Assessing the Volatility Spillover of Crypto to Indian Stock Market

 Introduction

The price of Bitcoin has increased by around five times, from 20,000 USD in May 2020 to 1,00,000 USD in May 2025. However, the journey of Bitcoin's value was not smooth. Investing in Bitcoin remains a risky option as it is one of the most controversial financial assets, partly because the policymakers of any country still don't know how to incorporate crypto as part of their mainstream financial system.  With the rising popularity of crypto as an alternative to traditional investment instruments, especially among young investors, it is important to assess the effect of the crypto market's volatility on the Indian financial market. For an emerging market economy like India, assessing volatility spillover is difficult due to complexities in the interdependency of financial markets and the complexity of recent geopolitical scenarios.

The Russia-Ukraine war affected the international financial markets, and this is when the value of Bitcoin started falling. The value of Bitcoin recovered towards the end of 2023, mainly due to the fading effects of war. The increase in the price of Bitcoin during 2024 is a sign of investors' confidence in Bitcoin. During this time, other cryptocurrencies also gained in value, but the increase in the value of Bitcoin is very prominent. The victory of Donald Trump towards the end of 2024 and his association with Elon Musk, a well-known supporter of crypto (1), boosted the investors' confidence. As a result, the value of Bitcoin soared dramatically.

Movement of  Bitcoin price (in Dollars, High and Low) with important events (R code given below)

A simple multivariate GARCH model is used to determine whether the volatility in bitcoin's return affects the volatility of the India Nifty 50 after considering the effect of some of the important Asian Stock markets. The MGARCH models are generally used to understand how the conditional volatility of the dependent variables is affected by the conditional variance matrix of the independent variables. In Table 1, Model 1 gives the MGARCH result of the NIFTY-50 as the dependent variable and Bitcoin and other financial market returns as independent variables. We can see that the volatility of Nifty 50 is significantly and positively affected by the volatility of Bitcoin, at least for the time under consideration (January 2021 to May 2025.

$${ }_{ }$$

Result of Multivariate GARCH model

Conclusion :

This article investigated the impact of Bitcoin (BTC/USD) on Indian Stock market namely the NIFTY 50 using time series forecasting with GARCH model to examine volatility and spillover effects. The combined application of the GARCH model provided valuable insights into the volatility behavior and predictive potential across these financial instruments, highlighting the growing relevance of interdisciplinary approaches in financial analysis.
The analysis revealed that the NIFTY 50 exhibited a statistically significant relationship with Bitcoin. This finding suggests that the Indian equity market is more sensitive to cryptocurrency volatility, potentially due to factors like rising crypto adoption, speculative retail participation, and overlapping investor sentiment. India is also an emerging economy with a large number of investors who face no restrictions on Bitcoin investments, allowing for easy entry and exit. 

R Codes:

library(dplyr)

library(ggplot2)

library(lubridate)

install.packages("yahoofinancer")

library(yahoofinancer)

install.packages("gganimate")

library(gganimate)

install.packages("gifski")

library(gifski)

btc <- Ticker$new('BTC-USD')

btc_data <- btc$get_history(start = '2021-01-01', end = '2025-02-05', interval = '1d')

head(btc_data)

btc_data <- btc_data %>%

  mutate(date_only = as.Date(date))

btc_data <- btc_data %>%

  mutate(year = year(date_only))

btc_data$EventDate1 <- ifelse(seq(as.Date("2021-01-01"), as.Date("2025-02-05"), by = "day") %in% as.Date("2022-02-01"), "Russia-Ukraine War", NA)

btc_data$EventDate2 <- ifelse(seq(as.Date("2021-01-01"), as.Date("2025-02-05"), by = "day") %in% as.Date("2023-10-10"), "Recovery From War", NA)

btc_data$EventDate3 <- ifelse(seq(as.Date("2021-01-01"), as.Date("2025-02-05"), by = "day") %in% as.Date("2024-10-10"), "USA Election", NA)

p <- ggplot(btc_data)

p<-p+  geom_line(aes(x= date_only, y=high), color = "red", size = 0.5)

p<-p+  geom_line(aes(x= date_only, y=low), color = "blue", size = 0.5)

p<-p+ xlab("Date") + ylab("Bitcoin") + theme_minimal()+

  transition_reveal(date_only)

