India

Globalization describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology.

Globalization as a spatial integration in the sphere of social relations when he said “Globalization can be defined as the intensification of worldwide social relations which link distant locations in such a way that local happenings are shaped by events occurring many miles away and vice – versa. ” Globalization generally means integrating economy of our nation with the world economy. The economic changes initiated have had a dramatic effect on the overall growth of the economy.

It also heralded the integration of the Indian economy into the global economy. The Indian economy was in major crisis in 1991 when foreign currency reserves went down to $1 billion. Globalization had its impact on various sectors including Agricultural, Industrial, Financial, Health sector and many others. It was only after the LPG policy i. e. Liberalization, Privatization and Globalization launched by the then Finance Minister Man Mohan Singh that India saw its development in various sectors. Read about the impact of globalization on Ghana’s economy

Advent of New Economic Policy

After suffering a huge financial and economic crisis Dr. Man Mohan Singh brought a new policy which is known as Liberalization, Privatization and Globalization Policy (LPG Policy) also known as New Economic Policy, 1991 as it was a measure to come out of the crisis that was going on at that time. The following measures were taken to liberalize and globalize the economy:

1. Devaluation: To solve the balance of payment problem Indian currency were devaluated by 18 to 19%.
2. Disinvestment: To make the LPG model smooth many of the public sectors were sold to the private sector.
3. Allowing Foreign Direct Investment (FDI): FDI was allowed in a wide range of sectors such as Insurance (26%), defense industries (26%) etc.
4. NRI Scheme: The facilities which were available to foreign investors were also given to NRI’s.

The New Economic Policy (NEP-1991) introduced changes in the areas of trade policies, monetary & financial policies, fiscal & budgetary policies, and pricing & institutional reforms.

The salient features of NEP-1991

1. liberalization (internal and external),
2. extending privatization,
3. redirecting scarce Public Sector Resources to Areas where the private sector is unlikely to enter,
4. globalization of economy, and
5. market friendly state.

Consequences of Globalization

The implications of globalisation for a national economy are many. Globalisation has intensified interdependence and competition between economies in the world market.

This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and international policies and economic conditions. It is thus clear that a globalising economy, while formulating and evaluating its domestic policy cannot afford to ignore the possible actions and reactions of policies and developments in the rest of the world.

This constrained the policy option available to the government which implies loss of policy autonomy to some extent, in decision-making at the national level. Now for Further analysis we take up Impact of Globalization on various sector of Indian Economy.

Impact of Globalization on Agricultural Sector

Agricultural Sector is the mainstay of the rural Indian economy around which socio-economic privileges and deprivations revolve and any change in its structure is likely to have a corresponding impact on the existing pattern of Social equity.

The liberalization of India’s economy was adopted by India in 1991. Facing a severe economic crisis, India approached the IMF for a loan, and the IMF granted what is called a ‘structural adjustment’ loan, which is a loan with certain conditions attached which relate to a structural change in the economy. Essentially, the reforms sought to gradually phase out government control of the market (liberalization), privatize public sector organizations (privatization), and reduce export subsidies and import barriers to enable free trade (globalization).

Globalization has helped in:

• Raising living standards,
• Alleviating poverty,
• Assuring food security,
• Generating buoyant market for expansion of industry and services, and
• Making substantial contribution to the national economic growth.

Impact of Globalization on Industrial Sector

Effects of Globalization on Indian Industry started when the government opened the country’s markets to foreign investments in the early 1990s. Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO.

Globalization means the dismantling of trade barriers between nations and the integration of the nations economies through financial flow, trade in goods and services, and corporate investments between nations. Globalization has increased across the world in recent years due to the fast progress that has been made in the field of technology especially in communications and transport. The government of India made changes in its economic policy in 1991 by which it allowed direct foreign investments in the country.

The benefits of the effects of globalization in the Indian Industry are that many foreign companies set up industries in India, especially in the pharmaceutical, BPO, petroleum, manufacturing, and chemical sectors and this helped to provide employment to many people in the country. This helped reduce the level of unemployment and poverty in the country. Also the benefit of the Effects of Globalization on Indian Industry are that the foreign companies brought in highly advanced technology with them and this helped to make the Indian Industry more technologically advanced.

The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs. This happened mainly in the pharmaceutical, chemical, manufacturing, and cement industries.

Impact on Financial Sector

Reforms of the financial sector constitute the most important component of India’s programme towards economic liberalization. The recent economic liberalization measures have opened the door to foreign competitors to enter into our domestic market.

Innovation has become a must for survival. Financial intermediaries have come out of their traditional approach and they are ready to assume more credit risks. As a consequence, many innovations have taken place in the global financial sectors which have its own impact on the domestic sector also. The emergences of various financial institutions and regulatory bodies have transformed the financial services sector from being a conservative industry to a very dynamic one. In this process this sector is facing a number of challenges.

In this changed context, the financial services industry in India has to play a very positive and dynamic role in the years to come by offering many innovative products to suit the varied requirements of the millions of prospective investors spread throughout the country. Reforms of the financial sector constitute the most important component of India’s programme towards economic liberalization. Growth in financial services (comprising banking, insurance, real estate and business services), after dipping to 5. 6% in 2003-04 bounced back to 8. 7% in 2004-05 and 10. 9% in 2005-06.

