RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

TOOLS FOR SYSTEMS DEVELOPMENT

Broadly speaking, a tool is any device that, when used properly, improves the performance of a task, such as
· The development of computer informance of a task,
· The development of computer information systems.
One will be examine the many tools and techniques developed to aid the systems analysis. In general, the tools are grouped into the categories of analysis, designs and development.

ANALYSIS TOOLS
Ø Data collection tools
Ø Charting Tools
Ø Dictionary Tools

The most useful tools in each of these categories are becoming automated ,both to improve the efficiency of the analyst and to make the results of the analysis effort more accurate and complete.

A step towards sustainable agriculture

To provide enough food and gainful; employment to increasing population is a big challenge before agricultural scientist. To feed such a large population we have to produce at least 205 mt extra food grains and have to double our present day milk, vegetables, fruits, eggs, meat production besides meeting their requirement for fuel, fiber, timber etc for clothing and housing. To primitive know-how of crop cultivation has been transformed into modern agriculture, through ages and it is still changing. And evolving according to the economics, social and environmental needs. It was aptly uttered by Pandit Jawaharlaal Nahru ‘everything can wait but not the agriculture’. In the post green revolution era, imbalanced fertilization, excessive irrigation and indiscriminate use of pesticides have undermined the sustainability.
This step can be carry forwarded by equal participation of both the gender through timely and proper extension services.

Information Revolution -

Indian Society has its own folk arts, folk dance, folk epics. India villages are full of handicrafts, shilps, wooden work, mattle work. Traditonal media have been serving as a Significant channel of communication. But Modern information revolution gives wide platform to our original culture. The rural art identify themselves with the proper presentation though media Modern informative media - Vibrant cities - have more persuasive power and are able to create genuine interest among their audience. Their imporant features are only local appeal, indigenous nature, cultural compativility and also radio station. But the became more popular, more effective with Information Revolution.
# Meaning of Information Revolution :
The 21st century is the century of knowledge. The changing role of
information creats new eyes of world. The great “Visfot of Gyan” is been created with the information revolution. The jumping progress is found with new area every where.
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The new ambitions are created, new maps are drawn. Also in rural India, the “Gyan-bhookh” of rural people is starting to activate with global world.The main objective of the revolution is to satisfy all facilities of ordinary people with modern information technology and media. The most important ways are - 4To store the information
4To inter-relate the information
4To exchange the information
4To make proper use of information with proper way to proper person.with changing pattern of global market, proper ingormation techonlogies are lead the elonomy to development There are certain media like Typewritting, phone, fax, mobile, press, Talex, Computer, Interenet, Intranet. They are making great revolution also in rural area
# Village culture and seasonal occasions
Traditional media were focus on the rural traditions, culture and values of societies. They are all falk media. They are close to the heart of rural societies. They are unique in nature as they resemble the day-to-day life pattern of the rural masses Their. Special nature is derived from the fait that they have no grammer or literature yet they are nurtured through oral and functional sources The most popular traditional art forms of our county are the 'Tamasha', Powada, Nautanki, Yakshagana, Therukuthu, Jatra, bhavai. Balad forms, folk music, riddles, falk tales and puppetry.
# Important features of Traditional media –
== Literaly level -
The literaly level is very low in our country, which again a basic ordinary people with modern information technology and media. The most important ways are –
4To store the information
4To inter-relate the information
4To exchange the information
4To make proper use of information with proper way to proper person.with changing pattern of global market, proper ingormation techonlogies are lead the elonomy to development There are certain media like Typewritting, phone, fax, mobile, press, Talex, Computer, Interenet, Intranet. They are making great revolution also in rural area
== Village culture and seasonal occasions
Traditional media were focus on the rural traditions, culture and values of societies. They are all falk media. They are close to the heart of rural societies. They are unique in nature as they resemble the day-to-day life pattern of the rural masses Their. Special nature is derived from the fait that they have no grammer or literature yet they are nurtured through oral and functional sources The most popular traditional art forms of our county are the 'Tamasha', Powada, Nautanki, Yakshagana, Therukuthu, Jatra, bhavai. Balad forms, folk music, riddles, falk tales and puppetry.
The literaly level which again a basic necessity for information revolution. According to Kothari and Takeda (2000) literacy is a critical aspect of the soft infrastructure that will determine the extent and nature of the information revolution At the turn of the millenium, even the telecommunication infrastructure in rural area is not cover the programme. The worldwide internet would hardly be able to rural people includation because of illiteacy and English language barries. Only half of the adults of whole country (Rural + urban) are illiterate. Only half of literate may be able to take the advantage of the text-based matter in books or internet.

== Communication gap : (Vacume of information)
In fact, there has been a communication gap or vacuum of information in the villages, because the new media have not been able to reach the rural masses and the traditional media have been shrugged off or discarded by the developmental agencics
# Past experiences - (Researches for development purpose)
In India, during the freedam struggle when the mass media were
under the British control, the freedom fighters were using the local appeal like Tamasha, Bhavai, Street, play etc. (Ranganath, 1980) The propagators of folk theatre like Alkazi and Habib Tanvir have successfully spread a number of educational messages through their folk theatre. The centrul and state govt., after independance, used the Nationalist Harikath to educate the masses on family planning, developmentsl activities, democratic values and national integration. The Banks and The Life Insurance corporation have effectively necessity for information revolution. According to kothari and Takeda (2000) literacy is a critical aspect of the soft infrastructure that will determine the extent and nature of the information revolution At the turn of the millenium, even the telecommunication infrastructure in rural area is not cover the programme. The worldwide internet would hardly be able to rural people includation because of illiteacy and English language barries. Only half of the adults of whole country (Rural + urban) are illiterate. Only half of literate may be able to take the advantage of the text-based matter in books or internet..The Banks and The Life Insurance corporation have effectivelyused Indian puppertry for arousny interest of Rural people for bank savings and LIC policies.
# A pilot study by the Indian Institute of Mass communication on comparative power use the documentary film method in two villages.
The Institute of Rural communication has successfully completed a compaign on environment building for literacy in Udalpur in Rajstan which was bassed on the use of information media. One survey, said Gaur, Paliwal, (1997) that successfully covered 756 villages for bringing a attitudinal change amony the rural masses in approach There is a need for socially relevant courses and generation of resources through consultabcy services etc in cooperation with the industries and private sector. Much of our education system continued to be based upon the British or Western perspectives of cource the aim of literacy is to spread the knowledge and not creation of wrong values, but there was a need to bring proper awareness of and sensivity towards our society's rich heri tage and culture and to identify new frontiers of knowledge with a holistic approach. Srivastave, Chairman, Bihar state inter University Board remarks that the poor academic scenario need the maintenance of adequate number and quality of teachers in institutions. The good teachers should collectivety resolve to strive for better standards of education to the best of their abilities. The workshops, semenars, conferences are essentially an exercise for quality consciousness in the field of education and felt that the need of the hours to self- analysis by each of one. Gopalan and Cusat (2000) talked about innovation and spoke on the pivotal role of higher education in information revolution. They said that Qualiry is never an accident and is always a result of integrated effort. Quality is a continuous journey and not a destination. Here importance of an effective teacher in developing quality is necessiary input in this process so society should have a thorough understanding of "Effective Teaching Methods" and "Parameters of Quality".
# Training Programmes -
The National Assessment and Accredition council organised a series of frainy programme to creat a national pool of academicians to carry out the uphill task of Assessment approaches to the teachers NAAC is all set to accredit about 1000 higher education institutions per year. To uphold the credibility of the assessment process, NAAC has evolved many safeguards and protocols. One of the strategies that have ensured the professionalism of NAAC's process is the development of National Cadre of Assessors. The need for introducing into Electronic Assessment and Accreditation process and evolve electronically aided assessment which will facllitate quick assessment. Regional Training programmes on capality building for women leadership and governance in Higher Education also organised for the quick rural development.
# The Challanges and the Quary by Govt. :
The rural and urban India have great challanges for the I.T.sectorGovt. tries to cruare the challanges.
4 Indian Govt. has passed the Act - "Right for Information Act 2005" on 12th oct. 2005.
4 Govt has aimed to import Sobiliion dollars Information Technology softwares.
4 Govt decide to import this not only in America, but also in Japan, Australia, Singapore and othe developing countries.
4 In Global world, IT business developed upto 307 billion American dollars in 1990. It was update with 500 billian American dollars in 1995 and 850 billian American dollar in 2000 which will update with 900 billian American dollars 2008.
4 The main Global market for IT industrics is 50% of Amenrica The Indian software market has special features like competitive market lack of foreign Exchange, early repayment of capital, Technical designing problems, continuous price incrementation, etc.All these situations creat the belon given challenges to the industries.
== To appreciate the good work
India has to create environment for good workers with best salaries and best facilities. So they will not going to foreign countries for best life style.
== To qualify the managers
In global world, best management is the master key of success. With great remuneration, fulfill the demand of country - It is the management view. It can be achieved with co-operation of labour and owner.
== Global Brand and Eavity necessity
In Global market, the brand-name has its specil space for equity necessity. Customer will purchase the item, if he fill requirement of the item - "Use" is the optimum aspect. Producer and Consumer will get the decission jointly.
== Be a Global leader
The manager should take all decision with Global environment The strategies for production will base on theat concept. Thus, all managers have a aim to be a global leader
== Govt. laws for awareness
Indian govt's Information Laws are very notable. Australian Technology Park, Malesia Technology Park, Shikago Technology Park, China Information Technology Park, Scottland Technology Park of India have taken place which give guidenance for Import facilities, Student Computer Scheme, To appriciate and initiative the students for education of Information sectors, To create global Information City and National Information Draft and Sybar law committee for polick making of National Information lows.In India Banglore, Heydrabad, Channai, Noida, Bombay are the Electronic cities which will cover other 1000 cities upto 2010. Gandhinagar is the Informatic city in Gujarat, But it is not so developd only three units are active and five another units are not working complitely their. India surely will be a super power country in base of Informatic Revolution But we have to run fast to achieve the goal conclusion. Information and Communication Technologies (ICTS) have been playing signifecance role in promoting rural development in the country. The role being played by TV and Radio in Rural education and extension services can not be overlooked. New information and Communication Technologies the enviranment in which a person and as a Community live and interatt, Communication costs are coming down and information flow amony concerned stakeholders has become much quicker. The main object of these communication technologies from a development perspective is that of empovering people through knowledge. It is believed that it would develop in rural people and in communities a learning and innovation capacity that increases the effectiveness of their efforts to improve the quality of their lives. It is argyed rightly by some expert communication specialists that once knowledge is recognized as the fundamental building block of development options for disadvatages communities around the world the role of communication technologies becomes conspicus in this envisioning process. management view. It can be achieved with co-operation of labour and owner.

