From The Principal's Desk

It gives me immense pleasure to find that the Department of Commerce has come out with its
First e-publication named "Commercepedia". In these contemporary times where the Indian
Economy is flooded with various milestones in the banking sector, money market, in tax
structure and various other aspects such a publication provides food for thought to all
students and academia alike. It is a happy situation to know that the quaterly publication is
going to create a vibrant environment of reading, writing and learning. I wish the Department
all success.
 From The Editor's Desk

The Indian economy is witnessing a sea change in terms of initiatives being taken by the
Government for fostering growth and development. There has been an increasing emphasis
on digitalisation and online outreach in a big way in the country. Moving with the times the
Department of commerce deems it fit to continuously evolve and develop and has therefore
come out with its maiden e-publication, "Commercepedia". The first edition is a contribution
of papers from the faculty but from the next quarter onwards the publication would contain
contributions from the students as well. I have no doubt that this process would certainly
enrich the students and faculty alike..

Penning this with the very best of wishes.

 THE GOLDEN PHEONIX
rate of 6.2 % in the June quarter of the current
year. Moreover, global financial conditions are
benign and crude oil prices are within India‟s
comfort zone. It is also worth mentioning that the
household savings rate is witnessing a declining
trend and our current account deficit (CAD) has
also increased. The general environment and
sentiments are therefore, not conducive at
present.
Dr. Jyoti Bhargava
It augurs will that the government has recently
The Indian economy prior to 1991 witnessed‟ the announced measures in banking sector, non
Hindu‟ rate of growth (3.0-3.5 %).However banking financial sector, automobile sector and
since 1991 and thereafter, the economy has real estate sector, together with some text
continued to achieve a considerable higher measure.
growth rate, so much so , that it was 8.2 % in
Specific measures for particular sectors are in the
2016-17 and 7.2 %in 2017-18. It is only recently
pipeline to be announced shortly. It appears that
that the growth rate in the first quarter of the
there is a need for structural reforms keeping in
current financial year was declared lowest (5%)
view the long term growth strategy for the
ever since the last 6 years. Even in the last
economy. As the government does not have
quarter of the preceding year, the growth was
much fiscal space, investment by the private
5.8%. Unfortunately, the manufacturing sector
sector has to be strengthen and encourage so as
growth rate has dipped to as low as 0.6% as
to bring down the unemployment rate (which is
against 6.9% in June 2018. The agricultural
as high as 6.6%), to generate additional jobs and
growth rate in 2018-19 was at a level of 2.7% as
increase the income in the economy.
against 5% in 2017-18.
The farm sector and construction activity do have
a significant potential to generate employment
and income in view of the backward and forward
linkages of the two sectors. The manufacturing
sector together with the MSME sector needs to
be given a boost up through various monetary
and fiscal measures. Fiscal reforms need to be
given due priority to attract FDI and for the
purpose, the foreign investor must be assured of
the staticity and stability in tax rates and tax
(Source:Google) laws. Fiscal stability therefore is an essential
condition for improving the financial health of
The global slowdown and the trade war has
the economy. With due administration of desired
impacted growth of almost all the major
doses, the phoenix shall certainly rise once again.
economies. However, such a state of affairs in
Indian economy is accounted for largely by the
internal factors of the economy rather than the
global factors. China, although being a direct
victim of trade war could and did have a growth
 A Road to Wealth Creation and Smart Investment
When it comes to Smart Investment it
refers to a process of allocation of funds in
such a way so that greater returns could be
generated, bearing a minimum risk.

A Comparative study of Traditional

Investment vs Smart Investment:

Example: An Investor invests Rs.

10,000 a month for a time horizon of 15
years. So the principal amount invested
would be [10,000 X 12 X 15] Rs. 18 lakhs.
Dr. Vishal Saxena
Traditional Smart
In the recent past significant changes Investment Investment
are seen in Investment avenues especially (Through FD) (Through SIP –
when it comes to investment behaviour of MF)
retail investors.
Expected Expected
Particularly in India a traditional Return 7% p.a. Return 14% p.a.
investor looks for Gold, Real estate, FDs
and Insurance as investment options but (Large cap
Mutual Funds are
because of increasing financial awareness,
considered quite a
now-a-days people are looking for some
safe bet)
aggressive investment instruments to
maximize their wealth through higher ROI Maturity Maturity
[Return on Investment], especially with the amount at the end amount at the end
help Mutual Funds, Investment in direct of the 15th year of the 15th year
stocks, ULIPs etc.
Rs. 31,88,000 Rs. 61,28,000
Therefore in this era of smart
investment, an ideal portfolio of a retail
investor must comprise of following: Conclusion: On the basis of above
study it is evident that by allocating the
funds towards a large cap Mutual Fund
[which is considered as one of the tools of
Smart Investments] we can double our
returns that too with minimum risk
exposure which will lead towards massive
wealth creation. Moreover a smart investor
always ensures a well-diversified portfolio
with minimum risk and better liquidity &
growth options.
 Reserve Bank of India: A central bank or a piggy bank?