p<-p+ geom_vline(data = btc_data %>% filter(!is.na(EventDate1)),

             aes(xintercept = as.Date("2022-02-01")), 

             linetype = "dashed", color = "black", size = 1) +

  geom_text(data = btc_data %>% filter(!is.na(EventDate1)),

            aes(x = as.Date("2022-02-01"), y = max(high, na.rm = TRUE), label = "Russia-Ukraine War"), 

            color = "black", size = 2.7, vjust = -12)

p<-p+ geom_vline(data = btc_data %>% filter(!is.na(EventDate2)),

             aes(xintercept = as.Date("2023-10-10")), 

             linetype = "dashed", color = "black", size = 1) +

  geom_text(data = btc_data %>% filter(!is.na(EventDate2)),

            aes(x = as.Date("2023-10-10"), y = max(high, na.rm = TRUE), label = "Recovery From War"), 

            color = "black", size = 2.7, vjust = -8)

p<-p+ geom_vline(data = btc_data %>% filter(!is.na(EventDate3)),

             aes(xintercept = as.Date("2024-10-10")), 

             linetype = "dashed", color = "black", size = 1) +

  geom_text(data = btc_data %>% filter(!is.na(EventDate3)),

            aes(x = as.Date("2024-10-10"), y = max(high, na.rm = TRUE), label = "USA Election"), 

            color = "black", size = 2.7, vjust = -8)

animate(p, nframes = 230, fps = 8, width = 1600, height = 1000, res = 220, renderer = gifski_renderer("pic1.gif"),loop='FALSE')

References:

1) Elon Musk may have a revolutionary crypto plan. Here's what we know about 'X-Money' - The Economic Times

2)Khalfaoui, R., Hammoudeh, S., & Rehman, M. Z. (2023). Spillovers and connectedness among BRICS stock markets, cryptocurrencies, and uncertainty: Evidence from the quantile vector autoregression network. Emerging Markets Review, 54, 101002.

3) Zeng, H., & Ahmed, A. D. (2023). Market integration and volatility spillover across major East Asian stock and Bitcoin markets: an empirical assessment. International Journal of Managerial Finance, 19(4), 772-802.

By
Aryamaan Kain,
M.A. Economics (2023-25), Department of Economics, SBSS, Manav Rachna International Institue of Research and Studies, Faridabad.
To cite this article: 
Aryamaan. (2025, May). Assessing the volatility spillover of crypto to Indian stock market. Eco-Bizz blog, Department of Economics.
https://ecobizzblog.blogspot.com/2025/05/assessing-volatility-spillover-of.html

Movie Review "The Great Debaters": Through the Lens of Human Development

 Introduction:

The objective of the government or a social planner is to eliminate all existing unfreedoms in society to enhance the capabilities of the people. However, we often observe that policies are designed to fulfill the objectives of political parties, while the adverse consequences of such policies disproportionately affect the poor. One example of such a policy is the Jim Crow law, which prevailed in the United States (mainly in the South) from 1870 to 1965. Aimed at providing equal opportunity for the African-American community in a segregated manner, this law created numerous distortions and marked the birth of racial discrimination in the United States. The separation of all public facilities, such as education, health, housing, and transportation, worsened the situation for colored individuals. Another threat to African-American people was lynching, a death sentence imposed on an alleged colored person by a white mob without any legal jurisdiction. The Great Debaters (2007), directed by Denzel Washington, is the story of a visionary African-American professor who believes education is the only way out of the darkness. He enhanced the debating skills of a few students, who later became leaders and played an important role in abolishing such policies.

Source: IMDb, IMDb rating of 7.5 

Plot:

The Great Debaters is based on the drawbacks of Jim Crow laws and highlights the situation of African Americans during the 1930s. Melvin B. Tolson (Denzel Washington), a professor at Wiley College, uses debating to enhance the abilities of the four colored students who make up the college's debate team. After defeating other similar community colleges and universities, they earned the opportunity to debate against a white people dominating institution, Oklahoma City University, tackling the topic of “Negroes should be admitted to state university” (Jim Crow law) and ultimately overcoming their opponent. They also make history by defeating Harvard University without Mr. Tolson's assistance, showcasing their improved skills and capability to challenge an unjust system. The use of powerful statements like “An unjust Law is no law at all,” “Negroes people are not just another color in the American fabric, they are the thread that holds it all together..”, "the time for justice, the time for freedom, the time for equality is always RIGHT NOW.." and so on make the movie very inspirational. Education, the power of logic, and debate empowered these students to forge their own identities.

