Unit 1

Macro Economic overview of India

Q1) Explain new economic policy? (5 marks) (Year 2019)

A1)

New Economic Policy of India was launched in the year 1991 under the leadership of P. V. Narasimha Rao. This policy opened the door of the India Economy for the global exposure for the first time. In this New Economic Policy P. V. Narasimha Rao government reduced the import duties, opened reserved sector for the private players, devalued the Indian currency to increase the export. This is also known as the LPG Model of growth.

New Economic Policy refers to economic liberalisation or relaxation in the import tariffs, deregulation of markets or opening the markets for private and foreign players, and reduction of taxes to expand the economic wings of the country.

Former Prime Minister Manmohan Singh is considered to be the father of New Economic Policy (NEP) of India. Manmohan Singh introduced the NEP on July 24,1991.

The main objectives behind the launching of the New Economic policy (NEP) in 1991 by the union Finance Minister Dr. Manmohan Singh are stated as follows:

1. The main objective was to plunge Indian Economy in to stage of ‘Globalization and to offer it a new thrust on market orientation.

2. The NEP intended to bring down the speed of inflation

3. It intended to move towards higher economic process rate and to create sufficient foreign exchange reserves.

4. It wanted to attain economic stabilization and to convert the economy into a market -economy by removing all types of un-necessary restrictions.

5. It wanted to allow the international flow of products, services, capital, human resources and technology, without many restrictions.

6. It wanted to extend the participation of private players in the all sectors of the economy. That’s why the reserved numbers of sectors for state were reduced. As of now this number is just 2.

Important policy changes NEP 1991

1. Macroeconomic stabilization (Demand side Management)

• Control of inflation
• Fiscal correction
• Improvement in balance of payment position

2.     Structural Reforms (Supply side management)

• Industrial reforms

• Abolition of industrial licensing
• Permitted foreign investment and foreign technology
• Reduced the role of public sector
• Removal of MRTP limit

• Public sector reforms and Disinvestments
• Financial sector reforms

• Banking sector reforms (Introduction of prudential norms, Access to capital market, Special recovery tribunals, Freedom of operations)
• Capital market reforms (Online trading, SEBI set up, Investment by FIIs, Investor protection, rolling settlement, Establishment of NSE, Setting up of National Securities clearing corporation)
• Insurance sector reforms

• Trade and capital flow reforms

• Liberalization of imports
• Reduction in tariff structure
• Promotion of exports
• Change in exchange rate policy
• Liberalized capital inflows

Q2) Explain Role of Social Infrastructure with reference to education? (8 marks) (Year 2019)

A2)

For any nation to attain economic growth and development, its resources got to be utilized in an optimum manner Resource utilization depends upon two sorts of infrastructure, physical and social.

Physical infrastructure includes the transportation, communication, water and energy distribution networks that support productive activities like manufacturing, farming and generating services.

Social infrastructure refers to the creation and maintains of facilities and structures that support the delivery of social services to the people. It consists of facilities, places, programs, policies, projects, services, networks and personnel that maintain and improve standard of living and quality of lifetime of people.

Types of social infrastructure includes

• Education

• Healthcare

• Family welfare

They are required at local, regional, state and central levels. They are going beyond providing the essential economic needs of the people and are aimed toward improving the quality of people’s lives and developing human capital.

SOCIAL INFRASTRUCTURE AND INCLUSIVE GROWTH IN INDIA

With the introduction of the massive structural reform’s programs in India in 1990, the role of the govt. Underwent a significant change. Before 1990s, India was the mixed economy, where the public and private sectors co-existed. The public sector enterprises employed a very large number of workers, providing them with not only income but also job security and welfare services. The social sector was almost entirely supported by government financing. Programs that benefited the massive masses of the population including the public distribution system, government funded primary and better education, health and family welfare infrastructure in urban and rural areas. These led to the establishment of a state that provided socially significant services to the massive masses of the people either free or at a very low cost.

After the reforms of 1991, India experienced high GDP growth alongside the increased globalization of the economy. As results of these two phenomena, human development and social sector underwent certain changes like,

1. Private sector investment in education and health increased, making these services costlier.

2. Government began to scale back subsidies and support to the social sector in relative terms, though the particular expenditure increased.

3. With reduced role of the public sector, job security within the formal industrial sector decreased significantly.

4. Informal jobs increased, but with much less security. This reduced the guaranteed welfare benefits to the poor.

5. Because of increased privatization of social sector, many of the services, like education, health, insurance had to be now purchased at market determine prices which became unaffordable to the poor.

6. The marginalized sections of the population belonging to the scheduled castes, scheduled tribes’ other backward castes, women, religious minorities, small farmers, micro entrepreneurs physically challenged people; all would find it difficulties to be a part of the expansion process under the NEP.

Importance of social infrastructure

1. Human development

2. Economic growth

3. Positive externalities

4. Quality of life

5. Productive efficiency

6. Better utilization of resources

7. Higher aspirations

GOVERNMENT POLICIES AND PROGRAMMES

A. EDUCATION

How does education affect economic development? It makes influence economic development through changing the attributes relevant to economic development or it's going to influence economic development in its capacity as a relevant economic input. Thus, to illiterate the previous case, education may alter the attitude to figure, consumption preferences, savings, propensities, economic rationality, adaptability, innovativeness, flexibility, attitude towards family 37 size, and various social altitudes relevant from the economic point of view. In the latter case, that is, as an input, education is considered to be a process of skill formation and in this aspect, it's treated at par with the method of skill formation.

It’s obvious that the former set of influences is less easy to determine and quantify. Some kind of a correlation approach between indices of educational development and level or rate of economic development is used to determine the direction and strength educational as an input are easier to quantify. The manpower planning approach and therefore the aggregate production function approach of Denison are the 2 principal methods utilized in this connection.

The importance of education can't be overstressed. Illiteracy is a prison and education free one from that prison. It increases people’s awareness of opportunities for advancement and imparts the power to seize them. Self-assistance is easier for an educated person.

Knowledge of one’s right empowers a person and a literate person is in a position to acquire that knowledge. Literacy is thus the primary step to empowerment. It’s estimated that economic returns - both private and social- on education are high. They’re higher or at least comparable to returns on physical capital. Private returns to education are higher than social returns and returns to primary education are above returns to other higher levels of education

Provision of universal primary education is additionally an efficient antipoverty measure that promotes equity. The poor are poor because they own little or no assets of land, capital or skills. Land redistribution generates great social stress and opposition and in any case with limited land and growing population, such a measure is often effective only for a few years. Giving capital to the poor would require large resources and should not be very effective if they aren't imparted the skills to use this capital efficiently. Providing skills are, however, not only possible but are often best. For this, the first step is primary education.

Education has become even more important today than before. An illiterate cannot participate in the new, knowledge-based society driven by information technology (IT). Her/his exclusion would be total. Thus, there's an excellent urgency to cause total literacy in the country within a period of three or five years. The digital divide between the illiterates and therefore the literates shouldn't become a deep chasm. Social stability can't be maintained with high inequality.

Aside from IT revolution, globalization has also increased the importance of education. Technical progress has been the main drive of economic development round the world. In today’s globalized world, importance of innovations has increased manifold. Technical knowledge has become a central factor of production.

Technical knowledge and innovations change the comparative advantage of a nation. Innovations depend on the stock of data which is growing rapidly and is accessible to more and more people. The number of scientists engaged in research since 1950 exceeds the sum total of the number of scientists who ever existed till 1950 in the history of mankind. Consequently, new ideas, products, processes, innovations and inventions are emerging at an unprecedented rate. Firms need to recover their investments in research and retooling in much shorter periods. This in turn requires a large market. Globalization is that the means through which massive global market - rather than any subset of it - is harnessed for this rapid recouping of investments. The information revolution provides opportunities to developing countries to leapfrog and catch up with the developed world. To leapfrog, however, the frog has got to come out of the well of ignorance. A ‘keep handbook’ cannot leapfrog.

The modem economy, certainly the knowledge economy, requires highly educated people. Eight years of schooling is a critical factor and can't be overemphasized. But going beyond education, for running technology-intensive economy, we want a renewed effort to create institutions of higher education of the highest quality. Our experiences of recent years have shown that even a few top quality engineers and managers have a disproportionate impact through the firms that they play a leading role in. It's not an exaggeration to offer major credit for India’s software revolution to seven institutions; the five Indian Institutions of technology (IITs), National Centre for Software Technology (NCST), and the Indian Institute of Science (IISc). These institutions today face enormous constraints in terms of finance and operational autonomy. Their student intake in pitifully small in comparison with the size of India’s economy a large increase in the number of institutions of this quality would have a strong impact upon our economic process. Such ‘elitist’ institutions are consistent with democracy as long as admissions are open to people of all classes. In fact, they provide how for bright persons from poor and backward classes to advance themselves. — Parikh and Shah 1999.

National policy on education 1968, 1986 and 1992 (modified) emphasized the role of education. Considering, accoutering role, all of them led emphasize on universalization of elementary education, equalization of educational opportunities for children from all strata and retention of children in the school. For education vocationalist of education was emphasized. All of them led special emphasize on improvement of quality in higher education and in particular eradication of illiteracy was given top priority. Also, variety of schemes and programs were launched over the past 55 years, especially after the constitutional amendment in 1976 vide which education was included within the concurrent list, making it a joint responsibility of State and Union. Some of the main schemes initiated were the Non-formal Education (1977) - later revised as Education Guarantee Scheme & Alternative and Innovative Education in 2000 for targeting out of school children. Operation Black Board (1987) for improving human and physical resources in schools. Teacher Education Scheme (1987) for teachers training., Mid-Day Meal Scheme (1995). Primary Education Program (1994) for achieving universal primary education and therefore the UNICEF assisted Jana Shala Program (1998) for community participation in schools.

A landmark program Sarva Shiksha Abhiyana (SSA) was launched in November, 2000 as an Umbrella program. It had been meant to suppose and build on primary and elementary education project. The program seeks to make sure five years of primary education for all children in the age bracket of 6-14 years by 2007 and eight years of schooling by 2010. Not only was the constitution amended in 2002 to create an education a Fundamental Rights of each child. To form impetus to girl’s education two programs,

National Program for Education of girl’s Elementary level (NPEGEL) and Kasturba Gandhi Bal Vidyalaya (KGBV) - were initiated in 2003.

National Programme of Mid-Day Meals in Schools,

Rastriya Madhyamik Shiksha Abhiyan (RMSA),

Model Schools Scheme,

Inclusive Education for the Disabled at Secondary Stage,

Higher and Technical Education,

Rastriya Uchchatar Shiksha Abhiyan (RUSA) etc.

Consequent upon these efforts India made enormous progress in terms of increase in number of faculties, teachers and students. The education system in India is that the second largest in the world.

The share of literacy which was hardly ten at the time of independence has risen to 52 in 2002. The expansion of education since the independence period has made significant contribution to economic process. Both social and private rate of returns to education in India are reasonably high as compared to the international rate of return.