central bank however, stripping the financial

assets of regulatory institutions such as RBI
and SEBI can compromise their
independence. The main issue with the
transfer of the recent surplus funds is the
damage it causes to the credibility of RBI as
an independent central bank. A series of
Ms. Radhika Sharma events have caused this concern:
On August 26, the board of Reserve  In 2018, RBI was made to part with
Bank of India decided to transfer ₹1.76 lakh more than 3 lakh crores from its
crore (including ₹52,637) to the government, reserves.
a move that is likely to address the Central  The government was of the opinion
government‟s precarious fiscal situation. that the reserves accumulated by RBI
This is not new phenomenon as each year were beyond its needs.
the RBI transfers any money in its balance  A committee was formed, headed by
sheet that is beyond its operational and Mr. Jalan to overhaul the economic
contingency needs to the government. The capital structure.
issue that has raised eyebrows is the amount  This move caused a friction and
of funds being transferred by RBI to the subsequent resignation by former
government- 146.8% more than what it had RBI governor, Urjit Patel.
paid last year. This massive payout has  RBI ability to meet any contingency
raised concerns among critics that the need is now questionable with its
government may be confiscating money depleted reserves.
from the central bank to meet its urgent Though the government aims to achieve
needs, thus turning RBI into a bank for the 3% of its fiscal deficit target this year
government as against bank for the nation. with the help of the funds and to reverse
This is not just a dilemma in India. Central the slow down of the economy.
banks are supposed be independent from any However, if the central government does
kind of government influence. In reality, not respect the autonomy of the RBI, the
governments all across nations try and financial markets will eventually take a
influence the decisions of the central banks toll and cause investors to lose
to their advantage. Though the government confidence in the RBI‟s ability to
has the right to make use of funds with the preserve the value of the rupee.
 Inclusive Growth for Marginalized
People and Poverty Alleviation

Dr. Shweta Bhatt financial deepening is positive to equity.

Financial sector awareness and
“SukhasyaMoolam Dharma, enhancement is necessary for economic
DharmasyaMoolamArtha, development as well as for poverty
ArthasyaMoolamRajyam” reduction. Extending the reach of financial
services to the poor through new
With these words of Sanskrit verse our technologies and simplified branch
honourable Prime Minister, Mr. Narendra regulations hold promise. Bringing
Modi exhorted the 7.25lakh bank to open financial services to rural clients is the
up the 7.5crore bank accounts so as to biggest challenge in the quest for broad-
remove financial untouchability. As based financial inclusion.
elementary level education is must for the There is a substantial gap between demand
educated society, financial and supply of financial services to poor
inclusion/education is necessary for according to their need and accessibility.
integrated economic development of the Steps are needed to make people aware of
society. financial services available to them as
In a simple language if we define; most of rural are not financial literate.
Inclusive growth as income distribution There can be special awareness camps by
over a population and technically it is financial services provider that enable
termed as per capita income. Since there is people to use the technology for cheaper
strong disparity across a region which financial services at their door steps. There
shows the direct relation with per capita is need for more financial services that
income which ultimately reflects the GDP must be compatible according to the need
of that particular country. This disparity of people in rural areas.
shows the „Financial Deepening‟ a It can be concluded the financial
measure of financial services. So it can be development not only supports economic
said that financial inclusion is positively growth but divides it evenly over a
correlated with relative success in reducing population which ultimately leads into
poverty. So we can assume that linkage of poverty allevation.
.
 Startups in India: A World Full of Opportunities

management and real time analysis of the

business environment. OYO rooms,
Flipkart, Paytm,Shopclues, MakeMyTrip
,etc is the endless list of success start-up
ventures in the last decade where the
entrepreneurs utilized SWOT analysis
beyond B-schools text books.
Just like any other situation the flipside of

Ms. Neha Sinha the coin represents the following

Start-ups are the „in thing‟ in the shortcomings or issues in a start-up

business jargon of young budding business venture some of which can be:

entrepreneurs today. Whenever economic poor tenacity of the founders, lack of

development is talked about these new adequate finances, lack of proper strategic

adventure filled business ventures occupy management, poor customer assessment

a prime position. A start-up venture could etc. But overcoming these issues is the

be defined as a new business that is in the major challenge and real opportunities lies

initial stages of operation, beginning to beyond these firewalls. The government is

grow and is typically financed by an playing a major role in providing the

individual or small group of individuals. It budding entrepreneurs the guidance and

is a young entrepreneurial, scalable support they need in the form of schemes

business model built on technology and like Startup India,National Initiative for

innovation wherein the founders develop a Development and Harnessing

product or service for which they foresee Innovations,PradhanMantriYuvaYojana,St

demand through disruption of existing or art Up Village Entrepreneurship

by creating entirely new markets. Programme etc.

The objectives of a startup are to be one‟s So a bright future lies ahead where sky is

own boss and to create employment to not the limit. Let‟s get started with a

others which warrants lot of endurance and STARTUP.

sacrifice. Numerous examples of success

of startups can be quoted through which a
common thread runs which is hardwork,
perseverance, correct strategic
 EXPERIENTIAL VALUE THROUGH TECHNOLOGY
DISRUPTIONS IN HOSPITALITY INDUSTRY

Ms.Ankita Jaiswal (SOURCE: Google)

