digital economy are endless. It is almost impossible to list all the changes. It's an endless topic because it changes constantly. What we can do is keep up with the times and accept the benefits of the inevitable.

Q9) What are the effects of E-Commerce?      8

A9) The social effect of e-trade may be measured through pleasure and believe because of the subsequent factors:

1. Increasing Internet Use the quickest developing demographic phase consists of college students and adolescents.
2. This phase is a main consumer of superior packages and on-line technology.
3. According to a survey performed through the Internet Mobile Association of India, the quantity of Internet customers in India on the stop of June 2013 changed into one hundred ninety million.
4. As greater customers use the Web through telephony, it's miles predicted to attain 243 million in June 2014, a 28% yr-on-yr increase.
5. The boom in Internet customers has additionally caused sizeable increase in different virtual industries including e-trade, cellular trade and virtual advertising.
6. From number one schooling to the stop of research, the Government of India has been operating at the schooling device thru the implementation of laptop equipment and technology which are important for all ranges of schooling.
7. Urban and rural college students had been inspired through offering the Internet and its advantages to PCs, laptops, tablets, or laptops to enhance their life and offer ebooks and ebooks.
8. Entrepreneurs also are interested in superior laptop generation and its usefulness in e-trade.
9. The improvement of tutorial requirements in any respect ranges has enabled top notch call for e-trade and m-trade withinside the marketplace.
10. Changing Online Shopping Habits the on-line purchasing procedure is continuously operating to make it less difficult, less difficult to recognize and less difficult to use.
11. Online gives provide a few reductions and appealing prices.
12. This has modified the shopping for conduct of on-line buyers, alongside higher gives.

Impact of e-enterprise on society

1. India's e-trade and on-line purchasing are developing rather as increasingly more net centers, excessive schooling requirements, way of life modifications and the united states of America’s monetary increase are used increasingly more. Demand for e-trade generation and equipment.
2. The flexible purchasing revel in and the fast improvement of buying and selling centers similarly pressure possibilities for the final marketplace segments.
3. The largest gain of e-trade is that you may offer steady buy transactions over the Internet, alongside near-immediately verification and validation of credit score card transactions.
4. Due to this sizeable effect, increasingly more clients are benefiting from distinct regions of e-trade.
5. The adoption of e-trade, specially advertising and marketing and next sales, varies extensively from united states of America to united states of America.
6. Today, India keeps developing and is turning into a rustic with greater literate humans’ withinside the Internet world.
7. The impact of growing the transparency of macro and micro stage e-trade with most productivity.
8. Digital answers which have changed conventional packages provide many possibilities for organizations and consumers.
9. The provider is supposed for our clients.
10. Product negotiations are too fast
11. The quantity of mistakes has been reduced.

Q10) Discuss the role of infrastructure development in India.   8

A10) The following points highlight the top nine roles of infrastructure in national development.

1. Unleash development potential:

Infrastructure facilities help unlock the development potential available in remote and rear regions of the country. Infrastructure facilitates the development of the rear region by leveraging its development potential.

2. Promote economic functioning:

The functioning of the economy is highly determined by the availability of infrastructure equipment. Proper infrastructure facilities open up greater opportunities for more highly productive activities in order to invest more resources and produce more.

3. Promotes a smooth flow.

Infrastructure facilities facilitate the smooth flow of materials and goods between different regions, thereby facilitating development activities.

4. Increase the mobility of human resources:

Infrastructure development, especially transportation and telecommunications equipment, can play an important role in increasing the mobility of domestic human resources, both domestically and internationally.

5. Accelerate development.

Infrastructure development in the form of capital stock, electricity, irrigation, transportation, telecommunications, etc. can accelerate development at a progressive rate. Increased production of capital stocks such as steel, cement, machinery and tools can stimulate production in all different industries.

The infrastructure can also establish a link between production points and input supply points. Economists such as Rosenstein Rhodan, Hirschmann and Rostow recognized the importance of infrastructure in driving the development of the country. Myrdal's work "Asian Drama" also regarded the existence of infrastructure facilities as a prerequisite for development.

