IBE NOTES

Niti ayog

1. 1. BASIC FEATURES OF INDIAN PLANNING AFTER ADOPTION OF NITI AYOG

Presented by: Samarpita Das, Ritika Agarwal,Raj Kamal Bhandari, Rituparna Gogoi,Ronuj

Doley.

2. 2. CONTENTS: Brief history of Planning Commission Introduction to NITI Aayog Basics

of NITI Aayog Structure of NITI Aayog Present members Functions & Roles of NITI

Aayog Key difference between planning commission and NITI Aayog Works and

Achievements of NITI Aayog Conclusion Bibliography

3. 3. BRIEF HISTORY OF PLANNING COMMISSION Planning commission was an institution

formed in March 15,1950 by govt. of India. It was established in accordance with article 39

of the constitution which is a part of directive principles of state policy. It formulated India’s

five year plans.

4. 4. WHY DOES INDIA NEED A CHANGE FROM PLANNING COMMISION ?

5. 5. INTRODUCTION TO NITI AYOG NITI Aayog is formed via executive action by the

union cabinet on january1,2015. It is a government of India Think-Tank policy . It is a

non-statutory body. The stated aim for NITI Aayog’s creation is to foster involvement and

participation in the economic policy- making process by the state government of India.

One of the important mandates of NITI Aayog is to bring co-operative competitive federalism

and to improve centre-state relation.

6. 6. BASIC FEATURES OF NITI AYOG NITI Aayog basically represent the economic

interest of state governments and union territories of India, which the previous planning

structure commission structure lacked. Instead of being in a controlling seat ;it is going to

be a provider of both directional and policy inputs. ‘NITI blogs’ provides public access to

articles , field reports as well as published opinions of the officials.

7. 7. STRUCTURE OF NITI AAYOG

8. 8. PRESENT MEMBERS Chairperson: PMO India: Shri Narendra Modi. Vice-Chairman:

Rajiv Kumar. CEO: Amitabh Kant. Members: (1) Bibek Debroy (Economist),(2) V. K.

Saraswat (Former DRDO Chief),(3)Ramesh Chand (Agriculture Expert) Special Invitees:

Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot. Governing Council: All Chief

Ministers and Lieutenant Governors of Union Territories.

development with the active involvement of States. To develop credible plans at the village

level and aggregate these at higher levels of government. To foster cooperative federalism

with the States on a continuous basis, recognizing that strong States make a strong nation.

10. 10. To focus on technology upgradation and implementation of programs and initiatives.

To encourage partnerships between national and international like-minded ‘Think-tanks’, as

well as educational and research institutions. To create innovation and entrepreneurial

support system through national and international experts. To pay special attention to the

sections of our society that may not be adequately benefiting from economic progress.

11. 11. To offer a platform for resolution of inter departmental issues. To maintain a state-of-

the-art Resource Centre. To actively monitor the implementation of programs and

initiatives. To undertake activities necessary for national development agenda.

12. 12. KEY DIFFERENCE BETWEEN PLANNING COMMISSION AND NITI AAYOG IN

FINANCIAL CLOUT STATE’S ROLE IN APPROACH STRATEGY

13. 13. ADMINISTRATIVE COUNCIL MEMBERS NEHRUVIAN DECENTRALIZED

PLANNING vs MODI’S CENTRALIZED PLANNING

14. 14. ACHIEVEMENTS & ACCOMPLISHMENT OF NITI AAYOG Compared to Planning

Commission, which was 64 years old when replaced by NITI Aayog which is in infancy. But

the expectations from a high profile institution, irrespective of its age(tenure) are always high.

Some of its achievements in this two years of working are stated below. On Innovation and

entrepreneurship. On Infrastructure and Energy Sector. On co–operative federalism. On

agricultural development. Digitalization Movement. Increase in FDI.

15. 15. CRITICISM AND CHALLENGES Sustaining a growth of 7.5 per cent when there is global

slow down, shows that implementation of NITI Aayog is on the right track. However,critics of

this new set up criticized it and some termed it as an old wine in a new bottle,though some

critics have also argued positively in its favour.Some of the criticism and challenges faced by

NITI Aayog are:- An extra-constitutional body Contradictory Vision Not Obligatory

Biased nature Practical implementation till date,limited only to some states

16. 16. WAY FORWARD What can be done to overcome these challenges??

17. 17. CONCLUSION However, it is too early to comment on the efficacy of the new institution
related to planned development, something is possible when it shifts gears and moves into

operation seriously. However, the present move to decentralize planning and allowing inputs

from states to guide it, appears to be a positive and effective steps. But NITI Aayog will

always remain a hotbed political topic with ambiguous opinions.

