SNMV COLLEGE OF ARTS AND SCIENCE
ABOUT US:
The college was established in the year 1989 by CWA (Coimbatore Welfare Association) and shining in the field of education for the past two decades. It has the credit of creating very good entrepreneurs and leaders in the society. It has been accredited with “A” grade by NAAC (National Assessment and Accreditation Council) for its good infrastructure, teacher taught ratio (TTR), student amenities etc.
COMMERCE DEPARTMENT:
Commerce department enjoys the credit for the great success of the college by producing talented scholars every year. The department is doing many things for the development of the students and for motivating them.
CONTENTS
S.NO | CAPTION | PAGE NO. |
1 | CURRENT AFFAIRS | 3 |
2 | ICWAI | 5 |
3 | COMQUIZ | 7 |
4 | HR DEVELOPMENT AND INTERPERSONAL SKILLS | 9 |
5 | IMPACT(RETAIL REALITIES) | 10 |
6 | WHAT’S NEW | 11 |
7 | DARK SIDE OF BRIGHT INDIA | 13 |
8 | MARKET WATCH | 15 |
9 | FINANCE AND H.R MANAGEMENT | 16 |
10 | DEPARTMENT ACTIVITIES | 17 |
11 | PERSONALITY OF THE MONTH | 18 |
12 | CROSS WORD | 20 |
EDITORIAL BOARD:
| Deepalakshmi.G (III B.COM) Greeshma.S (III B.COM) Kaarthik.N (III B.COM) Khushboo.D (III B.COM) Rinkal jain (III B.COM) Saranya.R (III B.COM) Shriram.S (III B.COM) Selvamani.M (III B.COM) Vignesh.A (III B.COM) | Avinash.K.Garg (II B.COM) Dolly jain (II B.COM) Sarika.K.R (II B.COM) Sreethaar.N (II B.COM) Sridhar.K (II B.COM)Sumiya banu.S (II B.COM) | Dilip kumar (I B.COM) Vidhya.R (I B.COM) |
Leave your comments at snmvdotcomnewsletter@gmail.com
CURRENT AFFIARS
E-tickets now available on mobile called M-Tickets.
V.S.Hedge appointed as Antrix corporation head. (Antrix is the commercial wing of ISRO).
Australia implemented carbon tax on its worst polluting loss.
The tax on tobacco rises from 12% to 20% & electronic goods (cell phone, iPod etc) from 12.5%-14.5%.
BSE becomes BSE ltd.
Internet café’s to get annual license (annual permit).
Turmeric price raises, as a result the area under cultivation has crossed 19000 hectares.
10 gram Gold price crosses 26,000.
Silk price increases.
Wipro profit raised by 18% in the quarter ending June, 30 2011.
Climate change causes 60% loss to grape farmers.
Tata motors opens new plant in S.A.
Mallu Srinivasan joins AGCO Board.
Hero Moto Corp (Hero Honda) revealed its global brand identity on Aug 9 in London.
New printers to be introduced by EPSON whose printing cost will be as low as 10Paise for black and white and 20Paise for Colour Prints.
Kanoria Jute mill one of the biggest mill in West Bengal set to reopen on Aug 22.
Oriental Bank of Commerce sees 24% depreciation in net profit.
Cognizant to complete the acquisition of core logic global services Pvt ltd.
Walt Disney to take over UTV software.
- SARIKA.K.R
APTITUDE QUESTION 1:
4 criminals are caught and are to be punished. The Judge allows them to be freed if they can solve a puzzle. If they do not, they will be hung. They agreed. The 4 criminals are lined up on some steps (shown in picture). They are all facing in the same direction. A wall separates the fourth man from the other three.
To Summarize
- Man 1 can see men 2 and 3.
- Man 2 can see man 3.
- Man 3 can see none of the others.
- Man 4 can see none of the others.
The criminals are wearing hats. They are told that there are two white hats and two black hats. The men initially don't know what colour hat they are wearing. They are told to shout out the colour of the hat that they are wearing as soon as they know for certain what colour it is.
- They are not allowed to turn round or move.
- They are not allowed to talk to each other.