The economic returns on education in India are found to be fairly high as compared to rate of returns of education in other developing and developed countries ofthe world.

In case of India, as per one study the private rate of return per annum of education increases because the level of education increases up to the secondary level. The returns to primary education were rather low and generally return per annum at secondary level. The returns to primary education were rather low and generally returns per annum at secondary level were the highest.

It had been also seen that the returns to women’s education exceeded that of men at middle, secondary and higher secondary levels. Thought between 1983 and 1994 the returns to women’s education for primary and middle levels declined, there has been a rise in returns for secondary and college levels during an equivalent period. For rural areas, there have been higher returns for primary and secondary levels also as for technical diplomas whereas returns for higher secondary and college education were higher in urban areas.

In agriculture evidence show that education has positive effects on productivity and efficiency among farmers. There’s evidence that adoption and spread of green revolution in the early years was faster among educated farmers. In industry mos.: evidence suggests that at enterprise level educated workers are more productive.

In nutshell, as people became healthier and more educated, they contribute more to economic process as education enhances their capabilities, efficiency and productivity. Its importance lies within the incontrovertible fact that development doesn't yield education, but education yields development

Q3) Explain Role of Social Infrastructure with reference to health and family welfare? (8 marks) (Year 2018)

A3)

Health is the most vital socio-economic aspect of every individual life. Its importance is clear in old saying “Health is wealth.” Health isn't only basic to lead a cheerful life for a personal, but also necessary for all productive activities within the society. The entire development cycle of an individual depends upon his intellectual caliber, curiosity and constructive thinking, but of these qualities depend on his healthiness. Therefore, to satisfy this very important need of the healthy citizens of a healthy society, health services are “since-qua-non” for the govt.

Health is a crucial constituent of well-being, sound foundation of prosperity and development of a country. World development report 1993 stated “Improved health contributes to economic growth in four ways:

I. It reduces production losses caused by worker illness,

II. It permits the utilization of natural resources that had been totally or nearly inaccessible because of disease,

III. It increases the enrolment of children in schools and makes them better ready to learn, and

IV. It frees for alternative uses resources that might otherwise need to be spent on treating illness.

The economic gains are relatively greater are relatively greater for poor people, who are typically most handicapped by unhealthiness and who stand to gains the most from the development of underutilized resources. Healthiness is both the means and end of development. A healthy population may be a per requisite for economic growth; in turn this income growth is often channeled to enhance human lives through the supply of an honest education, good healthcare facilities, increased job opportunities, improved job security, good governance and all other requirements for human well-being.

The health of human capital generates both higher income and individual well-being. Improved health generates economic process and poverty reduction in the long run. Two key elements of human capital are the extent to which the labor force is educated, and therefore the level its health. The role of health in influencing economic outcomes has been acknowledged at the micro level (Strauss and Thomas, 1998, Shultz, 1999). Thus, improvement in health is a crucial engine of economic growth. If economic process of a country is to be sustained, the availability of healthcare has to be more accessible and qualitatively better.

Health is vital for welfare. As a Gujarati proverb says ‘the first happiness is health, the second may be a foil stomach’. One cannot enjoy food if one isn't healthy. (Of course, one can't be healthy if one doesn't have enough food). To steer a productive life, one needs a good health. As Viner (1953) observed ‘the first requirement of higher labor productivity under modem conditions are that the masses of the population shall be literate, healthy and sufficiently well-fed to be strong and energetic’. Health like education is desirable in itself.

Sickness or illness imposes the burden on other members of the family and also on society. Absenteeism may result into loss of production and productivity. Thus, to emerge as a wealthy nation, a healthy society is desirable. Health, however, can't be ensured just by individual efforts. Social action is needed for sanitation, water system, clean air, waste disposal and an environment which doesn't breed disease or result in epidemics. Public policy is critical in ensuring adequate infrastructure for a healthy society. Public action is especially important for the health ofthe poor as they're unable to take care of themselves to an equivalent extent as the rich.

Planning and targeting for health become a policy imperative for development and progress, in the context of a developing country with its objectives to attain rapid and equitable growth the inter relations between health and economic development is central to the consideration of health policy.

The relation between health and economic development is an accomplished fact and many researchers have established this in several contexts. Improved health has both short term and long-term benefit from the purpose of view of the economy. It leads to an increased supply of the individuals and, therefore, results in increased income. More are the benefits of improved health that may are available the long run. Not only does the health status of an individual have its impact on productivity it's a crucial a part of his welfare. Economic development doesn't mean only increase in personal incomes they're rather a proxy for individual well-being which isn't quantifiable as easily as money incomes. Healthiness is a crucial component of real income.

Health isn't merely an individual and local issue. It’s both national and international. Since disease and Squalor anywhere in the world are a threat to the health of mankind. The role of the international Organizations and especially the world Health Organizations in pioneering, directing and coordinating health Programs all over the globe with major thrust against dreaded diseases needs no emphasis.

Health is both an instrument and merchandise of development and is, therefore, a significant factor: n the development process. Health determines and is decided by the socio-economic factors of education, nutrition, population growth, income and environment. The complexity of their relationship makes it difficult to isolate health from the rest of the factors. It becomes imperative that health and other development sectors work together to attain the goal of health for all.

Public health care infrastructure

1. Primary level

a. Sub Centers (SC)

B. Primary Health Centers (PHC)

2. Secondary Level

A. Community Health Centers (CHC)

B. Sub district Hospitals (SDH) And District Hospitals

3 Tertiary Levels

A. All India Institute of Medical Sciences (AIIMS)

B Medical Colleges and Hospitals

4. Indian Public Health Standards (IPHS)

Sub-Centre (SC) is the most peripheral and first contact point between the primary health care system and therefore the community. One Sub Centre is to cover a population of 3000 in Hilly / Tribal / Difficult areas and 5000 in Plain areas. Each Sub-Centre is required to be manned by a minimum of one Auxiliary Nurse Midwife (ANM) / Female health worker and one Male health worker.

Under National Rural Health Mission (NRHM), there's a provision for one additional second ANM on contract basis. Sub-Centers are assigned tasks relating to interpersonal communication so as to cause behavioral change and provide services in reference to maternal and child health, family welfare, nutrition, immunization, diarrhea control and control of communicable diseases programs. The Sub-Centers are given basic drugs for minor ailments needed for taking care of essential health needs of men, women and children.

Primary Health Centre (PHC) is the first contact point between village community and the medical officer.

The PHCs were envisaged to supply an integrated curative and preventive health care to the rural population with emphasis on preventive and promotive aspects of health care. One PHC is to cover a population of 20000 in Hilly/ Tribal / Difficult areas and 30000 in Plain areas.

As per minimum requirement, a PHC is to be manned by a medic supported by 14 paramedical and other staff. Under NRHM, there's a provision for 2 additional Staff Nurses at PHCs on contract basis. It acts as a referral unit for 6 Sub Centers and has 4 - 6 beds for patients. The activities of PHC involve curative, preventive, promotive and Family Welfare Services.

As per minimum norms, a Community Health Centre (CHC) is required to be manned by four Medical Specialists i.e., Surgeon, Physician, Gynecologist and Pediatrician supported by paramedical and other staff. It’s 30 in-door beds with one OT, X-ray, Labor Room and Laboratory facilities. It is a referral center for 4 PHCs and also provides facilities for obstetric care and specialist consultations. One CHC is to cover a population of 80000 in Hilly/ Tribal / Difficult areas and 1, 20,000 in Plain areas.

Public health programmes and policy

1. National Health Mission

2. Communicable Diseases Programme

3. Non-CommunicableDiseases, Injuryand Tramuna Programmes

4. Pradhan Mantra Swsthya Suraksha Yojana (PMSSY)

5. Poor Patients financial support

6. National Programme for Health of The Elderly

7. Rashtriya Swasthya Bima Yojna (RSBY)

8. Reproductive, Maternal, New Born, Child and Aldolases Health (RMNCH+A)

9. National Health Policy 2017

Q4) Explain Sustainable Development Goals? (5 marks) (Year 2018)

A4)

The sustainable development goals (SDGs), also referred to as the global goals, were adopted by the United Nations Member States in 2015 as a universal call to action to finish poverty, protect the planet and make sure that all people enjoy peace and prosperity by 2030.The 17 SDGs are integrated- that’s, they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.

The 17 sustainable development goals (SDGs) to transform our world:

GOAL 1: No Poverty

GOAL 2: Zero Hunger

GOAL 3: Good Health and Well-being

GOAL 4: Quality Education

GOAL 5: Gender Equality

GOAL 6: Clean Water and Sanitation

GOAL 7: Affordable and Clean Energy

GOAL 8: Decent Work and Economic Growth

GOAL 9: Industry, Innovation and Infrastructure

GOAL 10: Reduced Inequality

GOAL 11: Sustainable Cities and Communities

GOAL 12: Responsible Consumption and Production

GOAL 13: Climate Action

GOAL 14: Life below Water

GOAL 15: Life on Land

GOAL 16: Peace and Justice Strong Institutions

GOAL 17: Partnerships to achieve the Goal

Through the pledge to go away nobody behind, countries have committed to fast track progress for those furthest behind first. That's why the SDGs are designed to bring the world to several life –changing ‘zeros’, including zero poverty, hunger, AIDS, and discrimination against women and girls.

Everyone is needed to succeed in these ambitious targets. The creativity, *knowhow, technology and financial resources from all of society is necessary to attain the SDGs in every context.

Recent sustainable development in India

• Ending poverty
• Ending hunger, achieve food security and Improved nutrition and promote sustainable agriculture
• Ensure healthy life and promote well-being for all
• Achieve gender equality and empower all women and girls
• Built resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
• Conserve and sustainably use oceans, seas, and marine resources
• Revitalize the global partnership for sustainable development

Q5) Explain make in India? (8 marks) (Year 2018)

A5)

Make in India, a kind of Swadeshi movement covering 25 sectors of the Indian economy was launched by the govt. Of India on 25 September 2014 to encourage companies to manufacture their products in India and enthuse with dedicated investments into manufacturing.

After the launch, India gave investment commitments worth 16.40 lakh crore (US$230 billion) and investment inquiries worth of 1.5 lakh crore (US$21 billion) between September 2014 to February 2016. As a result, India emerged because the top destination globally in 2015 for foreign direct investment (FDI), surpassing the United States and China, with US$60.1 billion FDI. As per the present policy, 100% Foreign Direct Investment (FDI) is permitted altogether 100 sectors, apart from Space industry (74%), defense industry (49%) and Media of India (26%). Japan and India had also announced a US$12 billion "Japan-India Make-in-India Special Finance Facility" fund to push investment.

In line with the Make in India, individual states too launched their own local initiatives, like "Make in Odisha", "Tamil Nadu Global Investors Meet", Vibrant Gujarat, "Happening Haryana" and "Magnetic Maharashtra".[9] India received US$60 billion FDI in FY 2016–17.