Critical view:

The African Americans were used as slaves until 1865 when the thirteenth amendment to the United States Constitution was passed. The concept was “keep the body, take the mind.” They were the most vulnerable, with little access to education, health, wealth, and political power. The political group, composed of landlords and economically influential individuals, primarily white, implemented the Jim Crow law. This allowed them to maintain the status of colored people as before and gain from it economically and politically. These laws created unfreedom and lowered the capabilities of the most vulnerable people in society. Mr. Tolson uses the power of words to shape his students and endow them with the weapon of reasoning. This increases the capability of these students, who are the future of society. In the present scenario, African Americans' educational attainment helped them establish a respectable position in American culture. The use of logical statements and arguments makes the movie unique. The film highlights the role of public debate and education among the poor in building a well-structured society. A logically well-structured discussion can help secure our rights, enhancing our capacity and society.

Human development prospects:

The movie is not just about the debate team of a community college (African American) but also about the suffering of these people who have significantly endured due to the government's flawed policies. Additionally, the film illustrates the violation of various Rawls'  principles of Justice.

(1) The discrimination against colored people is a violation of human rights, and it also widens the social gapes. The segregated education, health, and other social services lead to a lower quality of education, and the health of African Americans is against the fundamental rights of the citizens of a country. It violates the Rawlsian principle of “free and equal citizen.”

(2) The movie also depicts the injustices against a specific section of people. Lynching an alleged person without any legal process just because he is colored is evidence of the unjustness of contemporary society. Both 1 and 2 led to a violation of the “first principle of justice,” which states that;

“Each person has the same indefeasible claim to a fully adequate scheme of equal basic liberties, which scheme is compatible with the same scheme of liberties for all…” (p.g. 42, Rawls, 2001)

(3) These discriminating policies, which are the huddles in the development path of African American people, are implemented by white people who have both political and economic power. The loopholes and the lack of proper scrutiny of these policies lead to widespread suffering and humiliation. This is a violation of the “second principle of justice,” which states that;

“…Social and economic inequalities are to satisfy two conditions; first, they are to be attached to offices and positions open to all under conditions of fair equality of opportunity; and second, they are to be to the greater benefit of the least advantaged member of society.” (p.g. 42, Rawls, 2001)

The critical message that the movie conveys is the importance of education and debate. One logical conclusion is that if a policy lacks counter-debate, it may become unjust. However, if the policy undergoes proper debate and counter-debate, it will enhance the capability of the people and society's welfare. The movie focuses on the role of education and discussion in building the capability of the poor and backward sections.

References:

[1] Rawls, J (2001) Justice as Fairness: A Restatement, The Belknap Press

[2] Sen, Amartya (1999) Development as Freedom, Oxford University Press, Delhi

[3] Sen, Amartya (1985) Commodities and Capabilities, Oxford University Press, Delhi

Web sites:

[4] http://www.jimcrowhistory.org/history/creating2.htm

[5] http://www.jimcrowhistory.org/resources/lessonplans/hs_es_passing_for_white.htm

[6] http://en.wikipedia.org/wiki/Lynching_in_the_United_States

BY

Dr. Akash Kumar Baikar

Assistant Professor 

DoE, SBSS, MRIIRS

Breaking Barriers: Empowering Women Entrepreneurs in India's Informal Sector

Summary: This article discuss the progess and challenges of smallscale female entureprenures in India. It highlights the the role of government policies in uplifting the situations of female entureprenures.  

Introduction
Women entrepreneurs are shaping India's economic landscape, contributing significantly to various industries. However, those operating in the informal service sector face distinct challenges that hinder their business growth. In cities like Faridabad, women-led businesses in beauty services, tutoring, and small-scale retail play a crucial role in local economies. Despite their contributions, these entrepreneurs frequently struggle with financial illiteracy, limited networking opportunities, skill gaps, and inadequate government support. Addressing these issues can unlock their full potential and create a more inclusive and sustainable entrepreneurial ecosystem.
The Reality of Women Entrepreneurs in the Informal Sector
According to the National Sample Survey Office (NSSO), women entrepreneurs account for approximately 18.23% of the service sector. Despite their growing presence, most women-led enterprises remain informal, meaning they operate without regulatory recognition, making access to credit and resources more difficult.
One of the biggest hurdles these women face is financial literacy. Many businesses suffer from mismanaged funds and an absence of bookkeeping, leading to inefficiencies and financial instability. Moreover, their access to financial aid is limited due to stringent application processes and a lack of awareness about government initiatives designed to support them.
Networking is another crucial challenge. Since many women entrepreneurs cater to local markets, their growth remains restricted. The absence of collaboration and resource-sharing platforms further limits their expansion opportunities. In addition, cultural and societal norms often discourage women from seeking mentorship or partnerships, leaving them to navigate business challenges in isolation.

SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats

A SWOT analysis of women entrepreneurs in the informal service sector reveals key insights into their challenges and opportunities.
Strengths
Women entrepreneurs often have strong ties to their local communities, allowing them to cater to customer needs efficiently. They provide specialized and customized services, giving them a competitive edge. Word-of-mouth marketing is particularly effective in these settings, as positive recommendations within close-knit communities foster brand loyalty.
Weaknesses
Limited market reach is a major drawback for women entrepreneurs. Most operate within a confined geographical area, restricting business expansion. Additionally, many lack financial management skills, leading to inefficient resource allocation. The absence of networking platforms and business mentors further exacerbates these challenges.
Opportunities
Despite these difficulties, there are numerous opportunities for growth. Digital platforms can play a crucial role in overcoming market limitations by allowing women entrepreneurs to expand their customer base beyond their immediate locality. E-learning platforms provide accessible skill development programs, helping them stay competitive in their industries.
Moreover, increased government focus on women’s entrepreneurship offers another avenue for growth. If these policies are properly executed, they can significantly benefit women-led businesses by providing financial aid, training, and networking opportunities.
Threats
However, external threats persist. Economic instability, unexpected expenses, and cash flow issues make it difficult for women entrepreneurs to sustain their businesses in the long run. In addition, rapid industry changes often render existing skills obsolete, making it imperative for women to continuously update their knowledge.

Government Policies and Their Role

The Indian government has introduced various initiatives such as Startup India, Stand-Up India, and Pradhan Mantri Mudra Yojana (PMMY) to support women entrepreneurs. These schemes offer financial assistance, training programs, and market access. However, the lack of awareness and complex application procedures hinder many women from taking advantage of these programs. Simplifying the process and enhancing outreach efforts can significantly improve the effectiveness of these initiatives.
For example, Stand-Up India aims to provide bank loans between ₹10 lakh and ₹1 crore to women entrepreneurs, but the stringent eligibility criteria and bureaucratic red tape make it difficult for many women to avail of these benefits. Similarly, Mudra Yojana, which provides micro-credit to small businesses, remains underutilized due to low awareness levels and cumbersome paperwork.
Solutions for Sustainable Growth
To empower women entrepreneurs in the informal service sector, targeted interventions are necessary. Here are some key policy recommendations:
1. Digital Literacy and Networking Platforms

• The government should develop a user-friendly digital platform where women entrepreneurs can connect, collaborate, and gain access to market insights.

• This initiative can reduce information asymmetry and enhance resource sharing, helping businesses expand beyond local markets.

• Hosting online networking events and mentorship programs can also provide much-needed support.

2. Financial Literacy Training

• Introducing financial literacy programs that cover bookkeeping, taxation, budgeting, and microfinance can enhance business decision-making and sustainability.

• These programs should be offered through government portals, non-governmental organizations (NGOs), and microfinance institutions to ensure accessibility.

• Conducting local workshops and digital training sessions will help bridge knowledge gaps.

3. Skill Development Initiatives

• Women in the informal sector often struggle with outdated skills. Partnering with online education platforms such as Coursera, Udemy, and government-backed e-learning portals can provide affordable and flexible learning options.

• Subsidized vocational training programs should focus on market-relevant skills, such as digital marketing, advanced tailoring techniques, and new-age beauty services.

4. Simplifying Government Incentives

• Streamlining the application process for financial aid programs can encourage more women to apply.

• Creating multilingual online tutorials and helplines can help bridge the awareness gap.

• Establishing local assistance centers where women entrepreneurs can receive guidance on filling out applications.

5. Mentorship and Guidance Programs

• Establishing a national mentorship network that connects women entrepreneurs with industry experts can provide guidance and boost confidence.

• Digital mentoring platforms should be promoted to ensure accessibility to quality mentorship.

• Encouraging corporate partnerships where experienced business professionals mentor women-led small businesses.

6. Leveraging Microfinance and Alternative Funding

• Women entrepreneurs should have access to alternative funding sources, such as peer-to-peer lending platforms, microfinance institutions, and crowdfunding.

• Encouraging women-specific investment funds and venture capital initiatives will enhance financial support for small enterprises.

