Sowing in Twenties and Reaping Whole Life

As a young adult who is in their twenties, you must be managing a hundred tasks on a daily basis on your own. These tasks include your studies, curricular activities, following your passion, enjoying the twenties and ah the most crucial one: worrying about your future almost a thousand times in a day. Well, where there are a few things which will take its own time to accomplish no matter how much you worry about it, like your studies but there is one thing which we can help you with, by sharing some knowledge with you about how to save and invest in your twenties.

Investing in the twenties is the best financial advice one can give, because investing correctly in your young life help you in “n” number of ways. Let’s start with how to start saving: we all know saving in college life is a bit tough considering there is no earning and a long list of spending’s but the good point is we don’t need a large amount of money for further investment. Saving money on a weekly and monthly basis by cutting that extra cappuccino and leaving those extra pair of shoes for the sake of fashion can collect you enough to invest in different resources. After saving the next question that arises is how and where to invest. The market has many options for investing like share market, mutual funds, cryptocurrency etc. The best and the most risk-free investment can be done through mutual funds. You can invest a small amount of money on monthly basis and get larger returns in a few years. The mutual funds take money from different organizations and platforms and are invested by a fund manager in the market and the fund manager makes sure you get larger returns. There are different schemes for mutual funds or investments with different interest rates per year. Interest rate is the rate you get on your investment after a year, example: 1000 rupees every month means 12 * 1000 = 12000 rupees and suppose it has interest rate return for 15% that means 1800 extra money in a year, although it doesn’t sound like a big return it is better when done for longer period of time. As stated above investment done in the initial years of life is really helpful in the later years it keeps you in discipline because you have to take some money out of your monthly budget, it gives you higher returns in 10-20 years, it is a very safe and secure investment for your later life, the money you invest is spent on the market which helps in the creation of good and services and which subsequently increases the economy of the country.

India is going through a really tough time in this pandemic the GDP rate has fallen the unemployment rate has risen, people investing in the market will help the country to flourish once again. However, investing in markets can be a little addictive and there are many fraud agencies too. Thus it is good to make sure of where you are investing and is safe. Always calculate your risks before making any financial move. And Investing doesn’t mean you won’t have to work, it is just an investment you make for the betterment of your future. Talk to your teachers, elders, banks, seniors etc educate yourself on these markets and make the best of your youth. Best of luck!

Written by: Ms Saba Sayyed, BA (Hons) Economics, Department of Economics, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad.

Interview with Dr Salahuddin Ayyub, Deputy Director, Service Export Promotion Council of India (SEPC), New Delhi

The Economic Society of Manav Rachna International Institute of Research and Studies, "Economads", interviewed Dr Salahuddin Ayyub, Deputy Director of Service Export Promotion Council of India (SEPC), New Delhi. He has worked in both private and government organisations, including NITI Ayog, RIS and IIFT. The students of the Department of Economics, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS) interacted with Dr Ayyub regarding the research work focusing on the current situation and future perspective of the economic situation in India.

You have worked with many think tanks organizations like NITI Ayog, IIFT before joining SEPC? How was your experience in a think tank organization?

Yes, I have worked on a project for NITI Ayog. I have worked with IIFT, RIS and NUEPA which is a think tank for the ministry of education. Organization to organization you would’ve differently experience, depends on the nature of work, your profile and the work that is allocated to you. In government organizations like these think tanks, the work is in a time-bound manner, there is routine work there is not a lot of pressure although there would be a little pressure for example in my current job if any negotiation is happening with any country like currently, India is negotiating with the UK, GCC so they would want our inputs. Like SEPC is working as a bridge between industry and government so whatever is the required demand, or challenges they are facing we have to convey it to the ministry and if the ministry makes new policies, it’s our job to spread that knowledge. If it’s a project-based job and you have a six-month length, so you manage your job according to your conveyance but if it’s not a project you are working on in a process then it’s routine work.

As you have mentioned in your paperwork about the trade deficit of India, which gradually hampers bilateral trade not only with China but with other international countries as well. Do you think ramping up domestic manufacturing can be a better solution?

Click here to Watch Full Interview with Dr Salahuddin Ayyub

A trade deficit simply means you are importing more and exporting less and to increase the export you have to have more resources, manufacturing, supply and at the same time, you need to have demand for your product in the international market. You have to be competitive in the international market because so many countries are trying to tap the international market and you are one of them. So, you have to be competitive enough to compete with all those your competitors and then make your own space, it’s about increasing the manufacturing in such an effective manner that you are very competitive in terms of price in terms of the quality and you do a lot branding and marketing in the international market. When you export more automatically you would’ve trade surplus, for example in the service case we have a surplus of around 80 billion US Dollars surplus which is almost covering the merchandise trade deficit. To solve the problem of trade deficit we would have to increase our imports in a competitive market.

India is a developing country, how can India come up as a potential competition?