Value is an elusive term to define but can In the same vein, hospitality service
be defined as the trade-off between providers are also betting their money on
benefits and costs received by the the emerging power of technological
customers. Further, in services setting, it advancements as they are also aware of the
becomes more difficult for the service fact that it is going to reap the benefits in
providers to provide the value to their the near future. For instance, Hotels are
guests. Therefore, various experts have using innovative technologies at every
suggested shifting the product economy to encounter to provide their customers with
the experience economy. With this new better experiential value say, at booking
philosophy, service providers are trying to phase various smart phone apps such as,
give their customers a unique and BookMyTrip,
memorable experience in order to provide Booking.com,TripAdvisor have been
them experiential value. When other introduced to provide the customers a
sectors are not left untouched with the unique and customized experience.
smart technologies, the hospitality industry Likewise, Hotels like Marriott, Hilton, etc.
is no exception.From operations to guest have incorporated check-in kiosks at
experience to marketing, smart hotel check-in phase. At this phase, one can
technology offers a variety of cost savings check in through its mobile phone, for
and revenue opportunities, and it is which one has to use the digital room key
enabling hospitality owners to reach new which can unlock the room or even start
levels of profitability. the escalator within the hotel.At the
It‟s no secret that proliferation of feedback encounter, operators are
technology has led to fuelling up the investing in various platforms that help in
expectations of consumers. Today‟s tech- monitoring their online reviews, manage
savvy customers now can‟t even imagine their online reputation and by this
paying for any of the services which do feedback they can better manage their
not meet their expectations. operational as well as guest experience
standards.
Therefore, it can rightly said that as we move
toward 2020, we can further expect to see the
service providers will reap the benefit of
cutting operational costs, &enhancing guest
experience.
 Sustainability in Higher Education Institutions

the “development of sustainable societies”.

Several global initiatives have thus been taken
to integrate sustainable development with
higher education system. A number of
Declarations, Charters and Initiatives have
been signed by higher educational institutions
worldwide to embed sustainability into their
Dr. Harshita Agrawal
system and contribute towards sustainable
Over the past few decades, a surge has come
development. Most of these declarations
towards developing sustainable organizations
highlight that by syncing organizations‟
throughout the globe. Research and academics
curricula, research activities, organizations‟
pertaining to sustainability has seen
operations as well as community outreach,
unprecedented growth. To begin with, the
with the concept of sustainability; HEIs can
notion of sustainability was taken from
walk towards attainment of the goal of
ecology, “referring to the capacity of systems
sustainable development. However, despite the
and processes to develop, to grow, to care, and
surge, research suggests that the very topic has
to endure”. Today, the concept of
received considerable attention in developed
sustainability encompasses several domains
countries as compared to developing ones as
under its umbrella as environmental
India, and that HEIs in India report very slow
(ecological), economical as well as social
pace as far as field of sustainable development
development. Higher education institutions
is concerned. One of the major reasons for the
(HEIs) are vital in taking the society on the
same could be paucity of awareness and
path of progression while bringing about the
knowledge of the very field. Thus it is high
change in the set paradigms. Owing to the
time that higher educational institutions begin
distinctive set of varied skills as well as
to discuss and infuse the concept of
academic independence, higher education
sustainability into their structure and become
institutions have the capacity of shaping the
instrumental in building a sustainable future.
values and mindsets of leaders of tomorrow in
varied sectors (as academia, economic, social,
political, etc.; and contributing significantly to
 A STRICT FINANCIAL DIET
don't lose the financial balance by saying
YES to everything.
FOLLOW THE 7-DAY RULE
Humans have infinite wants. But satisfying
our unlimited wants needs money, which
is limited. Therefore, whenever you get the
urge of buying something, tryholding your
urge for 7 days. If even after 7 days you
feel the same urge then don‟t resist your
urge but if not then you would have saved
Ms. Shweta Tiwari
yourself some money.
ATTACK DISCRETIONARY SPENDS
There is an old saying "when the going
MERCILESSLY
gets tough, the tough get going". In the era
Discretionary spends are non-essential
of rising inflation day to day you cannot
spends. Left unchecked, these eat up a big
continue to live your life as you are living
chunk of your income. To maximise your
currently. As you grow in your career life
savings try to settle for low-cost
or personal life, you need to observe
alternatives for your want. For example, if
financial prudence or say you need to start
you want to watch a movie and you can
following a strict financial diet.So here are
stream it online then why to waste money
a few tips to help you save more, spend
on buying expensive movie tickets,
less and fortify yourself in challenging
popcorn and beverages at a theatre, there
times.
are many more examples like this where
SAVE FIRST, SPEND LATER you can avoid spending unnecessary
This is the golden rule of saving and money. Reducing your discretionary
investing. Never wait till the end of the spends will go a long way in improving
month to save what's left of your income. your savings.
Start your month by saving at least 20% of AUTOMATE SMALL AMOUNTS OF
your income or following a simple MONEY
method- Just subtract your age from 100 If you haven't started saving yet anything
andwhatever left, consider it percentage of then don't worry start automating a small
saving. This will ensure a strict saving amount of money to savings. Once you
habit. start automating soon youwill realise that
BALANCE YOUR "FOMO/YOLO" these amounts getting bigger day by day
MINDSET without even causing any burden on you
With social media controlling our lives because once you start saving it will
like never before, people often fall victim become your habit.
to the "fear of missing out" phenomenon With these simple tips, I hope you will be
and instead go overboard with a "you only able to save a little more money and each
live once" mentality. While it is important rupee saved will help you speed towards
to live in the present and soak up each your life goals. There is a saying "every
precious moment of life, make sure you penny saved, is a penny earned" for a
reason.
 Changing Consumer Perception and Attitudes: Pre and Post LPG
These are the examples of consumer
behavioural norms of the past. These are
the behavioural patterns of the
generation in the pre-liberalisation era.
However, since the opening up of the
economy and the advent of
consumerism, consumer mindsets and
attitudes have taken a major change, and
so too have consumer behaviours like-
“One household, multiple products”
Ms. KritikaMalhotra
“Upgrade is part of life”
The changes in a country‟s social,
"value-based" marketing
political, legal, cultural and technological
environment brings about changes in the Some of the recent researches have
psychographics of the consumers thus established that today Indian consumers
influencing their buying behavior to a have a mass presence in social media and
great extent. India has witnessed a number the percentages are increasing
of changes due to the introduction of
continuously. Today Indian consumers are
economic reforms in 1991 which led to a
series of changes in demand patterns, highly educated and aware of the
financial transaction, need, benefit, environment around them. A large
production techniques and marketing population of the country is style
aspects. Owing to its large population, conscious. Today the consumers are
increase in disposable income and changes
exposed to an array of brands to choose
in consumer dynamics India has offered a
plethora of opportunities to the marketers from. The competition among brands
and investors across the globe. offers better discounts and sales promotion
 Mrs Verma buys the same brand of offers. There is no doubt that India is a
tea, soap and shampoo month after dream to a mass, volume marketer.
month out of absolute habit of
choosing the same brand.
 When buying a television Mr
Banerjee looks for durability as he
believes that it is a long-term asset
to be replaced only when it drops
dead.
 Mr Venkataraman buys branded
distemper when he wants to move
from chuna to a better-quality
branded paint. It is his first step
into brands.
 THE ROLE OF FORENSIC ACCOUNTING ON FRAUD DETECTION