The World Bank's 2019 'Doing Business Report' acknowledges India's jump of 23 positions against its rank of 100 in 2017 to be placed now at 63rd rank among 190 countries. By the top of 2017, India had risen 42 places on simple doing index, 32 places World Economic Forum's Global Competitiveness Index, and 19 notches within the Logistics Performance Index, because of recent governmental initiatives, which include converges, synergies and enables other important Government of India schemes, like Baramulla, Sagarmala, Dedicated Freight Corridors, Industrial corridors, UDAN-RCS, Bharat Broadband Network, Digital India.

The "Make -in India" initiative

"Make in India" was launched on 25 September 2014with three major objectives: (a) to increase the manufacturing sector's rate of growth to 12-14% per annum so as to extend the sector's share in the economy; (b) to make 100 million additional manufacturing jobs in the economy by 2022; and (c) to make sure that the manufacturing sector's contribution to GDP is increased to 25% by 2022 (later revised to 2025). The policy approach was to make a conducive environment for investments, develop modern and efficient infrastructure, and open up new sectors for foreign capital. The initiative targeted 25 economic sectors for job creation and skill enhancement, and aimed "to transform India into a worldwide design and manufacturing hub".

Make in India campaign

Make in India is that the BJP-led NDA government's flagship campaign intended to spice up the domestic manufacturing industry and attract foreign investors to take a position into the Indian economy. The Indian Prime Minister, Mr. Narendra Modi first mentioned the key phrase in his maiden Independence Day address from the ramparts of the Red Fort and over a month later launched the campaign in September 2014 with an intention of reviving manufacturing businesses and emphasizing key sectors in India amidst growing concerns that the majority entrepreneurs are moving out of the country because of its low rank in ease of doing business ratings.

The Make in India Vision

Manufacturing currently contributes just over 15% to the national GDP. The aim of this campaign is to grow this to a 25% contribution as seen with other developing nations of Asia. In the process, the govt. Expects to get jobs, attract much foreign direct investment, and transform India into a producing hub preferred round the globe.

The logo for the Make in India campaign is an elegant lion, inspired by the Ashoka Chakra and designed to represent India's success altogether spheres. The campaign was dedicated by the Prime Minister to the eminent patriot, philosopher and political personality, Pandit Deen Dayal Upadhyaya who had been born on an equivalent date in 1916.

Why PM wants to make in India

The Prime Minister called for all those associated with the campaign, especially the entrepreneurs and also the corporate, to step and discharge their duties as Indian nationals by First Developing India and for investors to endow the country with foreign direct investments. The Prime Minister also promised that his administration would aid the investors by making India a pleasing experience which his government considered overall development of the state an article of faith rather than a political agenda. He also laid a strong foundation for his vision of a technology-savvy Digital India as complementary to form In India. He stressed on the employment generation and poverty alleviation that may inevitably accompany the success of this campaign.

Sectors focused

For the Make in India campaign, the govt. Of India has identified 25 priority sectors that shall be promoted adequately. These are the sectors where likelihood of FDI (foreign direct investment) is the highest and investment shall be promoted by the govt. Of India. On the campaign launch, the Prime Minister Mr. Modi said that the development of those sectors would make sure that the world shall readily come to Asia, particularly to India where the availability of both democratic conditions and manufacturing superiority made it the simplest destinations, especially when combined with the effective governance intended by his administration.

Benefits and drawbacks of Make in India

India may be a country rich in natural resources. Labor is aplenty and skilled labor is definitely available given the high rates of unemployment among the educated class of the country With Asia developing because the outsourcing hub of the world, India is soon becoming the well-liked manufacturing destination of most investors across the world. Mae in India is that the Indian government's effort to harness this demand and boost the Indian economy.

India ranks low on the "ease of doing business index". Labor laws in the country are still not conducive to the Make in India campaign. This is often one of the universally noted disadvantages of producing and investing in India.

Why Companies were not manufacturing in India

Make in India campaign is at loggerheads with the Make in China ideal that has gained momentum over the past decade. China is a major rival to India when it involves the outsourcing, manufacturing, and services business. India's ailing infrastructure scenario and defunct logistics facilities make it difficult for the country to realize an elite status as a producing hub. The bureaucratic approach of former governments, lack of strong transport networks, and widespread corruption makes it difficult for manufacturers to attain timely and adequate production. The Modi government has vowed to get rid of these hurdles and make the state an ideal destination for investors to line up industries.

The Make in India Website

Apart from the launch of a vibrant brochure, which should find its way into the hands of anyone meaning to invest into India, the govt. Of India also launched an internet site to supplement the campaign. The Make in India website highlights each of the 25 target sectors with statistics, reasons to take a position, growth drivers, all policies relevant to investors and the individual sectors, government support, and opportunities for investors aside from showcasing the live projects that are undertaken and FAQs. The web site also links to the campaigns Social Media feeds on Twitter, Facebook, Google Plus, and YouTube.

Achievements

• Foreign direct investment
• Ease of doing business
• Sectoral achievements (Electricity generation grew 5.8%, Pharmaceuticals grew by 29%, FDI in Aviation grew by 5 times)

Criticism and concerns

The NDA government's Make in India campaign has till early October attracted INR 2000 crore worth investment proposals. The campaign has, despite this, found its fair share of critics. The topmost of those criticisms is leveled against the incumbent government. It's been felt that the govt. Doesn't walk its talk - labor reforms and policy reforms which are fundamental for the success of the Make in India campaign haven't yet been implemented. Varieties of layoffs in companies like Nokia India cast long shadows over the campaign Varieties of technology-based companies hasn’t been enthused by the campaign launch and have professed to continue getting their components manufactured by China.

Q6) Explain invest in India? (8 marks)

A6)

INVESTMENT in India and FDI India inflows are a by-product of improved market sentiment across the world. In recent times it's become obvious that more and more share market punters are open to investment in India, with a widespread revival of foreign direct investment (FDI) seeing FDI India-bound because of an upward movement in consumer confidence levels. The types of investment India has, that interest overseas investors, include interest in the banking sector. The investment in India in the banking sector has gained momentum in the last 3 years especially as investors are willing to invest India because of the commercialization of banks, and consider FDI India through financial collaborations.

Investment in Indian joint ventures by foreign investors are additionally a growing area, but FDI India isn't permitted in certain industrial sectors like arms and ammunition, railways, iron mining and coal mining – to call a couple of. Foreign investors got more used to the thought of to invest India because of the ability of Indian companies to boost equity through Global Depository Receipt (GDR). This sort of foreign interest is the kind of investment India must attempt to encourage to globally attract more investment in India into the longer term. In terms of investment India previously treated FDI India and FDI as a whole as a necessary evil. These days, because of new industrial policies in India, foreign investment in India is not any longer seen as “taboo” by westerners, and more and more westerns are likely to start to invest India and enjoy the lessening of operational constraints that used to plague foreign investors who first began westernized breakthrough investment in India.

India now boasts a bustling and vibrant private sector of business that's continuing to pique the interest of foreigners who are researching the foremost lucrative investment India offers. a new policy in India also permits simple approval for equity investment in India with the proviso that such transactions are made in priority industries, of which there are 35. These priority industries in India are believed to be the drivers of foreign investment in India, but also are opening many investors up to the complicated system of tax India contends with. The most source of foreign investment India attracts is within the 35 industries that determine the industrial activity in India and thus the FDI India attracts overall.

Some foreign investors believe that investment in India has too many constraints and cannot even consider investing India in the least.

The Indian economy must focus not on convincing those unlikely to consider the kinds of investment India offers up, but nurture the foreign investors who already have investment in India and plan to still build upon this.

Why investments?

Investments are important because in today’s world, just earning money isn't enough. You work hard for the cash you earn. But which will not be adequate for you to lead a comfortable lifestyle or fulfill your dreams and goals. To do that, you would like to make your money work hard for you also. This is often why you invest. Money lying idle in your bank account is a chance lost. You ought to invest that cash smartly to urge good returns out of it.

Types of Investments in India

The Indian investor features a number of investment options to settle on from. Some are traditional investments that are used across generations, while some are relatively newer options that became popular in recent years. Here are some popular investment options available in India.

1. Stocks

Stocks, also referred to as company shares, are probably the most famous investment vehicle in India. Once you buy a company’s stock, you purchase ownership in that company that permits you to participate in the company’s growth. Stocks are offered by companies that are publicly listed on stock exchanges and may be bought by any investor. Stocks are ideal long-term investments. But investing in stocks shouldn't be equated to trading within the stock exchange, which may be a speculative activity.

2. Mutual Funds

Mutual funds are around for the past few decades but they have gained popularity only in the previous couple of years. These are investment vehicles that pool the cash of the many investors and invest it in a way to earn optimum returns. Differing types of mutual funds invest in several securities. Equity mutual funds invest primarily in stocks and equity-related instruments, while debt mutual funds invest in bonds and papers. There also are hybrid mutual funds that invest in equity also as debt. Mutual funds are flexible investment vehicles, during which you'll begin and stop investing as per your convenience. Apart from tax-saving mutual funds, you'll redeem investments from mutual funds any time also.

3. Fixed Deposits

Fixed deposits are investment vehicles that are for a specific, pre-defined period of time. They provide complete capital protection also as guaranteed returns. They’re ideal for conservative investors who stay away from risks. Fixed deposits are offered by banks and for different time periods. Fixed deposit interest rates change as per economic conditions and are decided by the banks themselves. Fixed deposits are typically locked-in investments, but investors are often allowed to avail loans or overdraft facilities against them. There’s also a tax-saving variant of fixed deposit, which comes with a lock-in of 5 years.

4. Recurring Deposits

A recurring deposit (RD) is another fixed tenure investment that permits investors to place in a certain amount every month for a pre-defined period of time. RDs are offered by banks and post offices. The interest rates are defined by the institution offering it. An RD allows the investor to invest a small amount monthly to build a corpus over an outlined time period. RDs offer capital protection also as guaranteed returns.

5. Public Provident Fund

The Public Provident Fund (PPF) may be a long-term tax-saving investment vehicle that comes with a lock-in period of 15 years. Investments made in PPF are often used to earn a tax break. The PPF rate is set by the govt. Of India quarterly. The corpus withdrawn at the end of the 15-year period is totally tax-free in the hands of the investor. PPF also allows loans and partial withdrawals after certain conditions are met.

6. Employee Provident Fund

The Employee Provident Fund (EPF) is another retirement-oriented investment vehicle that earns a tax break under Section 80C. EPF deductions are typically a neighborhood of an earner’s monthly salary and therefore the same amount is matched by the employer also. Upon maturity, the withdrawn corpus from EPF is also entirely tax-free. EPF rates also are decided by the government of India every quarter.

7. National Pension System

The National Pension System (NPS) may be a relatively new tax-saving investment option. Investors in the NPS stay locked-in till retirement and may earn higher returns than PPF or EPF since the NPS offers plan options that invest in equities also. The maturity corpus from the NPS isn't entirely tax-free and a part of it's to be wont to purchase an annuity which will give the investor a regular pension.