There are many products which are labour intensive, India does have many disadvantages being a developing country I agree but at the same time, we have a lot of advantages also, for example, we would have the cheap raw material, cheaper labour. In the case of textile, Bangladesh is doing well in textiles we used to be the top exporter in textiles but now Bangladesh has taken over they are manufacturing at a lower cost than India and this is the reason they have become the largest supplier of textiles in the world. Lower cost of production is something where India can utilize and manufacture labour intensive items in higher quantity, utilizing the economies of scale and then become more competitive in the international market.

It is commonly believed that the service sector is crucial to an economy’s growth, yet in your study paper ‘hidden market access barriers in China; India's export in electrical machinery (2014)’, you are strongly in favour that the manufacturing sector strengthens the economy. Do you think this argument still holds?

That paper talks about the hidden trade barriers which countries impose for example what is happening in the international forum at the WTO level we are giving commitments that every country has to reduce tariffs every country has to move to towards rapid liberalization, countries who are already developed may liberalize in a faster speed country which is not yet that developed will liberalize gradually. At WTO there is a commitment that everybody has to gradually liberalize and going to reduce the tariffs. But the main question addressed in the paper is that are these countries reducing the tax tariffs we came to this observation that on one side we are reducing the tariffs but on the other side we are increasing the non-ad Valorem tariffs. So, what matters in the end for an exporter is trade cost that is how much money you have to pay for your commodity to take from one place to another. Trade cost remains the same even if you liberalize.

As we all have been reading about the trade war between China and USA, there was an enormous number of assumptions and research, but now after the new president of the USA Mr Joe Biden, the condition between the two countries is much better. How do you think this new relationship will affect India?

These things keep happening, when we talk about trade war it looks like a “war” but if you look at the data the trade continues. You would read in some of the papers that even at the peak of the trade war between China and the USA the trade was happening, and the extra trade cost which was coming because of the trade war was being shared by the exporter and the importer, they were saying that 20% of share has come from this trade lets share it and let’s continue the trade. Because the trade is not happening only between companies it's intra-industry trade also the same apple is in the US, the same apple is in China. Traders would try to find ways to continue the trade because they have invested a lot and overnight, they cannot shift their investment from one country to another. And an investment is there, setup is there, manufacturing is there it is because of certain facts and these facts cannot be changed overnight. If the US think China would stop exporting goods to us because they have increased the tariffs, this will not happen. Take an example of India and China trade we have very high tariffs in case of inflows from China, 20%- 30% of tariffs sometimes even higher but still, lots of goods are coming from China the Indian market is flooded with Chinese products. Tariffs are just one factor you cannot control other factors. This is a very temporary phenomenon; India might get this advantage for a temporary period but in the long things are going to settle the same way

As mentioned in the SEPC monthly report, the online spend per shopper is expected to double by 2030. How do you think this will affect the offline market?

The offline market is already getting affected. The kind of crowd we used to see in shopping places is going down. People are more convenient in shopping online, and this is going to be the future that more people would prefer to shop online whereas gradually offline shopping would go down. There are many valid reasons for them to switch from offline to online shopping. And how much it would happen depends on how changes will come in future. This is, of course, uncertain, but the trend is saying that the future belongs to online shopping.

A huge chunk of the population doesn’t have internet access and at the same time, they also have a backward mindset about the quality of the product. What would you say about those people?

This is exactly what happened in Delhi when online shopping just entered the market. People used to sit back and think a lot about it and then end up going to malls for shopping. But, slowly and gradually, the mentality and the pattern changed and now they all rely on online shopping.

Online shopping has the strength of winning the trust and bringing the people on the platform.

The same situation is happening in the smaller cities. So, eventually, it will shift to smaller cities and then villages.

How is SEPC contributing to the ease of doing business of the Indian Economy? How do these buyer-seller meet, trade fairs, exhibitions, export promotion schemes help to facilitate this ranking?

The service trades happen in a very different manner compared to the merchandise trade. Merchandise trade happens when a product moves from one country to another country. But in the case of service trades there are four modes: -

• Cross-border supply where one sells their service abroad without moving yourself. This happens in IT Services, Telemedicine or Online Education as well.
• Consumption abroad supplies where the customer is coming to your country, taking services and going back. For example, foreign students, tourists, and patients.
• Commercial Presence Supply where your company setups a branch abroad and then starts services there. For example, Indian University puts campus in Dubai, Canada, etc.
• Movement of Natural Person where people move from one country to other countries to give services. For example, Indian doctors, teachers, etc.

The problem is that many service exporters do not even know that they are exporting. For example, a foreigner comes to stay at your hotel and pays you in the dollar. But you did not know that you are an exporter. SEPC tells them that they are an exporter. And as an exporter you are earning foreign exchange for the country; by this, the government has certain schemes for you as you are valuable to the government because they want to promote exports. So, people are brought to SEPC’s platform, understand their issues, convey them to the government, make them aware of the schemes, promote them through events, invite foreign buyers, take Indian business abroad and bring them out as a strong industry. SEPC is also in the process of developing a portal where all the India Service Exporters will be listed and foreign buyers can get connected through it. So, we are facilitating the Indian Service Exports in different ways within the limited resources that we have.

What are these schemes that these buyers and sellers should be aware of?