The momentum has been maintained with a growth of 11. 1% in 2006-07. Because of Globalization, the financial services industry is in a period of transition. Market shifts, competition, and technological developments are ushering in unprecedented changes in the global financial services industry.

Impact on Export and Import

India’s Export and Import in the year 2001-02 was to the extent of 32,572 and 38,362 million respectively. Many Indian companies have started becoming respectable players in the International scene. Agriculture exports account for about 13 to 18% of total annual of annual export of the country.

In 2000-01 Agricultural products valued at more than US $ 6million were exported from the country 23% of which was contributed by the marine products alone. Marine products in recent years have emerged as the single largest contributor to the total agricultural export from the country accounting for over one fifth of the total agricultural exports. Cereals (mostly basmati rice and non-basmati rice), oil seeds, tea and coffee are the other prominent products each of which accounts for nearly 5 to 10% of the country’s total agricultural exports.

Advantages of Globalization

• There is an International market for companies and for consumers there is a wider range of products to choose from.
• Increase in flow of investments from developed countries to developing countries, which can be used for economic reconstruction. • Greater and faster flow of information between countries and greater cultural interaction has helped to overcome cultural barriers.
• Technological development has resulted in reverse brain drain in developing countries. Demerits of Globalization (Challenges): The outsourcing of jobs to developing countries has resulted in loss of jobs in developed countries.
• There is a greater threat of spread of communicable diseases.
• There is an underlying threat of multinational corporations with immense power ruling the globe.
• For smaller developing nations at the receiving end, it could indirectly lead to a subtle form of colonization.
• The number of rural landless families increased from 35 %in 1987 to 45 % in 1999, further to 55% in 2005. The farmers are destined to die of starvation or suicide.

A Comparison with Other Developing Countries: Consider global trade – India’s share of world merchandise exports increased from .05% to .07% over the past 20 years. Over the same period China’s share has tripled to almost 4%. India’s share of global trade is similar to that of the Philippines and economy 6 times smaller according to IMF estimates. Over the past decade FDI flows into India have averaged around 0. 5%of GDP against 5% for China and 5. 5% for Brazil. FDI inflows to China now exceed US $ 50 billion annually. It is only US $ 4billion in the case of India.

Conclusion: India gained highly from the LPG model as its GDP increased to 9. 7% in 2007-2008. In respect of market capitalization, India ranks fourth in the world. But even after globalization, condition of agriculture has not improved. The share of agriculture in the GDP is only 17%. The number of landless families has increased and farmers are still committing suicide. But seeing the positive effects of globalization, it can be said that very soon India will overcome these hurdles too and march strongly on its path of development.

The lesson of recent experience is that a country must carefully choose a combination of policies that best enables it to take the opportunity – while avoiding the pitfalls. For over a century the United States has been the largest economy in the world but major developments have taken place in the world Economy since then, leading to the shift of focus from the US and the rich countries of Europe to the two Asian giants- India and China. Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century.

India, which is now the fourth largest economy in terms of purchasing power parity, may overtake Japan and become third major economic power within 10 years. To conclude we can say that the modernization that we see around us in our daily life is a contribution of Globalization. Globalization has both positive and as well as negative impacts on various sectors of Indian Economy. So Globalization has taken us a long way from 1991 which has resultant in the advancement our country.

Urbanization is a socio-economic process by which an increasing proportion of the population of an area becomes concentrated into the towns and cities. The term is also defined as the level of population concentration in urban areas. The proc ess of urbanization increases both the number and size of towns and cities. Urbanization is the most significant phenomenon of the 20th century which has almost affected all aspects of the national life in India. Being the second most populous country in the world after China India’s fast growing urbaniza tion has a regional as well as world- ide impact.

India’s urban population constitutes a sizeable pro portion of the world’s urban population. This can be well corroborated from the fact that every 12th city dweller of the world and every 7th of the developing countries is the Indian. India has as many small towns (population 20,000-49,999) as in the United States as many as medium towns (population 50,000 – 99,999) as in the former Soviet Union; as many cities (population 100,000-499,999) as in the United States; and as many metropolises (population+500,OOO) as in Australia, France and Brazil combined.

India has a long radition of urbanization which has continued since the days of the Indus Valley civilization. According to an estimate the percentage share of urban population to total popu lation was higher in the last part of the 17th century in comparison to the last part of the 19th century. The development of cottage industries and tertiary ac tivities during the medieval period helped in the evolution of about 3,200 towns and 120 cities in the country around 1586 A. D. (Raza, M, 1985, p. 60).

The damage to this indigenous industrial structure during the colonialism gave a serious blow to the process of urbanization. The roots of the existing process of urbanization lie in Western model of factory industries which started developing in the country during the early part of the 20th century. Urbanization, in India, can be studied through Census data provided at a regular interval of 10 years since 1881 onwards. These data help us in analyzing the trends of growth in the urban popula tion, decennial increase, and urbanization and number towns during the 20th century.