MACRO ECONOMIC PARAMETERS FOR 9TH, 10TH AND 11TH PLAN

All figures are averages for the plan period

GDP Growth for Agriculture is 2.0 in 0th plan 1.7 in 10th plan and 4.1 in 11th plan . GDP Growth for Industries is 4.6, 8.3 and 10.5 respectively while for service sector it is 8.1, 9.0 and 9.9.

investment rate in publik sector is 6.7 % 0f GDP and private sector it is 21.1% in 10th plan but 10.2% of GDP of public sector and 24.9 % of GDP in private sector during 11th plan.

Planning commission 2006 gives the figures and 10th plan figures are calculated.

Thus agricultural growth performance has been rather dismal since 1996-97. However the share of agriculture in publik investment which was an average of 11.5% between 1960-61 and 1984-85 starteds falling which averaged only 6,8% from 1990-91 to 2005-06.

the crucial challenge for the situation is the development of infra-structure. there are Two main areas of concern

1. Power

2. Rural infra structure

There are in form of irrigation, roads, and rural electrification.

The chalanges are as follow for rural development

1. regaining agricultural dynamism

2. changing employment patterns so that non agricultures opportunities increas at 6.0% / year.

3. Ensuring health and education services to the poor and securing quality improvements.

4. Increasing manufacturing competitiveness and raising the growth rate of manufacturing to 12%

5. Developing human resources with better education and training.

6. Proctacting environment.

7. Improving re-settlement and rehabilitation practices for those dis-placed by development.

8. Improving governance with greater transparency and accountability.

The real test of feasibility for the plan does not lie in the Arcane algebra of growth accounting or inter-sectoral consistency but in the political economy of public policy choices.

“Impact of Trade Reforms on the Agri-Input Industry in India with special reference to the Agrochemical Industry”

Policies that make an economy open to trade and investment with the rest of the world are needed for sustained economic growth. No country in recent decades has achieved economic success, in terms of substantial increases in living standards for its people, without being open to the rest of the world. Opening up their economies to the global economy has enabled many developing countries such as India to develop competitive advantage in the manufacture of certain products. Although there are benefits from improved access to other countries’ markets, countries benefit most from liberalizing their own markets. The main benefits for industrialized countries would come from liberalization of their agricultural markets. Developing countries would gain equally from liberalization of manufacturing and agriculture. However, the agricultural sector in most OECD countries is heavily protected from international competition and receives substantial public sector support. Depending on their nature, subsidies can inflict significant damage on producers in other countries, as well as domestic taxpayers and consumers. Despite reforms in recent years aimed at delinking subsidies from production, more than 70% of assistance to producers continues to be provided through market price supports, and payments per unit of output, partly associated with export subsidies. During the last decade of the previous century, two significant developments took place in India. The first development relates to initiation of economic liberalization as a part of the economic reforms initiated by the Government of India in 1991. Under the economic reforms process, the main importance was given to the industrial sector, then foreign trade and then to the financial sector. In comparison to other sectors of the economy, the reforms in agriculture sector were slow. The main agricultural reform strategies in India were:
(i) Removing restrictions on the movement of agricultural commodities
(ii) Abolition of quantitative restrictions and substitution by export and import tariffs.
(iii) Revamping public distribution system
(iv) Gradual removal of input subsidies
(v) Emphasis on improved dry land farming
(vi) Efficient management of land and water resources
(vii) Incentive prices
(viii) profitable technology
(ix) Input and service supports
The main reason for the fall in the agriculture output growth from the pre to post reform period is the fall in productivity growth. One possible reason for this fall in productivity growth may be the soil fertility, there is no doubt that seed-fertilizer technology has dramatically increased the food production in India, but it has created problems for the long-term sustainability. However, the new varieties of seeds are highly prone to pest and need huge amount of pesticides. These varieties are also very much fertilizer and irrigation based. Increasing use of pesticides, chemical fertilizers and canal irrigation without proper arrangement of drainage create problems to the soil fertility. But not all the states, basically the agriculturally advanced states like Punjab, Haryana and Uttar Pradesh who have reached a plateau are facing this sustainability problem. Another possible reason of this fall in productivity growth may be the withdrawal of the fertilizer subsidy. The farming has become more costly and less profitable. With the low level of capital base, it is quite hard for small and marginal farmers to afford this
The second development relates to the formulation of WTO. It was expected that the implementation of WTO Agreements would benefit the agrarian countries like India. The agricultural sector is a dominant sector of the Indian Economy, like other developing nations. With the agricultural sector getting into the mainstream of WTO, India was expecting a better deal in terms of market access for the agricultural products. However, contrary to the expectations, situation changed dramatically after under the globalization of India’s agricultural trade under WTO Regime. After the implementation, international prices of agricultural commodities have dropped to very low levels whereas the domestic prices of these commodities have turned higher than the international prices. This has made Indian market attractive for import of several agricultural commodities. On the other hand, exports have witnessed sharp decline after 1996. The above developments are threatening the agricultural production in the country, causing a lot of apprehension about the impact of trade liberalization under the WTO regime on the agricultural sector in India. These developments in agricultural trade have created a sense of uncertainty among farming community relating to the future of their profession Therefore, the impact of WTO on the country’s agricultural sector has two aspects: Firstly, the possibility of increased agricultural imports as a result of reduced tariff barriers, and secondly, the possibility of increased export opportunities as a result of increased market access through trade liberalization. The WTO trade negotiation framework offers each member country an opportunity to strike a balance between these two aspects through reciprocal arrangements with its trading partners on the issues of market access and tariff reductions. To follow this, each country has to have a clear perspective regarding its short-term priorities and long-term economic interests.
Trade Related Aspects of Intellectual Property Rights:
The bright light of innovation has illuminated world agriculture during the 20th Century. The discoveries in crop protection chemicals, fertilizers seeds, and Bio-technology and application equipment have made possible yields only dreamed of 100 or even 50 years ago. Population experts agree that world’s population will rise from today’s 6 billion to a peak population of 8.5 billion, whereas the number of farmers around the world is decreasing rapidly. New technologies to support agriculture will be needed if we have to meet challenge of feeding our growing population. Discovery in most cases is a costly and time-consuming process. Without the opportunity for a reasonable and fair market success to recapture investments and earn a profit, there would be no incentive to invest in the next great discovery. Therefore, global protection of intellectual property is vital to our future. Intellectual property protection is an obscure blend of science and art, thick legal protocols intertwined with very practical commercial impacts. Intellectual Property Rights were brought within the scope of GATT/WTO framework for the first time through the Agreement on Trade Related Aspects of Intellectual Property Rights ((TRIPS). As a result, there were stipulations on the nature of Patents (Process and Patent) and their duration (20) years to bring them more in line with the practice prevailing in advanced countries like U.S.A. Tighter protection has been granted to patent holders under TRIPS in a manner that would favor those with a competitive advantage in knowledge based industries that generate Intellectual Property. Such industries include emerging technologies such as Information Technology, Computer Software, Bio-technology and also Chemicals and Pharmaceuticals. Bio-technology is the technology of live systems. It involves the use of living systems to give society more or better food, drugs and other products. Bio-technology has application in diverse industries including agriculture. The WTO’s TRIPs Agreement exerts a very significant influence on the future of bio-technology in agriculture. As Agriculture plays a very important role in the Indian Economy, it is essential to examine the implications of TRIPs Agreement vis-à-vis Bio-technology developments in Indian Agriculture.


