65 Years of Diplomatic Relations between Malaysia and India: Challenges and Prospects of Trade Relations

1. Introduction

India and Malaysia have strong civilizational links that date back to history. In the contemporary period, India established diplomatic relations with Malaysia in 1957, soon after Malaysia’s independence. Both were under the same colonial ruler and very intensive freedom struggle. During India’s independence movement, Malaysia extended solidarity and support and played a very effective catalytic role. Malaysia has a strong Indian Diaspora, one of the largest communities of Persons of Indian Origin (PIOs) in the world. Malaysia became one of India’s important partners in prosperity and vice versa. In 2022, India and Malaysia celebrate the 65th anniversary of diplomatic relations along with 30 years of the ASEAN-India Dialogue Partnership. While relations between India and Southeast and East Asia have strengthened considerably over the past two decades, the partnership requires new momentum at a time when uncertainties are looming large in the world economy.

Bilateral economic relations between the two countries have crossed several milestones in the past. At present, India and Malaysia had a bilateral trade of US$ 19.2 billion in 2021-22, sharing almost 1/5th of the total trade between India and ASEAN. India’s investment relation with Malaysia is having long-standing economic links. Indian industry has been associated for over three decades with the transformation of Malaysia from an exporter of primary products into an industrialized and technology-based economy. Bilateral investment between India and Malaysia has been growing steadily. Malaysia’s FDI flows in India are close to about US$ 1 billion (between 2000 and 2020), whereas India’s FDI is about US$ 1.70 billion (between 2008 and 2020) in Malaysia. Over time, India-Malaysia economic relations have moved faster than expected amidst uncertainties. However, there remain several challenges in trade and investment areas and unaccomplished tasks. Given Malaysia’s technological prowess in manufacturing and India’s in services, there could be many new economic opportunities. A healthy relationship between them can not only drive the ASEAN-India relations but also strengthen the Indo-Pacific. In view of the above, the prime objective of this essay is to briefly review the trade relations between India and Malaysia and discuss the challenges and prospects.

2. India and Malaysia Bilateral Trade Relations

Among ASEAN countries, Malaysia is India’s third largest trading partner, next to Indonesia and Singapore in 2021-22, whereas India is Malaysia’s largest trading partner in South Asia. Bilateral trade increased by 17 times from the US $0.6 billion in 1992 to US$ 10 billion in 2008 before it declined to the US $ 8.4 billion in 2009 during the global financial crisis and rebounded to US$ 9.55 billion in 2010. With the AIFTA coming into force in January 2010 and the MICECA in 2011, India’s bilateral trade with Malaysia increased from US$ 10 billion in 2010 to about US$ 19.4 billion in 2021, with an annualised growth rate of about 7.2 per cent (see Table 1).

Table 1: India’s Exports to and Imports from ASEAN

Another important development is that bilateral trade remains significantly imbalanced. The balance of trade is in favour of Malaysia. For instance, in 2021-22, India’s export to Malaysia was about US$ 6.9 billion, whereas India’s import from Malaysia was about US$ 12.4 billion, respectively. In particular, India’s trade imbalance with Malaysia has further widened during post-AIFTA and CECA, witnessing an almost US$ 6 billion trade deficit with Malaysia in 2021-22 (see Figure 1). India has drawn the attention of the Malaysian government to the importance of more balanced trade.

 Figure 1: India’s Exports to and Imports from Malaysia (US$ billion)

            Source: Authors’ calculation based on DOTS, IMF

India’s major exports items to Malaysia are minerals fuels, mineral oils; aluminium and articles thereof, meat and edible meat offal, iron and steel, copper and articles thereof, organic chemicals, nuclear reactors, boilers, machinery and mechanical appliances; copper and articles thereof, wood; wood charcoal, aluminium, organic chemicals, iron and steel and miscellaneous chemical products. Change in India’s export items to Malaysia is also noticeable. In terms of India’s major exports to Malaysia, compared to 2005-06, India’s exports have increased significantly in terms of share of total India’s export to Malaysia in 2021-22: base metals (27.16 per cent), mineral products (23.7 per cent), arts and antiques (10.15 per cent) and chemical products (9.25 per cent) (Table 2).