There is a scheme called the Services Exports from India Scheme (SEIS). In this, any services exporter who comes under the selected list of the services sector under the Ministry, get a 5%- 7% incentive from the government on their net foreign exchange earnings. For example, if you exported 100 crores, you would get around 5-7 crores from the government. But know there is a gaping of 5 crores so that more people could get chance in business. Then they have this scheme of Market Access Initiative (MAI) under which they sponsor services exporters to participate in international exhibitions, international events and fund their flights and basic amenities to reach there as well.

In this pandemic, where e-commerce is booming, and all the large companies and industries are thinking about going online permanent to be more efficient; India as a developing country that needs this kind of initiative has an issue of many unskilled labours, how can we overcome this problem?

When digitization was happening, things were shifting from manual to the computer. But, instead of pulling more employment towards it, it generated more employment. We have a huge IT industry which is contributing a lot to the GDP. Therefore, we have to think not just within the country, but we have to think globally. And about the skilled and non-skilled labours, there are so many things that can be done to increase the labour-intensity items. More development leads to more infrastructure and agriculture which automatically will provide skilled labours. When you go for bigger projects like highways, airports, it will generate labour and income due to which product will grow up. Moreover, to run an economy there isn’t a need for all the workers to be skilled. We need skilled and unskilled. But there should be balance, for which government and institutions need to come forward and give them skills and train them.

The field of economies has a wide range of employment opportunities, but at this stage, what can we students do to enhance our knowledge, so that we have better opportunities you think as worth experiencing?

Being a student, we don’t know what it is all about. And this is where the company’s set up internship programmes that make you understand whether you fit into that area or not or can you do it lifelong or not. Afterwards, it will depend on what kind of interest you have- you want to go into a social environment where you can directly contribute to society, or you want to earn money and have a white-collar job and sit in the office. Therefore, the best way to explore it is to go and meet people there, seem them what they are working about, join them and very importantly do internships in different fields. As most of the things are done in software, so as much software you can learn, it will be good for you. Learning doesn’t mean doing courses because you will end up forgetting them. You need to do the practice. You need to work. Generally, economics students are found to be not that good at writing. If you are good at writing, it will help you a lot, because you automatically have the data skills and writing skills will just add a better interpretation.

Written by: Ms Vanshika Jain (MA Economics), Ms Saba Sayyad, Ms Aarya Parida, Ms Siya Sardana, Mr Prashant Semwal (BA/BSc (Hons) Economics), Department of Economics, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad 

Women in the Indian Armed Forces

Introduction

Through the years the Indian Armed Force has remarkable progress with regard to the recruitment of women. According to the survey done by Press Information Bureau in February 2021, the Indian Armed Force encompasses 6807 women, 0.56 per cent in the Indian Army, 1607, 1.08 per cent in the Indian Air Force, and 704, 6.5 per cent in the Indian Navy. But income to developed countries like USA, UK, Canada and Germany, we still have a long way to go. In America, according to the council on foreign relations 16 per cent of enlisted force and 19 per cent of officer corps consist of women, whereas in Israel, even though women are not given combat roles they have entitled administrative and technological posts (Maj Gen Mrinal Suman, Indian defence review 25.1, 2015)

Women in the Indian Armed Forces

Women were introduced into the Armed forced back in the 1880s as the Indian Military Nursing Service (MNS). The British Indian nurses fought in World War I (1914-18) and world War II (1934-45). During that time approximately 350 nurses were declared dead, missing or were taken as prisoners of war(Hindustan Times, 13 December 2017). An exclusive women’s regiment was formed, under the Netaji Subhash Chandra Bose’s Indian Army, called the Rani of Jhansi Regiment(1942). They were seen fighting the imperial Japanese army during World War II.

In 1942 the first women medical officer was commissioned into the Indian medical service. The women’s auxiliary corps (WAC-1) was also formed, Having the same rank and status as all other armed personnel. The naval wing of the women auxiliary corps was established in the same year and renamed the Women’s Royal Indian Naval Service (WRINS) in 1945. But in 1947 both the WAC(1) and the WRINS were disbanded.

In February 2021 a threefold increase was seen in women personnel in the armed forces in the last six years. Excluding the medical wing where women have been serving for several years, the government has made many amendments to empower women in the forces. This includes recruitment of fighter pilots, naval aircraft pilots and giving women permanent Commission in different branches. In 2016, India’s first Naval women pilots of maritime reconnaissance Aircraft were commissioned. In 2021 the approval for induction of 1700 women as Jawans in the military police was granted. The progress from the time when women weren’t allowed in any infantry or combat units to 70 per cent of women being considered for permanent Commission is indeed inspiring. Women are now given a commission in Armed Air Defense (AAD), Signals, engineers, armed aviation, Electronics and Mechanical Engineers (EME), Armed Service Corps(ASC), Army Ordnance Corps (AOC) and Intelligence Corps.

To date, there have been five women who were promoted to three-star ranks. Two of them who are still serving are surgeon Vice Admiral Sheila S. Mathai NM, VSM and lieutenant General Rajashree Ramasethu.