this topic is how Forensic accounting is

playing very important on detection of
fraud in shell co. and other financial fraud
in business organizations.
Introduction
Forensic Accounting is a simply analysis
of evidences. Forensic Accounting is the
system of checks fraud both internal and
external business activity. Forensic
Dr. Neeraj Arya Srivastava
accounting is the specialty practice of

Abstract accounting describes engagement‟s, which

In today‟s hi-tech competitive world of result from real or anticipated litigations.

real business finance and accounting have The word forensic accounting can be

assumed critical importance. Accounting is divided into two parts, Forensic related to

not merely of debit and credit or a scientific method of solving crimes,

narration of the profit and loss of an involving examining the objects or

organization but it is much more. In any substances that are involved in the crime

business venture, a correct analysis of the or other words you can say Forensic means

financial indicators are crucial to relating to or use in courts of law of law or

successful decision making. This is only if public debate or arguments. In other hand

the accounts are maintained recorded and accounting stand for information about the

verified properly, are up to date and financial position of business concern or

accurate as well as the financial organization.

information is presented neatly and The word forensic accounting is

without confusion. Even a small error in integration of:

the presentation of a report could some- ▪Accounting skills.

times lead to a wrong business decision. In ▪Auditing skills

Forensic accounting expert accountant ▪Investigates skills, crates the specialty

attempted to provide comprehensive and known as forensic accounting.

balanced coverage of various accounting Basically forensic accounting is used for

concept, procedures and reporting in a fraud examination and fraud examination

clear and unambiguous manner. Object of cover fraud allegation from inception to
disposition, including obtaining evidence providing decisive information about the
interviewing, writing reports and facts found related to financial crime.
testifying. Today all financial seaters like bank,
insurance companies and even police etc.
Definition of A.I.C.P.A have needs of forensic accounting experts.
According to A.I.C.P.A. :”Forensic
accounting is the application of accounting Objectives of forensic accounting
principles, theories and disciplines to fact The objectives of forensic accounting are:
is hypothesis at issue in a legal dispute and ▪ To avoid fraud and theft.
encompasses every branch of accounting ▪To restore downgraded public confidence.
knowledge.” ▪To formulate and establish a
comprehensive corporate governance
HISTORICAL PERSPECTIVE OF property.
FORENSIC ACCOUNTING ▪to create a positive working environment.
The term „Forensic Accounting‟ was first
time used by Maurice E. Peloubet in Problems of forensic accounting in
1946.In India,Kautilya was the first person India
to mention the famous forty wages of ▪Acute shortage of qualified accountants.
misappropriation in his famous book ▪In India, there is no such institution that
„Kautilya Arthashastra‟. In India, chartered provide proper education of forensic
accountant are called upon to take up such accounting.
investigative assignment.
Wide use of forensic accounting has Conclusion
developed in India after Enron Case ,Rajat At last we conclude that accounting is not
Gupta Case and Satyam Case. all about credit and debit but it is
something more and that is „forensic
Forensic accounting in present scenario accounting‟. This forensic accounting
In the present scenario, forensic helps us in different ways in almost every
accounting is an important test for field of our society. It helps the police as it
detection of uncovering or inquiry of avoid fraud and theft and improves public
financial crime and the direction of justice, confidence.
 BANK TRANSACTION TAX [BTT]

namely via a transfer from a bank account

or by settlement with currency,and
collecting his tax by levying the tax
automatically on the debit and credit
entries to bank accounts, thereby splitting
the tax between the buyer and seller of
every transaction.
The APT tax is a uniform flat rate tax on
all transactions, assessed and collected
automatically whenever there is a debit or
Mr. Anurag Srivastava credit entry to a bank account. As such, it
is can be viewed as a bank transactions
tax. Since financial transaction account for
A bank transaction tax is a tax levied on the greatest component of APT tax base
debit or credit entries on bank accounts. and since all financial transactions are
[In 1989, at the Buenos Aires meeting], taxed, the proposal eliminates substitution
there was some logical conclusion, named possibilities for evasion and avoidance.
tax all transactions tax. The goal of the APT tax is to significantly
Automated payment transaction tax [APT improve economic efficiency, enhance
tax] proposed taxing the broadest possible stability in financial markets and reduce to
tax base at the lowest possible tax rate. a minimum the costs of tax administration.
Since all transactions must ultimately be [Assessment, Collection and Compliance
paid for by a final means of payment, costs]
 MAJOR RECENT REFORMS IN INDIAN CORPORATE LAW