- They are not allowed to take their hats off.
Now the question is "Who is the first person to shout out and why?"
ICWAI
(Institute of Cost & Works Accountants of India)
ICWA is premier, dynamic, vibrant professional institution actively associating itself in the industrial and economic development of the nation. The profession places itself at the service of the nation, government, industry, and the society to realize the objectives of a welfare state resulting in the prosperity and the well being of its people - a fact increasingly realized with the opening up of the country's economy and change in the economic scenario of the world. In today's world, the profession of conventional accounting and auditing has taken a back seat and accountants increasingly contribute towards the management of scarce resources like funds, land and apply strategic decisions. This has opened up further scope and tremendous opportunities Cost and Works accountants to shoulder responsibility as Cost and Management.
Evolution:-
The Institute of Cost and Works Accountants of India (ICWAI) is a premier professional accountancy body established on May 28, 1959 under the Cost and Works Accountants Act, 1959 (Act No.23rd of 1959) enacted by the Parliament of India to regulate the profession of Cost Accountants in India.
The ICWAI is a Founder Member of the International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA).ICWAI is a member of the National Foundation of Corporate Governance (NFCG).The headquarters of ICWAI is situated in Kolkata, and operates through its four regional councils located at Kolkata, Chennai, Delhi and Mumbai, 94 chapters in India and 7 chapters abroad.
Objectives:-
The objectives of ICWAI are to promote and develop the adoption of scientific methods in cost and management accountancy for management control. It develops the professional body of members and equips them fully to discharge their functions as professional Cost & Management Accountants. ICWAI helps its members to keep abreast with latest developments in the field of cost and management accounting.Career Opportunities:-
Practice as Cost Accountant
Practice as Cost Accountant
A Cost Accountant may build up his own practice by obtaining a license from the Institute which would enable him to practice as a Cost Accountant, either individually or in partnership with one or more members of the Institute in practice. His clientele include private and public companies, large, medium and small scale undertakings, partnership and proprietary concerns, industrial, commercial and service undertakings etc. The types of service a cost accountant may offer his clients are varied.
Cost Accountants in Employment:
There has been increasing awareness amongst the business entrepreneurs of the most vital contribution made by cost and management accountancy services in the business houses to the attainment of business objectives. This has accentuated the demand for cost and management accounting services in all the sectors of economy. Many members of the Institute are holding top management positions, viz., Managing Director, Finance Director, Financial Controller, Chief Accountant, Cost Controller, Marketing Manager, Chief Internal Auditor, CEO, and CFO. No wonder a Cost Accountant can attain the highest ladder of professional career.
There has been increasing awareness amongst the business entrepreneurs of the most vital contribution made by cost and management accountancy services in the business houses to the attainment of business objectives. This has accentuated the demand for cost and management accounting services in all the sectors of economy. Many members of the Institute are holding top management positions, viz., Managing Director, Finance Director, Financial Controller, Chief Accountant, Cost Controller, Marketing Manager, Chief Internal Auditor, CEO, and CFO. No wonder a Cost Accountant can attain the highest ladder of professional career.
Cost Accountants in Government Department:
The importance of this profession of Cost and Management Accountancy in the economic development of the nation, the Central Government has constituted an all-India cadre known as Indian Cost Accounts Service (ICAS) at par with other Class-I services such as IAS, IFS etc. to advise the government in cost pricing and in framing the appropriate fiscal and tax policies.
Cost Accountants in Education:
University Grants Commission (UGC) has notified “UGC Regulations on Minimum Qualifications for Appointment of Teachers and Other Academic Staff in Universities and Colleges and Measures for the Maintenance of Standards in Higher Education, 2010 vide its Circular No. F.3-1/2009 dated 30th June 2010.
The Regulations prescribe the minimum qualification for appointment of teaching faculty in universities and colleges in the area of Management/ Business Administration. The qualifications specified for appointment of Assistant Professor, Associate Professor and Professor in the above area and Principal/Director/Head of the Institution include First Class Graduate and professionally qualified Cost and Works Accountant among other qualifications and subject to other requirements including qualifying NET/SLET/SET as the minimum eligibility condition for recruitment and appointment of Assistant Professors.