18. 18. THANK YOU

19. 19. BIBLIOGRAPHY Wikipedia : https://en.wikipedia.org/wiki/NITI_Aayog

www.pmidia.gov.in www.thetimesofindia.com Website of NITI Aayog : niti.gov.in

Pib.nic.in : Press Information Bureau Government of India

http://economictimes.indiatimes.com/opinion/intervi ews/niti-aayog

https://www.chanakyaiasacademy.com/student- resources/weekly-current-affairs/108-

government- bills-acts/2621-give-tax-breaks-for-digital- payments-says-niti-aayog

Economic planning

1. 1. in india

2. 2. Economic Planning Economic planning is to make decision with respect to the use of

resources. In communist countries the government makes both micro and macro

economic decisions. Microeconomic decisions include what goods and services to

produce, the qualities to produce, the prices to charge, and the wages to pay.

Macroeconomics decisions include the rate of investment and the extent of foreign trade.

3. 3. Need for Economic Planning Mess Poverty And Low Per Capital Income. High Rate Of

Growth Of Population. Industrial Growth Was Negligible. Low Level Of Literacy

Backward Technology Traditional Attitude. Social And Economic Problem Created By

Partition Of Country.

4. 4. Objective of Economic Planning Economic growth Reduction of economic in equalities

Balanced regional development Modernization Reduction of unemployment

5. 5. Planning commission of India Planning commission of India was setup in March 1950 by

government of India. The task before planning commission of India are:- Effective utilization

of resources. Prepare five year plan along with its objective. Coordination with state

government of India for execution of plan Determination of priorities, stages of plan and

propose of allocation of resources for due completion of stages.

6. 6. Five year plans First Five-Year Plan (1951-1956) The 1st five year plan was presented by

Jawaharlal Nehru, who was the Prime Minister during that period. It was formulated for the
execution of various plans between 1951 to 1956. The Planning Commission was

responsible for working out the plan The primary aim of the 1st five year plan was to

improve living standards of the people of India The target set for the growth in the gross

domestic product was 2.1percent every year.

7. 7. Second Five-Year Plan (1956–1961) The second five-year plan focused on industry,

especially heavy industry. This plan particularly focused in the development of the Public

Sector. Target Growth:4.5% Growth achieved:4.0% Third Five-Year Plan (1961–1966) The

third plan stressed on agriculture and improvement in the production of wheat, but the brief

Sino-Indian War of 1962 exposed weaknesses in the economy and shifted the focus towards

the ‘Defense industry or Indian army’. Target Growth: 5.6% Actual Growth: 2.4%

8. 8. Fourth Five-Year Plan (1969–1974) Indira Gandhi was the Prime Minister. The Indira

Gandhi government nationalized 14 major Indian banks and the Green Revolution in India

advanced agriculture Target Growth: 5.7% Actual Growth: 3.3% Fifth Five-Year Plan

(1974–1979) The plan focused on employment, poverty alleviation, justice and self-reliance

in agricultural production and defense Target Growth: 5.23% Actual Growth: 45.3%

9. 9. Sixth Five-Year Plan (1980–1985) The sixth plan marked the beginning of economic

liberalization. Price controls were eliminated and ration shops were closed. Target Growth:

5.2% Actual Growth: 5.4% Seventh Five-Year Plan (1985–1990) The main objectives of the

7th five-year plans were to establish growth in areas of increasing economic productivity,

production of food grains, and generating employment. Target Growth: 5.0% Actual Growth:

5.7%

10. 10. Eighth Five-Year Plan (1992–1997) 1989–91 was a period of economic instability in India

and hence no five-year plan was implemented. Between 1990 and 1992, there were only

Annual Plans. the country took the risk of reforming the socialist economy and launched

India's free market reforms. Target Growth: 5.6% Actual Growth: 6.78% Ninth Five-Year Plan

(1997–2002) Main objective was to prioritize agricultural sector and emphasize on the rural

development, to generate adequate employment opportunities and promote poverty

reduction, to stabilize the prices. Target Growth: 6.5% Actual Growth: 5.35%

11. 11. Tenth Five-Year Plan (2002–2007) Reduction of poverty rate by 5 percentage points by

2007. Providing gainful and high-quality employment at least to the addition to the labor
force. Reduction in gender gaps in literacy and wage rates by at least 50% by 2007. Target

growth:8.1% Growth achieved:7.7%

12. 12. Eleventh Five-Year Plan (2007–2012) INCOME AND POVERTY Accelerate growth

rate of GDP from 8% to 10% and then maintain at 10% in the 12th plan in order to double

per capita income by 2016-17. Increase agricultural GDP growth rate to 4% per year.