(1) Different forms of intellectual property: Intellectual property consists of patents, trademarks, copyrights, data protection, industrial designs, and confidential information, plant variety rights etc., each requiring different type of protection. For example, a patent for a product prevents making, using and selling of that product without a license or express permission of the patent holder. A registered trademark prevents unlicensed use of that mark or of a similar mark or goods. Data protection prevents copying or unauthorized use of the data in question.
(2) Need for TRIPs: Protection of Intellectual property is a vital concern for continuing development of new technologies and products. It has become a prerequisite for membership to the WTO. A giant step towards Intellectual Property Protection standards was made with development of the Agreement on Trade Related Aspects of Intellectual Property Rights better known as TRIPs Agreement. Adopted during the Uruguay Round of Trade Negotiations in 1994, TRIPs sets clear minimum standards for the protection of patents and trademarks. Though TRIPs has some shortcomings, it significantly improves the level of protection for all forms of intellectual property. TRIPs establish a patent term of 20 years starting from date of application. It also limits the ability of WTO member countries to continue to exclude broad areas of technology from coverage under their patent laws. It also codifies standards for granting and enforcing of copyrights and related rights, trademarks, geographical indications, industrial designs, patents, layout designs of integrated circuits, trade secrets and unfair competition laws. Most importantly, it also establishes a system for the resolution of dispute. With membership of WTO at 135 countries and many more joining most of the countries are bound by TRIPs agreement.
(3) TRIPs Implementation: Developed countries were required to implement TRIPs by 1996. For the developing country members of WTO, January 1, 2000 was the deadline for implementing TRIPs. However least developed country members must put the TRIPs agreement into effect by January 1, 2006. A developing country may be exempted from the application of TRIPs obligations on agricultural chemicals or pharmaceutical product patent for an additional five years. However, the country must provide a means by which patent application for such inventions can be filed. The application need not be examined for their patentability until the country starts applying product patent protection in that area. At that time, the application must be examined. If the application is successful, product patent protection must be granted for the remaining period of the patent term counted from the date of application. If the product obtains marketing approval before the decision on granting of the patent is taken, exclusive marketing rights for a period up to 5 years must be granted
(4) Standards of protection:
(i) Patent term— 20 years counted from the filing date.
(ii) Member countries must exclude plants and animals other than microorganisms and essentially biological process for the production of plants and animals other than non-biological and microbiological processes.
(iii) Any country excluding plant varieties from IP protection must provide an effective Sui generis system of protection.
(5) Extent of protection:
(i) Protection is provided for undisclosed information such as trade secrets or know-how.
(ii) Prohibits disclosure of test data and other data submitted to governments as a condition of approving the marketing of agricultural chemical products, which use new chemical entities.
(iii) Protection of test data and other data against unfair commercial use.
(iv) Establishes general obligations that all enforcement procedures must meet.
(6) Enforcement of TRIPs:
(i) Procedures must permit effective action against any act of infringement of Intellectual Property Rights.
(ii) Remedies must be expeditious and must constitute a deterrent to further infringements.
(iii) Procedures must be applied in such a manner as to avoid the creation of barriers to legitimate trade.
(iv) Criminal procedures must be applied in cases of willful trademark counterfeiting or copyright piracy on a commercial scale.
(v) A non-backsliding clause forbids countries from using the transitional period for adoption of the TRIPs agreement to reduce the level of protection of Intellectual Property in a way, which would result in lesser degree of consistency with the requirements of the agreement.
(7) Broad issues covered by TRIPs:
The TRIPs agreement covers five broad issues:
(i) How principles of the trading system and other international Intellectual Property (IP) agreements should be applied.
(ii) Offer adequate protection to IP rights.
(iii) How countries should enforce these rights in their own territories.
(iv) How to settle disputes on IP issues.
(v) Special transitional arrangements during the period when a new system is being introduced.
(8) Role of WTO: Since its inception in 1995, the WTO has made a significant impact on the way we conduct international business. WTO strives to achieve global trading harmony to ensure that trade flows as smoothly, fairly and freely as possible. The Uruguay Round, which lasted from 1986-1994, led to the WTO creation. Head quartered in Geneva, Switzerland, the WTO is the successor of the General Agreement on Trade and Tariff (GATT), which was established in 1948 in the wake of World War II. Although just in existence for ten years, WTO uses the multilateral trading system, which GATT established more than 50 years ago.
(9) Geographical indications: There is a trend to develop or officially adopt geographical indications across a growing range of products. An intellectual register for names of wines and spirits already exists. Similar mechanism may be adopted for a wide range of products many of which will be agricultural products. According to the Director of the Intellectual Property Division of WTO, Geographic Indications could be key to the adjustment process associated with agricultural liberalization by distinguishing between mass produced commodities with low prices and specialized goods produced according to traditional methods and sold at price premiums.
(10) Changes needed in TRIPs: TRIPs agreement needs to be updated to better address new technologies because the TRIPs agreement was designed for more traditional products. Products emerging from biotechnology and especially digital technology are awkwardly handled by TRIPs. Besides this, there are emerging policy issues such as ethics and interface between the TRIPs agreement, the Conventions on Bio-Diversity and UPOV (International Union for Protection of new varieties of plants) that requires political discussion within a competent technical forum.
TRIPs and its Implications on the Agri-Input Sector in India:
(1) The Seed Industry in India: Indian agriculture has shown a remarkable growth since last 50 years and now getting ready to have a second green revolution. Seed as a valuable input is the base of the growth of agriculture. Indian seed industry has the potential to become the global leader and now our companies are getting better equipped with technologies to face the global challenge. The Agri-input industry provides essential support to the modern agriculture. Seeds are one of the most critical inputs in agricultural production. The Indian seed market is among the ten largest in the world and was estimated to be around $1 billion in 2005. The government of India (GoI) formulated the national seed policy in 2002 to replace the older seed policy of 1988 and thereby laid down comprehensive reforms in the seed sector to encourage the private sector involvement. The measures include protection of Intellectual property rights (IPR’s), provisions for tax rebate and concession on expenditure for in-house R&D of new varieties. It is estimated that about 46% of seed Commercially sold in India is produced by the private sector seed companies, out of which the organized sector accounts for 55%. The implications of a new Product Patent Regime for the Agri-Input Industry are mainly with regard to availability and prices of seeds for the farmers. The recent rules of the World Trading System under the Agreement on TRIPS have brought seeds issue to the centre stage of the debate on management of the agricultural sector. Green Revolution and the recent developments in bio-technological research have created a new class of Entrepreneurs even Multinationals-in the form of plant breeders and seeds companies.
There are four important questions on the seed issue:
First, The standardization of seeds and the consequent near extinction of the hardy drought resistant varieties.
Second, transferability of seeds among farmers as per the Conventions and traditions practiced since the beginning of Agriculture.
Thirdly, there is a growing concern that the cost of agriculture may increase significantly if the plant breeders and the seed companies create a monopoly or oligopolistic market for seeds.
Finally, the recent upsurge of interest in reverting to the traditional practice of using organic seeds and adopting organic farming methods have raised a big question mark about the future of hybrid varieties of seeds, pesticides and chemical fertilizers. The new rules of trade provides for “protection of plant varieties either by patents or by an effective Sui Generis System or any combination thereof”. These provisions have been essentially aimed at protecting the interests of plant breeders and the seed companies on the rationale that they would have spent huge resources on Research and Development. The Sui Generis System is supposed to be governed by the Conventions and the principles under an International Agreement called UPOV. The objective of UPOV Convention is to ensure the member states acknowledging the achievements of breeders of plant varieties, by making available to them exclusive property rights on the basis of set of uniform and clearly defined principles. In case, plant varieties needs to be patented, the period of patent rights should be kept the shortest. Any innovation on seeds should be treated as a public good and like public utilities. Research in these areas should be subsidized and extensively supported by both the public and private sectors. Fortunately, the Agreement on Agriculture under WTO has exempted subsidy on Apicultural R&D from the purview of reduction commitments. There should be full use of this provision. Further, the current upsurge for standardization of seeds should be systematically thwarted and the approach of gene banks and extensive research on drought prone hardy seed varieties should be encouraged to retain and expand the Bio-diversity base of the seeds market. The best way to safeguard the interests of the rural economy against the oligopolistic nature of the seeds market is to encourage establishment of more and more seed co-operatives and local seed companies so that the undue hold of the Multinational on this critical element of the agricultural sector is to be kept to be the minimum. After the Marrakech Agreement pertaining to seeds, large number of Multinational companies is rushing to collect germ plasmas of wild plant varieties located in the less developed countries. This process of stealing the biological wealth of the third world countries is known as Bio-piracy. These countries are rich in biological wealth and poor in economic terms account for top ranks in terms of animal birds and plant varieties. India figures 8th in terms of mammal, birds and plant varieties. On the other hand, the developed countries are demanding that all germ plasmas be recognized as a public resource and a part of the heritage of mankind. This would give them the right to collect germ plasma without payment of any compensation. But after improvement, they will get patent for the same and sell to the developing countries.Recently, the agri-business companies have developed “terminator technology”. The objective is not to allow the farmers to use the same seed again and again and force them to go back to MNC’s for new seeds every year. While agriculture is synonymous with regeneration, renewal and reproduction this technology negates the whole concept. Even those who do not use terminator seeds, its pollen would spread over a large areas and make other seeds infertile. The MNC’s are also developing weedicides that are specific to a particular seed variety. Such weedicides would make it possible for farmers to spray chemicals even when the crop is standing. Similarly, fertilizers and pesticides particular to a specific seed variety is being produced. All this will increase the dependency of farmers on MNC’s.
(2) The Fertilizer Industry in India: Providing food and nutritional security from the available or could be shrinking resources to over a billion population of India on sustainable basis is a gigantic task. Fertilizer industry through production, distribution and promotion of fertilizer use has assisted in increasing the food grains production in the country. Timely availability of inputs in adequate quantities at consuming point is necessary to enhance food grains production…In the post reform period, however, this sector is suffering heavily on account of issues related to subsidy. As a result, there have been practically no investments for large scale ammonia/urea grass root plants in the past several years, in India. The high feedstock costs coupled with high plant construction costs have virtually made it impossible to produce urea and DAP/NPK at international price levels, based on new grass root projects. The Indian fertilizer companies therefore have turned their attention to other countries where cheaper gas is available. This is to set up new ammonia/urea plants. Unfortunately, it appears that situation may not substantially change in the next few years.