Small company was introduced paid up

share capital of which does not exceed
Rs.50 Lakhs and turnover Rs.2 crores. The
scope of Associations not for profit u/s 8
was enlarged by adding research,
education, sports and environment
protection.
Regarding formation of a company under
Dr. Pawan Kumar Bhasin, incorporation stage promoters are now
required to obtain approval of proposed
Company legislation in England is the name of company from Registrar, Central
main source of Company legislation in RegistrationCentre New Delhi (MCA
India. The first Act came in 1850 followed Circulars dated 22.01.16 and 23.03.16) in
by 1857 which recognized limited liability form no. INC 1 bygiving 6 names in
concept, then 1866, 1913 and 1936. The preferential order. Application for
English judgments were closely followed registration of a company shall also be
in the Indian courts. given to CRC with a copy to jurisdictional
Registrar of Companies in form no. INC 2
Later based upon recommendations of H C for OPC and INC 7 for others.
Bhaba committee in independent India
Companies Act 1956 was enacted which The Certificate of Incorporation shall be
has now been replaced by Companies Act granted in form no.INC 11 along with
2013 a more simplified and rationalized Corporate Identity number. Moreover from
law at par with best global practices. In the now onwards, theCertificate of
present Act many obsolete and redundant Incorporation once issued shall not be
legal provisions have been discarded and conclusive where it was obtained by fraud
new provisions citing international legal or false information. U/s 11 the
environment and new technological up Commencement of Business stage in the
gradations have been incorporated. We formation of company has been deleted
shall catch up with few such significant w.e.f. 01.05.2015. However, the stage has
amendments within the purviewof present been reintroduced as sec. 10A by
discussion.Sec.464 relating to Illegal Companies Amendment Act 2019.
Association has laid out the limit of It requires to give a deceleration by
maximum number ofmembers at 50 unless director of company within 180days of
the association is registered as a company incorporation to the effect that subscribers
or under any other Act. to memorandum have paid the agreed
For a Private company u/s 2(68) minimum value of shares and registered office of
paid up capital of Rs.1 lakh and Public company has been verified in form no INC
companyu/s 2(71) Rs.5 lakhs omitted 20A.
w.e.f. 1.5.2015. New tables for Memorandum A, B, C, D,
One Person company u/s 2(62) was E and for Articles F, G, H, I, J have
formed under the recommendations of J J beenreleased u/s 4(6) and sec.5
Irani Committee with only one person as respectively.
its member. Another Company known as
 obtained Directors Identity Number u/s
154 from the CentralGovernment.
Under the Red Herring Prospectus the new
mode of payment has been introduced U/s 203 a Company Secretary has to be
whichhas been named as ASBA i.e., compulsorily appointed in every listed
application supported by blocked amount. companyand unlisted company having
paid up share capital of Rs.5 crores or
Issue of shares at discount is now
more. Further u/s 204 every listed
prohibited and can be issued only as sweat
company, public company having paid up
equity sharesu/s 54.Every Company must
share capital Rs.50 crores or more or
have atleast one director as resident
having turnover Rs.250 crores or more
director who has stayed in Indiafor atleast
shall annex along its board report a
182 days in Previous Year in India.
secretarial auditreport in form no. MR 3
Further, there must be atleast one
given by Company Secretary in whole
womendirector in every listed company
time practice.
and public company with paid up share
capital Rs.100crores or more or turnover Board meetings may now be conducted
Rs.300 crores or more. No person shall be through video conferencing or other audio
appointed as adirector unless he has visual means (sec.173(2)).
 RECENT MERGER OF INDIAN PSU BANKS:
A DRIVE TO BOOST ECONOMY AND ITS CHALLENGES
of staff and network is the effect that can
be easily seen. In addition Merger would
help in consolidating strong national
presence and global reach of such banks.

Merits of Merger

 A large capital base would help the

acquirer banks to offer a
large loan amount
 Service delivery can get improved
Dr. Pranati Misra  Large entities will be able to
exploit to their full potential.
Decision regarding merger with the  Recapitalization need from the
objective of making Indian Public Sector government to reduce
 Technological upgradation
Banks "global-sized banks" is really a
challenging one but in reality, if things are Demerits of Merger
carried out in well planned direction then it
 It would be tough to manage issues
can foster economic growth and strengthen pertaining to human resource
banking sector. Unfortunately, G.O.I  Few large inter-linked banks can
seems to be blind to the risks. expose the broader economy to
enhanced financial risks
With new developments taking place in
 The local identity of small banks
the Indian Banking Sector, the latest won‟t be that prominent
announcements regarding merger of ten  Some of the merged banks have
NPAs greater than there Net worth
banks into four is really a very challenging
post merger.
move. There will now be only 12 public  Tackling a New NPA
sector banks. Merger of PSU banks has its
share of merits and demerits. The addition
 UNEMPLOYEMENT TRAP