These women who carry the sky with stars on their shoulders too have to face some major issues. Some of these, as told by officers in the Military Nursing Service are:-

• Sexual harassment Almost all the women in the forces have had to deal with Sexual harassment. Unacceptable behaviours of male counterparts are seen as friendly or casual and the officials often dismiss complaints against them as frivolous and resort to the “boys will be boys” apology.
• Low acceptance Even though we have seen impressive progress regarding the recruitment of women, there’s still a long way to go. Attaining gender equality is not an easy task and will take time and a lot of effort from people in power. Having a gender fluid and merit-based selection process is a hope we all have for the future.
• Respect In 2003, Army officers gave orders to other ranks and junior officers not to salute MNS officers and in 2004, their uniform was changed to a beige coloured one. Today a Jawan will refuse to salute a general of MNS.
• Multifaceted roles Regardless of having stars on their shoulders, women are still expected to fulfil their duties in the family as a mother, a wife, a daughter and a daughter-in-law. This can be gruelling for many women and they end up having to compromise in one or more aspects of their life.

Despite these issues, the gratification from serving the nation outweighs all cons. The respect earned is truly a long-lasting feeling. It’s a well-paid job with high status, job security and facilities for self and family-like free medical facilities, leave travel concession, accommodation, ration etc. Though discrimination is a challenge an officer will always be an officer, regardless of gender.

As an Indian, I’m proud of how far my country has come and I look forward to seeing it develop and prosper further. The future ahead is bright and I hope to see the day when officers will command positions irrespective of their gender and only on the basis of their capability and calibre.

References

• https://pib.gov.in/Pressreleaseshare.aspx?PRID=1696144
• https://wsimag.com/economy-and-politics/66942-women-in-indian-armed-forces-she-is-unique
• https://m.economictimes.com/news/defence/over-9100-women-officers-serving-in-armed-forces-1700-females-to-join-as-jawans-in-army-defence-ministry/articleshow/80753218.cms?from=mdr
• https://www.hindustantimes.com/opinion/indian-army-must-stop-its-discrimination-against-military-nurses/story-VmhPT6cKj3GW3M3KjCterK.html
• https://en.m.wikipedia.org/wiki/Women_in_the_Indian_Armed_Forces
• http://www.indiandefencereview.com/interviews/women-in-the-armed-forces/

Written by: Ms Vaishnavi, M, BA (Hons) Applied psychology, Department of Applied Psychology, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad.

National Mental Health Policy in India

Introduction

In India, mental health till very recently had been like an ostrich model where something that is not visible does not exist. Also, if something new was on the way and couldn't be defined immediately, it was ignored and left untouched. It took a pandemic for India to realize that something like mental health also exists and, people need to pay equal attention to their mental health as much as they need to on their physical health. During the pandemic, people have become vocal about their mental health. In this article, we will look into the National Mental Health Policy (NMHP) which defines the goals and objectives of how the citizens of India can benefit from the policy and use it for their welfare and others.

History and Background

It can come as a shock that India was among some of the first developing countries in the world to initiate the National Mental Health Program way back in 1982. It has been 40 years since; there is still not much improvement in the mental health of the nation. Instead, one can see the charts declining in mental health and rising with severity in case of the worsening conditions of the population.

One out of four families is likely to suffer from a mental health disorder or behavioural disorder. The policy of 1982 came intending to create awareness about mental health and disabilities. It focused on promoting the participation of communities in mental health service development and encouraged efforts towards self-help in the members of the community. It also tried to strengthen the availability of minimum mental healthcare for all especially, to the most vulnerable and underprivileged sections of society. In 1996, the focus was on early detection and treatment of illness with general physicians for diagnosis and treatment of common mental sickness with a limited number of drugs under the guidance of a specialist. They failed to understand that a general physician would look at the issue like any other disease rather than something to do with the mind and another related difficulty. The short-term training provided was not enough to treat someone with mental sickness or disability. A simple record-keeping took place to keep track of such cases.

Recent improvement on the Mental Health Act

The NMHP of 2014 focused on creating specialists to work with mental health patients through public financing and developing special rules for those willing to work in public systems. It relied on a network of community individuals to provide psycho-social support and harnessed digital technology to improve mental health services at primary care institutions in the context where access to qualified psychiatrists is difficult. According to the India Penal code 309 which, deals with punishment for attempted suicide, if an individual for various reasons were to fail in their attempt to suicide, would be punished until they were able to prove that they were under extreme levels of stress? The scope of the code's implementation was severely reduced by the Mental Health Care Act of 2017. The bill stated, “Any person who attempts to commit suicide shall be presumed unless proved otherwise, to have severe stress and shall not be tried and punished under the said Code”. It also stated that the State government should take complete care of such individuals and provide them with rehabilitation and care.

Mental Healthcare Act 2017 ensures healthcare for people who suffer from mental illness through health services funded by the government. It decriminalizes suicide, disallows sterilization and solitary confinement of mentally unwell patients. The Act provides for the setting up of Central and State Mental Health Authorities for the training of medical professionals. It also mandates insurance companies to provide mental health insurance.