2. Which French Tyre maker is all set to start production in Chennai unit?
3. Which country is set to rule out 1st phase of National internet in August at 8Mb for home
users?
4. Where has Posco planned Rs.52,000 crore project in India?
5. Which company is all set to acquire British online bookstore The Book Depository?
6. Who has been appointed as CEO of Fortis Healthcare?
7. Who has been appointed as RBI Deputy Governor?
8. Who has been appointed as BHEL's Director of Finance?
9. Who is the VC and CEO of HDFC bank?
10. Who is the CEO of Facebook?
11. In which Indian city will the Nano Science and Technology be setup?
12. Where in India has Indian Institute of Management planned to open its 2nd campus?
13. Which bank has entered into pact with SBI Mutual Fund?
14. Who has been appointed as CEO of Aditya Brila Finance?
15. Which bank has launched credit card with no pre-set limit on spending?
16. Airtel has inked deal with which company for IT solutions to African employees?
17. Who has been appointed as Railway Minister in cabinet reshuffle 2011?
18. Which 3 telecom companies have shared their networks and rolled out Plan India 3G
services?
19. In which 2 Indian cities was Google Transit launched?
20. Which company is all set to launch iPod rival?
21. At what percent did June 2011 inflation close?
22. Which company recently unveiled smallest data center?
23. Which latest communication satellite has been launched by ISRO?
24. Which Finance company is all set to offer loans against gold ETF units?
University Grants Commission (UGC) has notified “UGC Regulations on Minimum Qualifications for Appointment of Teachers and Other Academic Staff in Universities and Colleges and Measures for the Maintenance of Standards in Higher Education, 2010 vide its Circular No. F.3-1/2009 dated 30th June 2010.
The Regulations prescribe the minimum qualification for appointment of teaching faculty in universities and colleges in the area of Management/ Business Administration. The qualifications specified for appointment of Assistant Professor, Associate Professor and Professor in the above area and Principal/Director/Head of the Institution include First Class Graduate and professionally qualified Cost and Works Accountant among other qualifications and subject to other requirements including qualifying NET/SLET/SET as the minimum eligibility condition for recruitment and appointment of Assistant Professors.
- K.SRIDHAR
COMQUIZ
1. What is the public offer made by Zynga Inc?2. Which French Tyre maker is all set to start production in Chennai unit?
3. Which country is set to rule out 1st phase of National internet in August at 8Mb for home
users?
4. Where has Posco planned Rs.52,000 crore project in India?
5. Which company is all set to acquire British online bookstore The Book Depository?
6. Who has been appointed as CEO of Fortis Healthcare?
7. Who has been appointed as RBI Deputy Governor?
8. Who has been appointed as BHEL's Director of Finance?
9. Who is the VC and CEO of HDFC bank?
10. Who is the CEO of Facebook?
11. In which Indian city will the Nano Science and Technology be setup?
12. Where in India has Indian Institute of Management planned to open its 2nd campus?
13. Which bank has entered into pact with SBI Mutual Fund?
14. Who has been appointed as CEO of Aditya Brila Finance?
15. Which bank has launched credit card with no pre-set limit on spending?
16. Airtel has inked deal with which company for IT solutions to African employees?
17. Who has been appointed as Railway Minister in cabinet reshuffle 2011?
18. Which 3 telecom companies have shared their networks and rolled out Plan India 3G
services?