6. Poverty reduction:

Infrastructure can pave the way for comprehensive development, thereby reducing poverty levels. Rural poor can be uplifted through better infrastructure such as roads, irrigation and extension services by increasing farm productivity and non-farm rural employment.

Similarly, urban poor can benefit through infrastructure facilities by providing clean water, better sanitation, roads and drainage facilities.

7. Reasonable use of financial resources:

Infrastructure facilities in the form of banking and insurance facility development can pave the way for the rational use of domestic financial resources.

8. Promote marketing and trade.

Infrastructure development facilitates domestic and international marketing and trading facilities by developing supply chains, marketing hubs, thereby helping the agricultural and industrial sectors sell their products at rewarded prices.

9. Strengthening social welfare:

The development of social overheads in the form of better education, health, hygiene, the environment, etc. can raise the level of social welfare of the general public in the country. In this way, infrastructure facilities play an important role in promoting the country's economic development.

Q11) Explain the role of private sector in infrastructural development. 5

A11) India, a blended economic system, assigns brilliant significance to the country's personal zone to gain fast financial improvement. The authorities has constant particular roles withinside the personal zone withinside the regions of industry, exchange and offerings.

India's maximum dominant zone, agriculture and different associated sports together with dairy, cattle and poultry, is absolutely beneathneath the manage of the personal zone. In this way, the personal zone manages the complete agricultural zone, thereby gambling an vital function in supplying the complete meals deliver to tens of thousands and thousands of people.

In addition, the bulk of the economic zone engages in non-strategic and mild regions, such as a lot of each long lasting and non-long lasting client goods, digital and electric products, automobiles, textiles, chemicals, foods, mild business products, etc. I am producing. It is likewise beneathneath the manage of the personal zone.

Private zone gamers play an energetic function withinside the improvement and growth of the aforementioned business groups. Moreover, the improvement of small-scale and home industries is likewise the obligation of the personal zone.

Finally, the personal zone additionally performs a function withinside the improvement of the country's tertiary industry. Private sectors control the complete provider zone and offer exclusive forms of offerings to the overall public. The complete country's wholesale and retail exchange is likewise controlled with the aid of using the personal zone withinside the maximum rational way.

In addition, maximum of the transportation, particularly street transportation, is likewise controlled with the aid of using the personal zone. With the development of liberalization of the Indian economic system in latest years, the personal zone has been assigned a lot extra obligation in diverse regions of financial interest.

Q12) Explain the role of public sector in infrastructural development. 5

A12) The public zone has occupied a precious location to gain systematic and systematic improvement in growing nations together with India. In a rustic like India, which suffers from multifaceted problems, the personal zone isn't in a role to make the important efforts to expand exclusive sectors on the identical time.

Therefore, for you to offer the aid wanted for a rustic's improvement strategy, the general public zone offers the minimal impetus had to manual the economic system on a direction of self-maintaining growth.

Thus, it's far now properly diagnosed that the general public zone performs an energetic function in country wide business improvement with the aid of using laying a valid basis for the economic shape withinside the early tiers of improvement.

Below are a number of the vital relative roles of the general public zone withinside the financial improvement of nations like India.

(A) Promote financial improvement at a fast tempo with the aid of using bridging the space withinside the business shape.

(B) Promotion of suitable infrastructure centers for financial growth.

(C) Conducting financial interest in strategically vital regions of improvement in which the personal zone can distort the spirit of country wide goals.

(D) Check monopoly and awareness of strength withinside the palms of some people.

(E) Promote balanced nearby improvement and diversify herbal assets and different infrastructure centers in those underdeveloped areas of the country.

(F) Close the space in profits and wealth distribution with the aid of using bridging the space among the wealthy and the poor.

(G) Create and beautify enough employment possibilities in diverse sectors with the aid of using making huge investments.

(H) Achieve independence with diverse technology in line with requirements.

(I) Eliminate dependence on overseas useful resource and technology.

(F) Enforce social manage and law via diverse economic institutions.

(K) Manage sensitive sectors together with distribution structures and rationally allocate uncommon imported goods. When

(L) Reduce stability of bills stress with the aid of using selling exports and lowering imports.