Impact of TRIPs on the Indian Agri-Input Industry
-A Case Study of the Indian Agrochemical Industry
The implications of TRIPs for domestic players of the agrochemical industry are quite serious. The new patent regime will be an area of major concern considering the negligible investments the industry as a whole has made in R&D. Access to new molecules is likely to limit the growth of many of the local players, restricting their activity to the generics segment of the business. One option for Indian companies is to have some sort of collaboration or tie-up with existing MNC’s or overseas companies. After 2005, the crop protection markets will be in for major shake out, with a number of small players exiting the business followed by some of the bigger players, who will find the cost of staying in the business too prohibitive. However, efficient generic manufacturers would continue to have their niche markets as over 70% of agrochemical products currently in use are off patent. For domestic manufacturers of generic products, success would be determined by their ability to cash in on their competitive advantage and in offering cheaper generics at lower costs through improvisation in process technologies. Thus the import of new technologies in manufacture and product formulation is a must for India. Also the ability of domestic manufacturers have to provide value-based services to the increasingly literate farmers will be a key to survival for the industry, especially as farmers will have a wider array of newer, low dosage and more environmentally compatible products to choose from. This would call for a strong commitment as the part of the industry. With the multinationals having a head start in terms of new molecules, it is likely that process of catching up may not be an effective strategy for the Indian companies and the future would see many players working closely with multinationals.
(1) Data compensation: Striking a balance between data originators and generics: Before a pesticide may be sold or distributed in the US, it must be registered by the US Environment Protection Agency (EPA). US Laws primarily the Federal Insecticides, Fungicides, and Rodenticide Act (FIFRA) and the Federal Food Drug and Cosmetics Act requires numerous studies and data to be submitted to EPA to support a pesticide registration. Because development of the data is costly and time consuming, data submitters wish to protect their investments in data. A generic manufacturer, on the other hand, wants to rely on the same data to obtain a “Me-too” Registration. FIFRA strikes a balance between these competing interests through an “exclusive use” provision which temporarily protects data from use by a competitor and a “data compensation” provision which allows competitors to use data as long as they pay or make an offer to pay for such data. Currently FIFRA grants a 10 years exclusive use period following the date of first registration of a pesticide and a 15-year data compensation period following the date of data submission. This compromise was reached in 1978 and is known as FIFRA 3(c) (1) (F), 7 U.S.C. Section 136 A (C) (1) (F). Under this compromise, the registrant is granted a 10 years period of exclusive use for data submitted to support the registration of products containing new active ingredients. Exclusive use is offered only to data submitted to support the application for the original registration of the product containing the new active ingredient or data submitted to support an amendment adding a new use to the registration. Data submitted to support a new use only receive exclusive use for the unexpired period of the original 10 years term; new use data are not entitled for an independent 10-year term. Further more. “Defensive data” are not eligible for exclusive use treatment. “Defensive data” are data submitted to support the continued registration of a pesticide such as in response to a data call in or a special review. EPA also grants registrants a 15 years data compensation period available for most types of pesticides research data relied upon. Each submission of data receives an independent 15 years period. In the U.S., under FIFRA and EPA’s data compensation regulations, a company may obtain a registration for previously registered pesticides without performing these studies required for registration. Instead, by using a “Cite-all” application an applicant may cite data in EPA files submitted by prior registrants of the same pesticide, provided an applicant make an offer to pay for citation of such data perhaps contrary to traditional principal of contract law, this offer is binding on both parties even in the absence of meeting of minds as to which data the ‘follow on’ registrants is citing and the amount of consideration the ‘follow on’ registrant is to pay for such data. Disputes over such issues are resolved through binding arbitration. In data compensation arbitrations, a dispute as to whether a given study is encompassed by a cite all applicant and thus subject to the data compensation obligations, frequently centers on whether the study is required to support registration of the pesticides. This issue has become a dominant theme in data compensation arbitrations involving studies submitted pursuant to the Food Quality Protection Act of 1996 (FQPA). Under EPA regulations, a cite all applicant necessarily acknowledges reliance on “the types of data that EPA would require to be submitted if the application sought the original registration under FIFRA of a product with composition and intended uses identical or substantially similar to the applicant’s present application”. In a data compensation proceeding, the arbitrator is often called upon to determine which of the data developer’s studies in EPA would require to be submitted.... This can be extremely complicated. No single source lists the entire data one must submit to register a particular pesticide. EPA’s data requirement regulations, found at 40 C.F.R. Part 158, specify only the minimum amounts of information required for registration. Moreover, EPA has not amended or updated its data requirements since 1984. Therefore, arbitrators will look to other sources of information — such as data call in (DCI) data, registration standards, re-registration eligibility documents (REDs) and correspondence between EPA and the data developer — to determine the data requirements. In short, even before the enactment of the FQPA, it was no simple task for an arbitrator to identify the data relied on by a cite-all applicant. With the enactment of FQPA in 1996, the arbitration task of identifying data requirement became even more complicated. Among other things, the FQPA requires EPA to consider new types of data in determining acceptable pesticide residue levels (Tolerances) for agricultural commodities. FQPA requires EPA to evaluate risk associated with “aggregate exposure to the pesticide chemical residue including all anticipating dietary exposures and all other exposures for which there is reliable information”. EPA must also consider the cumulative effects on infants and children. Finally EPA must consider the effects of pesticides residues and other substances that have a common mechanism of toxicity. In most cases, EPA fails to make an express requirement for FQPA data. Consequently, to establish entitlement to compensation for a cite-all registrant, a data submitter must demonstrate through other evidence that such FQPA data was required. One of the best sources of such evidence is correspondence with EPA concerning the FQPA data. To enhance the likelihood of receiving compensation for FQPA data, the data submitter should take the following steps:
(i) Articulate in correspondence with EPA why the data are being submitted.
(ii) Seek written confirmation from EPA that the data were considered by the agency in performing FQPA assessments.
(iii) Review decision documents issued by EPA, to verify that the agency has listed the Registrants FQPA data as a reference.
(iv) If EPA fails to list FQPA data submissions in decision documents, request the agency to correct the omission.
(v) Following Re registration make sure that EPA informs follow on registrants of their obligation to either submit their own FQPA data or offer compensation to the data submitter. EPA has indicated that it plans to issue a pesticide registration notice classifying the data compensation status of FQPA data.
(2) Bio-technology patents: Biotechnology is one of the most research-intensive industries in the world. In the U.S. alone, the biotech industry reportedly spent $9 billion in Research and Development in 1997. This industry is also very sensitive to copying and piracy since many inventions involve the description and function of genetic material where barrier to illegal exploitation are low. In the U.S., Federal Court decisions to date have upheld patents for exclusive property right in biotechnology inventions. This trend began in 1980 with the groundbreaking decision by the Supreme Court in the case of Diamond V. Chakraborty, which held that a living genetically altered microorganism, constituted patentable subject matter defined as “anything under the Sun that is made by Man”. Beginning in the mid-1990’s nations began to offer plant variety protection (PVP), also known as plant breeders rights (PBP), to breeders. Under PBP a breeder could obtain protection for a new variety, provided it was novel, distinct, uniform and stable. The protection gave the breeder the exclusive right to market the variety, although farmers were able to reuse their seed, and breeders had the right to use protected material in producing new varieties. In 1991, Treaty revision permitted nations to prohibit farmers from reusing harvested seeds and gave breeders certain right over material bred from protected materials and stronger right over products grown with protected seed. This system of protection is governed by an International agreement and organization UPOV (French Acronym for International Union for the Protection of new Varieties of plants). The US will grant a regular patent and a variety with the probable implication that the material cannot be reused by farmers or reused by third parties for further breeding. The U.S. and probably Europe, also grants patents on all plants of a particular species into which a specific new gene, has been inserted by biotechnological means. The U.S. and Europe have also granted patents on wide categories of transgenic plants, for example, all transgenic cotton or Soya bean. Many other nations grant patents on processes for a genetic transformation of plants.
Although many developing countries have been hesitant about adopting such form of intellectual property protection, the trade related intellectual property rights (TRIPs) agreement requires all members of the WTO to make patents available in all fields of technology. Because the private sector will hold many of the advanced technologies, the publicly funded agricultural research community must develop an effective approach to cooperation with the private sector in research and product development. International political pressure is likely to ensure that national governments make an effort to comply with TRIPs. But such efforts should mean more than simply passing TRIPs compliant legislation. The Intellectual property legislation must be supplemented with appropriate training in the courts, law firms and law schools so that law can be used effectively. Effective legislation for managing intellectual property rights for products of government research must also be passed.
References
1. ‘Intellectual Property Rights Supports Agriculture’ Farm Chemicals International, Special Issue March 2000.
2. ‘Intellectual Property Rights’ seminar organized jointly by Asia Pacific Crop Protection Association, Thailand and Indian Crop Protection Association, Mumbai held at New Delhi in October 1998.
3. ‘Management of Intellectual Property and Technological Changes’ by Mr. V. Govindarajulu, Scientist Regional Research Laboratory, Trivandrum Chemical Weekly, Sept. 19, 2000.
4. A brief guide to the WTO for Small Businesses, May 1999, published by Federation of Indian Micro, and Small and Medium Enterprises, New Delhi.
5. A Decade of WTO and Indian Economy edited by SB Yadav published by Sumit Enterprises, New Delhi, 2006.
6. Development Agenda of Third World Countries under the WTO Regime Edited by Dr Stephen Analil published by Serial Publications, New Delhi, 2005
7. India: Foreign Trade Policy and WTO 1991-2003 by Dr Vibha Mathur Published by New Century Publications, Delhi 2003.
8. Indian Agriculture & WTO, Global India and World Trade Organization: Issues and Effects on Indian Agribusiness Industries by Pandya Maurvi and Pathak Priyanka, , Everest Publishing House, Pune. April, 2007.
9. World Trade Organization and Indian Economic Reforms edited by V.B Jugle published by Serials Publications, New Delhi, 2005.
10. “The Indian Chemical Industry is poised to become more buoyant in this decade” by P.D Samudra published in the Chemical World, May-June 2007.

