Unit 4 Understanding Economic Development

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

INTRODUCTION : 
Development in the basic nature of human beings. All the people institutions state and national government are working for achieving development at all levels. In this topic we will be studying about various aspects of development, why few economies are highly developed and why few economies are poor. We will also see that how can we achieve a high development level without harming our nature and without sacrificing the needs of present and future generation.

Basic concepts related to development : 
We have aspirations or desires about what what we would like to do and how we would like to live, Similarly. We have ideas about what a country should be like, what are the essential things that we require? Can life be better for all ? Can there be more equality ?
For development, people look at a mix of goal :
For example:- It is true that if women are engaged in paid work, their dignity in the household and society increases. However, it is also the case that if there is respect for women there would be more sharing of housework and a greater acceptance of women working outside. A safe and secure environment may allow more women to take up a variety of jobs or run a business.
Hence, the development goals that people have are not only about better income but also about other important things in life.
It is very important to keep in mind that different persons could have different as well as conflicting notions of a country’s development.
To get more electricity, industrialist may want more dams. But this may submerge the land and disrupt the lives of people who are displaced- such as tribals. They might resent this and may prefer small check dams or tanks to irrigate their land.

What Development Promises - Different people, Different Goals

Two things are quite clear :
    1.    Different persons can have different developmental goals.
    2.    What may be development for one may not be development for the other. It may even be destructive for the other.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

Income and other goals : 
What people desire are regular work, better wages, and decent price for their crops or other products that they produce. In other words, they want more income.
People also seek things like equal treatment, freedom, security, and respect of others. They resent 
discrimination. 
Money, or material things that one can buy with it, is one factor on which our life depends. But the quality of our life also depends on non-material things mentioned above.
Consider an example:- If you get a job in a far off place, before accepting it you would try to consider many factors, apart from income, such as facilities for your family, working atmosphere, or opportunity to learn. In another case, a job may give you less pay but may offer regular employment that enhances your sense of security. Another job, however, may offer high pay but no job security and also leave no time for your family. This will reduce your sense of security and freedom.

How to compare different countries or states?
For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need.
Average income:- It is the total income of the country divided by its total population. The average income is also called per capita income.
Countries with per capita income of $12616 per annum and above in 2012, are called rich  income countries. Eg.:- Japan, USA. UK. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.
Those with per capita income of $1035 or less are called low-income countries. Eg.:- India. Because its per capita income was just $1530 per annum.

Income and Other Criteria :
When we think of a nation or a region, we may, besides average income, think of other equally important attributes. What could these attributes be? Let us examine this through an example.

(i)    Income & other criteria : 
1.    If we compare the states of Maharashtra, Kerala, Bihar we find that Maharashtra has PCI of Rs. 107070, Kerala has Rs. 885 and Bihar has Rs.                28774.
2.    IMR of Bihar is the most that is 43/1000, Maharashtra 25/1000 and Kerala 12/1000. This indicates that most of the children below the age of 1 year         die in Bihar whereas although Maharashtra has a higher PCI their Kerala. This clearly proves that money cannot buy all the goods and services                you need to live well such as pollution freen environment, unadultrated medicines and prevention from infections diseases.
3.    If we com pare the literacy rate we find that the least number of children attending school in Bihar, i.e., 62 and maximum is in Kerala i.e. 94.

4.    2/3rd of the children aged 14-15 years in Bit are not attending school. The maximum net attendance ratio is in Kerala.
Important : Kerala has a low IMR because is has adequate provision of basic he a and educational facilities. Some states have a good public distribution system. This ensures a healthy and nutrition a states of the people. 
Other Criteria’s : 
Besides PCI other criteria’s use to measure development are 
1.    Infant Mortality Rate : Indicates the no. of children per 1000 born in a year that die before the age of one.
2.    Literacy Rate : Measure the proportion of literia population above 7 years.
3.    Net attendance Ratio : Is the total number of children between the age of it 10 years who are attending school.
 4.    Life Expectancy : Denotes the average expected length of life of a person at the times of births. In India, it is 66.4 years.

Human Development Report (HDR) : 
The Human Development Report is published by UNDP and it compares countries based on it educational level, health states income level life expectancy. If we compare India with its neighbouring countries certain relevant inform can be percieved.
1.    Gross National Income of Sri Lanka is $9250 India 5150 dollors and Pakistan - 4652 dollar.
2.    Life expectancy of Sri Lanka is 74.3 years, India is 66.4 years and Pakistan is 66.6 years.
3.    Literacy rates for 15 years and above in Sri Lanka is 91.2, Myanmar 92.7 & India 62.8.
4.    As per HDR rank in the world, Sri Lanka is 73 & India is 135.