Reason to invest money

Since there are numerous sorts of investment vehicles, it's normal for an investor to get overwhelmed. Someone new to investing wouldn't where to take a position their money. Making the incorrect investment choice can cause financial losses, which are some things that nobody wants. This is often why you should use the subsequent factors to make a decision where to invest your money.

• Age

Typically, younger investors have fewer responsibilities and a longer time horizon. Once you have a long working life in front of you, you'll invest in vehicles with a long-term view and also keep increasing your investment amount with an increase in your income. This is often why equity-oriented investments like equity mutual funds would be a far better option for young investors, as compared to something like fixed deposits. But on the opposite hand, older investors can opt for safer avenues like FDs.

• Goal

Investment goals are often either short-term or long-term. For a short-term goal, you should choose a safer investment and use the return-generating potential of equities for long-term goals. Goals also can be negotiable and non-negotiable. For non-negotiable goals like children’s education or deposit for a house, guaranteed-return investments would be a good choice. But if the goal is negotiable, which means that it is often pushed back by a few months, then investing in equity mutual funds or stocks are often beneficial. Plus, if these investments do rather well, then you'll even meet the goal before time.

• Profile

Another thing to think about when choosing an investment option is your own profile. Factors like what proportion you're earning and how many financial dependents you have are also critical. A young investor with a lot of time available might not be ready to take equity-related risks if he also has the responsibility to require care of his family. Similarly, someone older with no dependents and a steady source of income can prefer to invest in equities to earn higher returns.

This is why it's said that when it involves investments, one size doesn’t fit all. Investments not only need to be chosen carefully but also planned properly to get the most out of them

Q7) Explain Skill Development and Training Programmes? (8 marks) (Year 2019)

A7)

Skill Development Courses – Many institutions across the state are engaged in highly specialized academic and industry training programs to market skills among its students and youth, with a greater emphasis on the development of employment opportunities and research activities. The Central Government initiative to launch a multi-tiered campaign to market skill development training programs across the varied states has led to the conception and operation of the National Skill Development Mission in 2015. This important body approves and governs over such constructive initiatives targeting especially the student body and professionals in expanding their understanding and opening new career opportunities for them. Aside from such unique platforms, the top pioneer institutions and universities across the state, which include the AIIMs, IIMs, IITs, NITs, IIITs, IISC, IIST etc., also host a huge number of workshops, each year, either by the department or in partnership with the core companies. a quick glimpse into the present themes and underlying programs will give the longer-term explorers a far better idea about the scope and stretch of such platforms,

Find below the list of Top Skill Development Courses offered by different Institute in India.

• National Skill Development Mission.
• National Policy for Skill Development and Entrepreneurship, 2015.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
• Skill Loan scheme.
• Rural India Skill.

Advanced Instrument Training for Academia and Industry Specialization

1. CSIR-CDRI workshops

As a part of the Skill India initiative to enhance employment and innovation in the field of research and development, Central Drug Research Institute (CSIR-CDRI) has initiated accredited training and certification programs on the appliance of chemical analysis and biological evaluation tools. This platform offers practical lessons and hands-on training experience in:

The operation of advanced chemical characterization tools like NMR, HPLC LC-MS, and UV/IR.

• Microbial evaluation methodologies for screening novel anti-microbial agents.

• Certificate program on the application of computational tools for drug design and development and electron microscopy.

• Managing and testing of laboratory animals

This is especially beneficial for the bioscience community, those involved in drug discovery and research. CDRI Lucknow hosts the program per annum, with the appliance deadlines usually one month before the scheduled event. The link below will explain intimately the varied deadlines and individual expenditure for every course also as the contents covered.

2. INUP sponsored hands-on training

Indian Nanoelectronics Users Program (INUP) is an initiative started by the Centers of Excellence in Nanoelectronics (CEN), based at IISC Bengaluru and IIT Bombay, solely dedicated to developing innovations in the field of Nanoscience and Nanotechnology. The most motive behind the Genesis is to extend the accessibility of state-of-art infrastructure to the young researchers and students of the state, within and other institutions. This collaborative work by both the parent institutions covers workshops in Nanoelectronics not only in the home location but also the distant parts of the state, thereby making it accessible to the researcher there.

The workshops promote hands-on training and assist young researchers in commencing research activities at the CENs. It also promotes collaborative programs among different institutions of the state, thereby sharing ideas and innovations to develop and update skills. It also sports a novel platform to submit project proposals and explore one’s research envisaged. They conduct annually specialized workshops for handling advanced instruments, software and other technology, which benefits students of particular interests and aspirations. a number of the previous topics covered include MEMS/NEMS fabrication methodologies, Nanoelectronics fabrication, Photovoltaics, Biosensors/PDMS Channel etc.

3. ISRO Sponsored Training and Workshops

The Indian Space Research Organization (ISRO) conducts different levels of skill development programs for Undergraduate (UG) and Post Graduate (PG) students in the sort of workshops, training, and internships, mainly within the field of design and development. A hub of institutions participates in offering such training in association with ISRO, like ISRO Institute of Space Science and Technology (IIST) Trivandrum, Indian Institute of Remote Sensing (IIRS) Dehradun, National Atmospheric research laboratory (NARL), ISRO Satellite Centre (ISAC), Semiconductor Lab (SCL), Chandigarh etc. to name a couple of. The main themes covered under each segment are as shown below:

• Electronics Engineering: Remote sensing and GIS, Digital systems, Astronomy, and Planetary & Space Atmospheric Sciences.

• Mechanical Engineering: Mathematical modeling, Electro-optics, Astrophysics, and Atomic, Molecular & Optical Physics.

• Civil Engineering: Image processing, Microwave technology, astronomy, and Theoretical Physics.

• Electrical Engineering: RF systems, Radars, Earth, and Chemistry.

• Natural Resources and Disaster Management: Remote Sensing, Geo-informatics, and GPS Technology.

4. Training and Research at IGMPI

The Institute of good Manufacturing Practices India (IGMPI), is another national level platform, which aims to market research activities and innovations among life science graduates and postgraduates in interdisciplinary branches of science. The organization has been approved by the quality Council of India (QCI) and Ministry of Human Resource and Development (MHRD).

The institution aims at strengthening the basics and core knowledge among the students to hold out successful research ventures. Expert guidance and supervision also are provided to individual students to develop national core competence with the necessary skills to work state-of-arts facilities, updated with the contemporary rationale of labor. Exposure to industry environment is additionally another catch to this unique platform, which may pave way for constructive arguments between the mentors and students, thereby guiding them in choosing their career field of interest. Knowledgeable students within the field of bioscience are more preferred for the program. The most domains in the training are Good Manufacturing Practices (GMP), Qualification and Validation, Good Laboratory Practices (GLP), Quality Assurance and quality control, Regulatory Affairs, property Rights, Food Technology, Dairy Products etc.

5. IIM Ahmedabad collaborative research workshop

Each year, IIM Ahmedabad conducts research workshop series, thrice, across different states to spread opportunities and platforms to research students and supervisors of the various academia’s in the nation. The past year saw the meet held in Mumbai, Tumkur, Dehradun, and Varanasi. The institution initiates tie-up with the participating academic, while the event usually lasts for 2-3 days, held over the weekend. New themes are cultivated annually giving many opportunities for the research community to experience different components and specializations in their field. The workshop held at Dehradun in 2018, covered tips to get and implement research ideas within the best suitable manner. It had been an interactive event where the students could actively approach the various faculty members of IIM Ahmedabad and, where real-time troubleshooting was made possible. Particulars regarding the communication of active work to peer-review centers were also described within the 2-day event which followed.

6. AIIMS New Delhi workshop series

The population of medical students has different specialization interests and aspirations, and therefore the AIIMS institutions across the state do the subliminal work of providing the correct platform to cultivate it through the varied workshops it implements annually. These training programs are sponsored by many reputed partner medical institutions across the state, like the Indian Society for Sleep Research, which offers career enhancement training for sleep experts and technicians. This particular program requires the candidate to be knowledgeable in the field of sleep physiology, and medicine. The course covers practical sessions also to use the knowledge and make awareness among the participants. The workshops are multifaceted and are well organized with numerous bodies participating within the active give and take process. In 2015, the National Medical College Network awareness workshop titled Telemedicon was held, which saw participation from different segments of the medical field, from the Nodal Officers of health division and students from other government medical colleges. Therefore, it's advised to always stay updated regarding openings and deadlines to urge the most out of the professional community.

7. NAFARI training programs

For those pursuing agriculture as a career option, the National Agriculture and Food Analysis and Research Institute (NAFARI) offer a good range of coaching programs in specialized areas like handling automatons, R&D, entrepreneurship etc. it's trained quite 1300 participants from its initiation since 2009 and provides consultancy and support services to different subunits in food, vegetable and fruit processing. Both short-term and long-term training benefits are provided to the candidates, with the availability of newer projects annually. The portal for new workshops for 2019 is open and a plethora of topics are available to urge the required training covered.

8. Skyfi Labs:

Along with direct face-to-face confrontation, there are many online resources which give a user-friendly platform to develop interest and skills in interdisciplinary streams aside from regular academics. Skyfi Labs offers a strong platform to find out and take up projects in multiple areas of Engineering and Science. The most domains include Robotics, Internet of Things, Mechatronics, high school and higher Secondary level, Electrical, Electronics, Civil, Mechanical, computing, Automation, open-source hardware and software platforms (Arduino), and Wireless Technology. This company has tie-ups with the highest universities of the state, includes IIT Kanpur, and also because the industries, and the training centers are distributed to over 27 places across the state. Mentorship offers a direct one-to-one communication approach, wherein doubts are cleared systematically without pause.

9. Disaster Management Training Programs

Ministry of Home Affairs led National Institute of Disaster Management (NIDM) is offering online training programs in association with the world Bank, Washington, USA, in tackling areas of concern in the management of natural disasters. The NIDM may be a novel initiative from the state and provides an excellent career overview and options to students curious about disaster risk management and mitigation. The training is conducted and evaluated by experienced mentors and promotes a piece culture to share ideas and research outlines. The training offers basic and specialized courses dictating various aspects of disaster management:

• Climate change and disaster risk

• Earthquake risk reduction

• Risk identification and analysis

• Gender specification in recovery and mitigation

10. National Skill Development Corporation

The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public Private Partnership Company with the first mandate of catalyzing the skills landscape in India. NSDC may be a unique model created with a well thought through underlying philosophy based on the subsequent pillars:

• 1. Create: Proactively catalyze creation of large, quality vocational education institutions.

• 2. Fund: Reduce risk by providing patient capital Including grants and equity.

• 3. Enable: the creation and sustainability of support systems required for skill development. This includes the Industry led Sector Skill Councils.