Reduce educated unemployment to below 5%. Raise real wage rate of unskilled workers

by 20%

13. 13. EDUCATION Reduce dropout rates of children from elementary school from 52.2% in

2003-04 to 20% by 2011-12. Increase literacy rate for persons of age 7 years or more to

85%. Lower gender gap in literacy to 10% points. Increase the percentage of each cohort

going to higher education from the present 10% to 15% by the end of the 11th plan.

14. 14. Health Provide clean drinking water for all by 2009 and ensure that there are no slip-

backs by the end of the 11th plan. Reduce malnutrition among children of age group 0-3 to

half its present level. Reduce anemia among women and girls by 50% by the end of the

11th Plan.

15. 15. Women and Children Ensure that at least 33% of the direct and indirect beneficiaries of

all government schemes are women and girl children. Ensure that all children enjoy a safe

childhood, without any compulsion to work.

16. 16. Infrastructure Ensure electricity connection to all villages and BPL households by 2009

and round-the-clock power by the end of the plan. Connect every village by telephone by

November 2007 and provide broadband connectivity to all villages by 2012. Provide

homestead sites to all by 2012 and step up the pace of house construction for rural poor to

cover all the poor by 2016-17

17. 17. Environment Increase forest and tree cover by 5% points. Attain WHO standards of

air quality in all major cities by 2011-12 Treat all urban waste water by 2011-12 to clean

river waters. Increase energy efficiency by 20% points by 2016-17.

18. 18. Conclusion Economic planning help in mobilizing and allocating the resources in

desired manner. Objective of economic planning is to reduce inequality, economic growth,

balanced regional growth, modernization. Each five year plan aims to achieving certain

target. Five year plan constitute the steps toward the fulfillment of objectives of economic
planning. the 12th Plan has taken off, it is yet to be formally approved with the aim of the

growth rate at 8%.

19. 19. Thank You!

Micro, Small and Medium Enterprises (MSME)

Introduction

Worldwide, MSMEs have been accepted as the engine of economic

growth and for promoting equitable development.

They constitute over 90% of total enterprises in most of the

economies and are credited with generating the highest rates of

employment growth.

With low investment requirements, operational flexibility and the

capacity to develop appropriate indigenous technology, SMEs have

the power to propel India to new heights.

Hence, it seems like there is a silent revolution happening in India

powered by MSMEs.

Importance of MSMEs for Indian Economy

Employment: It is the second largest employment generating sector

after agriculture. It provides employment to around 120 million

persons in India.

Contribution to GDP: With around 36.1 million units throughout the

geographical expanse of the country, MSMEs contribute around

6.11% of the manufacturing GDP and 24.63% of the GDP from

service activities.

o MSME ministry has set a target to up its contribution to GDP to

50% by 2025 as India becomes a $5 trillion economy.

Exports: It contributes around 45% of the overall exports from India.

Inclusive growth: MSMEs promote inclusive growth by providing

employment opportunities in rural areas especially to people

belonging to weaker sections of the society.

investment and employs a large number of women in rural

areas.

Financial inclusion: Small industries and retail businesses in tier-II

and tier-III cities create opportunities for people to use banking

services and products.

Promote innovation: It provides opportunity for budding

entrepreneurs to build creative products boosting business

competition and fuels growth.

Thus, Indian MSME sector is the backbone of the national economic structure

and acts as a bulwark for Indian economy, providing resilience to ward off

global economic shocks and adversities.

MSME redefined

The Micro, Small and Medium Enterprises Development

(Amendment) Bill, 2018 proposes to reclassify all MSMEs, whether

they are manufacturing or service-providing enterprises, on the basis

of their annual turnover.

The bill was introduced in the Lok Sabha and further referred to the

Standing Committee which tabled its report on 28 December 2018.

Benefits of proposed reclassification

The new classification would eliminate the need for frequent

inspections which was earlier required to check the investment in

plant and machinery.

It would be a non discriminatory, transparent and objective criterion.

Factors which led to growth of MSMEs

Campaigns like Skill India, Startup India, Digital India and Make in

India aim to provide MSME players with a level playing field and a

definitive push towards enhanced productivity.

familiarization with digital payments fuelled by B2C ecommerce

players facilitate MSME sector growth.

Tie-ups with new-age non-banking finance (FinTech)

companies allowed access to timely collateral free finance to

MSMEs.

Changing employment patterns: Younger generation shifting from

agriculture towards entrepreneurial activities creating job prospects

for others.

Issues faced by MSMEs and steps taken to improve their

condition

Issues and Challenges Steps Taken

Access to credit

90% of the

MSMEs are

dependent on

informal sources

for funding

Lack of sufficient

collateral and

high working

capital needs

Launch of the 59 minute

loan portal to enable easy

access to credit for

MSMEs.

2 percent interest

subvention for all GST

registered MSMEs, on
fresh or incremental loans.