Some of the recommendations of the 2017 MHA are:

• A national plan for mental health literacy is required to create awareness.
• Mental health should integrate with the National Urban Health Mission and other programs to deal with the high prevalence of mental health issues in urban areas.
• An incentive-based approach needs to be employed to encourage interest in psychiatry and psychology to solve the shortage of medical professionals.
• While Ayushman Bharat allows for insurance for medical treatment of the mentally unwell, financial protection in the form of allowances should be initiated.
• Corporate Social Responsibility (CSR) should be encouraged in the field.

In the context of India

Even though India seems to have made good progress in the policies, there seems to be very little awareness of the benefits one can avail of with the help of the National Mental Health Policy. The main issue seems to be that mental health is viewed differently and attached with some general stereotypes in the current society. A large part of society still treats mental health as non-existent, and it is considered a hush-hush topic. It is like the other taboo topics which, include periods and sex.

Introduction of such topics at an early age will help them make a healthy lifestyle with the help of their guides. These practices will help them develop healthy coping mechanisms. It would also help in their future to know what steps to take if they face any drastic situations.

In-state of a pandemic, it is crucial to create awareness about the policy to the citizens. It allows them to have access at the right time. The implementation of these recommendations of the 2017 policy will decide how the mental health and state of the nation changes. Articles state that India can face trillion dollars of loss if the mental health of the young adult population does not improve by 2030.

Conclusions

One should be aware of mental health and how it can be maintained in all spheres of life. I think that it is one such topic that needs to be included in schooling levels for students to be thoroughly aware. Doing so would allow them to assess their and their close ones' behaviours and understand how to deal with them.

With the current situation in mind, one must remember that we are only eight years away from 2030. If the policies are not implemented in the right manner a huge amount of loss can be faced by India not only financially, but also socially. A lot of dynamics can change with the improvement or disruption of the mental health status of the nation. A good amount of concrete work needs to be done in order to help uplift the nation in different spheres.

References:

• https://vikaspedia.in/social-welfare/differently-abled-welfare/policies-and-standards/national-mental-health-policy
• https://www.google.com/amp/s/www.thehindu.com/news/national/laying-out-a-path-for-indias-national-suicide-prevention-strategy/article37919322.ece/amp/
• https://www.google.com/amp/s/www.livemint.com/v/s/www.livemint.com/science/health/indias-great-medical-challenge-talking-about-mental-health/amp-11640796933540.html%3famp_js_v=0.1&usqp=mq331AQKKAFQArABIIACAw%253D%253D#ampf=
• https://nhm.gov.in/index1.php?lang=1&level=2&sublinkid=1043&lid=359

Written by: Ms Trisha Verma, MA Applied Psychology, Department of Applied Psychology, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research & Studies (MRIIRS), Faridabad.

The Role of Financial Inclusion in Sustainable Development Goals

Introduction

Financial inclusion has been the policy priority and is regarded as a significant tool for the development of the economy. It was instigated with the nationalisation of banks in the 1960s and with time, efforts were more focussed on the objective of inclusive growth in its eleventh and twelfth five-year plan and had the target to bring excluded segment of the society under the formal financial umbrella. Various other initiatives were taken such as General Credit Cards, Pradhan Mantri Jan Dhan Yojana (PMJDY), Kisan Credit Cards, adoption of Business Correspondents (BCs) and the major revolution of digital payment system came in to force which pushed financial inclusion towards the centralised and formal system. Microfinance institutions have also taken a noteworthy step forward and played a vital role in improving inclusion at the ground level.

India and Financial Inclusion

The Global Findex data (2017) revealed that India has shown progress with time and people are included in the financial system. The report shows that 80 per cent of people in India have access to banking services in comparison to 53 per cent in 2014. The participation of women also increased from 43 per cent in 2014 to 77 per cent in 2017 in availing of financial services. Jan Dhan Yojana, Aadhar and Mobile number (JAM) was another initiative that enables Direct Benefit Transfer (DBT) to the unprivileged people who had Jan Dhan Yojana (JDY) accounts. However, by just having an account in a bank, the objective of financial inclusiveness cannot be attained. The usage of financial services is the major concern which will in turn help to overcome unexpected emergencies and play an influential role in inclusive growth and economic progress.

Financial inclusion and Sustainable Development Goals

The new set of goals known as Sustainable development goals were given in 2015 by United Nations General Assembly. The purpose of SDG’s which are to be achieved by 2030 will help in achieving a sustainable future for one and all by eradicating the problems of poverty, inequality, gender gap, protecting the environment and so on. Despite the fact that financial inclusion is not the direct goal of sustainable development but the use of financial services will have spillover effects on other factors. So financial inclusion has been recognised as a core driver in achieving seven out of seventeen sustainable development goals which are explained as follows:

Eliminating Extreme Poverty (SDG 1) – This goal can be attained when people have access to financial services and can avail basic amenities by saving the money for contingencies. Increase in savings will benefit in smooth consumption, better health facilities, investment in education etc and will help people to attain a standard of living.

Reducing hunger and promoting food security (SDG 2) – Financial services can directly help the farmers in increasing their production to meet the needs of the population. Access to insurance facilities will make them invest in more risky investments and help them in earning more.