Q13) Explain the role of human resource in Economy.       5

A13) In some countries, there is a close relationship between population and economic development. It is an obstacle to economic development. In various countries, it plays a very effective role in improving the rate of economic development. The role of the population in economic development can be explained by the following facts.

1. Maximum use of resources:-

If the majority of the population is educated and technically trained, the country's resources can be maximized.

2. Population and per capita income:-

The higher the fertility rate in a country, the lower the per capita income. This is because per capita income is calculated by dividing the total population by GNP.

3. Labor-intensive industry:-

In countries with high population growth rates, labor-intensive industries can be established to increase production. Manpower is reduced and production costs are reduced.

4. Population and standard of living:-

A high fertility rate reduces per capita income, and a low per capita income lowers the standard of living.

5. Solving capital shortages:-

Poor countries are facing the problem of capital shortages. Heavy equipment cannot be imported. Therefore, you can solve the problem by using the labor of the factory.

6. Population and savings:-

When the population growth rate is high, the savings rate is low, and therefore the investment rate is low. If the investment rate is low, the production volume will be low.

7. Specialty:-

In large population countries, factories employ specialized processes. It increases large-scale production and also improves product quality.

8. Population and Employment:-

Rapid population growth increases the country's unemployment rate. In countries with low fertility rates, the unemployment rate is also low.

9. Market expansion:-

The larger the population, the greater the demand for a variety of products and services. Therefore, the size of the market will expand.

10. Population and Agriculture:-

The faster the population grows, the greater the pressure on the land. Farmers cannot use inputs such as fertilizers and seeds. It causes low production.

11. Population and other facilities:-

If the country's fertility rate is very high, the government cannot provide various facilities such as health, education, housing and transportation to the entire population.

12. Population and social evil:-

As the population grows, social evils such as theft and bribery are increasing.

13. Population and Urban Development:-

In every country, as the population grows, people migrate to urban areas, causing many problems such as urban water, education and housing.

14. Population and Industrial Development:-

High fertility rates reduce per capita income, savings and investment. As the population grows, the demand for basic products such as food and milk is increasing. Not much attention has been paid to the development of the industry.

Q14) What do you mean by service sector?      5

A14) The service sector produces intangible goods, or more precisely, services on behalf of goods, and is made up of a variety of service industries, including warehousing and transportation services, according to the US Census. Information services; securities and other investment services. Professional services; Waste management; Healthcare and social support; And arts, entertainment, and recreation. Countries with economies centered on the service sector are considered to be ahead of the industrial and agricultural economies.

The service sector, also known as the tertiary industry, is the third tier of the tertiary industry economy. Instead of product production, this sector produces service maintenance and repair, training, or consulting. Examples of work in the service sector include housekeeping, tours, nursing and education. In contrast, individuals employed in the industrial or manufacturing sector produce tangible goods such as automobiles, clothing and equipment.

Among the countries that emphasize the service sector, the United States, the United Kingdom, Australia, and China are ranked at the top. In the United States, the Institute for Supply Management (ISM) creates a monthly index detailing the general state of business activity in the services sector. This indicator is considered an indicator of the country's overall economic health, as about two-thirds of US economic activity occurs in the services sector.

According to the CIA World Factbook, as of 2018, the largest countries in service or tertiary output are:

1. United States: $15.5 trillion
2. China: $6.2 trillion
3. Japan: $3.4 trillion
4. Germany: $2.5 trillion
5. United Kingdom: $2.1 trillion
6. France: $2.0 trillion
7. Brazil: $1.5 trillion
8. India: $1.5 trillion
9. Italy: $1.4 trillion
10. Canada: $1.2 trillion

Service sector in the tertiary economy

Services or the tertiary industry is the third part of the three-part economy. The first economic sector, the primary sector, covers agriculture, mining, and agricultural business activities in the economy. The secondary industry covers manufacturing and business activities that promote the production of tangible goods from the raw materials produced by the primary industry. Although the services sector is classified as the tertiary economic sector, it is responsible for most of the business activities of the world economy.