Trade Receivables e-

Discounting

System (TReDS) to enable

access to credit from

banks, based on their

upcoming trade

receivables from corporate

and other buyers.

Access to Markets

Low outreach

and non

availability of

new markets.

Lack of skilled

manpower and

ineffective

marketing

strategy.

Difficult for

MSMEs to sell

products to

government

agencies.

Competition

from MNCs and

other big

industries.
 Union government

announced to launch an e-

commerce platform on the

lines of “Amazon and

Alibaba" to sell products

from MSMEs and the

Khadi and Village

Industries Commission.

Public sector companies

now compulsorily

procure 25%, instead of

20% of their total

purchases, from MSMEs.

More than 40,000 MSMEs

registered on Government

e-Marketplace (GeM)

portal. It provides

transparency in

procurement and facilitates

MSMEs to directly reach

out to the buyers.

Technology Access

Limited human

resources and

weak financial

standing.

MSMEs,

particularly in

the unorganised

sector, show
lower

20 hubs and 100 spokes in

the form of tool rooms will

be established across the

country. This will facilitate

product design and easy

access to latest technology

to MSMEs.

Financial assistance is

provided for

implementation of lean

manufacturing

adaptability of

new technology

and innovation.

techniques to enhance

the manufacturing

competitiveness of

MSMEs.

Quality and Export

Issues

Low quality

products impact

export

competitiveness.

Inadequate

access to quality
raw materials.

Use of

traditional

machines

causes low

productivity.

Financial support to

MSMEs in ZED(Zero

Defect Zero Effect)

certification to improve

quality of products.

Government provides

subsidy towards the

expenditure incurred by

enterprises to obtain the

product certification

licenses from national and

international bodies.

Ease of Doing

Business

Cumbersome

government

procedures and

rules for

establishing new

units.

Bureaucratic

delays in getting

clearances.
 Poor litigation

system in the

country.

The return under 8 labour

laws and 10 Union

regulations must now be

filed only once a year.

Computerised random

allotment for inspector visits

to the establishment.

Environmental Clearance

under air pollution and water

pollution laws, have

been merged into

one. Also, the return will be

accepted through self-

certification.

For minor violations under

the Companies Act, the

entrepreneur will no longer

have to approach the courts,

but can correct them through

simple procedures. This

signifies simplification of

government

procedures and instilling

confidence among

entrepreneurs.
Government schemes to promote MSMEs

Udyami Mitra Portal : launched by SIDBI to improve accessibility of

credit and handholding services to MSMEs.

MSME Sambandh : To monitor the implementation of the public

procurement from MSMEs by Central Public Sector Enterprises.

MSME Samadhaan -MSME Delayed Payment Portal –– will

empower Micro and Small entrepreneurs across the country to

directly register their cases relating to delayed payments by Central

Ministries/Departments/CPSEs/State Governments.

Digital MSME Scheme : It involves usage of Cloud Computing

where MSMEs use the internet to access common as well as tailor-

made IT infrastructure

Prime Minister Employment Generation Programme : It is a

credit linked subsidy program under Ministry of MSME.

Revamped Scheme of Fund for Regeneration Of Traditional

Industries (SFURTI) : organizes traditional industries and artisans

into clusters and make them competitive by enhancing their

marketability & equipping them with improved skills.

A Scheme for Promoting Innovation, Rural Industry &

Entrepreneurship (ASPIRE) : creates new jobs & reduce

unemployment, promotes entrepreneurship culture, facilitates

innovative business solution etc.

National Manufacturing Competitiveness Programme (NMCP) :

to develop global competitiveness among Indian MSMEs by

improving their processes, designs, technology and market access.

Micro & Small Enterprises Cluster Development Programme

(MSE-CDP) - adopts cluster development approach for enhancing

the productivity and competitiveness as well as capacity building of

MSEs.

Credit Linked Capital Subsidy Scheme (CLCSS) is operational for

Other recent initiatives to promote MSMEs

In June 2019, RBI committee headed by former SEBI Chairman

UK Sinha suggested a Rs 5,000 crore stressed asset fund for the

MSME sector to provide relief to small businesses hurt

by demonetisation, GST, and an ongoing liquidity crisis.

o It has also recommended doubling the cap on collateral-free

loans to Rs 20 lakh from the current Rs 10 lakh extended to

borrowers falling under the Mudra scheme, self-help groups, and

MSMEs.

MSME Ministry announced in June 2019 to lift the ban on entry

of corporates and private players in the MSME sector to pave way

for the formation of 700 clusters to reduce dependence on imports

as well as for job creation.

MSME Ministry is also planning to set up enterprise facilitation

centres across the country to make smaller businesses more

competitive and help them integrate with big enterprises.

