Volume 4  •  Number  10  •  October  2010

Sustainable Development And Fostering Inclusive Growth Through Microfinance In The Indian Economy

The Indian story of growth, especially in the post liberalization era, has been overshadowed by multiple human development issues. Exclusion has been identified as the primary reason for unequal distribution of the benefits of growth. The emergence of inclusive growth in the policy paradigm is the outcome. The purpose of this paper is to focus on social & economic issues and the use of microfinance as a strategy for inclusive growth & sustainable development.India has vast diversity in the areas of language, religion, culture and social norms. Since the inception of India as an independent country, population explosion has been projected as a prime concern of the state. Soon after independence, Indian leaders were thinking of strategies of economic development the country should follow. The top priority of the Indian Government was to have rapid growth in a stagnant economy. India decided to follow a socialistic pattern of society, which meant growth with social justice, self-reliance and poverty alleviation. Stress was laid on rapid industrialization and for shift from its historic agrarian-based economy to a mixed economy with sectoral balance. The fall-out was creation of heavy industries and a larger role of the public sector. In the process, the Government neglected rural economy and rural population, which is almost 2/3rd of the total population. In 1991,the Government of India introduced economic reforms. Globalization, industrialization, liberalization and privatization led to tremendous economic growth. This growth carried the characteristic feature of urban centric saturation. The prevalent disparities in the form of social, spatial and regional disparities were aggravated due to this unplanned approach. An attempt has been made in this paper to look at sustainable development & inclusive growth as the most pragmatic approach for addressing the multiple development disparities.

Anuradha PS
Associate Professor & Coordinator
Department of Commerce
Christ University
Bangalore
anuradha.ps@christuniversity.in

Dr.G.Ganesan
Dean & HOD
Department of Commerce
Bharathiar University
Coimbatore,Tamil Nadu
 

One of the most rapidly growing areas of internet technology is the World Wide Web, which is used for business communication in various forms. It has the potential to be used in almost all the functional areas of management and business. Recently, the companies have started reporting their financial results and other information relating to the business on their website. The internet technology provides a new platform for disseminating all this information. It is a technology that has the potential to exhibit distinctive and attractive features of information which makes it an efficient and cost effective measure as compared to the traditional methods of printed media. It offers users the facilities to access documents containing multimedia mixtures of text, graphics, sound and video in a standard format which is open to everyone. It is a fast, cheap and increasingly used media of information in the business world today.

Dr.Anita Shukla
Associate Professor
Department of Accounting
J.R Nagar Rajasthan Vidyapeeth University, Udaipur
Rajasthan
 

Mouni Geoffrey Gekara
Research Student
Department of Accounting
J.R.Nagar Rajasthan Vidyapeeth University
Udaipur, Rajasthan
jeoffrey8@yahoo.co.in
 

Financial Derivatives and Risk Management : Retail Investors' View

With the opening up of the economy to multinationals, the adaptation of liberalised economic policies, the economy is driven more towards the free market economy. It exposes the investors to various risks such as exchange risk, market risk, interest rate risk, economic risk and political risk and so on. With the integration of the financial markets and free mobility of the capital, risks also multiplied. In the present state of the economy, there is an urgent need for the investors to protect their interests by shifting some of the uncontrollable financial risks to those who are also to bear and manage them. Thus, risk management becomes a must for survival since there is a high volatility in the present financial markets. In this context, derivatives occupy an important place as a risk reducing mechanism. Derivatives are useful for reducing many of the risks mentioned above. History of financial markets has evidence to suggest that when risk management avenues are provided by means of derivatives, markets attract higher volumes of investments from savers, strengthening the markets in the process.

N.Ramanjaneyalu
Assistant Professor in Management
Kousali Institute of Management Studies
Karnatak University,Dharwad,Karnataka
n.ramulu@gmail.com

Dr.A.P.Hosmani
Reader in Commerce
Department of Commerce
Gulbarga University
Gulbarga,Karnataka

Tax Evasion And Corruption In The Indian Income Tax System : Causes and Remedies

Tax evasion refers to the efforts by an assessee to evade taxes by illegal means. It involves dishonest tax reporting and hiding of income. Tax evasion is a serious concern of fiscal policy all over the world. It is closely related to corruption in tax system of a country. It is unethical and shows that public does not have respect for tax system of the country. It further implies that there is something wrong with the tax system of the country. It reduces public revenue and generates black money. It has been recognized that black money is not a fund, but a stream. Thus, the amount which would have been used for economic and social development is used for anti- social activities such as gambling, speculation in real estate or stock market, financial scams, smuggling etc. Therefore, it is not only detrimental to the economic progress of the country, but is also harmful for the society at large.