19. In which 2 Indian cities was Google Transit launched?
20. Which company is all set to launch iPod rival?
21. At what percent did June 2011 inflation close?
22. Which company recently unveiled smallest data center?
23. Which latest communication satellite has been launched by ISRO?
24. Which Finance company is all set to offer loans against gold ETF units?
25. Who has been elected as chief of Empowered Committee of Goods and Services?
26. Which shuttle undocked for the final time from International Space station, NASA?
27. Where and for which project has BHEL commissioned 525MW thermal set?
28. Which company is eyeing to open its IT centre in Gujarat?
2. Michelin
3. Iran
4. Orissa, Jagatsinghpur
5. Amazon.com
6. Aditya Vij
7. Harun Rashid Khan
8. P.K.Bajpai
9. Keki Mistry
10. Mark Zuckerberg
11. Bangalore (Devanahalli)
12. Bangalore, Anekal
13. Indian Bank
14. Rakesh Singh
15. HDBC Bank
16. IBM
17. Dinesh Trivedi
18. Vodafone, Bharti and Idea
19. Chennai and Hyderabad
20. Amazon
21. 9.44%
22. Intel
23. GSAT-12
24. Muthoot Finance
25. Sushil Kumar Modi
26. Atlantis
27. Maithon Right Bank thermal power project in Jharkhand
27. Where and for which project has BHEL commissioned 525MW thermal set?
28. Which company is eyeing to open its IT centre in Gujarat?
ANSWERS
1. $1 billion2. Michelin
3. Iran
4. Orissa, Jagatsinghpur
5. Amazon.com
6. Aditya Vij
7. Harun Rashid Khan
8. P.K.Bajpai
9. Keki Mistry
10. Mark Zuckerberg
11. Bangalore (Devanahalli)
12. Bangalore, Anekal
13. Indian Bank
14. Rakesh Singh
15. HDBC Bank
16. IBM
17. Dinesh Trivedi
18. Vodafone, Bharti and Idea
19. Chennai and Hyderabad
20. Amazon
21. 9.44%
22. Intel
23. GSAT-12
24. Muthoot Finance
25. Sushil Kumar Modi
26. Atlantis
27. Maithon Right Bank thermal power project in Jharkhand
28. Infosys
Recruitment and selection done under Human Resource Development:
Recruitment is the process of attracting potential applicants; it depends upon the factors such as image of the company, salary and growth avenues. In today’s context head hunters, employment exchanges and consultants facilitate the selection process for companies. Induction and placement also form a part of any successful HRD system. An employee has to be properly inducted so that he feels comfortable in his new work environment, not only when he joins the organization but also when he takes up new assignments. In placement as well as the HRD approach is important. Organization should place people in jobs which are seen as clearly defines steps in the individuals development process.
INTER-PERSONAL SKILLS:
There are at least three areas of skills necessary for carrying out the functions of management (i.e.) Technical, Inter-personal and Conceptual. While the amount of conceptual and technical skills needed at different levels of management, the common denominator that appears to be critical at all levels is the inter-personal skill. Managers need this skill to get on well with the people they come in contact with their daily lives, to motivate and influence them effectively in positive, predictable ways. Management rates this ability more vital than intelligence, knowledge (or) job skills.
Unfortunately most organizations assume that people already know how to initiate and maintain effective human relationships, but in fact they don’t. The importance of effective inter-personal skills becomes obvious when we realize that more than 70 percent of all new employments are generated in the service sector. These still become more and more important as one goes higher and higher in the hierarchy because his/her influence has impact on the whole organization.
Qualities Required for Effective Inter-Personal Relationships:
Certain personal qualities such as warmth, genuineness and unconditional positive regard are identified as a prerequisite, the concept involves equal worth, absence of blame, closeness in treating the other person as an equal showing regard for people, unconditional or otherwise is likely to be an asset in any setting. As a true professional he/she should offer such regard without any preconditions. The feelings of the manager for the client should be undemanding and not require reciprocation. If he/she truly to help others, he/she cannot do so if you are trying to maintain a particular posture or trying too hard to be a professional. Empathy is also an essential skill to perceive accurately the feelings of other person and communicating this understanding to him/her with empathy one tries to imagine how it is to be the other person.
An essential skill for executives at all levels of an organization is the ability to deal with and influence other people effectively so that they willingly put forth their maximum effort. Organizations should give more importance to teaching interpersonal skills through training and development programs. No longer can superior interpersonal skills be deemed a matter of being nice, they are a matter of being essential to create new heights of human enlightens and accomplishment.