At the time of the reliable Census taken in 1881 the urban population contributed 9. 3 per cent of the total population of the country. The growth-trend was sluggish and even negative in some decades (1911-21) due to outbreak of epidemic (plague) and natural calamities, trend of slow growth in urbanization continued unto 1931. The decade 1931-41 observed about 32 cent growth in the urban population which increase’ its share in total population to 14. 1 percent. The growth trend was further accelerated during the following decade which witnessed a decennial growth of 41. 2 per cent (Table 28. II) Raising the percentage share to 14. 1 . Here rehabilitation of refugees from Pakistan into cities played a significant role. During 1951-61 the growth trend as slowed down (26. 4 per cent) which contributed marginal increase (percent) in the urbanization ratio. It was due to change in the definition of urban places and declassification of 803 towns in 1961 Census. Since 1961 onward there has been steep rise in the urban population and urbanization ratio so as to reach its highest point during 1971-81 (decadal growth being 46. 2 percent and addition of record number of 900 new towns). This was the peak point in the urban growth of the country during the 20th century. The trend ot growth nas been slightly slowed down during 1981-91 (39. 32 per cent) and 1991-2001 (31. 8 per cent) which is a matter of serious study by urban geographers and urban sociologists. Causes may be many folds including increasing pollution, decreasing opportunities of employment and liveli hood in urban areas and development of new sources of livelihood in rural areas to reduce the flow of rural migrants.

Above description leads us to conclude that during the last 90 years of the 20th century the number of towns has increased by 144. 6 per cent? urban population by 140,23 per cent, and urbaniza tion ratio by 133,6 per cent. Industrialization con comitant with economic development and rural o urban migration has made significant contribution towards this phenomenal growth. But compared with developed countries this rate of urbanisation is still slower. Wulker has rightly observed that while in Western countries urbanization is expanding towards rural areas but in India rural life is influencing the urban areas.

Mounting western culture degrading India on the whole. Have you ever seen the pictures of Jatindranath Mukerjee or Chandrasekhar Azad or Netaji Subhash Chandra Bose? Apart from being leading revolutionaries of the Indian freedom struggle, these three great personalities had something more in common. Almost in each picture you will find each of them clad in perfect Indian attire or dhoti-kurta. Do you find the same dress among Indians still? Unfortunately, it is becoming almost extinct more and more and the day is not far when its best position will be in the museum of any Indian metropolis.

What inference can you draw from this lamentable specimen? Western influence is rising in the Indian society by leaps and bounds and its intensity is rising with the passing of each year almost. There is hardly any doubt that the entire course is moving contrary to the dreams of the founding fathers of independent India in August 15, 1947. They had thought that the country, winning independence after the freedom struggle of almost two centuries at a stretch, would regain its vigor and set up its basis, rooted in its own intrinsic culture, with conviction.

What we are witnessing at the moment is not sad or unfortunate only but just the opposite also. Within the seven decades of national independence influences of Indian culture have started to drain almost. Even if there is any, it is under the greater protection of the western umbrella. Well, you don’t have to go anywhere else – a few glimpses of the Indian television scenario or cable television’s are going to be enough. Gone are the days when the Indian television industry used to speak in favor of national harmony, secular traditions and unity in diversity.

These days, the messages of national unification have ceased to come to the fore and the programs have been replaced by reality shows dominated by women clad in skimpy dresses. These sorts of shows go against the age-old Indian traditions and in a word, affront Indian values only. But Indians are so wild that they have little time for the national stature. Is India developing then or on the wane? You have to make the decision. Culture” and “Tradition” are more significant in a country like India which has always een cherishing its rich culture and heritage and it’s quite well known for it worldwide. But these things are just on paper and are slowly losing their sheen. Why? India is known by her people. We, the younger generation are the representatives of India in a true sense of the word. Even in history, we come across various incidents where the youth took the lead to bring about a change and get India independence from the British rule. We, the Indian youth have always been the power and pride of India.

We are the sole cherishers of India’s pride and its heritage which actually lies in its culture, its diversity, its uniqueness. In such a scenario, where the point of a rich cultured country like India is facing the problem of losing its culture, are we, the youth; the Indian youth not actually responsible for this? Are we not putting our own self image, our self respect, our mother India’s pride at stake by doing so? Just think about it my dear friends. There is no problem as such when we follow the western culture to some extent.

The problem is we are forgetting our culture to a greater extent. Why should we do so? 21st century youth doesn’t mean forgetting the motherland and following or in short adopting western lifestyle in totality. Every culture has its own pros and cons. We individuals should be strong enough to take the good and throw off the bad. But what are we doing now? It’s a shame to see that “India’s pride”; “We Indian Youth” doesn’t have even a bit of importance for India’s pride and heritage, its culture; and we are easily influenced by western culture.

Right from our clothing, till the music, the films, our attitude, our lifestyle, in short every aspect of our life has totally changed. “Change doesn’t happen on its own; it’s we who bring about the change. ” But by this change, our mother India has lost its sheen and beauty; its place; its uniqueness in the world. And we, the indian youth, pride of india; Are solely responsible for that. Friends, it’s high time now and we got to think about this now or never.

Essays on negative impact on India because of western culture? The culture of India has been shaped not only by its long history, unique geography and diverse demography, but also by its ancient heritages. Regarded by some historians as the “oldest living civilization of Earth”, the Indian tradition dates back to 8,000 BC and has a continuous recorded history for over 2,500 years. But due to the increasing development… Due to globalization… the rich culture of India is disappearing. The most impact is of western culture on India culture.