Table 2: India’s Major Exports to Malaysia

In 2021-22, India’s imports from Malaysia were mineral products (29.7 per cent), fats and oil (28.02 per cent), base metals (25.47 per cent), machinery and electrical (20.11 per cent), arts and antiques (19.97 per cent), chemical products (13.1 per cent) (Table 3). Key items of Malaysia’s interest to which India has offered market access are fruits, cocoa, palm oil products and synthetic textiles. For refined palm oil (RPO) exports by Malaysia into India, as compared to the concessions under the India-ASEAN Trade in Goods (AIFTA) Agreement, only advancement of the timeline from 2019 to 2018 is offered by India, retaining the end-tariff rate of 45 per cent.

 Table 3: India’s Major Imports from Malaysia

Despite AIFTA and CECA in place to promote bilateral trade between India and Malaysia, still, most of the trade items are traded under the exclusion list (EL) and sensitive list (SL) in addition to the normal track with reduced tariff rates up to zero for most of the trade items. There is a significant increase in the number of traded goods during pre- and post- trade agreements. For instance, India’s export items increased from 2124 in 2005 to 2373 in 2010 and remained stable closer to 2339 items in 2021 for the normal track (NT). The trade under EL and SL are also continuing to trade during pre- and post- trade agreements (Figure 2). However, compared to India’s value of exports to Malaysia, India’s value of imports from Malaysia is much higher under the sensitive listed products (Figure 3). For instance, about 50 per cent of India’s imports from Malaysia are listed under sensitive lists, which are majorly palm oil and so on.

Figure 2: Trade in Goods between India and Malaysia Number of Products (at HS 8-digit level)

Source: Authors’ calculation based on Export-Import Databank, Department of Commerce, India

Figure 3: Trade in Goods between India and Malaysia Trade Values (US$ billion)

Source: Authors’ calculation based on Export-Import Databank, Department of Commerce, India

The utilization rate of trade agreements is lower than the expectation. Based on the AIC survey, many of the Indian traders reported that about 22 per cent of the firms used ASEAN-India FTA and APTA routes, followed by bilateral CEPA with Malaysia (16 per cent) and other CEPA with Japan, Singapore and South Korea, respectively (Figure 4).

Figure 4: Utilized FTA Routes to Trade between ASEAN and India

Source: AIC-RIS (2019)

Non-tariff measures (NTMs) have been used to restrict market access in the selected sectors or products.4 Several studies have found that falling tariffs have exposed the importance of other obstacles to trade, particularly NTMs, which are increasingly considered as most significant for trade.5 However, it could also have an adverse effect on trade and increase the cost of trading across borders. The UNESCAP (2017) has reported that new trade-restrictive measures introduced globally accounted for 56 per cent, whereas it was about 55 per cent at the Asia-Pacific level. Therefore, in addition to tariffs, an increase in NTMs would cause a serious impact on bilateral trade between India and Malaysia.

Figure 5: NTMs between India and Malaysia (till 2018) (Number of products at HS 6–digit level)

Source: Author’s own calculations based on UNCTAD (2019) database.

Figure 5 shows the number of NTMs imposed against each other at the sectoral level by India and Malaysia. India faces NTMs in Malaysia while exporting in chemical products, machinery and electrical, live animals, vegetable products and processed foods, among others. Malaysia, on the other, faces NTMs in India in chemical products, textiles, base metals, machinery and electrical equipment, and processed food, among others (Figure 7). This tells us that the spread of NTMs on each other’s exports is quite extensive, which nonetheless not only affects the trade but also weakens the strength of production linkages at bilateral as well as ASEAN-level.

3. Conclusions

India is the fastest growing economy and has developed a comparative advantage in services, particularly IT services. India is presently attempting to foster manufacturing development and linkages to global value chains through the ‘Make in India’ Programme. About 25 per cent of India’s global trade has been conducted with Southeast and East Asia. With Indo-Pacific in prominence along with a simultaneous rise in trade restrictiveness across countries, both India and Malaysia should strengthen the economic and investment relations by easing the burdens of NTMs, mutual recognition and harmonisation of standards, process simplification, e-trade, transparency, among others.