(ii)    Literacy Rate measures the proportion of literate population in the 7 and above age group.
   The 2nd column shows that more that half of the children in Bihar do not even get to go to school. 
 Net Attendance Ratio is the total number of children of age group 6-10 attending school as a percentage of total number of children in the same age group.

Notes :    
(i)   HDI stands for Human Development Index. HDI ranks in above table are out of 177 countries in all.
(ii)   Life expectancy at birth denotes, as the name suggests, average expected length of life of a person at the time of birth.
(iii)  Gross Enrolment Ratio for three levels means enrolment ratio for primary school, secondary school and higher education beyond secondary school.
(iv) Per Capita Income is calculated in dollars for all countries so that it can be compared. It is also done  in a way so that every dollar would buy the same amount of goods and services in any country.
Sri Lanka, is much ahead of India in every respect and a big country like ours has such a low rank in the world.

Nepal has half the per capita income of India yet it is not far behind India in life expectancy and literacy levels.
What is important in development is what is happening to citizens of a country. It is people, their health, their well being, that is most important.

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

INTRODUCTION :
All the eonomies of the world are demanding support from other economies also. The process of integration of economies has led to the process of globalization. MNC’s are expanding rapidly and they are operating in the different parts of the world. For the development of globalization different agencies of the world like World Trade Organization and U.N. Agencies like World Bank and International Monetary Fund are working. All the countries of the world want Globalization but they are demanding the fair Globalization. This topic deals with Globalisation and other concepts related ot it, the problems in the system and the solutions of the same

Important terms:
    ·     Globalisation: Integrating an economy with the world economy
    ·     Liberalisation: Removing trade barriers between countries.
    ·     MNCs: Multinational Corporations
    ·     Investment: The money that is spent to buy assets like buildings, machines and equipment
    ·     WTO: World Trade Organisation which aims to libralise international trade
    ·     Trade barriers: Rules and regulation that regulate foreign trade
    ·     Flexibility: Given relaxation in trade and labour laws
    ·     SEZs. Special Economic Zones are those industrial zones which have been set up by the government of India to attract foreign companies to                   invest in the country

globalisation and related concepts :    
Globalisation, is the process of rapid integration of countries. This is happening through greater foreign trade and foreign investment.
MNCs are playing a major role in the globalisation process. More and more MNCs are looking for locations around the world that are cheap for their production. As a result, production is being organised in complex ways.
Technology, particularly IT, has played a big role in organising production across countries.
In addition, liberalisation of trade and investment has facilitated globalisation by removing barriers to trade and investment. At the international level, WTO has put pressure on developing countries to liberalise trade and investment.
While globalisation has benefited well-off consumers and also producers with skill, education and wealth, many small producers and workers have suffered as a result of the rising competition.
Fair globalisation would create opportunities for all, and also ensure that the benefits of globalisation are shared better.

Positive Aspects
Creating a large industrial base and increase in industrial production.
Earlier, we were importing food grains But now, we have become self-sufficient.

Negative Aspects
Industrialisation did not take place as expected.
Corruption, lack of efficiency in work and ineffective management became common features.

Need for Reforms
Government expenditure far exceeded its revenue. By 1991 our borrowings from abroad increased; 
we were not able to pay for imports.
All this led to the framing of a new policy, which is known as the New Economic Policy (NEP).

Liberalisation
Liberalisation contains two components.
(i)     allow private sector to run those activities which were restricted earlier only to public sector.
(ii)     relaxation of all the rules and regulations, which had restricted the growth of the private sector earlier.
·        Alcohol, cigarettes, hazardous chemicals, industrial explosives, electronic aerospace, and drugs and pharmaceuticals.
Globalisation
Its means integrating our economy with the world economy through trade, transfer of technology and capital.

Sustainable Economic Development
Development should take place without damaging the environment, and development  in the present should not compromise on the needs of the future generation.

Illustration 1
    Where the production was organized until the middle of twentieth country?
Solution
    Production was organized largely with the countries.

Illustration 2
    Which commodities crossed the boundries of the countries?
Solution
    Raw materials, food stuff and finished products

Illustration 3
    Which main items were imported and which were exported from colonies like India?
Solution
    Raw materials and food stuff were exported and finished goods were imported.