LIBERALIZATION AND INDIAN AGRICULTURE SECTOR
Dr. Pravinaben N. Pandya.

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The increasing economic integration of the Indian economy with global processes has brought considerable challenges at the door of its agricultural sector. These challenges have arisen from two broad sets of problems. In the first place, a number of major crops have been witnessing a decline in productivity growth, in particular over the past decade. Second, and perhaps more important from a short run perspective, is the fact that Indian agriculture faces unfair competition from cheap imports, which poses an enormous threat to the livelihoods of the farming communities. It is quite clear, therefore, that a comprehensive framework needs to be evolved, one that addresses the specific problems that the agricultural sector faces at the present juncture.
The above-mentioned trends in the use of SPS measures and TBT hold significance for India for yet another reason. Suggestions have been made in some quarters that Indian agriculture should focus on exports to provide impetus for its growth. These suggestions are based on the assumption that the relatively low cost agriculture in India will have the competitive advantage in the global market place, which can help generate additional markets. However, as food standards become increasingly important in the larger markets, mere price advantages that countries like India enjoy, can contribute precious little in obtaining additional market access. India would therefore have to invest heavily in upgrading its production facilities - from the farm to the processing units - to have a look-in into the larger markets. But with investments in agriculture decreasing steadily from the mid-1980s, it would require a complete turnaround in the government's priorities to reverse the trend. The larger issue that needs to be addressed in the context of the suggestions for an "export-oriented" agricultural sector in India is the impact such a policy orientation would have on the country's food security. Arguments advanced in this respect have been that the increase in the stocks of foodgrains is an indicator that the country has solved its problems relating to food security. As a corollary it was suggested that diversification of Indian agriculture should take place rapidly so as to better utilise the available resources
Impact of Economic Reforms Process on Indian Agricultural Sector
Agricultural sector is the mainstay of the rural Indian economy around which socio-economic privileges and deprivations revolve, and any change in its structure is likely to have a corresponding impact on the existing pattern of social equality. No strategy of economic reform can succeed without sustained and broad based agricultural development, which is critical for raising living standards, alleviating poverty, assuring food security, generating buoyant market for expansion of industry and services, and making substantial contribution to the national economic growth. According to [Bhalla97], of the three sectors of economy in India, the tertiary sector has diversified the fastest, the secondary sector the second fastest, while the primary sector, taken as whole, has scarcely diversified at all. Since agriculture continues to be a tradable sector, this economic liberalization and reform policy has far reaching effects on (I) agricultural exports and imports, (ii) investment in new technologies and on rural infrastructure (iii) patterns of agricultural growth, (iv) agriculture income and employment, (v) agricultural prices and (vi) food security [Bhalla93]. Reduction in Commercial Bank credit to agriculture, in lieu of this reforms process and recommendations of Khusrao Committee and Narasingham Committee, might lead to a fall in farm investment and impaired agricultural growth [Panda96]. Infrastructure development requires public expenditure which is getting affected due to the new policies of fiscal compression. Liberalization of agriculture and open market operations will enhance competition in "resource use" and "marketing of agricultural production", which will force the small and marginal farmers (who constitute 76.3% of total farmers) to resort to "distress sale" and seek for off-farm employment for supplementing income.
Indian Agricultural Sector
The Indian Agricultural sector provides employment to about 65% of the labour force, accounts for 27% of GDP, contributes 21% of total exports, and raw materials to several industries. The Livestock sector contributes an estimated 8.4 % to the country GDP and 35.85 % of the agricultural output. India is the seventh largest producer of fish in the world and ranks second in the production of inland fish. Fish production has increased from 0.75 million tons in 1950-51 to 5.14 million tons in 1996-97, a cumulative growth rate of 4.2% per annum, which has been the fastest of any item in the food sector, except potatoes, eggs and poultry meat. The future growth in agriculture must come from [GBSingh2K] viz., new technologies which are not only "cost effective" but also "in conformity" with natural climatic regime of the country; technologies relevant to rain-fed areas specifically; continued genetic improvements for better seeds and yields; data improvements for better research, better results, and sustainable planning; bridging the gap between knowledge and practice; and judicious land use resourc surveys, efficiemanagement practices and sustainable use of natural resources.
Informatics for agricultural development requires coordinated inter-sectoral approach and application of appropriate Information Technology (IT) tools, in the areas of :- Agricultural Research,
Agro-meteorology, Agricultural Marketing, Agricultural Engineering and Food processing, Agricultural Extension and Transfer of Technology,
Credit & Co-operation, Crop Production and Protection, Environment & Forest, Fertilizers and Manure, Fisheries, Irrigation and Drainage Systems, Livestock, Dairy Development and Animal Husbandry, Rural Development and Planning, Soil and Water Management, Watershed Development, and Wastelands Development For increasing production at micro level, an inventory of currently used, potentially available, and an evaluation of the quantity and quality of these resources is required. This requires design and development of agricultural resources information system using state-of-the-art IT Tools, as given below, to facilitate effective agricultural planning and development :- Data warehousing (Data Bases & Model Bases) Expert Systems & Knowledge Bases
Networking (Internet, Intranet and Extranet) Geographical Information System (GIS) Application of Remote Sensing Data Multi-media Information System Decision Technology System E-Commerce & E-Governance, and Digital Library Decision Support Systems
Decision Support Systems (DSSs) can deliver the technology of management and the relevant knowledge which managers need to get their jobs done. Most of today's DSSs support the "choice" phase of decision making. Enhanced DSSs, known as Management Support Systems (MSSs), are attempting to fill the gaps in decision-making support, not provided by the traditional DSSs. For complete support of critical management activities of communication and decision making - including qualitative and creative processes - a collection of computer information system, as given below, is required:- Decision Support System (DSS) Group DSS (GDSS) Executive Information System (EIS)
Executive Support System (ESS) Expert System (ES) Idea Processing System (IPS) Management Information System (MIS) Office Automation System (OAS) Transaction Processing System (TPS) DSSs, Group DSSs, ESs, and components of ESSs and MISs primarily support the decision making process. "A complete set of enhanced DSS together with an IPS constitutes a Decision Technology System (DTS) which provides complete, integrated support for all phases of the decision-making process and delivers the complete technology of management for full decision support". Development of Decision Support Systems on the following areas facilitating Agricultural Resources Management are envisaged using the state-of-the-art IT tools :- Crop Suitability based on factor endowment Land Suitability Assessment; Land Productivity Assessment; Population Supporting Capacity; Land Evaluation and Land Use Planning; Land Degradation Risk Assessment; Quantification of Land Resources Constraints; Land Management; Agro-ecological Characterization for Research and Planning; Agricultural Technology Transfer; Agricultural Inputs Recommendations; Farming Systems Analysis and Development; Environmental Impact Assessment;
Monitoring of Land Resources Development. Livestock (cattle, buffalo, goat, & sheep) Farming Systems Water allocation in an irrigation system
Fodder Resources Development Water Bodies (Basin) planning systems using Watershed and Agro-Eco Region Planning Concepts
There have been a lot of research publications and also software products developed by various Agricultural Research institutions, both in India and abroad. It has been envisaged to utilize these packages and develop DSSs in districts for agricultural resources management.
Conclusion
This IT-led globalisation will certainly benefit the medium and large farmers who can invest on IT, as has happened during "green revolution". Since the agricultural development strategy has been mostly "growth-oriented" and therefore had a "built-in bias" in favour of Large farmers over Small farmers. Farmers can invest on computers to get access to Internet, but it is not possible for them to invest on "agricultural informatics" with decision support system using geomatics technology.
Reference
] Dhuruva Narayana,V.V & Prasad, B.S.N : "Soil and Water Conservation for better land & water management", Indian Farming 39(7):17-18
: Guissepi A.Forgionne 1991 "Decision Technology Systems : A Step Toward Complete Decision Support", Information Management Systems, Vol. 8, No 4, Fall 1991, Auerbach Publishers
K.V.Sundram : "The Small Framer Development Strategies For The Next Millennium", presented at National Institute of Rural Development, Hyderabad, 2000

GLOBAL RECESSION AND INDIAN ECONOMY

GLOBAL RECESSION AND INDIAN ECONOMY
DR. PRAVINABEN PANDYA

In macro economics, a recession is a decline in a country's gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. An alternative, less accepted definition of recession is a downward trend in the rate of actual GDP growth as promoted by the business-cycle dating committee of the National Bureau of Economic Research The world is embroiled in a recession. Banks are failing, jobs are disappearing, wealth attached to property and stocks is evaporating. The hopes of so many that rest upon saving for the future is now destroyed. All those years of working and saving for retirement, wiped out by the recession in the past few months. The mass of people feel hopeless and worried about their future. Only the devotees of Lord Krsna are above the fray. This is a great time for spreading the message of Lord Caitanya. Lord Krsna says in the Gita, that four kinds of pious men begin to render devotional service unto him - the distressed, the desire of wealth, the inquisitive, and he who is searching for knowledge of the Absolute (BG 7.16). When a pious person is in distress, he will question his existence. Why do I work so hard to loose everything? Why do I have to struggle so hard to achieve flickering happiness? And, when he comes in contact with a Vaisnava and hears the true meaning and purpose of life, he begins his journey back to Godhead.
On the other hand, an impious soul will never accept Krsna as the Supreme Personality of Godhead. We have seen and heard Srila Prabhupada preach to many of the most respectful non-devotees of the world. No matter what Srila Prabhupada said, they never would accept. Still, these greatly fortunate demons, have received the pure transcendental sound vibration from the lips of a pure devotee of Krsna. And, it will have an effect if not in this life, then the next. Just as when medicine is taken by a patient, it takes time to see the result. The Holy name of Lord Krsna is His most powerful energy and it can overcome any influence of kali yuga. So, we who are followers of Srila Prabhupada should show compassion for those who are suffering as a result of what is happening in the world at this moment. We have an opportunity to approach many people who are looking for answers to their suffering, and they will be eager to hear. We have the the finial solution to their problems. It is to take to this process of Krsna Consciousness and go back home back to Godhead. We cannot overcome the dictates of the material energy. It is best to concentrate on purifying our selves and trying to save others.
IMPACTS OF RECESSION ON ASIAN COUNTRIES:---
The stagnation/decline of the traditional engines of growth. ( US, Euro Area, Japan, UK, Canada and Australia-all hovering less than 2% GDP growth, not just in the past 3-4 yrs but likely to be continue so, in the near future. There are a handful who are expected to have negative growth!) -the emerging engines of growth are certainly the BRICA region- BRIC nations and the ASEAN region! Contrary to perception, those countries with huge population -are likely to be more stable economies in future, as one can expect a much more robust domestic economy-and not be entirely dependent! ( A set of 11 emerging nations qualify here!!) -The emergence of SMEs and micro enterprises in the role of developing economies. -Perceived threat to nations like Japan where increased 'savings rate' -has throttled 'consumer spending' within the domestic economy. Add to it, the low population growth-and the resistance to immigrants, the nation is fast ageing!!