Ms. Osceen Mishra employment. The strong establishment of

start-up culture and new job opportunities
Unemployment Trap is a situation when
are needed to invoke on the ground.
unemployment benefits discourage the
unemployed to go to work. People find the Unemployment occurs when a person who
opportunity cost of going to work too high is actively searching for employment is
when one can simply enjoy the benefits by unable to find work.
doing nothing. Late. Dr APJ Abdul Kalam
Causes of Unemployment
once said that the population of one billion
should not be perceived as a problem,  Large population.
rather as an asset to kindle a multiplier
 Lower level of vocational skill level.
effect, leading to a greater GDP. He was a
huge advocate of education as the primary  Support from State Govt is inadequate

driving force of personal growth. He due to legal complexities and low

believed that it was knowledge that made a infrastructural, financial and market

person great. On 15th August 2019, India linkages to small/ cottage industries or

would celebrate its 73rd Independence small businesses, making such

Day but still as a developing country, enterprises unviable with cost and

which has a poor economy as compared to compliance overruns.

other developing nations. Also, India is a  School Curriculum does not fits with the
young nation because 70% population of current requirement . This is the main
India are youths and consequently, the cause of structural unemployment.
biggest issue is also related to youths. The
 Low productivity in agriculture sector
very fact that the issue of unemployment
combined with lack of alternative
can be resolved by increasing
opportunities for agricultural worker
 which makes transition from primary to  Government needs to keep a strict
secondary and tertiary sectors difficult. watch on the education system and
should try to implement new ways to
 Regressive social norms that deter
generate skilled labour force.
women from taking/continuing
employment.  Effective implementation of present
programs like Make in India, Skill India,
Way Forward
Start up and Stand-Up India.
 Focus on labour intensive
 There is a need for National
manufacturing sectors in India such as
Employment Policy (NEP) that would
food processing, leather and footwear,
encompass a set of multidimensional
wood manufacturers and furniture,
interventions covering a whole range of
textiles and apparel and garments.
social and economic issues affecting
 Public investment in sectors like many policy spheres and not just the
health, education, police and judiciary areas of labour and employment. The
can create many government jobs. policy would be a critical tool to

 Decentralisation of Industrial contribute significantly to achieve the

activities is necessary so that people of goals of the 2030 Agenda for

every region get employment. Sustainable Development.

 Development of the rural areas will Conclusion

help mitigate the migration of the rural Unemployment casts some short term
people to the urban areas thus ripples throughout the economy by
decreasing the pressure on the urban reducing an individual‟s contribution in
area jobs. terms of services and taxes. The

 Entrepreneurship. unemployed also does not possess the

power of purchase, thus in effect
 Concrete measures aimed at
contributing to bringing down demand of
removing the social barriers for
goods in the market and creating more
women’s entry and their continuous
unemployment. This vicious cycle creates
participation in the job market is needed.
a cascading effect throughout the economy
and trickles down to different social strata.
 CURRENT SCENARIO OF RECESSION IN INDIA

Bankruptcy Board of India). They

comprise of companies drawn from real
estate, renting, construction, wholesale
market and retail trade associated large
groups, chains associated with restaurant,
companies associated with electricity,
transport and FMCG associated
companies. Today 2162 companies have
gone into the ambit of Insolvency Act.
Ms. Mohini Gupta
More than 1250000 housing units are left

The pangs of recession on Indian unsolved. Parle Company is shrinking the

economic environment are clearly visible production of Parle G biscuits which cost

in the current financial year. All the Rs 5 to Rs 30 per pack, due to fall in

sectors of the economy - the agriculture demand. This is likely to leave 10,000

sector, industrial sector, real estate sector, employees out of job. Maruti Company

readymade garments sector, export sector, which manufactures cars has reduced its

are all reeling under the perpetually production by 30% and other companies of

increasing loss of growth rate, lack of 4 and 2 wheelers have also cut down their

effective demand, unemployment etc. The production. 4 crore 54 lakh people find

present is bad and future is worse. The themselves jobless. Thus in short, situation

labour force participation rate in of the economy is grim and needs an

manufacturing and production sector as overhaul.

per economic survey of 2012 was 55.5 %.

It has declined to 49.7% in 2018. In CAUSES OF RECESSION

absolute terms the number of workers has  Automization in process of

declined from 467.7 million in 2012 to production which has reduced the
2461.5 million which are 2.77 times of the demand for labour leading to fall in
figures for 2011. A report on economic employment and income for them.
service states that 899 companies  Falling rates of interest on deposits
associated with manufacturing have gone and lack of confidence of the
bankrupt (Report of Insolvency and public in banking sector has forced
 investors to invest in other  Bank frauds by Vijay Mallya,
channels rather than banks. The Nirav Modi and few thousands of
banks are in deep financial others left economic conditions of
distress because of NPA and low banks in a lurch and in a
deposit rates. dilapidated financial condition
 Disparities in income are widening leading to credit squeeze.
as one percent people control 90%  At the time of elections political
of India's wealth and over 80% parties spend crores of Rupees
people have an income below in campaigning. This money comes
Rupees 20000 so that expenditure out of the black money
is restricted to 1% people, thereby accumulated with political parties.
reducing demand. It is a non productive affair which
 High rates of taxes repel the adds to redundancy activities
foreign investors to invest in India. without any returns.
Large scale transfers and flight of
capital have generated SOLUTION TO THE PROBLEM
unemployment. Infusion of money in the hands of those
 Demonetization damaged the rural people with the high marginal propensity
sector where majority of to consume is the need of the hour. This
transactions are for cash. The could be by reduction of Rates of taxes,
small businesses make majority of generation of employment opportunities,
dealings in cash. Such businesses increase in public works, which would
collapsed when cash crunch was leave disposable income with the public
generated by demonetization. and that would generate effective demand.
 GST was introduced in haste and Fiscal measures will be more fruitful than
without proper planning. Since the the monetary measures already applied by
day of its introduction and till date the government.
over 300 amendments have been
made leaving the businessman
highly confused.
 THE INDIAN RED CARPET OF SINGLE BRAND RETAILERS

that 30 per cent of total value of goods

should be sourced locally. But in order to
provide greater flexibility and ease of
operations the Government relaxed the
norms which will eventually lower the
entry barriers for foreign SBRs.