The main objectives of the NSDC are to:

• Upgrade skills to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance

• Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership (PPP) models; strive for significant operational and financial involvement from the private sector

• Play the role of a "market-maker" by bringing financing, particularly in sectors where market mechanisms are ineffective or missing

• Prioritize initiatives which will have a multiplier or catalytic effect as against one-off impact.

Partnerships

NSDC operates through partnerships with multiple stakeholders in catalyzing and evolving the skilling ecosystem.

• Private Sector – Areas of partnerships include awareness building, capacity creation, loan financing, creation and operations of Sector Skill Councils, assessment resulting in certification, employment generation, Corporate Social Responsibility, World Skills competitions and participation in Special Initiatives like Udaan focused on J&K.

• International Engagement – Investments, technical assistance, transnational standards, overseas jobs and other areas.

• Central Ministries – Participation in flagship programs like Make in India, Swachh Bharat, Pradhan Mantri Jan Dhan Yojana, Smart City, Digital India and Namami Ganga, among many others.

• State Governments – Development of programs and schemes, alignment to NSQF and capacity building, operationalization of program, capacity building efforts among others.

• University/School systems – Vocationalist of education through specific training programs, evolution of credit framework, entrepreneur development, etc.

• Non-profit organizations – Capacity building of marginalized and special groups, development of livelihood, self-employment and entrepreneurship programs.

• Innovation – Support to early-stage social entrepreneurs performing on innovative business models to deal with gaps within the skilling ecosystem, including programs for persons with disability.

Achievements

• Over 5.2 million students trained

• 235 private sector partnerships for training and capacity building, each to coach a minimum of 50,000 persons over a 10-year period.

• 38 Sector Skill Councils (SSC) approved in services, manufacturing, agriculture & allied services, and informal sectors. Sectors include 19 of 20 high priority sectors identified by the govt. And 25 of the sectors under Make in India initiative.

• 1386 Qualification Packs with 6,744 unique National Occupational Standards (NOS). These are validated by over 1000 companies.

• Vocational training introduced in 10 States, covering 2400+ schools, 2 Boards, benefitting over 2.5 lakh students. Curriculum supported National Occupational Standards (NOS) and SSC certification. NSDC is functioning with 21 universities, Community Colleges under UGC/AICTE for alignment of education and training to NSQF.

• Designated implementation agency for the most important voucher-based skill development program, Pradhan Mantri Kaushal Vikas Yojana.

• Skill Development Management System (SDMS) with 1400 training partners, 28179 training centers, 16479 trainers, 20 Job portals, 77 assessment agencies and 4983 empaneled assessors. Hosting infrastructure certified by ISO 20000/27000 supported by dedicated personnel.

Others are skill development and training programs

1. National Apprenticeship Promotion Scheme (NAPS)

2. Recognition of Prior Learning – Type 4

3. Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

4. Udaan

5. Andhra Pradesh state skill Development Corporation

6. Electronics system design and manufacturing

Q8) Explain the Advanced Instrument Training for Academia and Industry Specialization? (8 marks)

A8)

Skill Development Courses – Many institutions across the state are engaged in highly specialized academic and industry training programs to market skills among its students and youth, with a greater emphasis on the development of employment opportunities and research activities. The Central Government initiative to launch a multi-tiered campaign to market skill development training programs across the varied states has led to the conception and operation of the National Skill Development Mission in 2015. This important body approves and governs over such constructive initiatives targeting especially the student body and professionals in expanding their understanding and opening new career opportunities for them. Aside from such unique platforms, the top pioneer institutions and universities across the state, which include the AIIMs, IIMs, IITs, NITs, IIITs, IISC, IIST etc., also host a huge number of workshops, each year, either by the department or in partnership with the core companies. a quick glimpse into the present themes and underlying programs will give the longer-term explorers a far better idea about the scope and stretch of such platforms,

Find below the list of Top Skill Development Courses offered by different Institute in India.

• National Skill Development Mission.
• National Policy for Skill Development and Entrepreneurship, 2015.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
• Skill Loan scheme.
• Rural India Skill.

Advanced Instrument Training for Academia and Industry Specialization

1. CSIR-CDRI workshops

As a part of the Skill India initiative to enhance employment and innovation in the field of research and development, Central Drug Research Institute (CSIR-CDRI) has initiated accredited training and certification programs on the appliance of chemical analysis and biological evaluation tools. This platform offers practical lessons and hands-on training experience in:

The operation of advanced chemical characterization tools like NMR, HPLC LC-MS, and UV/IR.

• Microbial evaluation methodologies for screening novel anti-microbial agents.

• Certificate program on the application of computational tools for drug design and development and electron microscopy.

• Managing and testing of laboratory animals

This is especially beneficial for the bioscience community, those involved in drug discovery and research. CDRI Lucknow hosts the program per annum, with the appliance deadlines usually one month before the scheduled event. The link below will explain intimately the varied deadlines and individual expenditure for every course also as the contents covered.

2. INUP sponsored hands-on training

Indian Nanoelectronics Users Program (INUP) is an initiative started by the Centers of Excellence in Nanoelectronics (CEN), based at IISC Bengaluru and IIT Bombay, solely dedicated to developing innovations in the field of Nanoscience and Nanotechnology. The most motive behind the Genesis is to extend the accessibility of state-of-art infrastructure to the young researchers and students of the state, within and other institutions. This collaborative work by both the parent institutions covers workshops in Nanoelectronics not only in the home location but also the distant parts of the state, thereby making it accessible to the researcher there.

The workshops promote hands-on training and assist young researchers in commencing research activities at the CENs. It also promotes collaborative programs among different institutions of the state, thereby sharing ideas and innovations to develop and update skills. It also sports a novel platform to submit project proposals and explore one’s research envisaged. They conduct annually specialized workshops for handling advanced instruments, software and other technology, which benefits students of particular interests and aspirations. a number of the previous topics covered include MEMS/NEMS fabrication methodologies, Nanoelectronics fabrication, Photovoltaics, Biosensors/PDMS Channel etc.

3. ISRO Sponsored Training and Workshops

The Indian Space Research Organization (ISRO) conducts different levels of skill development programs for Undergraduate (UG) and Post Graduate (PG) students in the sort of workshops, training, and internships, mainly within the field of design and development. A hub of institutions participates in offering such training in association with ISRO, like ISRO Institute of Space Science and Technology (IIST) Trivandrum, Indian Institute of Remote Sensing (IIRS) Dehradun, National Atmospheric research laboratory (NARL), ISRO Satellite Centre (ISAC), Semiconductor Lab (SCL), Chandigarh etc. to name a couple of. The main themes covered under each segment are as shown below:

• Electronics Engineering: Remote sensing and GIS, Digital systems, Astronomy, and Planetary & Space Atmospheric Sciences.

• Mechanical Engineering: Mathematical modeling, Electro-optics, Astrophysics, and Atomic, Molecular & Optical Physics.

• Civil Engineering: Image processing, Microwave technology, astronomy, and Theoretical Physics.

• Electrical Engineering: RF systems, Radars, Earth, and Chemistry.

• Natural Resources and Disaster Management: Remote Sensing, Geo-informatics, and GPS Technology.

4. Training and Research at IGMPI

The Institute of good Manufacturing Practices India (IGMPI), is another national level platform, which aims to market research activities and innovations among life science graduates and postgraduates in interdisciplinary branches of science. The organization has been approved by the quality Council of India (QCI) and Ministry of Human Resource and Development (MHRD).

The institution aims at strengthening the basics and core knowledge among the students to hold out successful research ventures. Expert guidance and supervision also are provided to individual students to develop national core competence with the necessary skills to work state-of-arts facilities, updated with the contemporary rationale of labor. Exposure to industry environment is additionally another catch to this unique platform, which may pave way for constructive arguments between the mentors and students, thereby guiding them in choosing their career field of interest. Knowledgeable students within the field of bioscience are more preferred for the program. The most domains in the training are Good Manufacturing Practices (GMP), Qualification and Validation, Good Laboratory Practices (GLP), Quality Assurance and quality control, Regulatory Affairs, property Rights, Food Technology, Dairy Products etc.

5. IIM Ahmedabad collaborative research workshop

Each year, IIM Ahmedabad conducts research workshop series, thrice, across different states to spread opportunities and platforms to research students and supervisors of the various academia’s in the nation. The past year saw the meet held in Mumbai, Tumkur, Dehradun, and Varanasi. The institution initiates tie-up with the participating academic, while the event usually lasts for 2-3 days, held over the weekend. New themes are cultivated annually giving many opportunities for the research community to experience different components and specializations in their field. The workshop held at Dehradun in 2018, covered tips to get and implement research ideas within the best suitable manner. It had been an interactive event where the students could actively approach the various faculty members of IIM Ahmedabad and, where real-time troubleshooting was made possible. Particulars regarding the communication of active work to peer-review centers were also described within the 2-day event which followed.

6. AIIMS New Delhi workshop series

The population of medical students has different specialization interests and aspirations, and therefore the AIIMS institutions across the state do the subliminal work of providing the correct platform to cultivate it through the varied workshops it implements annually. These training programs are sponsored by many reputed partner medical institutions across the state, like the Indian Society for Sleep Research, which offers career enhancement training for sleep experts and technicians. This particular program requires the candidate to be knowledgeable in the field of sleep physiology, and medicine. The course covers practical sessions also to use the knowledge and make awareness among the participants. The workshops are multifaceted and are well organized with numerous bodies participating within the active give and take process. In 2015, the National Medical College Network awareness workshop titled Telemedicon was held, which saw participation from different segments of the medical field, from the Nodal Officers of health division and students from other government medical colleges. Therefore, it's advised to always stay updated regarding openings and deadlines to urge the most out of the professional community.

7. NAFARI training programs

For those pursuing agriculture as a career option, the National Agriculture and Food Analysis and Research Institute (NAFARI) offer a good range of coaching programs in specialized areas like handling automatons, R&D, entrepreneurship etc. it's trained quite 1300 participants from its initiation since 2009 and provides consultancy and support services to different subunits in food, vegetable and fruit processing. Both short-term and long-term training benefits are provided to the candidates, with the availability of newer projects annually. The portal for new workshops for 2019 is open and a plethora of topics are available to urge the required training covered.

8. Skyfi Labs:

Along with direct face-to-face confrontation, there are many online resources which give a user-friendly platform to develop interest and skills in interdisciplinary streams aside from regular academics. Skyfi Labs offers a strong platform to find out and take up projects in multiple areas of Engineering and Science. The most domains include Robotics, Internet of Things, Mechatronics, high school and higher Secondary level, Electrical, Electronics, Civil, Mechanical, computing, Automation, open-source hardware and software platforms (Arduino), and Wireless Technology. This company has tie-ups with the highest universities of the state, includes IIT Kanpur, and also because the industries, and the training centers are distributed to over 27 places across the state. Mentorship offers a direct one-to-one communication approach, wherein doubts are cleared systematically without pause.