IMPACTS ON INDIAN ECONOMY:---
In the globalized market scenario, the impact of recession at one place/ indusrty/ sector perculate down to all the linked indusrty and this can be truly interpreated from the current market situation which is faced by the world since approx 2 month and still the situation is not in control inspite of various measures taken to fight back the recession in the market.
It is certainly true that the bad news from abroad – which shows no signs of easing up – has impacted upon domestic stock markets, investor expectations, and the exporting industries in particular. But it is also unfortunately the case that our own economy has been showing several causes for concern even before that external bad news started pouring in. There was the accelerating inflation, which particularly hit food and other items of essential consumption, and recently exacerbated by the increase in petrol prices. In addition there have been signs of decelerating growth, especially in industrial activity, and these cannot be ascribed only to reduced export orders, but are more likely to have domestic causes. Consider the index of industrial production, presented in Chart 1 (with base year 1993-94). The general index peaked in March this year, fell quite sharply thereafter and subsequently has been more or less flat at the lower level. This pattern essentially reflects the behaviour of the manufacturing index, which accounts for around 80 per cent of the weight of the general index. Such a pattern tends to be obscured by the standard way of presenting the industrial growth data, in terms of year-on-year monthly rates.
What is especially disconcerting is the evidence on electricity production, which shows hardly any increase at all but simply fluctuations around a flat trend for the past 18 months. Since electricity still remains substantially undersupplied, and its shortage can create supply bottlenecks for other production, this stagnation is worth noting. The use-based classification industrial production suggests that the slowdown in growth is spread across several important sectors. Chart 2 provides the evidence on recent trends in production in the basic, capital goods and intermediate industries. Once again, both basic goods and intermediate goods, which have strong backward and forward linkages with other industrial activity, have been stagnant and hardly increased at all over the past one and half years. The production of capital goods shows much greater volatility, with a sharp increase in March 2008 but decline thereafter from that peak.
Consumer goods are the most likely - and the first - to be directly affected by slowing demand in domestic and export markets. Chart 3 show that this too is not a recent problem, but one which has been clearly evident in the economy at least since the beginning of the current calendar year. The production of consumer non-durable goods, which account for the bulk of consumer goods (with more than 80 per cent weight) peaked in January 2008 and have fallen continuously since then. Consumer durables, onthe other hand, had benefited from a credit-financed boom that had elements of unsustainability that are eerily similar to the US credit-driven consumption boom. The significant expansion of retail credit, especially credit card debt and hire purchase schemes, had generated demand for consumer durables and automobiles, but such credit-driven expansion became increasingly problematic as interest rates increased and lenders became more concerned with the viability of this rapidly growing consumer debt.
The badly hit setor at present being the financial sector, and major issue being the "LIQUIDITY Crises" in the market. To curb the liquidity crises the RBI will continue to initiate liquidity measures as long as the current unusually tight domestic liquidity environment prevails. The current step to curb these being lowering of interest rates and reduction of PLR.However, the big-picture story remains unchanged – all countries in the world with current account deficits and strong credit cycles are finding it difficult to bring cost of capital down in the current environment. India is no different. New measures do not change our view on the growth outlook. Indeed, we remain concerned about the banking sector and financial sector. The BOP- Balance of Payment deficit – at a time when domestic credit demand is very high – is resulting in a vicious loop of reduced access to liquidity, slowing growth, and increased risk-aversion in the financial system.
Global recession hurting India ;-
The major impact of recession or economic slowdown is with the small exporters and importers in the country as most of them at he service sector in the IT industry has been the victim of global downswing as the profitability in most of the segments have reduced a lot.re facing the problem of heavy duties." For them it would probably end up as a positive impact while for larger IT companies it would get balanced out by reduction of outsourcing and increase for companies who actually are going to cut costs in order to meet the criteria of not going into loses for the impending slowdown." The problems of US slowdown has not only impacted the IT sector on all edges, it has perhaps made the Indian manufacturing and energy sector worrisome too. The challenges that Indian industry is encountering with is a universal problem of rising energy and fuel cost. It is always followed that as the energy prices go up there is a probability of recession. The second factor that we see today is the global developments in India Indian economy is insulated to some extent from the global environment, which is really not true, because we can very clearly see the impact of that for the past few months where there is definite indication of economic slowdown in the country. The slowdown is taking place as the result of rise in the costs of the materials all over the world, surging commodity prices, the impact of surging foodgrain prices. India's present economic crisis that has hit most of the countries across the world has been created by the investment bankers, Britain-based NRI businessman Lord Swraj Paul said in an event organized by FICCI Ladies Organization (FLO) in the national capital recently. Investment bankers have gone overboard by giving loans to people, which were more than their repaying capacity," Paul told reporters during the question answer session of the event. This crisis could be worse than what has been imagined, as the banks have not come out with the truth, The Indian economy is much less dependent on the external markets than the Chinese economy, the panel said in its review of the economy. While some export demand compression is likely to put an additional burden on our exports of goods and services, it is unlikely to be large enough to significantly depress growth. However, the flip side to this is that the pressure on prices of oil, food and other raw materials is likely to continue, making inflation management in 2008-09 quite challenging, The Rangarajan panel had already revised downward economic growth in India to 8.5 per cent for fiscal 2008-09 from the over 9 per cent rate projected by the government earlier. The independent economic think-tank, the Centre for Monitoring Indian Economy (CMIE) had, however, projected a 9.5 per cent growth rate for the economy. The Rangarajan panel had cited the slowing of manufacturing expansion following several rounds of monetary tightening, and sluggish output growth in power and mining as factors affecting growth. Finance minister P Chidambaram also told a meeting in Gurgaon that a slowdown in the US may have some impact on India's growth drastic. If the US goes into recession there will be global consequences and India will have to bear part of the global consequences," Chidambaram said. While the government is confident of maintaining growth momentum despite a surge in the value of the rupee against the dollar, record global crude oil prices and rising food prices are posing problems for policymakers. Global economic recession badly affects the Indian economy & industrial growth. Since we know that worlds economy is badly affected by the disastric ends of the worlds top bankers. Due to their Bankruptcy, their is scrcity of money in the market, also spread distrust among banks. So in the investments in the Indian s...
India nowhere close to recession: Chidambaram
While reiterating the strong position of the Indian economy amid global financial turmoil, Chidambaram expressed hope that the public had seen the worst as far as price rise in concerned. Commenting on the global economic crisis the minister said, “We must banish the fear of recession for Indian economy as we have weathered the global financial crisis. Global recession’s impact on economy has been muted as economic growth in India has been driven by domestic demand. While speaking on the effects of the global financial crisis on the Indian economy, Chidambaram admitted, “People should be ready for temporary effect of the global economic slowdown. The growth outlook remains quite robust yet this year it would be moderate at 7.9 percent. The foreign exchange reserve and foreign investment have been affected by it. Accepting the liquidity crunch in the economy, Liquidity has been tightened in the market. RBI has infused money into the market to meet the liquidity demands Asking people to repose their faith in the Indian economy, the Finance Minister commented, “Indian economy has been resilient to foreign shocks.” Talking about inflation, Chidambaram hoped that the worst is over. He said that RBI has taken measures like slashing interest rates and repo rate to curb inflation. As a result, inflation has come down from double digit figure to a single digit figure and commodity prices have started to ease since August, If the rate of inflation continues to decline, policy rates may also moderate and the bias in favour of growth may deepen... RBI's policy is now biased towards stimulating growth, Every economy will feel the effect of the US recession as it gets stronger. India will loose some jobs in the technology sector for programmersand such but will see an increase in back office workers and phone centers as US companies try to cut costs more and ship these jobs to India. legal aids will be required to prepare breafs for bankruptcy courts and defaulted credit card, home and auto loans. It is just starting and the ride from the top will be long. India will also see an increase in medical research centers and boitech medicine developement research. over all the out look for India in the next ten years is good if they can start focusing on infastructure like airports and highways. There new automobile will take the rest of the world by storm. but catch on slow here in the USA. need to develope a minivan type for around $4000 will be a hit in all the developing countries especially China.
Adverse Impact on Domestic Industry Next Year:--
According to both officials and industry sources here, the timing of the removal of QRs is disadvantageous for the Indian Industry as high oil prices may slow down the economy in the coming months and the industrial nations may like to export more at the cost of the developing countries. Indian industry that is already facing a stiff competition from both the developed countries as also China, Malaysia and some other East-Asian countries, will be facing further problems in selling their goods in the overseas market.In fact, in the exercises for formulating 2001-02 budget, the government this time is taking note of these two factors quite seriously, the impact of cheap imports on the dometic industries till now and the extent of the effect of the QRs removal on the domestic industry during the next financial year. The Federation of Indian Chambers of Commerce (FICCI) has already submitted its findings to the government on the adverse effects of cheap imports on the domestic industry. The Confederation of Indian Industry has also drawn the attention of the finance ministry following some indiscriminate imports of such goods. Decline in industrial growth rate raises the question whether it is going to be purely a temporary and irregular change or an indication of recession. A recent study made by the Institute of Economic Growth observes that the industry has indeed entered into a new phase of industrial recession. According to this study, the index of industrial production had passed through cycles in both pre and post reform periods and it appears that so far there is no long run change in the industrial production from structural reforms. An economy which grows over a period of time tends to slow down the growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less. This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment.
CONCLUSION—
A slowdown in the US economy is bad news for India. Indian companies have major outsourcing deals from the US. India's exports to the US have also grown substantially over the years. The India economy is likely to lose between 2 to 3 percentage points in GDP growth in the next fiscal year. Indian companies with big tickets deals in the US would see their profit margins shrinking. Right now exporters are feeling happy because dollar is strong against rupee but if rupee strengthens further against the dollar they may be in pressure, experts note that the long-term prospects for India are stable. A weak dollar could bring more foreign money to Indian markets. Oil may get cheaper bringing down inflation. A recession could bring down oil prices to $70. The whole of Asia would be hit by a recession as it depends on the US economy. Asia is yet to totally decouple itself (or be independent) from the rest of the world. Due to exposure of media & sensational news(because sometiems I feel media helps to deepen the panic more) common people in India is feeling insecure but frankly this is not the time to panic that much. No doubt today gloabal trade has become more interdependant and interconnected so the ripple effect had arrived but will settle down with time Recession is an accessory of capitalism which comes with its tool to manipulate business situation, that is the stock market. De link stock market to economy and there will be no recession or boosted situation. What lead the oil price increase in the world for last 4 or 5 years? There you will find the reason for recession. Not anywhere else. Oil is the major energy source for the world and its increase effect all the world in a similar way. To add the worry, US dollar become weak and all the currencies linked with it... So, when there is an unjustifiable oil price increase, a recession was on the making. Then, how the ’Economic think tanks’ at wall street could not identified it earlier?? As on today, the Sensex increased 6 plus percentage. Wondering what made this 6 percentage of economic growth in two days time...the same people will cry if the stock goes down tomorrow and ask government to intervene. The wise foreign investors will again go away with their money as long as there are people to give out their hard earned money on speculation even seeing economic death face to face..