Western culture is based more on materialistic factors where as our culture has a spiritual base. The culture of India is been disappearing by many ways the youths in India do not respect their elders, the families in India live separate. And thus have lost contacts with their other relatives. The big point which is making the culture of India to disappear in bollywood the dressing style of the actresses, the slang word used in movies are been influenced the youth to bad step of life.

The young ones try to act the same as these actors do which is very bad to the culture of India. The lack of morals, the lacking faith in God, having late night parties, the influence of drugs and alcohols, least interest in Indian languages like Sanskrit, Hindi, Celebrating mothers day, fathers day, valentine day, fools day etc rather than celebrating our Indian festivals and thus wasting their precious time of life, Thinking to be independent at an early age Effect of western culture on Indians? The effects of the western culture on the Indians would be a high range of things. ne would be influential styles many of the youth started t change dhow they dressed because of the west culture. also their cooking, and language. many Indians were drove away from their native homeland. nowadays they all live on Indian preserves. Take a look around i doubt you will see Indians riding on a horse. You might say well I’m an American. Where did you ancestors come from? Probably from over seas. Well actually the only true Americans would be the Indians being that they were born and raised on American soil. I could go on and on, but i think that’s enough |

Impact Of Western Culture CHEERS”, and the party starts. With booze, fags and skimpily dressed girls who move their bodies to be the cynosure and to attract males. Everyone is wearing branded clothes, imported watches, designer accessories and what not. These things have become the necessities of the Indian youth and even the older generations. A father-son duo sitting together and enjoying their drinks, women going to pubs and discos and getting involved in obscene acts and girls taking their boyfriends to their homes to have a jolly time with parents and otherwise too.

What can one infer after reading the above lines? I guess, the first answer would be that India is changing over the course of time. India, as the name flickers, one thinks of religion, traditions, art and culture and it’s apt to think so because India is the country which is famous for its diversity in these aspects. The land where the great Raja Ram Mohan, Tagore, Gandhi transformed the thinking of people and removed the social stigmas like sati pratha the practice of widows being forced to sit on the pior of their husbands), untouchability and many more.

India was known as “Sone Ki Chidiya” (The Golden Bird) but the shine has faded away gradually with the change in I, YOU and WE. Indian society has evolved into a mixed breed of Western and Indian culture. People are becoming too much casual in both their personal and professional lives, how a “Good Morning Madam” has now become “Hi Diksha”, how a “Namaste Daadu” has become “Hey Grandpa”, courtesy the western culture.

The western culture has proved to be a setback for Indian culture, its rituals, its traditions and mannerism. The Indian morning which used to begin with bhajans and kirtans now begins with the rock of Metallica and the punk of Greenday. The age of losing virginity has gone down to teens — following the western culture, these days it has become a casual and usual trend to lose virginity as teenagers.

With the continuous influence of globalization to the world economy, country’s these days have generated a lot of initiatives in order to take this opportunity of improving their presence in the world economy. this was also the emergence of many developing markets and recognizing the emergence of once been called as less developed countries into developing countries or emerging countries in the world.

Three of the most noticed countries that perform a lot during this era of global economic change are China, Brazil and India. But, the main focus of this paper is for India, where it has transformed is economy in big ways like incorporating technology, improving political policies, etc. In this paper it will mainly focus on India’s affiliation with international business entities, is it helpful for the Indian economy or not?

With this research, it will provide readers the real outcome of affiliation for India. Before going directly on the subject matter of knowing what the impact of affiliation, it is important first to study first the current economic status of India. What are some of the developments and challenges it face and how the government is doing in order to resolve it. India just like China is two of the most populated country in the world and there is no question that the country is a perfect target for any business.

Foreign Direct Investment (FDI) is the main reason why the country’s economy is in full swing. This does not only give the country economic growth but also a big contributor of reducing economic inequalities and some regional disparities. We all know for a fact that before the start of India’s years of economic development, the country was mainly focusing only on agriculture, since around 75% of its population are living in the rural areas and only 25% lives in the city and towns.

As technology and financial support that comes from these big foreign companies, more work and business opportunities were developed in the country and enough for the professional in the city as well as other aspirants from the country side in changing their mindset of not anymore just looking at farming instead strive hard in their study and landing a better job in the city where more and more opportunities were created since the government has opened up partnership with some known big global industries and companies in the world.

Just like China and other emerging countries, with its local labor cost and not that high cost of living, makes it more enticing for foreign investment, that is why among its neighbouring countries it is only India and China that are very competitive when it comes to labor cost. This has even boosted more the agricultural business of the country and making it more progressive even the years to come. But now, the government is also very careful in limiting western influence when it comes to lifestyle, because this will later on be the problem as cost of living will also rises.

For the government, it is important to only invite investment that will only benefit the country, like in terms of technological gain and assistance in establishing infrastructure in the country which will be a big help in promoting business and commerce in the country. In short, FDI has been the main story for India in their recent success in their economy. With these developments the country will continue to urge and entice more investors to come to their country and invest, provided this will again benefit the country’s economy. (Mishra, G, 2006). Going now to the heart and main focus of this paper regarding affiliation.