HUMAN RESOURCE DEVELOPMENT AND INTER-PERSONAL SKILLS
Recruitment and selection done under Human Resource Development:
Recruitment is the process of attracting potential applicants; it depends upon the factors such as image of the company, salary and growth avenues. In today’s context head hunters, employment exchanges and consultants facilitate the selection process for companies. Induction and placement also form a part of any successful HRD system. An employee has to be properly inducted so that he feels comfortable in his new work environment, not only when he joins the organization but also when he takes up new assignments. In placement as well as the HRD approach is important. Organization should place people in jobs which are seen as clearly defines steps in the individuals development process.
INTER-PERSONAL SKILLS:
There are at least three areas of skills necessary for carrying out the functions of management (i.e.) Technical, Inter-personal and Conceptual. While the amount of conceptual and technical skills needed at different levels of management, the common denominator that appears to be critical at all levels is the inter-personal skill. Managers need this skill to get on well with the people they come in contact with their daily lives, to motivate and influence them effectively in positive, predictable ways. Management rates this ability more vital than intelligence, knowledge (or) job skills.
Unfortunately most organizations assume that people already know how to initiate and maintain effective human relationships, but in fact they don’t. The importance of effective inter-personal skills becomes obvious when we realize that more than 70 percent of all new employments are generated in the service sector. These still become more and more important as one goes higher and higher in the hierarchy because his/her influence has impact on the whole organization.
Qualities Required for Effective Inter-Personal Relationships:
Certain personal qualities such as warmth, genuineness and unconditional positive regard are identified as a prerequisite, the concept involves equal worth, absence of blame, closeness in treating the other person as an equal showing regard for people, unconditional or otherwise is likely to be an asset in any setting. As a true professional he/she should offer such regard without any preconditions. The feelings of the manager for the client should be undemanding and not require reciprocation. If he/she truly to help others, he/she cannot do so if you are trying to maintain a particular posture or trying too hard to be a professional. Empathy is also an essential skill to perceive accurately the feelings of other person and communicating this understanding to him/her with empathy one tries to imagine how it is to be the other person.
An essential skill for executives at all levels of an organization is the ability to deal with and influence other people effectively so that they willingly put forth their maximum effort. Organizations should give more importance to teaching interpersonal skills through training and development programs. No longer can superior interpersonal skills be deemed a matter of being nice, they are a matter of being essential to create new heights of human enlightens and accomplishment.
- SUMIYA BANU.S
IMPACT
Retail Realities
Everything in this world has its own pros and cons. It is up to us how to approach and handle such issues. One such thing in India, which is under wide debate, is allowing Foreign Investment and Corporate in retail sector.There was a day in India, where we all bought vegetables to provisions to stationary in small departmental stores nearby. We can’t forgot the days in our childhood, our mother asked us to buy mustard after pouring oil in the vessel. The time took for us to buy the mustard from shop was same as that of the time taken to heat the oil. Then came the days of home deliveries and shopping malls. A teenager with oil stained clothes from”Annachi’s shop” or “Chettiyar maligai” came to deliver our monthly provisions. Co-operative shopping complex like “Chinthamani” were there, where we can get all in one place. Medicines to Provisions. Bakery to Jwellery. Salwars to Sandals.
Nowadays also, big shopping malls are there the same “all in one place“category. But the difference is, the person sitting at the cash counter of every shop out here is most probably an employee. Because, this “all in one place” is also an “all owned by one person” Statutorily, that person may be an individual or company or a firm or what so ever, but definitely not Babu annachi or Rahim bai or any other common man.
Here starts the shocking issue. The retail sector in India, which gives life for 4 crore shop keepers and 1.5 crore dealers gradually shifting into the hands of corporate giants. Thanks to public outcry and opposition, Foreign Direct Investors were not welcomed wholly.
The reason, the government is giving is the farmers and small scale producers who comprises around 75% of the population will get a fair return for their products. Yes! This might be true, due to the influence of middlemen, lower financial standards of retail owners etc. But, transforming them into the huge corporate giants will never be the solution for that. Instead, the government can procure their products and then distribute it to the retailers at subsidized or fair price, thus putting both the above parties in a win-win situation. Due to this the consumer may also get them at a fair price.
The corporate may give a fair price, for the products while buying them from the producers, but unfortunately the government is blind to see their selling price and profit ratio. [May be for more Sales Tax collection! Forget about tax evasion here]. The consumer is exploited by branded “pani poories” and hand-kerchiefs even.