The e-commerce related rules in India for

foreign SBRs are already liberal since
Ms. Gulshia Rizvi 2015 where online sales are allowed
without prior brick and mortar presence.
To have the economy out of the present
Many foreign brands like Spanish retailer
slump the Government of India has
Zara, fashion brand H&M and big
announced new FDI reforms in August
multinational group IKEA have already
2019. FDI is an essential driver of
availed this opportunity. These reforms
economic growth and a source of debt-free
have drawn into India a total FDI of USD
finance that aids economic development of
286 billion in five years from 2014 to 2019
the country. The government has rolled out
vis-`a-vis USD 189 billion in the previous
an investor-friendly policy on FDI, under
five-years.
which investment up to 100 per cent is
permitted on the automatic route in most Recent relaxations will further lower the
sectors/ activities. This shift is enlivening entry barriers, and hence encourage more
for the single-brand retailers (SBRs) foreign retailers
because earlier, the FDI Policy provided
to enter into the Indian market with market, and the revised FDI policies are
lucrative investments, thereby contributing definitely leading India too into that
to the growth of income and employment. direction. Increased online sales will result
Apple seems to be the biggest reaper of the in generation of employment opportunities
present benefits as it works on contract in digital payments, logistics, customer
manufacturing with its manufacturing care and product designing. With the
partner Wistron and Foxconn to presence of giant retailers, India‟s e-
manufacture and assemble its products in commerce market is expected to strike
India. Now it has an option to open its USD 150 billion by 2020, a substantial
exclusive online stores and flagship stores figure to boost up the industry. Thus, the
without much difficulty. road ahead for India looks dazzling as the
bounties (investments) of the world are up
Now a days, buyers and retailers across the
for grabs.
globe are relying more on online avenues.
India is still a massive brick and mortar
 THE BIGGEST REFORM IN BANKING AFTER 1949 NATIONALISATION

After the major change now country will

Ms.AnkitaVerma have 12 public sector banks instead of
18banks at present. The biggest merger of
The banking sector in India have gone
PNB, OrientalBank of
through many improvements since
CommerceandUnitedBank of India will
nationalisation in 1949. Still over the
now be the second largest lender after SBI.
period of time it has been facing many
The merger of CanaraBank and
problems such as large over dues,
SyndicateBank will create the 5th largest
competition from NBFCs , competition
lender with the UnionBank, Andhra bank
from ForeignBanks, Non
and CorporationBank amalgamation at
PerformingAssets etc. More or less which
no.6, based on business at the end of
has a impact on slowing down the
march 2019.The finance minister have also
economy.
cleared that there will be no change or
If we take a look of near past the economy
disruptions in the operations of the
has slumped to its lowest pace in past 25
merging banks, which means banks will
quarters which has prompted the
run the same way or in the similar
government to unleash some efficient
platform.
measures to speedup the economic activity
These mergers could impact almost every
and give it a push towards growth and
other individual who has a saving account
development.
or fixed deposit account with PSU banks.
Under such stressful scenario optimists
According to the government these big
have got a ray of sun with the words of
mergers will result in enhanced credit
finance minister, Nirmala Sitharaman,” the
capacity of banks and global competitive
creation of next generation bank was
edge by increasing their operational
imperative for India to become a $5 trillion
efficiency and by reducing their cost of
economy in the next 5 years.”
lending. Also all this could help in raising
To revive the economy government has
the level of investment and hence the
now focused upon the largest influencer of
exports at a large level. It would welcome
economic development- Banks. Modi
more and more foreign portfolios in India
government after 50 years of banks
along with shrinking of “Bad loans” of
nationalisation has announced a
banks, which would raise the lending and
revolutionary change in banking in india.
ultimately the raise in manufacturing and
On 30th August 2019 finance minister
investment, with the ascend of sensex.
Sitharaman unveiled a mega plan to merge
10 state run lenders into 4 large entities.
 Economic Slowdown in India and its Remedy
came in the form of a reform when GST
was rolled out in July 2017.This has a
knockout effect on exports growth.
Investment is considered as an engine of
economic growth, but the value of new
projects announced during April to june
Mr. Kamal Kaushik 2019 fell by 79.5 percent year on year.This
Slowing down of economic growth and is a great indicater of the fact that
high rate of unemployment are the businesses really do not have faith in the
challenges which are being faced by the economic future of India.
Indian economy. Government figures
The question now arises that
released showed that India‟s economy
how can India reverse this economic
grew at a much lower than expected rate at
slowdown? In this regard certain steps
five percent in the second quarter of this
should be taken :
year. Disappointing growth rate means that
India is no longer the world‟s fastest Firstly, government needs to
growing economy. Several indicators such spend more in order to overcome the
as automobile sales rail freight, petroleum slowdown. Government needs to spend
products consumption, domestic air traffic more to spur investment and demand in the
and exports and imports show a slowdown economy. Secondly, there is a need for
in domestic consumption. steep rate cut in the benchmark lending
rates to allow for the monetary policy
expansion.Thirdly,there is a need for
certainty in the business
environment.Businesses should be without
shocks like demonitisation.Fourthly
government needs to spend more in rural
areas because this can drive up the
consumption demand which in turn will
boost industry.
Demonetisation that happened in
Thus,if due corrective measures are
November 2016, dealt a severe blow to
taken,Indian economy could come back on
consumption, leading to vicious cycle of
rails with high growth rate of eight
joblessness and lower income, which led
percent.
to further drop in demand. Next shock
 Taxation : A Tool for Economic Development

in checking inflation by reducing the disposable

income of customer by increasing direct tax
thereby reducing the demand & non essential
consumption of commodity leading to price
stability with further imposition of GST , which
at the end help the economy for increasing their
Vanchhit Tangri GDP.