Therefore, the government should continue to put concerted efforts for holistic

development of MSMEs in key areas like human capacity development,

knowledge services, access to finance, technology, infrastructure,

market access, and ease of doing business.

SARFAESI Act - Provisions

If a borrower of financial assistance defaults on a loan or an

instalment, and his account is categorised as a non-performing

asset (NPA) by a secured creditor, the secured creditor may

request written notice before the term of limitation expires.

Unsecured loans, loans under ₹100,000, and debts that are less

than 20% of the initial principle are exempt from the statute.

This law permitted the formation of asset reconstruction companies

ARCs (which are regulated by the RBI).

Without the consent of a court, banks are authorised to

take ownership of collateral property and sell it.

To conclude, the SARFAESI Act gives financial institutions the

authority to "seize and desist." They should send a notification to

the delinquent borrower, requesting payment within 60 days.

If the debtor does not cooperate, the bank may take one of the

following three actions:

1) Take control of the loan security.

2) Sell, lease, or assign the security's right.

3) Take care of the asset or appoint someone to do so.

Amendments

SARFAESI Act - Amendments

The Central Government passed a law in 2013 bringing

cooperative banks under the SARFAESI Act of 2002.

The Enforcement of Security Interest and Recovery of Debts

Laws and Miscellaneous Provisions (Amendment) Bill, 2016,

altered the statute once again.

The Supreme Court also held that co-operative banks that engage

in banking activities are subject to Sections 5 (c) and 56 (a) of the

Banking Regulation Act of 1949, which are laws related to List

I Entry 45. (Union List).

Functions under the Act

Functions under the Act

The Reserve Bank of India registers and regulates Asset

Reconstruction Companies (ARCs).

Facilitating the securitization of banks' and financial institutions'

financial assets, with or without the use of underlying securities.

The ARC promotes the seamless transferability of financial assets

debenture to buy financial assets from banks and financial

organisations.

By entrusting the Asset Reconstruction Companies with the task

of raising cash through the sale of security receipts to

qualified buyers, the Asset Reconstruction Companies will be

able to raise funds.

Conclusion

Conclusion

The SARFAESI Act enables a secured creditor to enforce his security

interest without the involvement of courts or tribunals. In addition to

these, there are voluntary mechanisms such as Corporate Debt

Restructuring and Strategic Debt Restructuring, which allow banks

to collectively restructure borrowers' debt (including changing loan

repayment schedules) and take over a company's management

SARFAESI Act: The Securitisation and Reconstruction of Financial Assets and Enforcement of

Securities Interest (SARFAESI) Act, 2002 allows banks and other financial institutions to seize

and sell residential or commercial properties of the Defaulters to recover loans.

ARFA JAVAID

UPDATED: MAY 7, 2020 16:57 IST

What is the SARFAESI Act?

The Securitisation and Reconstruction of Financial Assets and Enforcement of

Securities Interest (SARFAESI) Act, 2002 allows banks and other financial institutions to

seize and sell residential or commercial properties of the defaulters to recover loans. In

simple words, banks utilize this act to recover loans from non-performing assets (NPA).

It must be noted that this Act doesn't apply to unsecured loans below INR 1 Lakh or in

the cases where the debt is below than 20% of the loan given. Banks can seize and sell

the collateral properties of the defaulters within 60 days of demanding repayment

without the permission of the court.

Securitization of financial assets: Acquire financial assets by issuing bonds or

Reconstruction of financial assets: Take necessary measures for debt restructure,

settlement, sale etc. as per guidelines issued by RBI from time to time.

Enforcement of security interest: Enforcing security interest by the creditor with the

intervention of the court.

CII

The full form of CII is Confederation of Indian Industry. CII is a non-profit and non-governmental

organization created by advisory and consultative developers to achieve a conducive atmosphere for

the growth of Industry and civil society in India. Founded in 1895, it has over 8,000 members, both

from the public and from private sectors.

CII’s focused on policy issues with the Government. CII was a tool for progress in financial-policy

reforms in India. During the 1991 economic liberalization, CII played a significant role in breaking

down high walls of security among the Indian economy and the rest of the world.

History of CII

In 1895, five engineering companies, representatives of the Bengal Chamber of Commerce

and Industry, joined hands in establishing the EITA (Engineering and Iron Trades

Association).

In 1912, EITA was renamed IEA to represent the purpose of the organization to exclude

traders from representation and encourage the cause of producer.

In 1942 EAI (Engineering Association of India) was formed as an affiliate of the Indian

Chamber of Commerce to support Indian-owned engineering companies.

IEA and EAI were combined in 1974 to create the AIEI (Association of Indian Engineering

Industry).

In 1986, the AIEI was designated as the CEI (Confederation of Engineering Industry) to

represent the organization ‘s progress.