Now a day’s also petty shops, provisional stores and co-operative shopping complexes are there but, the financial guarantee, given to them by this Socio-economic system has gone. The 55 million families dependent, directly or indirectly, the retail sector may have to face a big question mark in their life, if the corporate giants of foreign companies took hold of of the retail sector.
The liberalization of the government, is also liberal about the welfare of small owners and the interest of consumers, it seems. A day may come, the “fresh vegetables”, we get in a mall will be one week older. The shirts we buy, will be tagged only with 4 digit prices. Petty shops and provisional stores in our nearby’s will become the things of the past. The income earned by 5 crore families will go into the hands of 5 or 6 billionaires. Just imagine sitting on a chair, crowded by our grandchildren, telling them a story “Long long ago” there was a day when I purchased a shirt on economic sale for Rs.150. Now, the entry fee for shopping malls is Rs.200.
May seems to be exaggerating, but who knows, anything may happen. Because, my grandpa too did not think that he will buy a hand-kerchief for Rs.49.
This gradual shift of retail sector from small owners to big giants can only inflate prices and deflate social and economic equality.
Simmtronics Semiconductors has launched the world's first, completely Solar powered Desktop PC.
The company, which works for reducing carbon footprint also informs that the PC also uses less power, and is thus even more eco-friendly.
The Solar PC (I'm assuming that's the name - they didn't provide one) can work for 3-4 days without sunlight. Do the math, and that's 350 days of working in a year.
LITHIUM BATTERY:
May seems to be exaggerating, but who knows, anything may happen. Because, my grandpa too did not think that he will buy a hand-kerchief for Rs.49.
This gradual shift of retail sector from small owners to big giants can only inflate prices and deflate social and economic equality.
- VIGNESH.A
WHAT’S NEW?
SOLAR COMPUTER:
The company, which works for reducing carbon footprint also informs that the PC also uses less power, and is thus even more eco-friendly.
The Solar PC (I'm assuming that's the name - they didn't provide one) can work for 3-4 days without sunlight. Do the math, and that's 350 days of working in a year.
|
NOTE BOOK:
Loads of parents would want to give their children a cell phone that couldn’t be functional while driving. A few inventors have actually come up with some ways to do this, however they haven’t seemed to be successful enough.
A Dallas-based WQN Inc has in reality come up with a product that is available with a subscription of $10 a month that can disable the phone of the owner while driving.
It makes use of the GPS technology that can detect the speed of the person who is travelling. But it is difficult to differentiate whether the person is driving and hence it can needlessly lock up the phone.
A Neurochip That Can Communicate With Brain:
The University of Calgary, Faculty of Medicine scientists who proved it is possible to cultivate a network of brain cells that reconnect on a silicon chip—or the brain on a microchip—have developed new technology that monitors brain cell activity at a resolution never achieved before.
Developed with the National Research Council Canada (NRC), the new silicon chips are also simpler to use, which will help future understanding of how brain cells work under normal conditions and permit drug discoveries for a variety of neurodegenerative diseases, such as Alzheimer’s and Parkinson’s.
DARK SIDE OF BRIGHT INDIA
INTRODUCTION:
Due to our pride, most of us forget, neglect or reject to look into the complete, in fact real, picture of the Socio-Economic scenario of India. Out of our total population 36 crore people lives below poverty line. The average income of more than 70% of Indians is Rs.20 or less per day.
As the sons and daughters of Mother India, when we have the right to celebrate her victory in various sectors but at the same time we all do have the responsibility to enhance, enrich and uplift our fellow brothers and sisters socially, politically and economically.
CAUSES AND EFFECTS:
The Villains who hinder the inclusive development of India, created by our Political establishments and Economic policies are
• Corruption
• Black money
• Illiteracy
• Over Population
CORRUPTION:
Corruption has been one of the pervasive problems affecting Indian economy. The economic reforms of 1991 reduced the red tape and bureaucracy that were largely blamed for the institutionalized corruption and inefficiency. Yet, a study by Transparency International (2005) found that more than half of those surveyed had firsthand experience of paying bribe or peddling influence to get a job done in a public office.