Conclusion

Women entrepreneurs in the informal service sector have immense potential to drive economic growth and social empowerment. Addressing the challenges they face through targeted policies, digital interventions, and financial literacy programs will help build a more inclusive and sustainable entrepreneurial ecosystem. Simplifying access to government programs, promoting digital education, and fostering mentorship networks can create lasting change. By supporting these women, India can take a significant step toward gender equality, economic resilience, and sustainable growth.
With the right policies and support systems in place, the informal service sector can transform into a thriving space where women entrepreneurs flourish, benefiting not only their families but also the broader economy. Empowering women entrepreneurs is not just an economic imperative—it is a catalyst for social transformation.
  
By

Devanshi Vashisht

B.A. Economics (2022-2025), DoE, SBSS, MRIIRS, Faridabad

To cite this article: Vashisht, Devanshi, (2025, April), "Breaking Barriers: Empowering Women Entrepreneurs in India's Informal Sector", EcoBizz, DoE. https://ecobizzblog.blogspot.com/2025/04/breaking-barriers-empowering-women.html

Impact of Digital Literacy and E-Commerce on MSMEs

Summary: This article explores the transformative role of digital literacy and e-commerce in empowering India's micro, small, and medium enterprises by highlighting current issues and challenges.

Introduction

 

MSME stands for Micro, Small, and Medium Enterprises, which play a critical role in India's socioeconomic development. They are significant economic contributors, acting as its backbone and providing resilience against global economic challenges (Mukherjee, 2018). This sector is vital for India's GDP and exports and helps foster entrepreneurship, employing around 110 million people, particularly in semiurban and rural areas.

As of March 2024, there are 40,042,875 registered MSMEs, including 39,318,355 microenterprises (97.7%), 608,935 small enterprises (1.5%), and 55,488 medium sized enterprises (0.8%). The MSME sector consisting of 36 million units provides employment to over 80 million persons. The sector through more than 6000 products contributes about 8% to GDP besides 45% to the total manufacturing output and 40% to the exports from the country.

Micro enterprises employ fewer than 10 people, small enterprises employ 1050, and medium enterprises employ 50250. While many countries define MSMEs based on workforce size, India categorizes them according to investment in plant and machinery (Hooi L W, 200).

 

Challenges Faced by MSMEs

 

Despite a high growth rate and promising prospects, Indian MSMEs face several significant constraints. The most notable barriers include:

·       Lack of Timely Credit: Many MSMEs struggle to secure funding when needed.
·       Procurement of Raw Materials: Obtaining raw materials at competitive prices is a challenge.
·       Inadequate Infrastructure: Facilities such as power, water, and road infrastructure are often lacking.
·       Shortage of Skilled Manpower and Technological Backwardness: There is a significant shortage of skilled workers in manufacturing, services, and marketing. Many MSMEs are unaware of global technologies, highlighting the need for improved managerial and entrepreneurial skills. According to the OECD (2013), integrating external knowledge is crucial for growth, but finding and mastering new technologies can be challenging and costly (Mukherjee, 2018).
·       Lack of access and investment in technology with inadequate strategy for marketing and advertising. (Mukherjee, 2018)
·       Profitability Issues: As MSMEs expand, maintaining steady profits becomes difficult due to rising costs, competition, or price cuts.
·       Poor Cash Flow: Many businesses start with limited capital, leading to poor cash flow, which is often the norm.
·       High Competition: Standing out in today’s competitive market is challenging, as products and services can be easily replicated. Businesses need to enhance customer service, offer exclusive products, and provide convenience, such as home deliveries.
·       Ineffective Marketing: To attract new customers, SMBs must market and advertise effectively, which can be resource intensive. Utilizing word-of-mouth recommendations and smartly leveraging digital media, such as influencer partnerships, can be beneficial.
·       Regulatory Compliance: Navigating the complex regulatory landscape poses significant challenges for MSMEs in India. Compliance with labor laws, environmental regulations, and taxation norms can be time-consuming and costly.
·       Technological Advancements: Due to limited funds and expertise, many MSMEs struggle to keep up with technological advancements. This technological gap can result in operational inefficiencies, reduced competitiveness, and an inability to meet market demands.

 

Digital Literacy

Digital literacy is the ability to effectively use information and communication technology (ICT) to find, evaluate, create, and share content. It is essential for effective communication, and supporting skills such as collaboration and critical thinking. For micro, small, and medium-sized enterprises (MSMEs), digital literacy is crucial for connecting with customers and improving operations. It them compete in a rapidly changing technological landscape. However, many MSMEs struggle with managing digital platforms, affecting their marketing and financing efforts.
 