Just like as stated earlier, India is new to global standards of business or just starting to learn the global business more, because before the main focus was only to its local economic developments. Affiliation has given the country and its businesses greater access to international market, which means that because of this big companies having been affiliated to them, they have influence and political presence in the global economy. This is beneficial for India in a way that it will enhance its knowledge on how to deal with the global market and only through affiliation it can easily be achieved.

This also helps local businesses to leverage their own business as well. This means that it will also encourage or motivates business in dealing with their business more and not just putting up a business, because competition will be the main key here for these unaffiliated. Secondly it gives these Indian companies with affiliates a perfect site of enhancing their skills and experience in true and real life business processes and technological advancement because only through involvement in a global operation business is where you can apply real life application of skills and knowledge.

And this can be soon to be used by local businesses as well if time already in their hands and strategic learning’s and skills are well setup for them to establish. Because for any company to achieved success in true business, the experience in applying latest business trends, processes and challenges are the key for more stable and more productive business. This was also the main reason why India is very much keen in integrating Information and Communication Technology (ICT) in their entire tertiary curriculum and with that they were now considered as one of the world’s marketable country when it comes to getting IT professionals.

This only means that the country is taking serious on getting the right skills and not just academic prioritization. Last, advantage of affiliation is that with the country’s limited financial support of putting up a huge business that can support its big economic needs either support that may come locally or internationally. Through affiliation, this can be all possible since these financially stable and big corporations have all the right resources and money as well as influential to international loan agencies because of its good standing.

Also through affiliation also helps build well needed infrastructure for India, like helping more and more professionals in getting jobs in the cities, like it is common to most companies that they provide board and logging and even allowances for their workers since it is not that costly for them because of the low cost labor but for these rural side people it is already more than the opportunity that they need and they are more than willing to take it. This has changed the lives of many Indians as it made their way of life changed and it improves a lot. (Khanna, T, & Palepu, K, 1999).

Mahindra is one of the well known global company in India and been recognized in the world. The company is a perfect example of how affiliation happens since its business will not be productive without close affiliation with companies outside India, like known companies like Mitsubishi Car Company. With the company operating globally where it established its known market in South Africa, Europe, US and then in Australia, internationalization has been the main key for this initiative which helps the company increase its market capacity and even help the company boost its revenue.

In terms of respect to diversification and cultural proximity, the company has established code of ethics for its directors, senior managers and employees, where the company stated that the company has committed in providing equal opportunity to all with no reference to religion, sex, caste or any non-job related handicap. This has helped the company to have an exchanged of expertise with other nationalities most specially learning the market in the other territories.

Lastly, in terms of performance, the company does not only focus on the different businesses it serves from its customers, but it also provides reliable support to infrastructure development, corporate social responsibility, environment initiatives like flourishing plants and flowers, in short supporting green project in India. All of these corporate responsibilities will not be possible without close affiliation with either local and international known institutions or organizations.

References

‘Corporate Governance’, n. d, [Online], Available at Mahindra Corporate Website: http://www. mahindra. com/OurGroup/whatdrives_corporate_goverence. html Khanna, T, & Palepu, K. 1999, Is Group Affiliation Profitable to Emerging Markets? An Analysis of Diversified Indian Business Groups. Mishra, G. 2006, ‘The Present State of India’s Economy’, ZNET, [Online], Available at: http://www. zmag. org/content/showarticle. cfm? ItemID=9817

Introduction Drug pricing is a complex phenomena. Different countries have different methodologies of pricing such as Germany has reference based pring. Canada has system of fixing pricing of patented drugs. India fix the prices of prescription drugs on the basis of cost of the drug. Cost is the main phemomena iin the pricing policies of the drugs. Pricing is important aspect of competition law also. But competition commission is not a price control agency. However price based anti-competitive practices are important area in competition law. DRUG REGULATORY REGIME IN INDIA Indian drug regulatory regime is devided in two branches.

Drug standards and marketing is dealt by CDCSO and drug pricing is controlled by NPPA. The CDSCO prescribes standards and measures for ensuring the safety, efficacy and quality of drugs, cosmetics, diagnostics and devices in the country; regulates the market authorization of new drugs and clinical trials standards; supervises drug imports and approves licences to manufacture the drugs. The process for drug approval entails the coordination of different departments, in addition to the DCGI, depending on whether the application in question is for a biological drug or one based on recombinant DNA technology.

The issues relating to patent are dealt by Department of Industrial Policy and Promotion. The Drugs Controller General of India (DCGI), who heads the Central Drugs Standards Control Organization (CDSCO), assumes responsibility for the amendments to the Acts and Rules. Other major related Acts and Rules include the Pharmacy Act of 1948, The Drugs and Magic Remedies Act of 1954 and Drug Prices Control Order (DPCO) 1995 and various other policies instituted by the Department of Chemicals and Petrochemicals. PRICING REGULATION IN INDIA The drug prices are regulated under Essential Commodities Act 1955.

It is administered by Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers. The prices of drugs are fixed under the Section 3 of Essential Commodities Act 1955. National list of essential medicines is prepared under this Act. The prices are controlled according to Drug Price Order 1995. It employs Cost Based formula of drug pricing. In India Drug manufacturing, standards and marketing is done under Drug and Cosmetics Act 1940. There are Drug and cosmetics rule 1945 to assist and provide procedure for the assisiting the Act. NPPA has been reguaslting the drug pricing since 1997.