Forms of corruption vary, but include bribery, extortion, cronyism, nepotism, patronage, graft, and embezzlement. Worldwide, bribery alone is estimated to involve over 1 trillion US dollars annually.
On an average around Rs.1000 crore is collected as bribe from people below poverty line by government officers (Public Servants?) Then imagine how big the amount given as bribe in big business deals, contracts, approvals etc, with the government will be!
India ranks 87th in the most corrupted nations in the list of 193 nations. One out of four Indian MPs have criminal records. One out of two Indian citizens pays bribe at least once in his or her lifetime for any reason. Foreign Investments are coming to India not only because of favorable market conditions, but also the because of corruption. Those companies who were declined to start business in their nations manage to get into Indian markets, by bribing our politicians and officials. Then starts the exploitation of workers, by low remuneration and consumers, by high prices and the exploitation of the environment, by their industrial wastes.
BLACK MONEY:
The Indian economy continues to face the problem of an underground economy with a 2006 estimate by the Swiss Banking Association suggesting that India topped the worldwide list for black money with almost $1,456 billion stashed in Swiss banks. This amounts to 13 times the country's total external debt. In economic terms the money out of circulation may be called as waste of capital or wealth of the nation.
Another internal source of black money is tax evasion and filing of deflated income, much lower than the actual income earned. Our business men can venture business for profit, but not on the cost of the nation.
It is roughly estimated that black money in circulation has risen from 3% in mid 1950’s to about 40% by 2000 in terms of GDP.
Effects of black money in economy:
The general tendency of people is to spend black money on unproductive heads such as real estate, hording in gold and diamond, smuggling or flight (transfer) of capital to other countries.
It reduces the buying capacity of the common man and slows down the industrial growth because of lesser consumption by the people, hence lesser productivity resulting in higher costs, poor quality and lesser employment opportunities.
ILLITERACY:
India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately two thirds of the population. The right to education at elementary level has been made one of the fundamental rights under the eighty-sixth Amendment of 2002, and legislation has been enacted to further the objective of providing free education to all children.
However, the literacy rate of 74% is still lower than the worldwide average and the country suffers from a high dropout rate. Further, there exists a severe disparity in literacy rates and educational opportunities between males and females, urban and rural areas, and among different social groups.
The current government has concluded that most spending fails to reach its intended recipients. A large, cumbersome and overworked bureaucracy also contributes to administrative inefficiency. India's absence rates are one of the worst in the world; one study found that 25% of public sector teachers could not be found at the workplace.
46% Indian students drop-out from school before completing their class 12. This is due to the poor infrastructure of schools, lack of teaching staffs, location of schools at remote areas, inadequate transport facilities etc. What is most astonishing is many girl children drop-out from schools due to lack of proper toilet facilities in schools. Child labour problem also contribute a lot to the decrease in literacy among children and increase in unemployment and under employment among adults.
Over population:
Though our nation has a huge population, the question is are we converting this population into human resource. Our government has a massive income, but that income is not sufficient to run the family called India, just because the number of family members are more while the number of earning members among them is less.
It takes about Rs.10 lakh for a family to bring up a child for 20 years (Base year 2005). More the population, more will be the requirement for housings, food grains, transport facilities, employment, expenses etc. by 2050 India has to feed a population of around 200 Crores with these limited resources. Here we have to bear in mind that when the population is expanding, the size of agricultural land is shrinking as they are used for residential purpose.
Due to overpopulation the pollution will be more but the resources will be less, expense will be more but the income will be less, needs will be more but ends will be less.
CONCLUSION:
Yes! India is shining. But the brightness is not spreading everywhere. In the name of being optimistic about our growth, we are ignorant about the negatives in the Indian society, Indian economy, Indian Politics and most importantly, the negatives in the Indian minds. Instead of looking for some crusaders to come, we should start our actions. There is no need to say the do's and don’ts of a responsible citizen. But still a question is hanging above the heads of all of us. WHEN WILL WE ACT?
- Saranya.R