According to the Indian National Statistical Office, a digitally literate person can navigate the Internet and use social media effectively. While more than 55 percent of Indians have broadband access, only 20 percent can use the Internet effectively. This highlights the digital divide, which goes beyond access to include meaningful technology use.

Need For E-Commerce

 

• To Increase employee satisfaction and engagement

• To Make your business more resilient and adaptive to change

• To Put your company on a digital-first footing

• To Automate business processes and monitor them using a computer

• To Attract new customers and make them spend more

 
E-Commerce

E-commerce, or electronic commerce, encompasses a variety of online business activities involving the buying and selling of products and services through the Internet. It enables transactions where parties interact electronically instead of physically, using digital communication and technology to create value among organizations and individuals (Gupta, 2014). Often called market-making, e-commerce connects sellers and buyers globally in cyberspace (Tian et al., 2018). The rise of e-commerce has significantly transformed business dynamics, diminishing the differences between traditional and electronic markets. In India, the e-commerce sector is projected to grow by 23.8% in 2024, fueled by increased online shopping and internet access. The market is expected to expand from $147.3 billion (INR 12.2 trillion) in 2024 to $292.3 billion (INR 24.1 trillion) by 2028, reflecting an 18.7% compound annual growth rate.
 
Need For E-Commerce

·       Lower Prices - E-commerce minimizes operating costs, resulting in lower prices and easier access to discounts for consumers.
·       Wider Customer Base - Selling online eliminates geographical barriers, allowing businesses to reach customers worldwide.[1]
·       Easier to Scale Up - Expanding an online store is more cost-effective than scaling a physical store, requiring only additional inventory.
·       Enhanced Customer Experience- E-commerce platforms improve the shopping experience, driving higher customer satisfaction and loyalty.
·       Improved Inventory Management - Real-time inventory tracking helps prevent stock issues and streamlines inventory processes.[2]

Source: MSME Act 2006

How Is Govt Helping Msmes With Digital Literacy And E-Commerce

Micro, Small, and Medium Enterprises (MSMEs) often hesitate to adopt digital technologies due to a lack of funding and insufficient skilled personnel who are well-versed in the latest platforms and technologies. Many small business owners are not fully aware of the impact that digital technology can have on their operations, which hinders their ability to attract new customers and retain existing ones. In response to this challenge, the Government of India has introduced the Digital MSME scheme to empower these enterprises digitally. This initiative aims to increase awareness and promote the adoption of information and communication technology (ICT) among MSMEs, encouraging them to integrate ICT tools into their business processes. The scheme also emphasizes the importance of e-platforms and promotes digital marketing within the MSME sector.

The Government of India is particularly encouraging these businesses to market their products on e-commerce sites, especially through government-owned platforms like the e-Marketplace (GeM), which is utilized by various ministries and public sector undertakings (PSUs) for procurement purposes.

Another important initiative is the Digital India Scheme, which aims to establish a strong digital presence for Indian MSMEs. Programs such as Jeevan Pramaan, Mobile Seva, and BHIM by NPCI are part of the efforts to transition MSMEs to a cashless, contactless e-commerce environment.

Skill India, initiated by the National Skill Development Corporation, connects various industries with trainers who assist entrepreneurs in developing the skills necessary for their businesses.

BharatNet is another initiative aimed at boosting e-commerce growth for small businesses by providing broadband connectivity to 250,000 gram panchayats across the country. This infrastructure ensures that small business owners have access to the internet to operate their businesses online. It also facilitates e-governance, enabling access to government websites and online services like banking.[1]

Open Network for Digital Commerce (ONDC) is a public technology initiative launched by the Government of India to promote an open Network for Digital E-commerce (ONDC) and digital transformation enables rural E-commerce can lift and improve the economy and Entrepreneurship of rural areas and sustainability

Investment in plant and machinery, along with Udyam registration, is vital for accessing benefits under the MSME Development Act. This registration allows small and medium enterprises (SMEs) to obtain a Zero Defect & Zero Effect (ZED) certificate, thereby enhancing their competitiveness and sustainability. Equity infusion is available through mechanisms such as the Fund of Funds and the Production-Linked Incentive (PLI) Scheme. Initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) prioritize workforce skill development. The ONDC e-Commerce platform supports MSMEs, while the RBI fosters digital lending. Collectively, these initiatives aim to empower MSMEs in a digital and global marketplace.(Mahesh K. M, et.al ,2023)

Conclusion

Digital literacy and e-commerce hold significant promise for transforming micro, small, and medium enterprises (MSMEs), enabling them to compete more effectively in a globalized economy. Although challenges persist, the strategic adoption of digital tools can stimulate growth, enhance efficiency, and ensure resilience in our increasingly digital landscape. Mastering digital literacy and e-commerce is essential for the survival and expansion of MSMEs in today’s digital economy, providing them with the means to broaden their reach, cut operational costs, and engage customers in innovative ways.