9. Disaster Management Training Programs

Ministry of Home Affairs led National Institute of Disaster Management (NIDM) is offering online training programs in association with the world Bank, Washington, USA, in tackling areas of concern in the management of natural disasters. The NIDM may be a novel initiative from the state and provides an excellent career overview and options to students curious about disaster risk management and mitigation. The training is conducted and evaluated by experienced mentors and promotes a piece culture to share ideas and research outlines. The training offers basic and specialized courses dictating various aspects of disaster management:

• Climate change and disaster risk

• Earthquake risk reduction

• Risk identification and analysis

• Gender specification in recovery and mitigation

10. National Skill Development Corporation

The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public Private Partnership Company with the first mandate of catalyzing the skills landscape in India. NSDC may be a unique model created with a well thought through underlying philosophy based on the subsequent pillars:

• 1. Create: Proactively catalyze creation of large, quality vocational education institutions.

• 2. Fund: Reduce risk by providing patient capital Including grants and equity.

• 3. Enable: the creation and sustainability of support systems required for skill development. This includes the Industry led Sector Skill Councils.

The main objectives of the NSDC are to:

• Upgrade skills to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance

• Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership (PPP) models; strive for significant operational and financial involvement from the private sector

• Play the role of a "market-maker" by bringing financing, particularly in sectors where market mechanisms are ineffective or missing

• Prioritize initiatives which will have a multiplier or catalytic effect as against one-off impact.

Q9) Explain FDI? (8 Marks) (Year 2019)

A9)

As the name suggests, it's an investment by foreign individual(s) or company(ies) into business, capital markets or production in the host country. Foreign direct investment policy in India is regulated under the exchange Management Act (FEMA) 2000 administered by the reserve bank of India (RBI).

FDI plays a crucial role within the economic development of a country. The capital inflow of foreign investors allows strengthening infrastructure, increasing productivity and creating employment opportunities in India. Additionally, FDI acts as a medium to accumulate advanced technology and mobilize exchange resources. Availability of exchange reserves in the country allows RBI (the central banking institution of India) to intervene in the exchange market and control any adverse movement so as to stabilize the exchange rates. As a result, it provides a more favorable economic environment for the event of Indian economy.

TYPES OF FDI

1. Greenfield investments
2. Mergers and acquisitions
3. Horizontal and vertical investments
4. Inward and outward investments
5. Equity capital investment
6. Reinvested earnings

Need of foreign direct investment

There are various factors that signify the importance of FDI in India a number of which are listed below:

1) Helps in Balancing International Payments:

FDI is that the major source of exchange inflow within the country. It offers a supreme benefit to country’s external borrowings because the government needs to repay the international debt with the interest over a specific period of your time. The inflow of foreign currency in the economy allows the government to get adequate resources which help to stabilize the BOP (Balance of Payment).

2) FDI boosts development in various fields:

For the event of an economy, it's important to possess new technology, proper management and new skills. FDI allows bridging of the technology gap between foreign and domestic firms to boost the size of production which is useful for the betterment of Indian economy. Thus, FDI is additionally considered an asset to the economy.

3) FDI & Employment:

FDI allows foreign enterprises to establish their business in India. The establishment of those enterprises in the country generates employment opportunities for the people of India. Thus, the govt. Facilitates foreign companies to line up their business entities in the country to empower Indian youth with new and improved skills.

4) FDI encourages export from host country:

Foreign companies carry a broad international marketing network and marketing information which helps in promoting domestic products across the world. Hence, FDI promotes the export-oriented activities that improve export performance of the country.

Apart from these advantages, FDI helps in creating a competitive environment in the country which results in higher efficiency and superior products and services.

BENEFITS TO HOST COUNTRY

1. Increased investment
2. Transfer of new technology
3. Contribution to balance of payments
4. Social development
5. Infrastructure
6. Import substitution
7. Competition
8. Stimulate domestic enterprise
9. Revenue
10. Growth
11. Access
12. Better allocation
13. Human capital development
14. Sectoral development

COSTS OF FDI TO HOST COUNTRY

1. Trade balance
2. Competition
3. Balance of payment disequilibrium
4. Diversion
5. Sovereignty and autonomy
6. Social impact
7. Cultural impact
8. Inappropriate techniques

Government Initiates to promote FDI

The Indian government has initiated steps to market FDI as they set an investor-friendly policy where most of the sectors are open for FDI under the automated route (meaning no got to take prior approval for investment by the govt. Or the reserve bank of India). The FDI policy is reviewed on a continuous basis with the aim that India remains an investor-friendly and attractive FDI destination. FDI covers various sectors like Defense, Pharmaceuticals, Asset Reconstruction Companies, Broadcasting, Trading, Civil Aviation, Construction and Retail, etc.

In the Union Budget 2018, the cabinet approved 100% FDI under the automated route for single-brand retail trading. Under this alteration, the non-resident entity is permitted to commence retail trading of ‘single brand’ product in India for a particular brand. Additionally, the Indian government has also permitted 100% FDI for construction sector under the automated route. Foreign airlines are permitted to invest up to 49% under the approval route in Air India.

The main purpose of those relaxations in foreign investment by the govt. Is to bring international best practices and employee the latest technologies which propel manufacturing sector and employment generation in India. To boost manufacturing sector with attention on ‘Make in India’ initiative, the govt. Has allowed manufacturers to sell their products through the medium of wholesale and retail, including e-commerce under the automated route.

FDI Facts & Statistics:

According to Indian Brand Equity Foundation (IBEF), the entire FDI investments in India during April-December 2017 stood at US$ 35.94 billion because the government has been providing relaxation on FDI which is attracting an outsized number of foreign investments. Moreover, the Telecommunications sector has attracted the highest FDI equity inflow during April-December 2017, i.e., US $ 6.14 billion, followed by computer software and hardware sector at US$ 5.16 billion & Services at US$ 4.62 billion. The entire FDI equity inflows for December 2017 reached US $ 4.82 billion.

During the period of April-December 2017, India gained maximum FDI equity inflows from Mauritius, i.e., US$ 13.35 billion, followed by Singapore (US$ 9.21 billion), Netherlands (US$ 2.38 billion), USA (US$ 1.74 billion), and Japan (US$ 1.26 billion).

Foreign companies invest in India to take benefits of relatively lower wages, special investment privileges like tax exemptions, etc. Hence, India is one among the top gainers of FDI.

Recent FDI Announcements

• February 2018- IKEA declared it decide to invest approximately US$ 612 million in the Maharashtra state so as to determine multi-format stores and experience centers.

• December 2017- DIPP (The Department of industrial Policy & Promotion) approved FDI proposals of Spur Infotech as and Damro Furniture within the retail sector.

• November 2017- in the state of North-East region of India, 39 MOUs (Memorandum of Understanding) was signed for the investment of US$ 612-765 million.

Thus, we will say that FDI plays an important role in the growth of Indian economy because it helps to bring new technologies, employment generation and improvement in business operations, etc.

Q10) Explain the need of FDI? (5 marks)

A10)

As the name suggests, it's an investment by foreign individual(s) or company(ies) into business, capital markets or production in the host country. Foreign direct investment policy in India is regulated under the exchange Management Act (FEMA) 2000 administered by the reserve bank of India (RBI).

FDI plays a crucial role within the economic development of a country. The capital inflow of foreign investors allows strengthening infrastructure, increasing productivity and creating employment opportunities in India. Additionally, FDI acts as a medium to accumulate advanced technology and mobilize exchange resources. Availability of exchange reserves in the country allows RBI (the central banking institution of India) to intervene in the exchange market and control any adverse movement so as to stabilize the exchange rates. As a result, it provides a more favorable economic environment for the event of Indian economy.

TYPES OF FDI

1. Greenfield investments
2. Mergers and acquisitions
3. Horizontal and vertical investments
4. Inward and outward investments
5. Equity capital investment
6. Reinvested earnings

Need of foreign direct investment

There are various factors that signify the importance of FDI in India a number of which are listed below:

1) Helps in Balancing International Payments:

FDI is that the major source of exchange inflow within the country. It offers a supreme benefit to country’s external borrowings because the government needs to repay the international debt with the interest over a specific period of your time. The inflow of foreign currency in the economy allows the government to get adequate resources which help to stabilize the BOP (Balance of Payment).

2) FDI boosts development in various fields:

For the event of an economy, it's important to possess new technology, proper management and new skills. FDI allows bridging of the technology gap between foreign and domestic firms to boost the size of production which is useful for the betterment of Indian economy. Thus, FDI is additionally considered an asset to the economy.

3) FDI & Employment:

FDI allows foreign enterprises to establish their business in India. The establishment of those enterprises in the country generates employment opportunities for the people of India. Thus, the govt. Facilitates foreign companies to line up their business entities in the country to empower Indian youth with new and improved skills.

4) FDI encourages export from host country:

Foreign companies carry a broad international marketing network and marketing information which helps in promoting domestic products across the world. Hence, FDI promotes the export-oriented activities that improve export performance of the country.

Apart from these advantages, FDI helps in creating a competitive environment in the country which results in higher efficiency and superior products and services.

Q11) Explain MNC and its role? (5 marks)

A11)

Multinational Corporations (MNC) operate in more than one country.

In 1991, India faced economic crisis and to lift the country out of crisis, Indian government unrolled economic reforms, and hence openly opted for economic liberalization. This allowed private investments and thereby MNCs to work in India.

Initially, many economists expressed fears over allowing MNCs to India. But with time, most are agreeing that MNCs are playing a crucial role in India and are helpful for our economy.

Prior to 1991 Multinational companies didn't play much role within the Indian economy. In the pre-reform period, the Indian economy was dominated by public enterprises.

To prevent concen­tration of economic power industrial policy 1956 didn't allow the private firms to grow in size beyond some extent. By definition multinational companies were quite big and operate in several countries.

While multinational companies played a major role in the promotion of growth and trade South-East Asian countries, they didn't play much role within the Indian economy where import-substitution development strategy was followed. Since 1991 with the adoption of commercial policy of liberalization and privatization root of private foreign capital has been recognized as important for rapid growth of the Indian economy.

Since source of bulk of foreign capital and investment are Multinational Corporation, they need been allowed to operate in the Indian economy subject to some regulations. The subsequent are the important reasons for this alteration in policy towards multinational companies in the post-reform period.

MNCs have large industrial footprints and have spread their tentacles through a network of branches in the fields of operation, marketing and human resources. MNCs come to India through FDI route. In FDI there are two routes, automatic route and approval route. Under the automated route no permission is required for foreign investors either by government or RBI. But under the approval route investment approval is given by foreign investment promotion board, Government has reserved certain critical sectors for approval route e.g., banking, civil aviation, nuclear energy, defense industries etc.

Role of MNCs in India: -

1. Governments have numerous responsibilities like alleviating poverty, providing Social Security and to develop the state financially etc. But with limited funds, it's to priorities the items to do. In the process, it's very difficult for governments of developing countries to invest in economic development. MNCs help governments in this case and bring a lot of foreign investment which paves the way for economic development of the country.