GLOBAL FINANCIAL INSTITUTIONS

Global Financial Institutions – with special reference to Green Revolution

Dr. Pravinaben Pandya,

Banking and Economics Department.,

Dr. Subhsh Mahila Arts, Commerce and Home Science College, Junagadh. 362 001. Phone. (0285) 2670807
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It is the remarkable subject for study that the global situation adversely affects on Global Finance. Many economists suggest some important steps to remove some adverse effects. Among them, agriculture development, rural development, rural industrialization, rural marketing and agri-business developments are the main objects. So the green revolution is the significant factor for the same. The vast awareness of green revolution needs more and more money. So global finance is the main aspect and special role of global financial institutions is the remarkable aspect for researchers.
Many analysts widely perceived that Green Revolution was brought about largely to satisfy the needs of the corporate sectors of the industrialized countries who could rightly assess the enormous market potential of agro- chemicals particularly fertilizers and pesticides in the developing countries with fast rising population.
Global Financial Institutions:-
The agricultural policies along with many other polices were influenced right from the middle of the last century by the World Bank ( W.B.), International Market Fund ( I.M.F.) and similar Food and Agricultural Sector in particular.
The so-called green revolution with HYVs was eminently suitable for uptake of large quantities of inorganic fertilizers, but unlike the local cultivators. Because it is newly introduced once being less resistant to pests and diseases. It required large applications of chemicals pesticides. Besides imports, loans were granted for setting up fertilizer and pesticide factories with licenses from foreign manufacturers..
In fact, started from 1944 , for World Bank loans, the primary role of the bank had been to ensure the interest of the global corporate, so a s to enable them to capture the huge potential markets of the developing countries and the highest populated countries.
India would naturally based solely on imported inputs offered. A unique opportunity to have a tight grip on food and agriculture and all associated sectors is found with the help of global finance.
Policy of Global Finance:-
World Bank’s policy – oriented loans during the rise of green revolution covered financing of
· Irrigation project
· Seed corporations
· Fertilizer factories
· Pesticide factories…… etc. with licensing from appropriate MNCs
And so on. It includes more recent activites. Besides financial aspects, give it the role of a knowledge provider and funding for policy oriented research.
Conclusions of some studies:-
In India, there are 15 major studies have been undertaken during 2005 – 2008. It includes strategic issues
· For india’s water sector
· For Agricultural Marketing
· For value chain development.
All these studies objected for privatization. It had the named of “reforms” – which related or with off-repeated slogan of “Structural Reforms” of International Monetary Fund.

India and Global Finance:-
India’s corporate sector that represents one percent of the population, has a greater share of country’s income than 60% of the people who depend on farming, 77% of workers in the huge unorganized sectors earn less than 20 rupees per day. Data in 2008 show 400 wealthy persons of the country between them own wealth amount in to over 12.32 lakh crore in which 51 of them account for 31% of India’s GDP.
There is little doubt that reforms ushered in by the new world order of Liberalization, Globalization and particularly privatization has been great success in India.
World Bank and India:-
· A pertinent question has been raised in several quarter as to the need for World Bank Loans. World Bank’s lending to India in 2006- 2007 was worth US $ 3.8 billion ( on increase of 169% over the amount in the previous year) it is the highest lending by the bank to any country so far.
· In 2005 – 06 India paid a sum of Rs. 1487.3 crore as a interest to the bank. It is essential condition that one-fifth of the bank’s new soft loans are paid for repayments on past loans for this connection.
· The World Bank must keep on going soft loans to survive as its about dollar one billion yearly earning from accumulated capital is less than its administrative budge of over dollar 1.7 billion.
· The more recent trend of direct borrowings from World Bank by States with the permission from the centre should not be encouraged because of obvious reasons :
Reasons for not encouraging direct borrowings to States, By Central Government in India:-
(1) High yielding varieties (HYVs ) requiring high agro – inputs marginalizing locally adopted cultivators----
When HYVs were introduced in the country, there were in most cases location specific indigenous fully acclimatized cultivators with enough yielding potential to feed our population – which was half of what it is now. With adequate organic manures , green manures in particular, that could have boosted our productivity to sufficiently high level to feed the population. Unlike the present day commercially cultivated hybrids that require seed replacement for each sowing, the earlier HYVs were open – pollinated pure lines and mostly in the public domain, with an average seed replacement requirement of 3 or 4 years. Still there are skilled farmers in small pockets who are trying their level best to keep these varieties alive. The subsidy for the agro – inputs successfully tempted farmers to go for large scale adoption of the technology in the irrigated areas of the country. The pesticides applications in many such regions are somehow ushered in with the active support of the propesticide lobby and pesticide dealers.
(2) Technology Fatigue in Green Revolution :-
The so-called “Technology Fatigue” as an explanation of the decline of green revolution is an attempt to confuse the public on the issue – unfortunately, technology fatigue that happens in industrial technology has been equated with decline of soil fertility. Soil system and soil – water – plant relations that had been conveniently ignored by the proponents of technology fatigue. These are serious deliberate scientific lapses on the part of our agricultural research establishment.
Present Scenario of Organic Agriculture in the World and in India:-
The Foundation of Ecology and Agriculture ( SOEL ) Germany
The Research Institute of Organic Agriculture ( RIOL ), Switzerland.
International Federation of Organic Agriculture Movement ( IFOAM ).
These are the institutions which collected the world-wide information about organic farming. Ninenth edition in 2007 stated that organic agriculture under certifications being practiced in 120 countries of the world.
According to recent global survey compiled by Wilier and Ysseffi (2007 )--- area wise, Australia with 11,8 million ha. Under organic farming is the leading country followed by Argentina (3.1 million ha. ), China (2.3 million ha,) and USA ( 1.6 million ha.) , currently recording a noteworthy 30 % annual rise. In India, also, by September 2007, the total certified cultivated area under organic farming has gone up to 538171 hectors in 2006 – 07 with annual 100 % growth rate during the preceding two years.
Summary:-
The idea of second Green revolution to boost up productivity through signing of a bilateral agreement between India and USA in 2005 (known as Indian USA knowledge initiative in agriculture abbreviated as KIA ---- .The KIA would like to pave the way for further entry of US corporates in the agricultural trade and particularly a big share of India’s retail market. So World Bank and International Monetary Fund influenced right from the middle of last century to agricultural policies. Many researches starts to analyze the perfect position at world and India level. Most of analysists conclude that the global finance mostly satisfied industrialized countries’ corporate sector related with green revolution
References:-
A report of Rathindra Narayan Basu, Chairman, West Bengal State. Agri. Commission—Convocation address—17th April 2008.

papers for agri business

MICRO-FINANCE AND INDIAN AGRIBUSINESS INDUSTRIES
Dr, Pravinaben N. Pandya
Dr. Subhash Mahila, Arts, Commerce and Home Science College
P.G. Department (Economics)
JUNAGADH (362001)



Introduction:
The gains of technology up-gradation and competitive cost structure are not easy to come by. The lack of economics of scale due to the historical baggage of fragmentation of capacities in various industry segments, the high cumulative incidence of domestic of domestic indirect tax structure and the invisible burden of transaction costs due to infirmities of infra-structure and administration are imposing severe restrains on productivity gains. The issue is of great importance in the post – WTO scenario, global markets offer opportunities for all, but opportunities d not guarantees the desired results. Surely, there remains an urgency of strengthening the mechanism of finance. But the question is that how does one provide the financial as well as organizational effective management. The issue is more clear with the given below objectives of the paper.
( 1 ) The objectives:-
To find out -
1.1 Introduction of micro-finance.
1.2 Introduction of factoring and micro-finance.
1.3 Market segments of micro-finance.
1.4 Supply of micro-finance services.
1.5 Micro-finance institutional structure.
1.6 Classification of micro-finance institutions.
1.7 The problems of micro-finance institutions.

1.1 Introduction of micro-finance.:-
The term micro-finance refers to small savings credit and insurance services. It gives advantages to society and economy of country. The recent task force on micro-finance has defined it as provision of thrift, credit and other financial services and [products of very small amounts to the poor in rural, semi-urban or urban areas for enabling them to raise their income levels and improve living standards. Micro-finance has been practiced for quite a number of states and regions in India by non-governmental organizations.

1.2 Introduction of factoring and micro-finance:-
Among the more recent development to support small but rapidly growing firms are basically in need of factoring and micro-finance. Factoring – affirm of receivables finance – can be an important credit tool for small and medium enterprises (SMEs)., which own few assets or collateral, but show rapidly expanding cells.
Factoring provides services which commercial bank usually do not offer, such as,
· Receivables management
· Credit insurance
· Collection services.
It has been able to fill a gap in existing financial systems. It promotes the diversification of industries and it improves capital efficiency.
The non-government organizations (NGOs) have financed small business activates. Instead of having to rely on family, friends, or village mo0ny lender, micro-finance given to instilling a culture of saving and investment. Because of its vast social implications micro-finance has often received public sector support. Both from domestic financial institutions as well as from abroad. Micro-finance works for quality of life for communities that had been at or below the poverty line and kindly gives the entrepreneurial spirit with in the people.