By embracing e-commerce, MSMEs can overcome conventional geographical and logistical barriers, gaining access to global markets and competing alongside larger enterprises. Additionally, digital tools facilitate the optimization of various operations, including inventory management and targeted marketing, thereby fostering both efficiency and scalability.

However, the transition to digital platforms is fraught with challenges. Limited digital skills, financial constraints, cybersecurity risks, and infrastructure deficiencies continue to impede many MSMEs. Nonetheless, through a concerted effort involving stakeholders—such as governments, private enterprises, and industry associations—these obstacles can be surmounted. Initiatives aimed at enhancing digital literacy, providing financial support, and developing digital infrastructure are critical for leveling the playing field for MSMEs.The role of government in advancing digital literacy and e-commerce for MSMEs is pivotal in driving economic growth, job creation, and social development. By addressing infrastructure gaps, improving digital skills, and offering financial and regulatory support, governments can empower MSMEs to thrive in the digital era. A collaborative approach that engages both public and private stakeholders can cultivate a robust ecosystem where MSMEs can compete, innovate, and make significant contributions to both national and global economies.

In summary, the integration of digital literacy and e-commerce into MSMEs represents not just a path to economic growth but also a catalyst for innovation, resilience, and inclusivity. By leveraging these tools, MSMEs can unlock their full potential, significantly contribute to local and global economies, and maintain their relevance in an ever-evolving marketplace.

 

---

References

[1] 10 Advantages of E-Commerce for Consumers & Businesses - Business Funding Blog

[2] What is The Need of ECommerce? - MohitECommerce

[3] 5 Government Programs For Small Business E-Commerce Growth

By

Aastha Bharal

B.A. Economics (2022-2025), DoE, SBSS, MRIIRS, Faridabad

To cite this article: Bharal, Aastha, (2025, April), "Impact of Digital Literacy and E-Commerce on MSMEs". https://ecobizzblog.blogspot.com/2025/04/impact-of-digital-literacy-and-e.html

Trade-Off Between Pollution and Growth: Myth or Reality?

 Introduction:

Economic growth and pollution have been on the news for years, and there has been a lot of debate about their relationship. Many argue that urbanization, transportation, and industrialization occur as economies grow and pollution increases. If green technologies are adopted and good policies are implemented, pollution can be reduced even with high economic growth. Is the idea of a trade-off between pollution and growth a myth or a reality? Some theories, such as the Environmental Kuznets Curve(EKC), talk about how pollution increases and decreases after a certain income level is reached in the early stages of development. The real-world evidence is mixed in developing countries.

Source: Environmental Kuznets Curve

The Traditional View: Growth Leads to Pollution
 Historically, increasing pollution has always been linked to industrialization. As economies grow, growth will be more reliant or dependent on fossil fuel deforestation, which in turn contributes to air and water pollution.  The main reason why the growth is often linked to pollution is Increased energy demand: More factories, vehicles, electricity, and fossil fuels will lead to pollution. Increased deforestation: People cut down trees for their shelter, for use of timber, etc. Industrial waste and emissions: The manufacturing sector releases pollutants into the air, water, etc. Many developing countries believe that economic growth is the first priority and environmental problems are second. Let us understand the growth and pollution through the figures and data:

 Methodology:

The data used in this analysis comes from the World Bank database, covering 216 countries. Six key variables were examined: CO2 emissions, GDP growth, carbon intensity in GDP, access to electricity, fuel imports, and fuel exports. A regression analysis was conducted to understand the relationships among these variables.