Industrial regulation was abolished in 1991. The CEI was called as CII (Confederation of

Indian Industry) on 1 January 1992, in line with the Government’s plan to liberalize the Indian

economic growth.

Objectives of CII

CII carries out different activities to accomplish its key objective of developing the Indian Industry,
some of which have been listed below:

To recognize and encourage Industry’s participation in India’s economic growth

Enhance the involvement of business with the society

To offer up to date details to Government & Industry.

Supporting Industry in its attempt to promote efficiency, the environment and consumers.

Supporting Indian Industry’s globalization and incorporation into the international economy.

Dealing with small business requires to make it more effective.

1.

The Confederation of Indian Industry (CII) is a non-governmental trade association and advocacy

group headquartered in New Delhi, India, founded in 1895. [2]

CII engages business, political, academic, and other leaders of society to shape global, regional,

and industry agendas. It is a membership-based organisation. [3][4]

Federation of Indian Chambers of Commerce & Industry (FICCI)

The Federation of Indian Chambers of Commerce & Industry (FICCI) is a non-

governmental trade association and advocacy group based in India.

History

Established in 1927, [5] on the advice of Mahatma Gandhi by Indian businessman G.D.

Birla and Purshottamdas Thakurdas. It is the largest, oldest and the apex business organisation in

India. [1] It is a non-government, not-for-profit organisation. FICCI draws its membership from the

corporate sector, both private and public, including SMEs and MNCs. The chamber has an indirect

membership of over 250,000 companies from various regional chambers of commerce. [6] It is

involved in sector-specific business building, business promotion and networking.

Currently, it is headquartered in the national capital New Delhi and has a presence in 12 states in

India and 8 countries around the world. [7]

Allied Organisations

Confederation of Indian Food Trade and Industry

Confederation of Indian Food Trade and Industry (CIFTI) caters to the Indian food Industry. It deals

with policies, trade affairs and capacity building. [8] CIFTI provides institutional support and partners

with the Government and the Indian private sector in promotion and development of Indian food

processing industry. CIFTI was established by FICCI in 1985. It is currently led by Sanjay Khajuria
who serves as its president. [9]

Federation of Indian Chambers of Commerce & Industry (FICCI)

FICCI Arbitration and Conciliation Tribunal (FACT) provides arbitration services for settling

commercial disputes. FACT was established in 1952 [10] and aims at settling business disputes
outside

the traditional framework offered by courts of law through arbitration and conciliation, as the case

may be. [11]

Alliance for Consumer Care

FICCI Alliance for Consumer Care (FACC) is a dedicated centre set up by FICCI along

with Department of Consumer Affairs (India) to enhance consumer care practices and facilitate

stakeholder interaction. [12] It facilitates prompt redressal of consumer grievances, a dialogue

the business and consumers and promotion of responsible business practices. [13]

Ladies Organisation
FICCI Ladies Organisation was established in 1983 to promote entrepreneurship and professional

excellence among women in India

Aditya Birla CSR Centre for Excellence

Aditya Birla CSR Centre for Excellence is a joint initiative of FICCI and the Aditya Birla Group. The

center aims at development of inclusive and holistic CSR practices. [15] This centre also organises
the

Businessworld FICCI CSR Award, an annual award aimed at identifying & recognising remarkable

CSR initiatives. [16]

Confederation of Micro, Small and Medium Enterprises (CMSME)

Confederation of Micro, Small and Medium Enterprises is an affiliated body of FICCI. It was

established in December 2013. [17] It aims to connect MSMEs with mentors, incubators &
accelerators

and assist them through capacity building programs & services; deliberate of policy concerns of
the

sector; and provide regular interface between Industry, Government and regulators. [18] In terms of
the

scope of work, CMSME is similar to FICCI with the only differentiation being the exclusive focus on

Micro, Small and Media enterprises in India. [19]

FICCI promotes and supports economic growth in India by

working with the government and the private sector. It

lobbies for policy changes that help businesses.

This is a major Indian organization that aims to promote and develop business-related activities

in the country. The full form of FICCI is the Federation of Indian Chambers of Commerce and

Industry. Let’s take a closer look at what this organization does and how it can benefit

businesses in India!

Establishment of Federation of Indian

Chambers of Commerce and Industry

FICCI was established in 1927 under the direction of Mahatma Gandhi by a group of Indian

industrialists. The establishment was aimed at promoting and protecting the interests of the

Indian business community.

FICCI has played an important role in the economic development of India since its inception. It

has been at the forefront of policy advocacy with the government and has been instrumental in

the formulation of several industrial policies.

FICCI is headquartered in New Delhi and has a network of over 100 chambers and associations

across India. It also has chapters in other countries, including the United States, the United

Kingdom, and France.