Illustration 4
    Before the emergence of MNC’s which was the main channel for connecting distant countries?
Solution
    Trade

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

Factors That Have Enabled Globalisation :
·    Technology
Rapid improvement in technology has been one major factor that has stimulated the globalisation process. For instance, the past fifty years have seen several improvements in transportation technology. This has made much faster delivery of goods across long distances possible at lower costs.
The development in information and communication technology. In recent times, technology in the areas of telecommunications, computers, Internet has been changing rapidly. 
Telecommunication facilities (telegraph, telephone including mobile phones, fax) are used to contact one another around the world, to access information instantly, and to communicate from remote areas. This has been facilitated by satellite communication devices. As you would be aware, computers have now entered almost every field of activity. You might have also ventured into the amazing world of internet, where you can obtain and share information on almost anything, you want to know. Internet also allows us to send instant electronic mail (e-mail) and talk (voice-mail) across the world at negligible costs.

Liberalisation of foreign trade and foreign investment policy
Let us come to the example of imports of Chinese toys in India. Suppose the Indian government puts a tax on import of toys. What would happen? Those who wish to import these toys would have to pay tax on-this... Because of the tax, buyers will have to pay a higher price on imported toys. Chinese toys will no longer be as cheap in the Indian markets and imports from China will automatically reduce. Indian toy-makers will prosper.
Tax on imports is an example of trade barrier. It is called a barrier because some restriction has been set up. Governments can use trade barriers to increase or decrease (regulate) foreign trade and to decide what kinds of goods and how much of each, should come into the country.
The Indian government, after Independence, had put barriers to foreign trade and foreign investment. 
This was considered necessary to protect the producers within the country from foreign competition.
Industries were just coming up in the, 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up.
Thus, India allowed imports of only essential items such as machinery, fertilisers, petroleum etc.
Starting around 1991, some far-reaching changes in policy were made in India. The government decided that the time had come for Indian producers to compete with producers around the globe. 

It felt that competition would improve the performance of producers within the country since they would have to improve their quality. This decision was supported by powerful international organisations.
Thus, barriers on foreign trade and foreign investment were removed to a large extent.
This meant that goods could be imported and exported easily and also foreign companies could set up factories and offices here.
Removing barriers or restrictions set by the government is what is known as  liberalisation. With liberalisation of trade, businesses are allowed to make decisions freely about what they wish to import or export. The government imposes much less restrictions than before.

·    World Trade Organization
We have seen that the liberalisation of foreign trade and investment in India was supported by some very powerful international organisations. These organisations say that all barriers to foreign trade and investment are harmful. There should be no barriers. Trade between countries should be ‘free’. All countries in the world should liberalise their policies.
World Trade Organisation (WTO) is one such organisation whose aim is to liberalise international trade. Started at the initiative of the developed countries, WTO establishes rules regarding international trade, and sees that these rules are obeyed. 149 countries of the world are currently members of the WTO (2006).
Though WTO is supposed to allow free trade for all, in practice, it is seen that the developed countries have unfairly retained trade barriers. On the other hand, WTO rules have forced the developing countries to remove trade barriers. An example of this is the current debate on trade in agricultural products (cotton).

Impact of Globalization in India :
Globalisation and greater competition among producers - both local and foreign producers - has been of advantage to consumers, particularly the well-off sections in the urban areas.
There is greater choice before these consumers who now enjoy improved quality and lower prices for several products.
As a result, these people today, enjoy much higher standards of living than was possible earlier.
Among producers and workers, the impact of globalisation has not been uniform.
Firstly, MNCs have increased their investments in India over the past 15 years, which means investing in India has been beneficial for them. MNCs have been interested in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban areas.
These products have a large number of well-off buyers. In these industries and services, new jobs have been created. Also, local companies supplying raw materials, etc. to these industries have prospered.
Secondly, several of the top Indian companies have been able to benefit from the increased competition. They have invested in newer technology and production methods and raised their production standards.
Some have gained from successful collaborations with foreign companies.
Globalisation has enabled some large Indian companies to emerge as multinationals themselves. Tata Motors (automobiles), Infosys (IT), Ranbaxy (medicines), Asian Paints (paints), Sundaram Fasteners (nuts and bolts) are some Indian companies which are spreading their operations worldwide.