2. Unemployment is one of the intense problems of India. MNCs provide employment opportunities and helps in solving this issue to some extent. As the wages will in turn be spent on buying goods and services in India, it’ll be helpful for Indian economy.

3. Government will also get revenue in the sort of taxes that MNCs pay.

4. MNCs also are helpful in knowledge transfer. As MNCs operate in additional than one country, they practically test and implements the simplest strategies. This technological and knowledge transfer helps the host countries.

5. As MNCs give tough competition to domestic companies, people will recover quality products and possibly lower prices.

6. As many MNCs reinvest their profits in the host countries, it'll be a plus to the host countries’ economy.

7. MNCs have better access to foreign markets. Some MNCs in India are tapping export markets and are helpful in improving the overall exports of India and thereby reducing trade deficits.

8. MNCs help host countries in maintaining better relations not just with their home countries, but also with the countries that they have trade relations.

9. Indian MNCs are improving the status of India in international community.

DISADVANTAGES OF MNCs

1. Monopoly power
2. Limited skills development
3. Profits repatriated in foreign exchange
4. Loss of revenue
5. Exploitation
6. Inappropriate techniques of production
7. Environmental damage

INDIAS FOREIGN DIRECT INVESTMENT POLICY ABD TRENDS

1. New industrial policy
2. FDI routes

• Automatic route
• Government route

3.     The department of industrial policy and promotion

4.     Foreign investment implementation authority

5.     Foreign investment promotion board

6.     FDI policy 2017

• Abolition of FIPB
• Introduction of foreign investment facilitation portal
• Identification of competent authorities
• Introduction of standard operating procedures
• Issue of convertibility notes by startups outside India.

Q12) explain role of MNC? (5 Marks) (Year 2019)

A12)

Multinational Corporations (MNC) operate in more than one country.

In 1991, India faced economic crisis and to lift the country out of crisis, Indian government unrolled economic reforms, and hence openly opted for economic liberalization. This allowed private investments and thereby MNCs to work in India.

Initially, many economists expressed fears over allowing MNCs to India. But with time, most are agreeing that MNCs are playing a crucial role in India and are helpful for our economy.

Prior to 1991 Multinational companies didn't play much role within the Indian economy. In the pre-reform period, the Indian economy was dominated by public enterprises.

To prevent concen­tration of economic power industrial policy 1956 didn't allow the private firms to grow in size beyond some extent. By definition multinational companies were quite big and operate in several countries.

While multinational companies played a major role in the promotion of growth and trade South-East Asian countries, they didn't play much role within the Indian economy where import-substitution development strategy was followed. Since 1991 with the adoption of commercial policy of liberalization and privatization root of private foreign capital has been recognized as important for rapid growth of the Indian economy.

Since source of bulk of foreign capital and investment are Multinational Corporation, they need been allowed to operate in the Indian economy subject to some regulations. The subsequent are the important reasons for this alteration in policy towards multinational companies in the post-reform period.

MNCs have large industrial footprints and have spread their tentacles through a network of branches in the fields of operation, marketing and human resources. MNCs come to India through FDI route. In FDI there are two routes, automatic route and approval route. Under the automated route no permission is required for foreign investors either by government or RBI. But under the approval route investment approval is given by foreign investment promotion board, Government has reserved certain critical sectors for approval route e.g., banking, civil aviation, nuclear energy, defense industries etc.

Role of MNCs in India: -

1. Governments have numerous responsibilities like alleviating poverty, providing Social Security and to develop the state financially etc. But with limited funds, it's to priorities the items to do. In the process, it's very difficult for governments of developing countries to invest in economic development. MNCs help governments in this case and bring a lot of foreign investment which paves the way for economic development of the country.

2. Unemployment is one of the intense problems of India. MNCs provide employment opportunities and helps in solving this issue to some extent. As the wages will in turn be spent on buying goods and services in India, it’ll be helpful for Indian economy.

3. Government will also get revenue in the sort of taxes that MNCs pay.

4. MNCs also are helpful in knowledge transfer. As MNCs operate in additional than one country, they practically test and implements the simplest strategies. This technological and knowledge transfer helps the host countries.

5. As MNCs give tough competition to domestic companies, people will recover quality products and possibly lower prices.

6. As many MNCs reinvest their profits in the host countries, it'll be a plus to the host countries’ economy.

7. MNCs have better access to foreign markets. Some MNCs in India are tapping export markets and are helpful in improving the overall exports of India and thereby reducing trade deficits.

8. MNCs help host countries in maintaining better relations not just with their home countries, but also with the countries that they have trade relations.

9. Indian MNCs are improving the status of India in international community.

Q13) Explain public healthcare infrastructure? (5 marks)

A13)

Public health care infrastructure

1. Primary level

a. Sub Centers (SC)

B. Primary Health Centers (PHC)

2. Secondary Level

A. Community Health Centers (CHC)

B. Sub district Hospitals (SDH) And District Hospitals

3 Tertiary Levels

A. All India Institute of Medical Sciences (AIIMS)

B Medical Colleges and Hospitals

4. Indian Public Health Standards (IPHS)

Sub-Centre (SC) is the most peripheral and first contact point between the primary health care system and therefore the community. One Sub Centre is to cover a population of 3000 in Hilly / Tribal / Difficult areas and 5000 in Plain areas. Each Sub-Centre is required to be manned by a minimum of one Auxiliary Nurse Midwife (ANM) / Female health worker and one Male health worker.

Under National Rural Health Mission (NRHM), there's a provision for one additional second ANM on contract basis. Sub-Centers are assigned tasks relating to interpersonal communication so as to cause behavioral change and provide services in reference to maternal and child health, family welfare, nutrition, immunization, diarrhea control and control of communicable diseases programs. The Sub-Centers are given basic drugs for minor ailments needed for taking care of essential health needs of men, women and children.

Primary Health Centre (PHC) is the first contact point between village community and the medical officer.

The PHCs were envisaged to supply an integrated curative and preventive health care to the rural population with emphasis on preventive and promotive aspects of health care. One PHC is to cover a population of 20000 in Hilly/ Tribal / Difficult areas and 30000 in Plain areas.

As per minimum requirement, a PHC is to be manned by a medic supported by 14 paramedical and other staff. Under NRHM, there's a provision for 2 additional Staff Nurses at PHCs on contract basis. It acts as a referral unit for 6 Sub Centers and has 4 - 6 beds for patients. The activities of PHC involve curative, preventive, promotive and Family Welfare Services.

As per minimum norms, a Community Health Centre (CHC) is required to be manned by four Medical Specialists i.e., Surgeon, Physician, Gynecologist and Pediatrician supported by paramedical and other staff. It’s 30 in-door beds with one OT, X-ray, Labor Room and Laboratory facilities. It is a referral center for 4 PHCs and also provides facilities for obstetric care and specialist consultations. One CHC is to cover a population of 80000 in Hilly/ Tribal / Difficult areas and 1, 20,000 in Plain areas.

Public health programmes and policy

1. National Health Mission

2. Communicable Diseases Programme

3. Non-CommunicableDiseases, Injuryand Tramuna Programmes

4. Pradhan Mantra Swsthya Suraksha Yojana (PMSSY)

5. Poor Patients financial support

6. National Programme for Health of The Elderly

7. Rashtriya Swasthya Bima Yojna (RSBY)

8. Reproductive, Maternal, New Born, Child and Aldolases Health (RMNCH+A)

9. National Health Policy 2017 

Q14) Explain FDI, MNC? (12 marks)

A14)

Foreign direct investment (FDI)

Introduction

As the name suggests, it's an investment by foreign individual(s) or company(ies) into business, capital markets or production in the host country. Foreign direct investment policy in India is regulated under the exchange Management Act (FEMA) 2000 administered by the reserve bank of India (RBI).

FDI plays a crucial role within the economic development of a country. The capital inflow of foreign investors allows strengthening infrastructure, increasing productivity and creating employment opportunities in India. Additionally, FDI acts as a medium to accumulate advanced technology and mobilize exchange resources. Availability of exchange reserves in the country allows RBI (the central banking institution of India) to intervene in the exchange market and control any adverse movement so as to stabilize the exchange rates. As a result, it provides a more favorable economic environment for the event of Indian economy.

TYPES OF FDI

7.     Greenfield investments

8.     Mergers and acquisitions

9.     Horizontal and vertical investments

10. Inward and outward investments

11. Equity capital investment

12. Reinvested earnings

Need of foreign direct investment

There are various factors that signify the importance of FDI in India a number of which are listed below:

1) Helps in Balancing International Payments:

FDI is that the major source of exchange inflow within the country. It offers a supreme benefit to country’s external borrowings because the government needs to repay the international debt with the interest over a specific period of your time. The inflow of foreign currency in the economy allows the government to get adequate resources which help to stabilize the BOP (Balance of Payment).

2) FDI boosts development in various fields:

For the event of an economy, it's important to possess new technology, proper management and new skills. FDI allows bridging of the technology gap between foreign and domestic firms to boost the size of production which is useful for the betterment of Indian economy. Thus, FDI is additionally considered an asset to the economy.

3) FDI & Employment:

FDI allows foreign enterprises to establish their business in India. The establishment of those enterprises in the country generates employment opportunities for the people of India. Thus, the govt. Facilitates foreign companies to line up their business entities in the country to empower Indian youth with new and improved skills.

4) FDI encourages export from host country:

Foreign companies carry a broad international marketing network and marketing information which helps in promoting domestic products across the world. Hence, FDI promotes the export-oriented activities that improve export performance of the country.

Apart from these advantages, FDI helps in creating a competitive environment in the country which results in higher efficiency and superior products and services.

BENEFITS TO HOST COUNTRY

15. Increased investment

16. Transfer of new technology

17. Contribution to balance of payments

18. Social development

19. Infrastructure

20. Import substitution

21. Competition

22. Stimulate domestic enterprise

23. Revenue

24. Growth

25. Access

26. Better allocation

27. Human capital development

28. Sectoral development

COSTS OF FDI TO HOST COUNTRY

9.     Trade balance

10. Competition

11. Balance of payment disequilibrium

12. Diversion

13. Sovereignty and autonomy

14. Social impact

15. Cultural impact

16. Inappropriate techniques

Government Initiates to promote FDI

The Indian government has initiated steps to market FDI as they set an investor-friendly policy where most of the sectors are open for FDI under the automated route (meaning no got to take prior approval for investment by the govt. Or the reserve bank of India). The FDI policy is reviewed on a continuous basis with the aim that India remains an investor-friendly and attractive FDI destination. FDI covers various sectors like Defense, Pharmaceuticals, Asset Reconstruction Companies, Broadcasting, Trading, Civil Aviation, Construction and Retail, etc.

In the Union Budget 2018, the cabinet approved 100% FDI under the automated route for single-brand retail trading. Under this alteration, the non-resident entity is permitted to commence retail trading of ‘single brand’ product in India for a particular brand. Additionally, the Indian government has also permitted 100% FDI for construction sector under the automated route. Foreign airlines are permitted to invest up to 49% under the approval route in Air India.