Data analysis and interpretation:

Regression Result

Added Variable plot

This study shows the impact of GDP growth, carbon intensity in GDP, fuel export, and fuel import on CO2 emissions using a multiple regression model. Through the table and the added-variable plots, the results can be interpreted to indicate that fuel export has a significant positive impact (beta=0.084283, p<0.001) on CO2 emissions, meaning that as fuel exports increase, CO2 emissions will also increase. This suggests that regions exporting more fuel contribute more to emissions. GDP growth does not significantly (beta=0.007336, p>0.005) impact CO2 emissions, indicating that as production increases, there is no direct effect on CO2 emissions. However, carbon intensity in GDP does affect CO2 emissions, showing a weakly significant positive impact (beta=2.992574, p<0.005). Fuel imports have a moderately significant negative impact (beta=-0.132201, p<0.001) on CO2 emissions, indicating that countries that import fuel produce less CO2 emissions.        

Conclusion

This study found that CO2 emissions are affected by the carbon intensity in GDP, fuel exports, and fuel imports, with no direct impact of GDP growth on CO2 emissions. Policymakers should focus on promoting cleaner energy and sustainable practices to reduce carbon emissions.

By
Shivangi
Ph.D. Scholar, Department of Economics, SBSS, MRIIRS, Faridabad

To cite this article:  Shivangi. ( 2025, February)."Trade-Off Between Pollution and Growth: Myth or Reality?" Eco-Bizz, Department of Economics. https://ecobizzblog.blogspot.com/2025/02/trade-off-between-pollution-and-growth.html

Article Received on: 28 January 2025

Article Published on: 15 February 2025

Unbreakable Bond

In Search of

Somebody to care,  
somebody to know,  
somebody to hear—  
when I scream on that high note.  
  
Somebody to lay by my side,  
having that long night drive ride,  
caring for my soul,  
who can let his embrace make me hide—  
ohhh, yeahhh.  
  
That's the love I wa-aa-aant,  
in a world that seems too cold.  
That's the love I want.  
  
Having those little playful fights,  
after that dinner candle light,  
singing songs in the rain,  
making our dreams come alive.  
  
No matter how hard life tries  
to break us apart and make us cry,  
no, we won’t give up on each other—  
and let our love die.  
  
'Cuz your love is all I need,  
cuz your love is all I want,  
in a world that seems to be cold—  
that's the love I want.

Designed by Microsoft Copilot, an AI created by Microsoft

One side love

every broken soul is as beautiful as moon

having wounds and deep cuts in their heart

waiting for someone as calm as night sky

to embrace them till death do them apart

the only source of my happiness is you 

even your thoughts can make me smile 

knowing these things are impossible still

my heart beats fasten without caring the distance of mile

sometimes gets insecure by thinking you deserve better 

but gets jealous if someone tries to approach you ever

it's hard for me to express my love for you in just one letter

but the only thing I want to say is I love you forever

seeing the whole world with your hands in mine

is the only dream I want to have with our sunshine

being irritated and having fights in our old age

where our love is stronger than our rage

that's the future I want with you 

I hope someday it will come true

my winter bear......

By

Yashvi Tyagi

B.A. Economics Sem IV, SBSS, MRIIRS, Faridabad

Echoes of Eternity

 If Heaven is a hotel

If heaven is a hotel,

Do angels bring comfort to the soul,

Serving peace to make us whole?

Are the walls aglow with soft, warm light,

Each one beholding a gentle sight?

If heaven is a hotel,

Does the lobby echo with sweet embrace,

As long-lost loved ones find their place?

 Do we leave our sorrows at the door,

 Exchanging grief for peace, forevermore?

If heaven is a hotel,

Are the rooms a gentle retreat,

Crafted from moments of joy and peace?

Do they hold the warmth of love’s embrace,

A place where time and sorrow cease?

If heaven is a hotel,

Do they welcome all who seek their way,

Or must we earn our place to stay?

And when we rest beneath its sheets,

Do we awaken whole, or simply free?

By
Gulnaaz Kohli

By: Gulnaaz Kohli

The First Step

I still remember,
When I fail for the first time,
Just me, myself, and echoes confined,
I tried so hard; I gave my all
Yet things stood still, I recall.
 
I know this step is just the start,
So many dreams fill my heart.
Day by day, I am giving my best,
Leaving behind the weight of rest.
 
 with the strong goals sight,
 touching the success height,
Making my future bright,
As it was my first step.
 
Grateful for the nature,
Each and every creature.
Shaping a perfect future,
As it was my first step.
 
Not a year, just a week has passed,
But that first step-it’s shadow lasts.
For me it's just a start, but I believe,
Step by step, I shall achieve.
As it was my first step.

By
Kritika

Contributors:

Gulnaaz Kohli & Kritika 

B.A. Economics, IV, SBSS, MRIIRS, Faridabad