Good Health and Well-being (SDG 3) – Formal financial services will enable people to overcome from health crisis which otherwise results in taking loans from informal sources and ending up in heavy debts. Health insurance products will give more safety in case of contingencies.

Fostering Quality Education (SDG 4) – The role of education is very important in the economy’s development. Access to financial services will improve the gross enrolment ratio and hence will reduce child labour. The improvement in the literacy rate will help people in understanding the importance of the formal financial system and will improve their standard of living.

Promoting Gender equality (SDG 5) – To achieve these goals women should have equal participation in economic and social activities. So, giving them equal opportunities to access financial services will help in improving their decision-making capability and will remove the gender gap.

Decent Work and Economic Growth (SDG 8) – Inclusion of unbanked people into the formal financial system will mobilise savings into profitable ventures and will improve job opportunities.

Industry, innovation and Infrastructure (SDG 9) – Easy access to financial services will facilitate investment opportunities and will promote industrialisation. Limited accessibility to financial services has been a constraint to the growth of infrastructure. The finance will help in expanding investment and will help in increasing MSME’s which will create job opportunities.

Conclusions

Hence, access to financial instruments for everyone can be a game-changer and will help in bringing some of the Sustainable Development Goals closer to reality. Thus, people who have bank accounts and with active users can get the credit facility to start or expand the business, invest in health, education and also manage risk and financial tremors which will definitely raise their overall quality of life.

In India, a series of government initiatives took place in improving the banking penetration which includes demonetisation, Jan Dhan Accounts, Adhaar cards and UPI (digital payment platform). Digital innovation has also proved as a boon in times of pandemic when the government transferred the money directly to the accounts of women and farmers under the DBT scheme. Various digital methods such as mobile banking, UPI, electronic funds transfer, payment cards etc has progressed over the years. Thus, Fintech can bring a great revolution in achieving the objective of inclusiveness and bringing the unbanked people under the blanket of the formal financial service.

References

Klapper, L., El-Zoghbi, M., & Hess, J. (2016). Achieving the sustainable development goals. The role of financial inclusion. Available online: http://www. ccgap. org. Accessed, 23(5), 2016.

Sethi, D., & Acharya, D. (2018). Financial inclusion and economic growth linkage: Some cross country evidence. Journal of Financial Economic Policy.

Lenka, S. K., & Sharma, R. (2017). Does financial inclusion spur economic growth in India?. The Journal of Developing Areas, 51(3), 215-228.

Gabor, D., & Brooks, S. (2017). The digital revolution in financial inclusion: international development in the fintech era. New Political Economy, 22(4), 423-436.

Written by Ms Sukhvinder Kaur, Research Scholar, Department of Economics, Faculty of Behavioural and Social Sciences, Manav Rachna International Institute of Research & Studies

Time for New Reforms in India

Introduction

What does reform mean? When people say they want more reform, what are they actually talking about? Reforms are basically corrections of the decisions made in the past, which now generates ineffective and inappropriate outcomes. The problem with going back and correcting prior actions is that the economy and the surrounding that have grown up around them, as well as the market actors who have built companies models according to those conditions, will be disrupted. But change is the only permanent reform.

Context

  © Times of India

However, change is always resisted by well-established groups that lose a lot compared to a big population that benefits a little individually. This is the problem that arises often. The same happened with the agriculture laws. In spite of having very obvious benefits, the reforms are still resisted continuously. Apart from that, India has an urgent area to focus on right now, where reforms that are past due may help us and may not be as controversial and disputable.

Current Scenario

Our Prime Minister, Narendra Modi, referred to the decade as "India's TechEd" (technology + decade), saying, "This is how top specialists are looking at it". Probably in the next 10 years technology will be a major factor in the global economy. Both US and China are early adopters of the technology and are now in a rat race. And even many companies in the world are tech companies, out of which India has 10 tech companies. Covid-19 played a major role in driving India towards the TechEd society. From automobiles to retail, all sectors have slowly adopted tech.

But, in order to take full advantage of the “TechEd India”, we need to add on several small and big reforms as well. Health and Education are the subjects we often talk about, but we do not value the investment they need. In terms of government expenditure, we spend a total of 5 per cent on health and education combined according to ‘The Hindu’. Whereas most countries spend more than three times what we do. Our primary education is disorganized, and our elementary education is lagging behind. Unschooling and malnutrition affect a good number of the young population, but this does not some election issues like agriculture. This is the point at which immediate action is required because its effects are not seen immediately.

National Family Health Survey (NFHS 2019-21), a recent survey said that India’s total fertility rate is attached to below the replacement level of 2.1. Can’t we consider this as an “urgent require for reforms”’, because the young will begin to dwindle over time, and these young adult people, afterwards, who have not had sufficient learning will become a burden unless their health, education and skills are targeted? We cannot start the expectation of “TechEd India” with vast ill-equipped and unskilled citizens to deal with the future.