The main purpose of those relaxations in foreign investment by the govt. Is to bring international best practices and employee the latest technologies which propel manufacturing sector and employment generation in India. To boost manufacturing sector with attention on ‘Make in India’ initiative, the govt. Has allowed manufacturers to sell their products through the medium of wholesale and retail, including e-commerce under the automated route.

FDI Facts & Statistics:

According to Indian Brand Equity Foundation (IBEF), the entire FDI investments in India during April-December 2017 stood at US$ 35.94 billion because the government has been providing relaxation on FDI which is attracting an outsized number of foreign investments. Moreover, the Telecommunications sector has attracted the highest FDI equity inflow during April-December 2017, i.e., US $ 6.14 billion, followed by computer software and hardware sector at US$ 5.16 billion & Services at US$ 4.62 billion. The entire FDI equity inflows for December 2017 reached US $ 4.82 billion.

During the period of April-December 2017, India gained maximum FDI equity inflows from Mauritius, i.e., US$ 13.35 billion, followed by Singapore (US$ 9.21 billion), Netherlands (US$ 2.38 billion), USA (US$ 1.74 billion), and Japan (US$ 1.26 billion).

Foreign companies invest in India to take benefits of relatively lower wages, special investment privileges like tax exemptions, etc. Hence, India is one among the top gainers of FDI.

Recent FDI Announcements

• February 2018- IKEA declared it decide to invest approximately US$ 612 million in the Maharashtra state so as to determine multi-format stores and experience centers.

• December 2017- DIPP (The Department of industrial Policy & Promotion) approved FDI proposals of Spur Infotech as and Damro Furniture within the retail sector.

• November 2017- in the state of North-East region of India, 39 MOUs (Memorandum of Understanding) was signed for the investment of US$ 612-765 million.

Thus, we will say that FDI plays an important role in the growth of Indian economy because it helps to bring new technologies, employment generation and improvement in business operations, etc.

Multinational corporations (MNCS)

Multinational Corporations (MNC) operate in more than one country.

In 1991, India faced economic crisis and to lift the country out of crisis, Indian government unrolled economic reforms, and hence openly opted for economic liberalization. This allowed private investments and thereby MNCs to work in India.

Initially, many economists expressed fears over allowing MNCs to India. But with time, most are agreeing that MNCs are playing a crucial role in India and are helpful for our economy.

Prior to 1991 Multinational companies didn't play much role within the Indian economy. In the pre-reform period, the Indian economy was dominated by public enterprises.

To prevent concen­tration of economic power industrial policy 1956 didn't allow the private firms to grow in size beyond some extent. By definition multinational companies were quite big and operate in several countries.

While multinational companies played a major role in the promotion of growth and trade South-East Asian countries, they didn't play much role within the Indian economy where import-substitution development strategy was followed. Since 1991 with the adoption of commercial policy of liberalization and privatization root of private foreign capital has been recognized as important for rapid growth of the Indian economy.

Since source of bulk of foreign capital and investment are Multinational Corporation, they need been allowed to operate in the Indian economy subject to some regulations. The subsequent are the important reasons for this alteration in policy towards multinational companies in the post-reform period.

MNCs have large industrial footprints and have spread their tentacles through a network of branches in the fields of operation, marketing and human resources. MNCs come to India through FDI route. In FDI there are two routes, automatic route and approval route. Under the automated route no permission is required for foreign investors either by government or RBI. But under the approval route investment approval is given by foreign investment promotion board, Government has reserved certain critical sectors for approval route e.g., banking, civil aviation, nuclear energy, defense industries etc.

Role of MNCs in India: -

1. Governments have numerous responsibilities like alleviating poverty, providing Social Security and to develop the state financially etc. But with limited funds, it's to priorities the items to do. In the process, it's very difficult for governments of developing countries to invest in economic development. MNCs help governments in this case and bring a lot of foreign investment which paves the way for economic development of the country.

2. Unemployment is one of the intense problems of India. MNCs provide employment opportunities and helps in solving this issue to some extent. As the wages will in turn be spent on buying goods and services in India, it’ll be helpful for Indian economy.

3. Government will also get revenue in the sort of taxes that MNCs pay.

4. MNCs also are helpful in knowledge transfer. As MNCs operate in additional than one country, they practically test and implements the simplest strategies. This technological and knowledge transfer helps the host countries.

5. As MNCs give tough competition to domestic companies, people will recover quality products and possibly lower prices.

6. As many MNCs reinvest their profits in the host countries, it'll be a plus to the host countries’ economy.

7. MNCs have better access to foreign markets. Some MNCs in India are tapping export markets and are helpful in improving the overall exports of India and thereby reducing trade deficits.

8. MNCs help host countries in maintaining better relations not just with their home countries, but also with the countries that they have trade relations.

9. Indian MNCs are improving the status of India in international community.

DISADVANTAGES OF MNCs

1. Monopoly power
2. Limited skills development
3. Profits repatriated in foreign exchange
4. Loss of revenue
5. Exploitation
6. Inappropriate techniques of production
7. Environmental damage

INDIAS FOREIGN DIRECT INVESTMENT POLICY ABD TRENDS

1. New industrial policy
2. FDI routes

• Automatic route
• Government route

3.     The department of industrial policy and promotion

4.     Foreign investment implementation authority

5.     Foreign investment promotion board

6.     FDI policy 2017

• Abolition of FIPB
• Introduction of foreign investment facilitation portal
• Identification of competent authorities
• Introduction of standard operating procedures
• Issue of convertibility notes by startups outside India.

Q15) Explain types of investment in India? (8 marks) (Year 2018)

A15)

INVESTMENT in India and FDI India inflows are a by-product of improved market sentiment across the world. In recent times it's become obvious that more and more share market punters are open to investment in India, with a widespread revival of foreign direct investment (FDI) seeing FDI India-bound because of an upward movement in consumer confidence levels. The types of investment India has, that interest overseas investors, include interest in the banking sector. The investment in India in the banking sector has gained momentum in the last 3 years especially as investors are willing to invest India because of the commercialization of banks, and consider FDI India through financial collaborations.

Investment in Indian joint ventures by foreign investors are additionally a growing area, but FDI India isn't permitted in certain industrial sectors like arms and ammunition, railways, iron mining and coal mining – to call a couple of. Foreign investors got more used to the thought of to invest India because of the ability of Indian companies to boost equity through Global Depository Receipt (GDR). This sort of foreign interest is the kind of investment India must attempt to encourage to globally attract more investment in India into the longer term. In terms of investment India previously treated FDI India and FDI as a whole as a necessary evil. These days, because of new industrial policies in India, foreign investment in India is not any longer seen as “taboo” by westerners, and more and more westerns are likely to start to invest India and enjoy the lessening of operational constraints that used to plague foreign investors who first began westernized breakthrough investment in India.

India now boasts a bustling and vibrant private sector of business that's continuing to pique the interest of foreigners who are researching the foremost lucrative investment India offers. a new policy in India also permits simple approval for equity investment in India with the proviso that such transactions are made in priority industries, of which there are 35. These priority industries in India are believed to be the drivers of foreign investment in India, but also are opening many investors up to the complicated system of tax India contends with. The most source of foreign investment India attracts is within the 35 industries that determine the industrial activity in India and thus the FDI India attracts overall.

Some foreign investors believe that investment in India has too many constraints and cannot even consider investing India in the least.

The Indian economy must focus not on convincing those unlikely to consider the kinds of investment India offers up, but nurture the foreign investors who already have investment in India and plan to still build upon this.

Why investments?

Investments are important because in today’s world, just earning money isn't enough. You work hard for the cash you earn. But which will not be adequate for you to lead a comfortable lifestyle or fulfill your dreams and goals. To do that, you would like to make your money work hard for you also. This is often why you invest. Money lying idle in your bank account is a chance lost. You ought to invest that cash smartly to urge good returns out of it.

Types of Investments in India

The Indian investor features a number of investment options to settle on from. Some are traditional investments that are used across generations, while some are relatively newer options that became popular in recent years. Here are some popular investment options available in India.

1. Stocks

Stocks, also referred to as company shares, are probably the most famous investment vehicle in India. Once you buy a company’s stock, you purchase ownership in that company that permits you to participate in the company’s growth. Stocks are offered by companies that are publicly listed on stock exchanges and may be bought by any investor. Stocks are ideal long-term investments. But investing in stocks shouldn't be equated to trading within the stock exchange, which may be a speculative activity.

2. Mutual Funds

Mutual funds are around for the past few decades but they have gained popularity only in the previous couple of years. These are investment vehicles that pool the cash of the many investors and invest it in a way to earn optimum returns. Differing types of mutual funds invest in several securities. Equity mutual funds invest primarily in stocks and equity-related instruments, while debt mutual funds invest in bonds and papers. There also are hybrid mutual funds that invest in equity also as debt. Mutual funds are flexible investment vehicles, during which you'll begin and stop investing as per your convenience. Apart from tax-saving mutual funds, you'll redeem investments from mutual funds any time also.

3. Fixed Deposits

Fixed deposits are investment vehicles that are for a specific, pre-defined period of time. They provide complete capital protection also as guaranteed returns. They’re ideal for conservative investors who stay away from risks. Fixed deposits are offered by banks and for different time periods. Fixed deposit interest rates change as per economic conditions and are decided by the banks themselves. Fixed deposits are typically locked-in investments, but investors are often allowed to avail loans or overdraft facilities against them. There’s also a tax-saving variant of fixed deposit, which comes with a lock-in of 5 years.

4. Recurring Deposits

A recurring deposit (RD) is another fixed tenure investment that permits investors to place in a certain amount every month for a pre-defined period of time. RDs are offered by banks and post offices. The interest rates are defined by the institution offering it. An RD allows the investor to invest a small amount monthly to build a corpus over an outlined time period. RDs offer capital protection also as guaranteed returns.

5. Public Provident Fund

The Public Provident Fund (PPF) may be a long-term tax-saving investment vehicle that comes with a lock-in period of 15 years. Investments made in PPF are often used to earn a tax break. The PPF rate is set by the govt. Of India quarterly. The corpus withdrawn at the end of the 15-year period is totally tax-free in the hands of the investor. PPF also allows loans and partial withdrawals after certain conditions are met.

6. Employee Provident Fund

The Employee Provident Fund (EPF) is another retirement-oriented investment vehicle that earns a tax break under Section 80C. EPF deductions are typically a neighborhood of an earner’s monthly salary and therefore the same amount is matched by the employer also. Upon maturity, the withdrawn corpus from EPF is also entirely tax-free. EPF rates also are decided by the government of India every quarter.

7. National Pension System

The National Pension System (NPS) may be a relatively new tax-saving investment option. Investors in the NPS stay locked-in till retirement and may earn higher returns than PPF or EPF since the NPS offers plan options that invest in equities also. The maturity corpus from the NPS isn't entirely tax-free and a part of it's to be wont to purchase an annuity which will give the investor a regular pension.