1.3 Market segments of micro-finance:-.

There are four important market segment of Demand for money.
First segment
Bottom level
(Credit for Income and asset)
Beneficiaries

Land less people who are engaged in Agricultural work on the seasonal work
Land less people

Manual labours
Manual labours in forestry, Minining, households industries, construction, transport… etc.
Second segment
Productive and additional asset
(Credit for working capital and term capital)
· Working capital for crop production in rural area.
· Term capital for acuuing additional and productive asset like:-
Irrigation, Machinery
Pump sets work-sheds
Bore wells non-farm works..
Equipments
Small and Marginal farmers,
rural artisans, Weavers,
urban self-employed:- hawkers, ,Vendors workers.
Third segment
Ö
Agribusiness Industries,
Commercial crops, Dairying,
Poultry, Fisheries,
Non-farm activities Processing,
Manufacturing,
Running provision stores,
Repairs workshops
Tea-shop
Service- Enterprise
The persons are not always poor,
but suffer from inadequate access to formal credit.
Fourth segment
Micro-credit for women.
Household work, Poultry, Cattle rearing, Spinning and Weaving, Tailoring, Manufacturing.
Part-time and full-time women worker




1.3.1 Introduction to Third segment:-
“Agribusiness Industries” means units which add to agricultural products / intermediates / residues, both food and non-food, by processing into products, which are marketable or usable or edible or by improving storability or by providing the link from farm to the market or part thereof. Agri industry also includes hi-tech and biotechnology based agriculture.
The third segment is of small and marginal farmers who have gone in for commercial crops such as, Surplus paddy, wheat, cotton, groundnut, Dairying, poultry, fishery. Among the non-farm activities, this segment includes those in villages and slums engaged in processing, manufacturing activities, running provision stores, repair workshop, tea shop, various service enterprise. These persons are not always poor, though they live barely above the poverty line and also suffer from inadequate access to formal credit.
1.3.2 Micro-finance demand for insurances services:-
Almost all groups of industries in their early years be with regular savings exceed tha loans given the front their funds. Of-course, parts of this lower demand of credit is the inadequate absorption capacity of their business. With comes from long years the position is changing demand for insurance services though not very well articulated but it is now substantial increase. Micro-finance customers have low income but they are try to develop with new capital base and so insurance for poorer is need for assets such as live-stock, pump-sets, shelter etc. their raw material is coming from agricultural crops and so crop insurance could be very useful for the industry. Micro-finance institutions are ready for the same in some cases.

The typical client base of any micro finance institution is poor people who do not have access to formal financial institutions.
Micro finance clients are typically self-employed, micro entrepreneurs.
In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade.
In urban areas, micro finance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. ?
Microfinance clients are poor and vulnerable non-poor who have a relatively stable source of income.
Many believe that 95% of the Microfinance clients are women

1.4 Supply of micro-finance services.
All India Debt and Investment Survey 1992, shows that the share of the non-institutional agencies, informational sectors in the out-standing cash dues to rural house holds. It was 36 % the dependence on rural house hold from their total out-standing dues. The micro-finance services are very near for cultivators and non-cultivators or agribusiness industrialist. In 1991, it was 33.7 % for cultivators and 44.7 % for non-cultivators. Among formal institutional sources and micro-finance institutions, the credit support almost 56 % and 44 %.

1.5 Micro-finance institutional structure
Capital formation in agriculture has declined, points out Dr Reddy, as a percentage of total gross domestic capital from 6.8 per cent in 1993-94 to 5.5 per cent in 1998-99. In particular, public investment has declined. The share of agriculture and allie d activities in the total Plan outlay has declined from 6.1 per cent in the Sixth Plan to 4.4 per cent in the Ninth Plan. Irrigation and flood control have received just 6.5 per cent over the recent Plan periods compared to 10 per cent in earlier Plans.
The different organizations in this field can be classified as :-
· Main stream – NABARD, SIDBI etc.
· Alternatives – SHG, NGOs.
While investment in agriculture is falling, the subsidy attributable to agriculture is going up. Budgetary subsidies for the farm sector have been increasing. Fertiliser subsidies, in particular, have gone up in absolute terms from Rs 4,390 crore in 1990 -91 to Rs 13,463 crore in 1999-2000. States' power sector subsidies have also recorded steady growth.
Dr Reddy argues that the RIDF should refocus, if possible, by diverting such funds directly for credit for agricultural operations. There is a dichotomy here. While banks are not able to reach their targets for lending to agriculture, the informal sector of lenders is quite active. A closer linkage between the banks and the informal sector will perhaps better serve the purpose of both banks and the informal sector.
This requires a change of mindset on the part of the RBI, which should look sympathetically at the non-bank financial sector lending to agriculture. Non-bank lenders have considerable advantages in terms of freedom from procedures, quickness of response and facilities for recovery. There is also the potential for using micro-finance. While a number of initiatives have been taken in this regard, it is important to ensure that micro-financial institutions do not get bureaucratised in response to excessive regulation.







1.5.1 Recommendations on Microfinance by RBI
1. RBI shall facilitate establishing micro finance funds for capacity building. Besides the subsidy funds of Swarnajayanti Gram Swarozgar Yojana (SGSY), funds shall be mobilized from Rural Infrastructure Development Fund, NABARD and also part of the profits of commercial banks.
2. A RUDSETI model institution could lubricate entrepreneurship at the village level reducing urban migration.
3. RBI should constitute a permanent working group on micro finance constituting members from formal financial institutions, Government, apex development banks, NGOs and MFIs to monitor and review the progress on allocation of resources and undertaking of capacity building initiatives.
4. Each bank could establish an exclusive micro finance cell to design strategies of the bank and creating an enabling environment to develop micro finance as core business of poverty lending.
5. As there is a need to familiarize formal financial institutions with non-subsidized lending to poor, RBI shall facilitate in building capacities of these institutions towards this objective through pilot projects of exclusive micro finance branches.
6. Policy initiatives and operational guidelines shall be initiated by RBI to promote branch based viable linkage by reaching and maintaining significant micro finanace portfolio-Rs. 2-3 crores supporting around 200 groups.
7. RBI shall facilitate setting up of business incubation fund through SGSY programme for providing venture capital support as there is a felt need for business support services for healthy growth of the sector. A separate national fund for Business Development Services could be thought of.
8. SHGs may be networked into community-based organizations at cluster/federation level.
9. Promotional costs of SHGs may be shared by MFIs/banks/Govts.
10. RIDF funds may also be used for SHG promotion.
11. Properly designed training courses may be put in place for MFI professionals
12. A National-level experience-sharing forum may be set up for interaction amongst institutions like RBI, NABARD & SIDBI.
13. An Innovation Fund for research & development may be initiated
14. MFIs may be encouraged and supported to go for campus recruitment from recognized management institutions to initiate professionalism in the sector.
15. Banks may reserve a certain percentage of resources – 15 to 20% - for capacity building of their officials. Deputation to well run mFIs should be thought to ensure cross learning.
16. Common performance standards based on key financial and non-financial indicators may be evolved.
17. Senior-level training programmes and exposure visits may be organized for Bankers for better appreciation of the micro finance sector.
18. Micro finance resource centers with exclusive focus on capacity building may be set up in five different regions
14 million poor families access micro finance through 881 154 SHGs linked to over 30 000 branches of 504 banks comprising commercial banks, regional rural banks and cooperative banks ( 90% SHGs are all women )Source : Presentation of Ms Ranjana Kumari - NABARD Chairperson at Micro credit summit in Dhaka on 16th February 2004
The micro finance sector in India has experienced a tremendous growth in the last decade due to the efforts of various agencies, including government, international donor agencies and development banks. There is now a reasonably good supply of loan funds in the micro finance sector; lately there have also been positive changes in the policies affecting the micro finance sector. Inspite of all these efforts, the outreach of micro finance services in India is still considerably small in comparison to the demand for such services.
The m-f market in India has not quite matured in terms of number of clients, range of services and variety of institutional models. Currently, it is estimated that only about 3% of the 75 million poor households in India who need access to credit, receive financial services from the formal financial institutions and the micro finance sector put together. The potential for the micro finance industry in India is still vast. Source : 2002 Annual Report of FWWB India
It is estimated that almost 260 mn. people are living in poverty in India. Under the internationally accepted poverty line of 1 USD a day, adjusted for the purchasing power, some 39 % of India's population would be considered as poor. The Govt. of India, since independence, has been making concerted efforts to provide financial services to the poor at affordable cost in its endeavor to solve the problems of poverty and unemployment. It laid special emphasis on expanding the network of banks all over the country in order to provide credit to the poor and weaker sections of the society. Besides, the Government also launched several subsidized wage and self-employment programmers for the benefit of the poor.
Despite all these efforts, there still exists a massive gap between the demand for credit by poor households and the supply of credit by formal financial and social institutions. Of the 75 mn. poor households in India, of which 60 mn. are rural households and 15 mn. urban households, it is estimated that the total annual requirement of credit for rural households would be at least Rs.120 bn. on the basis of Rs.2000/- per family. Another estimate for micro finance services, excluding housing, is Rs.500 bn. assuming that annual average credit usage is Rs.6000/- per rural poor household and Rs.9000/- per urban poor household. Housing credit requirement is estimated at Rs.10 bn. every year. In addition, the clients require saving and insurance services . The dependence of poor on informal and non-institutional sources of credit still remains very high.Source : SIDBI

1.5.2 Self-Help Group
SHG is a small, autonomous, non-political group of people living near to each other and share common concerns, work together for their personal, social and economic development.
Background of women Self Help Groups
Liberalisation of Indian economy has provided both economic opportunities and threats to the poor households. They too are gaining access to the expanding markets, be it a Block, where new industry is being set-up, or a small town which is attracting new tourists or a district headquarters which is getting its infrastructure facilities built, or simply because of increased purchasing power of the rural economy. Slowly but surely, poor households are responding to increased consumer demands. In many such cases of economic upsurge, availability of credit to the poor households provides the critical impetus for initiating and/or expanding their income generating activities(IGAs)
Experience in micro-finance programs suggests that access to financial services are critical for providing economic security to the pooor households. Credit, if appropriately delivered, is attractive to the poor (tlk of money!), financially viable ( income through viable IGAs) and self-sustainabale (capital and assets build up from income). Experience also proves that women in
poor households "Value" credit and ensuing benefits reach to the whole family. Experience across communities suggests that
Women by their nature have more fiscal discipline and take their repayment responsibilities seriously.
Through woman, the credit and the income reaches to the whole family.
Easy access to credit encourages women to initiate and expand her own exclusive IGAs.
She is able to improve her status in the family and the community, as she begins to access credit for herself and her family and by becoming significant contributor in managing the household cash-flow.
Her increased participation in the household and village economy helps her gain courage

1.6 Classification of micro-finance institutions:-
NGOs-Which are mainly engaged in promoting self help groups (SHGS) and their federations at a cluster level and linking SHGs with banks, under the NABARD schemes. NGOs directly landing to borrowers, who are either organized in SHGs or into Greenmeen Bank style groups and centers. These NGOs borrow bulk funds from RMK; FWWB and SIDBI. Also it borrow bulk funds from various donors.