Services provided by FICCI

FICCI is responsible to provide many services to the country. Some of them are as follows:

– The Federation of the Indian Chambers of Commerce and Industry is a non-profit organization

that was founded in 1927

– The main goal of this chamber is to promote and develop the economic interests of its

members

– FICCI provides many services to its members, including advocacy, networking opportunities,

business intelligence, and more

Thus, we can see that the Federation of Indian Chambers of Commerce and Industry is a very

important organization in India that plays a major role in the country’s economy. If you are doing

business in India, it would be beneficial for you to become a member of FICCI.

Register in FICCI

Any business can become a part of FICCI. Just go along the below-mentioned steps and it will

be done before you know it:

-First, visit the Federation of Indian Chambers of Commerce and Industry’s (FICCI) website.

-On the homepage, there is a tab labelled “Membership.” Click on that.

-You will be directed to a page with different types of membership. Select the one that is most

appropriate for your company.

-Fill out the form and submit it. You will then be contacted by FICCI to complete the registration

process.

Functions of FICCI

The following are the main functioning of FICCI:

– To promote and protect the interests of the industry in India

– Act as a pressure group to bring about desired changes in the government policies

– Promote international trade and investment

– Facilitate the exchange of knowledge and experience among the members

– Assist in the formation of joint ventures and collaborative arrangements between Indian and

foreign enterprises

Initiatives of FICCI

FICCI initiated the following programs:

– India International Trade Fair: IITF is the largest consumer fair in India and is organized by

FICCI

– Make in India: This initiative was started by Prime Minister Narendra Modi to make India a

global manufacturing hub

– FICCI Ladies Organisation: FLO is the largest women’s organization in India with a

membership of over 12,000 women

– Federation of Indian Micro and Small & Medium Enterprises: This is the apex body
representing the interests of the micro, small and medium enterprises in India

– Federation House: Federation House is the headquarters of FICCI and is located in New Delhi

– National Initiative on Climate Change: NICC is a joint initiative of FICCI and TERI to promote

climate-friendly businesses in India

– India Brand Equity Foundation: IBEF is a trust set up by FICCI to promote and protect the

interests of Indian brands globally

– Federation of Indian Export Organisations: FIEO is the apex body of Indian export promotion

organizations

Along with these, the Federation of Indian Chambers of Commerce and Industry has also

successfully launched many other programs for the benefit of the country.

Conclusion

The Federation of Indian Chambers of Commerce and Industry (FICCI) is a nonprofit, industry-

led organization that aims to promote and support economic growth in India. One way it does

this is by facilitating business-to-business connections and providing resources for businesses

operating in India. FICCI also advocates for sound public policy that will create an environment

conducive to private enterprise. If you’re an entrepreneur or student in India, FICCI offers a

wealth of resources and opportunities to help you grow your business.

ASSOCHAM Full Form

Introduction

Associated Chambers of Commerce and Industry of India is the oldest industrial organization. It

is highly dedicated to working for the benefit of the businessman in synchronization with the

Government. It works for all types of Industries, be it micro or macro industries. When it comes

to the Micro, Small, and Medium Industries, Assocham is a trusted organization.

Assocham is a non-government organization whose main office is located in the capital of India,

New Delhi. The organization’s foundation was laid down in the year 1920 to work in the interest

of the trade and commerce sector of the country.

Ever since the organization’s foundation was laid down, it has been highly active in promoting

domestic and international business across the country. This has reduced the barriers for the
traders and the businessman and has helped them expand their business internationally.

Background of ASSOCHAM

The organization was founded in the British era, mainly in 1920. It has around 4, 50,000

members present, and mainly micro, small, and medium industries are present in the majority.

Every organization has a background.

With its excellence and dedication, it has managed to bring together more than 400

organizations and regional businesses under it.

Councils Under ASSOCHAM

Assocham has a greater impact in the business world owing to its credibility and reliability. It has

emerged as a bridge between the Government and the people in business. To ease the trade

and the business, it helps in the smooth dialogue between different organizations and helps

them club them together.

More than 100 councils of all the sectors, are it national or regional sectors, are associated with

Assocham. All the councils are led by well-known industrialists who are a part of the Assocham.

The big industrialists and top academicians, professionals, and philanthropists are part of

Assocham.

Strategic Priorities of ASSOCHAM

Every organization has a proper strategy to work with full-fledged efficiency. Assocham also has

strategic strengths to sustain itself in the industry. They are mainly four in number. Those

strategies are:

1. Sustainability

2. Empowerment

3. Entrepreneurship

4. Digitization

These are the pillars of Assocham and help in its proper functioning. These pillars of strength

were decided on their efficiency. It was believed that if the organization worked on these four

aspects, it would emerge as a strong organization to cater to the needs of both the Government

and the traders.