It fixes the prices of essential drugs. The list of essential medicines is updated at regular intervals. As mentioned earlier, pricing policy and industry regulation constitutes one of the key responsibilities of the NPPA. Price control on medicines was first introduced in India in 1962 and has subsequently persisted through the Drug Price Control Order (DPCO). As per the directive of NPPA, the criterion for price regulation is based on the nature of the drug in terms of whether it enjoys mass consumption and in terms of whether there is lack of adequate competition for the drug.

The year 1978 witnessed selective price controls based on disease burden and prevalence. The list of prices under DPCO subsequently witnessed a gradual decrease over a period of time. Around 80% of the market, with 342 drugs, was under price control in 1979. The number of drugs under DPCO decreased from 142 drugs in 1987 to 74 in 1995. Drugs with high sales and a market share of more than 50% are subjected to price regulation. These drugs are referred to as scheduled drugs. The NPPA also regulates the prices of bulk drugs. The MRP excise on medicines was levied by the Finance ministry in 2005.

The objective was to increase revenue and lower prices of medicines by using fiscal deterrent on MRP. This change may have had some impact in terms of magnifying the advantage to industries located in the excise free zones. This also succeeded in attracting some small pharmaceutical firms to these zones. (Gehl Sampath 2008, Srivastava 2008). General objective and scope of price regulation in India the general objective of price regulation India is to regulate the equitable distribution and increasing supply of bulk drugs and formulations in india and making it available in india. Consequences of excessive pricing

Impact of price regualation on indian drug pricing Coverage of drugs in India Prices of formulations based on scheduled bulk drugs are fixed in two ways: (i) based on applications of the manufacturers and (ii) on suo-motu basis. As per para 8 (2) of Drug (Prices Control) Order (DPCO), 1995, a manufacturer using scheduled bulk drug in his formulation is required to apply for fixation of price of formulation within 30 days of fixation of price of such bulk drug (s). Applications received in NPPA from manufacturers in Form III and importers in Form IV of DPCO are considered for price fixation.

As per para 8(4), the time frame for granting price approval on formulation is 2 months from the date of receipt of the complete information from the company. 2. Pricing and Competition Issues 3. NPPA pricing methodology a. DPCO 1995 b. National Drug Pricing Policy 2002 c. National Drug Pricing Policy 2006 Director General (Investigation and Registration) Vs. Fulford India Ltd. Ishaan Labs (P) Ltd v Union of India Director General (Investigation And Registration) Vs. Parke Davis India Ltd. And Ors. MANU/MR/0039/2003, I(2004)CPJ15(MRTP) Director General (Investigation And Registration) Vs.

Pfizer Ltd. MANU/MR/0008/1999 (2000)1complj405(MRTPC) Director-General (Investigation And Registration) Vs. Zandu Pharmaceutical Works Ltd. MANU/MR/0012/1994, [1994]81compcas377(NULL). Director General (Investigation And Registration) Vs Biddle Sawyer Ltd. On 11/7/2001 Director General (Investigation And Registration) Vs Infar (India) Limited On 24/8/1999 Director-General (I & R) Vs All India Organisation Of Chemists And Druggists And Ors. On 1/7/1996 Director-General (Investigation And Registration) Vs Indian Drugs Manufacturers Association And Anr.

On 16/8/1991 Director-General (Investigation And Registration) Vs Indian Drugs Manufacturers Association And Anr. On 16/8/1991 1992 73 Compcas 663 NULL Mars Therapeutics & Chemicals Ltd. V. The Union Of India & Anr W. P. (C) 10277/2009 & Cm Appl 8853/2009 Ranbaxy Laboratories Limited V. Union Of India Union Of India & Anr. Vs. Cynamide India Ltd. & Anr. 1987 Air 1802, 1987 Scr (2) 841 4. Canadian Patented Medicine Prices Review Board Legal Framework Policies Guidelines and Procedures Submissions by Patentees on Level of Therapeutic Improvement Comparable Dosage Forms Therapeutic Class Comparison Test

Reasonable Relationship Test Median International Price Comparison Test Highest International Price Comparison Test International Therapeutic Class Comparison Test Application of Price Tests for New Drug Products CPI-Adjustment Methodology DIP Methodology Criteria for Commencing an Investigation “Any Market” Price Reviews Offset of Excess Revenues Updates to the Compendium of Policies, Guidelines and Procedures ICN Pharmaceuticals Inc. v. Canada (Patented Medicine Price Review Board) [1996] F. C. J. No. 1065 Shire Biochem Inc. v. Canada (Attorney General [2007] F. C. J. No. 1688 Conclusion

There are many barriers to entry preventing new entrants from capturing significant market share. Large footwear producer enjoy economy of scale that create cost advantage over any new rival. BIL differentiated it’s product from rivals product like Comfort (using dynamic spring pad that acted as cushion on the feet for women’s footwear), Wind (in build air technology that allowed feet to breath fresh air) etc.