Investment in education and health should use some intelligent methods. Making learning interesting and engaging is where people can start enjoying learning and interacting. India needs to align the curriculum of universities with the needs of the future- biotechnology, machine learning, computing and all the developments that will further reshape the country and thus make teaching and research attractive professionals of more practical exposure. “TechEd” can be India’s movement, but India needs to grasp it in all aspects.

Conclusions

For India to shine through this difficult period, it must undergo necessary reforms.

Written by Ms Aryaa Parida, BSc in Economics, 2nd Year, Department of Economics, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research & Studies (MRIIRS), Haryana

Value Creation in a Time of Crisis

Introduction

“The limitless power of Value Creation, which is intrinsic to life, enables each of us to transform our circumstances into an arena where we can live out our unique mission, imparting hope and a sense of security to all those around us.”(Dr Daisaku Ikeda).

The world today is facing a grave set of problems including extreme weather events and the onslaught of the coronavirus pandemic which has not only affected people`s lives but their livelihood and dignity immensely too across the globe thus, throwing people into conditions wherein they find themselves requiring urgent assistance.

Present Situation

As of January 25, 2021, the number of people infected with COVID- 19 surpassed 99 million with more than 2.12 million people losing their lives. One cannot even begin to fathom the depth of grief experienced by those who have lost their loved ones in these unforeseen situations and this pain worsened by the fact that in order to contain the spread of the pandemic people affected with the Coronavirus were prevented from meeting their near and dear ones in the last moments of their lives. Nevertheless, even in these dark and unforeseen times, progress towards building a global society upholding values of peace and humanity never halted. Examples of this include the enforcement of the Treaty on Prohibition of Nuclear Weapons, eradication of wild polio in the African country etc. Each of these achievements though slow are of great importance for the world as it is moving towards the realization of the Sustainable Development Goals in 2030.

Some Remedies

With the world still dealing with the wrath of the Covid-19 Pandemic, Dr Daisaku Ikeda has put forth some approaches to enable the world to overcome this global crisis and generate a solid momentum for building a society based on the ideals of peace and humane values in the twenty-first century. The first thematic area that Dr Ikeda suggests is the determination to leave no one behind by which he means to never leave behind those struggling amidst the depths of adversity. History is evident that since the beginning of times humans have faced an unbroken series of threats and it is inevitable that we will continue to face dangers in the future as well. Therefore, it is crucial that we build a strong social foundation for eliminating misery from the core so that those who are most vulnerable and struggling are not abandoned and blotted out.

The second thematic area he explores is the need for countries to the caste of their differences of race, colour, religion, language and ethnicity to come together in solidarity to conquer this crisis.

The third thematic area he expresses is the need for people to come together to stop the spread of misinformation especially regarding the coronavirus which can fuel discrimination among masses specifically against those who have been infected. In reference to this suggests a culture of human rights be created in such a way so that no one`s dignity is at stake.

Dr Ikeda compares each individual to a drop in the vast ocean suggesting the importance of individual effort and how, when all people join their heads and come together, with peace, empathy and courage in their hearts they can overcome the direst of situations.

He describes the dynamism of Value Creation and quotes his mentor, Tsunesaburo Makiguchi, the second president of the Soka Gakkai (an organisation working for the upliftment of peace, culture and education) who compared value creation to a lotus flower in muddy water which symbolises an image in the Lotus Sutra (a Buddhist Scripture) of the lotus flower blossoming fragrantly, unsullied by the muddy waters from which it draws its sustenance. What this illustrates is that no matter how deep the chaos and confusion of times, if we remain true to ourselves and who we are we can overcome it all.

Therefore, I truly believe that through compassion, courage, empathy and by keeping the principles of oneness of life and its environment in mind and the collaborative effort of countries throughout the world we can overcome the havoc our world is in and make this world the euphoria we all dream of.

Written by Ms Vidhi Dawar, BA in Psychology, 1st Year, Department of Applied Psychology, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research & Studies

The Role of Womens' Participation in the Era of India’s New Entrepreneur

Introduction

Women entrepreneurs and their growing presence in India have had a tremendous impact on the country's social and economic demography. Women's participation in the labour force has aided millions of families in escaping poverty and has resulted in the creation of jobs. Women are known for their leadership abilities, and as a result, they dominate new-age industries such as electronic manufacturing, where women make up more than half of the workforce due to their high-precision work and higher productivity levels. This positive attitude toward work, as well as outstanding business abilities, has highlighted the relevance of women in today's workforce.

https://www.entrepreneur.com/article/343709

Women's Contribution to India's Economy

Women own 20.37 per cent of MSME businesses in India, accounting for 23.3 per cent of the workforce. They are thought to be the economy's backbone. According to Mckinsey Global, increasing women's involvement in the labour force in India might add US$ 700 billion to global GDP. Women make up a bigger share of workers in the manufacturing and agriculture industries than men. These industries are often credited with assisting families in escaping poverty and contributing to increased household income. Furthermore, literacy rates among women increased by 8.8 per cent in FY21, highlighting the country's promising future.