Ever since Assocham was founded in 1920, it has changed the face of Indian Business. It was a

historical decision in the era of Indian Business as the country was under British Rule. There

was a need for the formulation of the organization as the Britishers were ruling the commerce

sector and were gaining profits.

Calcutta Trades Commerce laid the foundation of the Assocham. Still, as Madras and Bombay

Commerce Chambers were more ahead in the business during the British era, it can be

concluded that it was the driving force behind the formation of Assocham.

The Britishers reaped maximum benefits from the Indian traders. Calcutta was the centre of the

business market, and Bengal was the seat of the legislative council, so that’s how the traders in

the city formed Assocham. The main products like indigo, tea, jute, and cotton excited the

Britishers and made them invest in the country’s business. Britishers exported these products to

other countries and earned large profits.

However, as the Petition of the Bengal happened, there was an effect seen on the business.

Twelve years after the war ended, there emerged another wake to form a national organization,

and that’s how it became functional and operational.

NASSCOM

INDUSTRIAL RELATIONS

The term industrial relations explain the relationship between employees and management which
stem

directly or indirectly from union-employer relationship.

Industrial relation is the relation in the industry created by the diverse and complex attitudes and

approaches of both management and workers in connection with the management of the industry.

Industrial relations are dynamic in nature. The nature of IR can be seen as an outcome of complex set
of

transactions among the major players such as employers, the employees, the trade union, and the
state

in a given socio-economic context.

▪ IR during pre-independence

▪ IR during post-independence

EXPLANATION

1. IR DURING PRE-INDEPENDENCE

The structure of the colonial economy, the labour policy of the colonial government, the ideological

composition of political leadership, the dynamics of political struggle for independence, all these
shaped

the colonial model of industrial relations in pre-independent India.

However, the colonial dynamics of the union movement along with the aggressiveness of alien
capital,

the ambivalence of the native capital and the experience of the outside political relationship
frustrated

the process of building up of industrial relations institutions

2. IR DURING POST-INDENDENCE

Though independent India got up opportunity to restructure the industrial relation system. The
colonial

model of IR remained in practice for sometimes due to various reasons like the social, political and

economic implications of partition, social tensions, continuing industrial unrest, communist

insurgency, conflict and competition in the trade union movement. In the process of consultation and

confrontation gradually the structure of the industrial relations

FACTORS AFFECTING INDUSTRIAL RELATIONS

Industrial relations deals with human behaviour and management of personnel in an organizational

setup. The various factors that influence the relationship between the administration and the

employees in an organization are as follows:

▪ INDIVIDUAL BEHAVIOUR

Every person has a different perception, background, skills, knowledge, experience and
achievements

which influences an individual’s behaviour. The employees, therefore, behave differently in different

situations, thus impacting the work environment in the organization.

▪ ORGANIZATIONAL STRUCTURE
The hierarchical structure creates more formal relationships among the employees belonging to

different hierarchical levels in an organization. Also, the delegation and execution of decision-making

power by the superior influences the industrial relations between the managers and

the employees.

▪ PSYCOLOGICAL FACTORS

An employee’s attitude and mentality towards the employer and the given task; and the employer’s

psychology towards the workers can be positive or negative, which ultimately impacts the employee-

employer relationship.

▪ LEADERSHIP STYLE

Every manager possesses certain leadership traits and different style to function even in a formal

organization. Through his/her formal or informal ways of generating team spirit and motivating the

employees, he/she impacts the organization’s industrial relations.

▪ ECONOMIC AND TECHNICAL ENVIRONMENT

To cope up with the changes in the economic conditions or technology, organizations need to

restructure the task of the employees including their work duration, conditions and wages; which
leads

to a difference in their behaviour, attitude, adapting spirit, etc. towards the organization and its
people.

▪ LEGAL AND POLITICAL ENVIRONMENT

The legal framework and political circumstances influence the organization and its industrial
relations. It

contributes to the framing of rules, rights, authority, powers, roles and responsibilities of all the

parties of the organization.

ROLE OF INDUTRIAL RELATIONS

Before the industrial revolutions, organizations paid very less attention to the workers’ relationship
with

the management and with each other. They treated the labour as machines and concentrated on
their

production capability and efficiency.

Later, in the year 1920, John R. Commons introduced the concept of industrial relations, which

emphasized the impact of labour relations with the management and the employer on the
productivity

of the organization.
In the modern-day business world where the companies are becoming more people-oriented and
work

continuously for achieving employee satisfaction and retention, the study of industrial relations plays
a

significant role in the organizations.

TRADE UNION

Trade union, also called labour union, association of workers in a particular trade, industry, or
company

created for the purpose of securing improvements in pay, benefits, working conditions, or social and

political status through collective bargaining.