The capital requirements are a high entry barrier to a new firm to the industry. However, an existing shoe manufacturer may enter the athletic shoe industry simply by re-tooling their manufacturing plant. Switching cost is very low for footwear industry because shoes are relatively inexpensive personal goods that are frequently replaced. Access to distribution channel is barrier to entry because it is really difficult for a startup firm to get shelf space at major shoe retailer. But existing firm may use their existing connections to easily access shoe distribution channel.

Bargaining Power of the Buyer

Bata was largest player in industry with 9-10%volume share and 60% market share in organized segment. It had a market share of 70% in canvas shoe segment and 60% in leather shoe segment. Their dominant market share give them power over buyer. Bata is a big buyer of raw material who buys significant part of suppliers’ revenue. This in a way provides good bargaining power over suppliers. As a part of its strategic decision Bata set up a rubber/canvas factory in Faridabad, Haryana in 1951. So it can threaten it’s supplier to integrate backward.

Bargaining Power of Supplier

Shoes are made of leather, rubber, nylon etc. These materials could be classified as commodities, where the manufacturing process adds the value. For this reason supplier have limited bargaining power over buyers. Threat of substitute product- Consumer switched from one product to another if alternatives are available in same quality and performance range and have competing price or lesser price. BIL produces 10% of total hawai ranged from Rs. 35-110 while competing local brands were selling at Rs.

Again when global trade open then market flooded with many international brands having variety and competing price. Rivalry among existing firms- Mostly numbers of competitors are stable, especially because of high entry barriers. This adds to the rivalry among existing firm. Manufacturers watch each other carefully and make appropriate countermove to match the competitors move. Leading competitor of BIL are Lakhani shoes, liberty shoes, action shoes, woodland, paragon and relaxo in organized segment. The Company’s management has evolved the strategy of the Company after considering the Company’s strengths and weaknesses.

The Company believes that this strategy will enable the Company to build on the opportunities in the market. Cost optimization and margin improvement The Company is focusing on margin improvement and cost effectiveness programs which have started yielding results. The Company has initiated strict control on costs in purchases and outsourcing and is looking at global sourcing for raw materials to improve the net realization. The Company has also been clearing old merchandize through discount sales, write offs, etc. which will enable it to focus on improving sales.

Logistics and demand based production To optimize utilization of production facilities a new logistics team focuses on obtaining specific orders from the market for best selling designs and sizes and ensures that all raw materials are available in the factories well in time so that the Company can produce and place in shops the products that consumers want. Thus the Company has been focusing on consumers and market demand which will reduce inventories and improve sales-to-stock turnover. The Company has closed five depots and converted them into C&F (carrying and forwarding) agents.

It is also renegotiating transport costs to ensure a competitive transportation cost of the Company’s products to the sales outlets. Tax-free zone manufacturing base A part of the outsourcing of manufacturing is now routed by the Company from contract manufacturers based in Himachal Pradesh and Uttaranchal which are both states offering concessions in excise, sales tax and corporate tax. The Company is also looking at and negotiating with third party manufacturing facilities in two other tax-free states of Assam and Jammu and Kashmir. The Company is thus aiming to maximize its margin improvement program. Rationalizing and re-engineering

As part of the rationalization of work practices, processes and modernization the Company offered Voluntary Retirement Scheme (VRS) to its work force. 1520 employees have accepted the VRS in year 2004. The Company plans to introduce a new VRS in year 2005. The VRS is expected to reduce the Company’s employee cost in the medium term. The Company has modernized seventeen stores, opened twenty new stores and closed down sixty unviable stores. Focus on collecting old outstanding dues The Company’s sales team is fully focused on collecting old outstanding amounts from wholesalers thus reducing working capital.

The Company is adopting a dual policy to collect the old outstanding. On one hand the Company is negotiating settlement with the wholesalers and offering discounts to those willing to pay the reduced amount. At the same time the Company is filing legal cases against those who are not willing to settle and pay. Training and restructuring the frontline sales force The Company has reorganized its front line sales force and has promoted its best performing shop managers as district managers. It has undertaken an intensive training programmed for its shop assistants and managers to ensure excellence in service to the customers.

The Company has also undertaken a rural marketing thrust where the market is growing faster than the urban markets. The Company is bringing in young managers with fresh ideas to inspire and empower the workforce with the requisite skills. Technology- installation of point of sale management information system keep BIL update about inventory level, sale figure etc. now production unit can lower down there inventory level and can produce the amount which is needed. Cost- cutting- raw material used for production account for 33% of total cost.

Now Bata identified this problem and started using different mix for footwear production with cheaper raw material. Also, they started cutting some cost through sales and distribution network, which is really huge distribution network. Brands and designs The Company is consistently trying to leverage on its established brands like Mocassino, Super Stride, Quo Vadis, Jubilee etc. at the same time create a niche for its new brands like Azaleia, Toppers, Bubble gummers, Weinbrenner and Power International. The Company has been focusing on specialty value added products for better margins.