Introduction: Capital formation is an important Direct Tax and mobilization of resources :

tool for economic growth & development which India & other developing countries have been
can be attained by increasing the rate of savings regarded as a good base for direct tax. Imposition
& investment, leading to mobilization of savings of high direct tax rates not only accumulates
into productive resources. Due to limitations of financial resource to the Government but also
Government policies of borrowing & Deficit help to reduce inequalities of income & wealth.
financing, the role of taxation is of great However a progressive income tax affects private
importance. Fiscal policy, if properly designed, is savings and investment leading to tax
an effective way for mobilizing savings of both evasion. In this regard two proposals have been
i.e. public & private sector for financing public put forward in the history of tax in India-
investment. Tax may be the most effective means (a) Firstly, it was proposed to charge expenditure
for increasing the total volume of savings & tax from rich assesses who evade tax for which
investment in developing countries where various policies assessment , surcharge marginal
propensity to consume is high which will not relief , GST returns, composition schemes etc.
only lead to capital formation but also will lead have been amended from time to time to keep a
to equitable distribution of income & wealth, proper check on tax collection and evasion.
price stability and creation of employment (b) Secondly, it was proposed to allow some
opportunities. rebates & exemptions to assesses to increase
Taxation is an important tool of fiscal policy for their savings thereby inducing them to invest
capital formation in the economy. To raise ratio their savings investment plans for economic
of saving to national income and thereby development.
increasing the rate of resource formation in the Some of the merits of direct tax in resource
economy, it is necessary to increase marginal mobilization are-
saving rate. By imposition of higher direct & (1) It helps in raising resources in a non
indirect tax , the behaviour of the assesses will inflationary way.
turn towards saving more of their income and (2) Helps to reduce inequalities of income &
investing it in certain policies in order to get rid wealth.
of tax , leading to increase in marginal rate of (3) Helps to reduce conspicuous consumption &
savings in the economy. Tax not only helps in thereby increasing economic surplus.
capital formation for the economy but also help
Indirect tax and mobilization of resources: As put in various policies for better returns and
a result of some limitations of direct tax system, thereby will be helpful to the Govt. in raising
developing countries have resorted to use funds from public firstly from the point of
indirect tax system & India recently introduced consumptions and secondly from the various
GST as a investment plans in which the public will invest
by reducing their unnecessary consumption. And
uniform tax all over the country replacing all at end it is very much helpful to the government
multistage taxes such as, VAT, service tax, in raising funds for economic development of the
entertainment tax etc. It will not only simplify country from a two way basis, firstly, public will
the indirect tax system in the country but will cut down their conspicuous consumption & will
also help mobilize their savings when they will be charged
GST on their consumption which would generate
the Government to raise fund for economic revenue for Government. And Secondly, when
development from the public consumption public will mobilize their saving , they will be in
activity. Since it is a tax on consumption it will search of some investment plans which would be
induce people to consume limited and will help helpful to the Govt. to raise fund for economic
them to increase their savings which they will development and thereby it will assess in
increasing GDP of country as a whole.
 CYBER SECURITY : CENTRAL INGREDIENT IN EVOLVING
DIGITAL BUSINESS MODELS

As the enterprises plan to keep pace with quickly appraisal yet this isn't
advancing digital economy, many are rebuilding sufficient for an endeavour
their internal departments by employing criteria they have to adopt some
and procedures by which they can create and different activities to protect
disseminate items with the target of ending up their business information
increasingly capable at for rapid responding to and procedures.
new opportunities in market. They can go for data encryption which means
As organizations grasp advanced change cyber interpretation of information into a secret code.it
security needs to more than just an idea. While is a successful method for securing information
receiving rising advancements, for example, where to read an encrypted file one must
artificial intelligence (AL), robotics and cloud, approach to a secret key or password that
Cyber security should be a necessary piece of empowers them to decode it. Another way is data
technology roadmap. redaction which means the process of
The connectedness of the present digital world suppressing sensitive data such as personally
has encouraged cooperation and expanded identifiable information, it allows organizations
comprehension crosswise over topographies, to transform sensitive information into patterns
However, it has altogether expanded cyber that aren‟t comprehensible
threats. According to the on-going reports by Even large organizations with top talent and
Data Security Council of India (DSCI), India has significant resources devoted to cyber security
been the second most cyber-attacks influenced have suffered major cyber security compromises,
nation from 2016-2018.Almost 76% and organizations that do not have such levels of
organizations were hit by online assaults in talent or resources face even greater challenges.
2018.As per the research, one of the main More highly skilled workers in cyber security
motivation for the ascent in security rupture roles would help the nation respond more
cases is that associations don't join cyber security robustly to the cyber security problems it faces.
in their advanced change guide. All organizations need to understand their threat
Undertakings are currently getting to be mindful environment and the risks they face, address their
of the hazard brought about by security ruptures cyber security problems, and hire the most
and along these lines are performing breach appropriate people to do that work.