Malaysia has trade surplus with India consistently for over a decade or so. Barring crude petroleum and palm oil and palm-based products, which are Malaysia’s traditional major exports to India, India’s rising manufacturing sector depends very much on Malaysia’s exports such as electrical and electronic products, saw logs, chemicals and chemical products, etc. India, on the other, exports petroleum products, manufacturers of metal, live animals and meat, chemicals and chemical products, machinery, equipment and parts, and iron and steel products. Malaysia is the potential market for India’s market to the rest of Southeast and East Asia. Both have the presence of a private sector and supportive institutional mechanisms, which are needed to strengthen value chains between ASEAN and India. A stronger economic relationship with Malaysia promotes a stronger India-ASEAN partnership and vice versa.

Both countries should utilize the synergy that exists between manufacturing and services trade. Malaysia has a trade surplus in goods and has a stronghold in electrical, electronics and machinery related in addition to being a major supplier of palm oil to India, whereas India has a stronghold in services sectors in the areas of logistics, finance, IT and business professionals. Promote the areas which offer maximum gains for India, Malaysia and the rest of ASEAN.

There is a need to promote sectoral and issue-based cooperation such as ICT, energy, R&D, health, digital technology, e-commerce, SMEs, GVC participation, etc. to maximize the trade and economic potential among them. Reduce further tariffs and remove items from exclusion and sensitive lists for those products that are supporting regional value chain processes. Need reforms in NTMs and maintain consistency in standards to help the firms to engage in the regional value chain. Harmonization of standards and convergence of testing and certification requirements would help the traders to ease the complex trade procedures. For example, the signing of the MRAs in higher education, tourism industries, electrical and machinery industries, pharmaceuticals, etc. will pave the way for higher trade, investment and value chains. This will also further deepen the ASEAN-India relations in the fourth decade.

Finally, India and Malaysia are partners in ASEAN-India FTA in goods, services and investment. Both of them signed and implemented a bilateral CECA. Presently, both are also partners in the US-led IPEF. India-Malaysia trade relations, therefore, have multidimensional potential. When the world is passing through economic and political uncertainties, deepening ASEAN-India regional partnership offers high dividends, economic and otherwise. The India-Malaysia partnership stands high on its own. The time has come that India and Malaysia must unlock these ever-changing multidimensional potentials for speeding up economic prosperity.

References

AIC-RIS (2020). ASEAN-India Development and Cooperation Report 2021: Avenues for Cooperation in Indo-Pacific, ASEAN-India Centre (AIC) - Research and Information System for Developing Countries (RIS), New Delhi.

AIC (2019) Non-Tariff Measures (NTMs): Evidence from ASEAN-India Trade. ASEAN-India Centre at RIS, New Delhi, 2020.

Indian High Commission (2022) “Commercial Relations between India and Malaysia”, Kuala Lumpur, accessed on 15 August 2022, available at https://hcikl.gov.in/Commerce/

UNCTAD (2014) Non- Tariff Measures to Trade: Economic and Policy Issues for Developing Countries. United Nations Conference on Trade and Development (UNCTAD), Geneva, United Nation. Available at: https://unctad.org/system/files/official-document/ditctab20121_en.pdf

UNESCAP (2017) Asia-Pacific Trade and Investment Report, 2017, Bangkok, https://www.unescap.org/publications/asia-pacifi-trade-and-investment-report-2017

WTO (2012) World Trade Report 2012: B. An Economic perspective on the use of non-tariff measures. World Trade Organization (WTO), Washington DC. Available at: https://www.wto.org/english/res_e/booksp_e/anrep_e/wtr12-2b_e.pdf

Websites:

https://hcikl.gov.in/pdf/menu/KL_ivcc_23022022.pdf

https://hcikl.gov.in/

https://www.mida.gov.my/media-release/indian-investors-to-capitalise-on-business-opportunities-in-malaysia/

Dr Durairaj Kumarasamy is Associate Professor and Head, Department of Economics, Faculty of Behavioural and Social Sciences (FBSS), Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad, Haryana. e-mail: durairaj.fbss@mriu.edu.in

Image of Our Face and Body in The Mind

Introduction

“We are all aliens to ourselves, and if we have any sense of who we are, it is only because we live inside the eyes of others” – Paul Auster.

It’s true that we often don’t know in the least how we actually look and hence, making us aliens to ourselves. We may have a picture in our head but how true that image is? Our emotions, beliefs, past experiences and self-esteem play an enormous role in framing that image in our minds. These factors have a tendency to make one get stuck with an idea of how their face and body look irrespective of the other being true.