Vaneeta Rani
Assistant Professor
Department of Commerce,Govt Bikram College of Commerce,Patiala,Punjab
vaneeta142@yahoo.co.in

Dr.R.S.Arora
Professor
Department of Commerce
Punjabi University
Patiala,Punjab

radhasharnarora@gmail.com

Management of Non-Performing Assets In Regional Rural Banks - A Case Study of Pandyan Grama Bank (PGB),Virudhunagar, Tamil Nadu

There is a general concept commonly accepted "A Man or Woman with no money is equal to a dead body ". Here it is suitable to insist the importance of money; a Rumanian Proverb says that "A Man without money is like a bird with no wings". The basic functions of banks are accepting all kinds of deposits and supply money- “The life blood of business concerns” by lending process. Basically, India is an agriculture based country. Agriculture and its aided activities like cottage, small scale industries play a dominant role in the Indian economy. The Gross Domestic Product of India is occupied up to 60% - 70% by the agricultural income. Whatever it may be for long term and short term capital requirement, money is highly essential. The banks supply the money for all activities. To concentrate on the development of the rural economy, the Government of India extended help for the rural farmers, artesians, entrepreneurs by opening region rural banks, in addition to commercial banks and cooperative banks. In India, regional rural banks are functioning since 1975.

R.Suresh
Faculty of Commerce
Madurai Kamaraj University College
Theni Dist,Tamil Nadu
jeyasuresh_suresh@yahoo.co.in
 

Self Help Groups (SHGs)- Bank Linkage Programmes : Focusing On The Inclusion of Financially Excluded People

Finance is the root of economic growth and credit is considered to be its branch. The latter grow vertically, which helps the former to inflate horizontally. In other words, the rapid growth of finance system depends upon the strong and sound system of credit policy in an economy. Credit is a basic lubricant (Singh 2000) that helps to provide a push to the development process. It is the fourth basic prerequisite after food, cloth and shelter for the development of people. Providing credit to the needy people at the right time, at the right place helps in speed development of the society. As the one third of population in our country is living in rural areas, so there is much necessity for inclusion of rural people in the finance system. Delivery of credit at the doorstep of those who are not covered by the formal banking business, coupled with capacity building, is one of the ways for achieving financial inclusion (Sharma 2009). Inclusive financial system, one that allows broader access to financial services, can lead to faster and more equitable growth. Such a system allows poor households to save and manage their money securely, decreases their vulnerability to economic shocks and allows them to contribute more actively to their development. In India, as far as rural credit system is concerned, it has many dimension and peculiarities and informal source of finance was once the only and dominant from of rural credit. It consists of village moneylenders, landlords, friends and relatives. The appearance of co-operatives, Regional Rural Banks (RRBs) and commercial banks has no doubt reduced the share of informal source of finance to supply credit, but not up to the desired extent. This leads to limp down the growth rate of the rural economy. To solve the above problem, the Self Help Groups-Bank linkage programmes (SBLP) approach of National Bank for Agricultural and Rural Development (NABARD) started in 1992, which not only helps to improve the village economy but also makes the rural finance system more inclusive and sociable for common people. An attempt has made in this study to analyses the progress of SHGs-bank linkage (SBLP) programmes of NABARD in rural India to provide financial service to the helpless and neglected groups and to make un-bankable people bankable. The section-I of the study focuses the rural finance system of the Indian economy. Section-II highlights the achievements and performance of SHGs-bank linkages programmes in the Indian financial system. The section-III of the study analyses the challenges and suggestions to bring some change for socialization of the linkages.

Sangram Panigrahi
Junior Research Fellow
Gokhale Institute of Politics and Economics
Pune,Maharashtra
spsangramjrf@gmail.com