It has been continuously introducing new designs in shoes for men, ladies and children. The Company is endeavoring to break the myth of the price factor, by introducing an economy range of products that will encompass both style and quality. Joint Venture Company formed by Bata India Limited Riverbank Holdings Private Limited (“Riverbank”) Riverbank is a joint venture company between the Company and Calcutta Metropolitan Group Limited (“CMGL”) pursuant an Agreement dated January 14, 2005. Riverbank was incorporated on February 18, 2005. Riverbank was incorporated for the purpose of implementing the project of developing an

Integrated Modern Township on a part of the surplus land situated at the Batanagar premises of the Company. The main objects of Riverbank are, inter alia, to undertake a Project relating to construction and development of an integrated modern township in Batanagar as well as any sub-projects including provision of various Infrastructure Services, Social Facilities and other services and amenities relating to the said Project, all in details set out in the Agreement dated January 14, 2005 between the Company and CMGL, and generally to carry out the intent and purpose of the said Agreement.

Chesterton Meghraj (International Property Consultants) has submitted a report titled “Best Use option Study for Batanagar Redevelopment) dated September 11, 2004. Riverbank has appointed Hellmuth, Obata + Kassabaum, , Inc. (‘HOK”) for preparing the master plan for the project. Larsen & Toubro Limited (Engineering Design Research and Consultancy, the design arm of the ECC Division) has also been appointed by Riverbank for undertaking the utility and services planning for the project.

The project is currently in the preliminary stages of planning and Riverbank shall have to seek and obtain approvals from appropriate authorities as and when necessary. Recent news 1. Bata ignores slowdown, ready to 40 new stores by March -09 Even as the retail trade industry in India faces one of its worst crises in recent years, Bata India plan to open 40 new stores across country by end of march, 09. These new stores will be based on the international format of Bata stores and will have an average size of 3,000 square feet.

The new store will primarily be located in tier-1 and tier-2 cities like Jodhpur, Ludhiana etc, apart from metros. Investment for the expansion will be raised through internal accruals. “Bata India has open over 150 new large format stores since 2006 and it will continue to open 60 new stores every year. Our retail expansion plan is aimed at meeting the shoe requirement of our customer across India” said Bata India managing director Marcelo Villagran.

As Entrepreneurship and franchising have become an increasingly viable business ownership opportunity, nearly 37,000 prospective business owners and entrepreneurs from throughout India and 11 countries across the globe are gearing up to meet face-to-face with representatives of top franchise brands at the industry’s biggest event at Pragati Maidan, New Delhi on October15-16, 2016.

Franchise India 2016 will kick off with lamp lighting  ceremony and keynote by Olympian Abhinav Bindra on October 15 at Pragati Maidan.

Franchise India is a one of its kind platform for startups and entrepreneurs to scout for business opportunities, franchise partners and investors (and vice versa) from across the country. Organized by Franchise India and Indian Franchise Association, this international exhibition cum conference has played a crucial role in boosting the development of the Indian franchise marketplace from ground zero to a 47 Billion dollar Industry over the past 14 years.

Over 400 leading business and consumer brands who will exhibit at the show will be recreating their stores (even their restaurants) on their stands, enabling business visitors and potential investors to experience the brand identity. Participating brands will be from across the world including USA, UK, Greece, UAE, Hong Kong, Japan, China, Singapore and Philippines with vast emerging, international and mature franchise opportunities ranging from as little as Rs. 20 lakhs up to Rs. 10  crores up for grabs. The exposition is one of the biggest malls in the country where people shop for their businesses.  

Startups, SMEs, and budding entrepreneurs can also take advantage of more than 30 educational seminars and 10 in-depth workshops to be conducted by notable business leaders to help evaluate,  evolve and boost new business ideas.

This year, Business Investors will also have a chance to interact with 12 + Celebrity Brands in India. Making an appearance this year includes actress Celina Jaitely, cricketer Irfan Pathan and World wrestling champion The Great Khali at the Franchise India Awards 2016 on October 16 at Hotel Lalit.

“Though risk & optimism are the hallmarks of an entrepreneur, what is important is that risk can be minimized and often avoided with intelligent upfront selection of the right business. Therefore relevance of franchising and its power to leverage entrepreneurial resources to build scalable business in India is the highest today. Franchise India 2016 will showcase the hottest Business Trends and create an environment that marries prospective entrepreneurs and the franchise Brands. Throughout the two days, the Business Investors will get to evaluate Business Opportunities to achieve financial freedom and change their lives through entrepreneurship,” Said Gaurav Marya, Chairman, Franchise India.  

India’s most comprehensive Franchise India Report “Francast 2016” will also be unveiled. The report shares that Franchise businesses are mounting at much faster pace than any other sector of the economy; and are eventually generating jobs at a faster rate too. For the sixth successive year, franchise industry witnessed 35% Y-O-Y growth, with the addition of approximately 4,050 new brands to the franchise ‘brand-wagon’ in FY 2016- 2017.  47% of Indian entrepreneurs consider franchising as the most viable option. Franchising business in India is estimated at  $47 billion currently. 

Leading thought Leaders from India including Dr. A.Velumani, Chairman, Thyrocare , Mr. Samir Jain, CEO, Green Gold Animation (Chota Bheem), Mr. Anand Singh, Country Head(India),Turner International, Mr. Manu Kumar Jain, India Head, Xiaomi, Mr. Rohan Bhargava, Co-Founder & Chief Executive Officer, CashKaro.com, Mr. Dhruva Chandrie, COO, SHopCJ Network, Mr. Pradeep Ohja, Director, Reliance Education amongst others.

You can find more details about the speakers and show @