Context

We look within the mirror, take pictures and ask others how we look, in an attempt to understand what we look like. Yet the internal representation we’ve got of ourselves is never really accurate when to put next to how we actually look outside. It is usually said that nobody knows ourselves better than us but when it involves a mental image of our face and body it is possible that others comprehend it better than us. The mental image can be less or more accurate depending on the mental state or self-esteem of a person, though never fully accurate.

Illness and Disorder

Source: edexec.co.uk

Individuals with mental illness, namely body dysmorphic disorder or anorexia nervosa usually has their body image deformed. These individuals fear being overweight and therefore the image they have of themselves is far from how they really look. They see themselves as obese or overweighed while in real life they are dehydrated, underweight and likely to have anxiety.

Reasons

Research has been done on the cause of these body image distortions maybe though it’s not quite clear whether the cause is genetics, personality traits of different individuals, pressure from society, negative experiences of life or other factors. However, it is clear that the image we have of ourselves in our mind should not be taken lightly because a healthy body and a healthy mind don’t function separately. Both are required to be nurtured as they affect one another. In line with studies, 69% of people who are likely to gain weight are those who consider themselves unpopular as compared to those who do not. A positive self-image is promoted by a healthy state of mind.

Some Useful Measures

Knowing what the mental image of an individual’s face/body really looks like is important to help people with conditions like eating disorders. Studies were done on 40 female college students. They were asked to pick out a typical image of a body silhouette of the same gender and age. To measure feelings about physical looks, weight satisfaction and other things, the body self-esteem scale was used. Real body measurements like weight, height and waist width etc. were also taken. Analysis of the info suggested that self-portraits and self-beliefs were correlated. Females, who held visual images of their body as broader while that of their peers as slimmer, were found to be the ones with negative attitudes towards their bodies. Participants with a positive attitude and greater self-confidence showed higher accuracy in the visual representation of their bodies.

People with higher self-confidence or self-esteem would usually engage in close social interactions, through comparisons and feedback more information about physical appearance is provided by those social interactions. Also, people with the exact views of themselves are likely to experience predictable and reciprocal relationships.

It is pretty clear from the study shown above that individuals see themselves in their mindless accurately than they are. The reason why they reach such conclusions about their body is also a matter of concern. What ideal image do we have in our mind when we’re thinking of a perfect face or a body? We compare ourselves to that ideal and when we fail to achieve that appearance we experience body-image distortion.

For Gen Z, body image issues have become more common than it was before. Social media and glamour evidently play a major role in framing an ideal image of “perfection” in the minds of individuals. What is portrayed by the influencers or celebrities on social media platforms is not even near to what their real-life looks like. People fail to look behind the pictures, glamour and lights which results in the perception that their face and body should also look like the picture on their screen. If not, then the individuals consider “something” to be wrong with their bodies and then they face body-image distortion and eventually eating disorders.

Past experiences when paired with the social media influence can have more drastic effects on a person’s perception of their face/body. Sexual abuse, bullying, verbal use or constant criticism of the physical features ingrains it into an individual that their body or face does not look like the way it should. Traumatized people, when they look at the seemingly perfect image on social media and then see how the other person is liked for it may develop a fear of not being liked unless they achieve the ideal.

Conclusions

Now that we’ve seen what the studies have suggested about how we see our face and body in our mind and how important it is to have the right mental image of our body, it is important to take the necessary steps to encourage a more accurate visual representation of our face and body.

Educate the people about the subjectivity of “perfection” and also about behind the scenes social media life. Encourage counselling among those who have had negative past experiences to tackle the issue and not allow the trauma to have a hold on them. Normalize the body-image conversations and make it safe for the individuals to talk about their issues in order to actually overcome them. Stop the glamorization of mental health issues like eating disorders, anxiety, depression etc. and address the matter of concern.

References

ArashEmamzadeh (2022) This is how we see our face and body in our mind. Finding a new Home.www.psychologytoday.com

Paul Auster (2012) Winter Journal. www.goodreads.com

Image: https://edexec.co.uk/how-to-help-someone-struggling-with-body-image-issues/

Written by Ms. Diksha Shakya, BSc Applied Psychology, Department of Applied Psychology, Manav Rachna International Institute of Research & Studies

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