Impact of Women-led Businesses

Women-owned enterprises give the economy a huge boost. There are 432 million working-age women in India, and 13.5–15.7 million women-owned companies employ 22–27 million people directly. In addition, a large percentage of firms are run by women. Indian women are powerful entrepreneurs with a strong desire to start their own firms. Over a five-year period, start-ups formed or co-founded by women generate 10 per cent greater total revenue, according to Boston Consulting Group. These start-ups have a more inclusive work environment and employ three times as many women as men. Furthermore, in the following five years, women-led firms are expected to grow by 90 per cent.

Factors Influencing Women's Decisions to Start Businesses or Enter the Workforce

50 per cent of India's start-up ecosystem is led by women entrepreneurs, thanks to these entrepreneurs being inspired by recognition in the form of admiration, esteem, and reputation. According to a Bain & Company poll, more than 45 per cent of Indian women in rural areas felt compelled to establish their own business in order to acquire attention.

Results show that start-ups run by women had a 35 per cent better return on investment than those led by men. Women are more likely to start their own firms as a result of their potential to earn higher profits.

Providing for unfulfilled needs: A major issue is women's natural desire to provide for their families. Women are motivated by the need to create a better lifestyle since they make 85 per cent of purchase decisions.

Women-owned businesses are more efficient than men-owned businesses

Women-led businesses are thought to function more efficiently, and the following are some of the compelling reasons to invest in one:

● Women-led businesses have a higher return potential since they demand less investment but create more net revenue. Women-led start-ups return 78 per cent for every dollar invested, compared to 31 per cent for men-led start-ups.

● Women are excellent multitaskers, as the majority of them manage many tasks at the same time. These ladies could be quite useful in establishing a variety of income streams and assisting in the development of new businesses. According to a study conducted by psychologists at the University of Hertfordshire, when women and men were given two tasks at the same time, women slowed by 61 per cent, while men slowed by approx 12 per cent.

● The risk appetite: according to the survey done by KPMG around 40% of female entrepreneurs are risk-takers.

● Adaptability and better EQ: Ladies have a dynamic ability to adapt. A survey conducted by Bain & Company, Google and AWE Foundation of 350 ladies solopreneurs and tiny company homeowners in the urban Republic of India found that corporations that surpass ladies founders were resilient and quick to adapt. The results additionally showed that ladies additionally had a better emotional quotient (EQ).

Figure 1: Some running business by women of India

BRAND	FOUNDER/ CO-FOUNDER	FOUNDING YEAR	FUNDRAISED
ZOLO	Isha Chaudhary	2015	$90 million
MOBIKWIK	Upasana Taku	2009	$380 million
NYKAA	Falguni Nayar	2012	$148.5 MILLION
BYJUS	Divya Gokulnath	2011	$8.5 BILLION

Source: Smartbuisnessbox.in

Indian government initiatives

The Union government is focussing more than 2020 and increased the funds by 13 per cent this year (2021). It's put aside over Rs. 30,000 crores (US$ three.97 billion) in FY21. This fund allocation additionally includes numerous development schemes as listed below.

1. Bharatiya Mahila Bank commercial loan

This type of commercial loan was discovered in 2017 to assist girls accessing low-cost loans and dream huge despite their lack of resources. The theme provides loans of over Rs. 20 crores for girls entrepreneurs. A collateral-free loan can even be availed.

2. Dena Sakti theme

This theme was launched for girl entrepreneurs wanting to start out their business in sectors like Agriculture, Retail and Manufacturing. The Dena shakti lends money to the women on the application of 2 million rupees at the rate of 0.25 per cent.

3. Udyogini scheme

This scheme is for girls with associate degrees annual financial gain of Rs. 1.5 hundred thousand. It provides loans of up to Rs. 300,000 for girls needing to begin a business however don't have any capital.

4. Women Entrepreneurship Platform

This is a flagship platform started by NITI Aayog to push girls entrepreneurship. The platform hosts numerous workshops and academic events to encourage girls to start out their own businesses.

5. Pradhan Mantri mudra Yojana

Even though the theme was beginning to facilitate associate degree one wanting to line up a micro/small enterprise get an institutional credit of up to Rs. 10 lakhs, it absolutely was largely availed of by girls.

Conclusion

In sum, India was a country where a woman indeed retaining a bank account was considered a major standard. Still, it presently has over 15.7 million women-possessed enterprises, with women leading the launch-up ecosystem. This drastic metamorphosis easily underlines the eventuality of Indian women and their determination. In the coming decades, India is set to witness a major shift, with women dominating the pool as well as shaping and enhancing the future of the country. It's estimated that over 30 million further women-possessed businesses are anticipated to give 150 – 170 million jobs by 2030. This could be a game-changer and help the profitable outlook look brighter than ever.

References

1) Women’s Entrepreneurs in India,www.economicdiscussion.net

2) women’s entrepreneurship-startup India,www.startupindia.gov.in

3) Indian government initiative to help,vakilsearch.com

4) Smartbuisnessbox.in

Written by:  Mr Ashish Gupta, BA in Political Science, 2nd Year, Department of Social and Political Studies, Faculty of Behavioural and Social Science (FBSS), Manav Rachna International Institute of Research & Studies (MRIIRS), Haryana.