Globalisation has also created new opportunities for companies providing services, particularly those involving IT. The Indian company producing a magazine for the London based company and call centres are some examples. Besides, a host of services such as data entry, accounting, administrative tasks, engineering are now being done cheaply in countries such as India and are exported to the developed countries.

Small producers: Compete or perish
For a large number of small producers and workers globalisation has posed major challenges.
Batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil are some examples of industries where the small manufacturers have been hit hard due to competition. Several of the units have shut down rendering many workers jobless.

Competition and Uncertain Employment
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.
The conditions of work and the hardships of the workers described above have become common to many industrial units and services in India. Most workers, today, are employed In the unorganised sector. Moreover, increasingly conditions of work in the organised sector have come to resemble the unorganised sector. Workers in the organised sector no longer get the protection and benefits that they enjoyed earlier.

The Struggle for a fair Globalisation :
The above evidence indicates that not everyone has benefited from globalisation. People with education, skill and wealth have made the best use of the new opportunities. On the other hand, there are many people who have not shared the benefits.
·    Since globalisation is now a reality, the question is how to make globalisation more fair? Fair globalisation would create opportunities for all, and              also ensure that the benefits of globalisation are shared better.
·    The government can play a major role in making this possible. Its policies must protect the interests, not only of the rich and the powerful, but all the         people in the country.
        For instance, the government can ensure that labour laws are properly implemented and the workers get their rights.
·    It can support small producers to improve their performance till the time they become strong enough to compete.
·    If necessary, the government can use trade and investment barriers. It can negotiate at the WTO for ‘fairer rules’. 
·    It can also align with other developing countries with similar interests to fight against the domination of developed countries in the WTO.
In the past few years, massive campaigns and representation by people’s organisations have influenced important decisions relating to trade and investments at the WTO. This has demonstrated that people also can play an important role in the struggle for fair globalisation.

Illustration 5
    Which factors are responsible for bringing MNC’s to India?
Solution
    (i)    India has highly skilled engineers who can understand technical aspects of production.
    (ii)    India also has educated youth who can provide customer care services.

Illustration 6
    Which are the considerations of MNC for setting up production?
Solution
    (i)    Closeness to markets
    (ii)    Skilled and unskilled labour at low cost.
    (iii)    Availability of other factors of production on like raw material, water, power etc.
    (iv)    Government policies

Illustration 7
    What is Investment?
Solution
    Money spent to buy asset, such as land, building, machines and other equipment is called investment. It is done with a hope of earning profits.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

INTRODUCTION : 
In this chapter we shall read how consumers are exploited and what steps the government is taking to protect their interests. What are the factors causing exploitation of consumers. How consumer movement originated as a social force with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices. The Indian government enacted the COPRA in 1986 on 24th December. Since then this day is celebrated as consumer Day in India. In October 2005, the government of India also enacted the RTI (Right to Information) Act which ensures its citizens all the information about the functions of government departments under COPRA a three tier quasi judicial machinery has been set up for redressal of consumer disputes. In this chapter we shall also focus on the Duties of a Consumer and the drawback of COPRA.  

Important terms:
    ·     Consumers. People who buy different articles to satisfy their needs.
    ·    Producers. People who manufacture or distribute different articles . 
    ·    Retailers. Shopkeepers who sell articles to the customer.
    ·    National Consumer Dispute Redressal. Consumer Court at the National level.
    ·    State Consumer Dispute Redressal Commission. Consumer Court at the State level.
    ·    Consumer International. Consumer Court at the International level.
    ·    District Consumer Court or District Forum. Consumer Court at the District level.
    ·    P. D.S. Public Distribution System initiated by the government to ensure the supply of essential goods at all corners of the country.
    ·    F.P.S. Fair Price Shops which are set up by the government to sell the essential goods at nominal price.
    ·    COPRA. Consumer Protection Act 1986 which was enacted by the government of India in 1986 to correct business conduct.
   ·   RTI. Right to Information Act which was enacted by the government of India in October 2005 to ensure its citizens all the information about the functions of government departments.

Rise of Consumer Awareness : –
· In India, the concept of consumer protection is not new. References to the protection of consumers’ interest against exploitation by trade and industry,     underweight and measurement, adulteration and punishment for these offences, were made in Kautilya’s Arthashastra.
· When the government withdrew itself from production activites and allowed the private sector to take over, it was felt that there is a greater need to           enforce discipline and regulation in the market.
 · Food safety become an important element of consumer awareness these days.
· This called for a strong legal measure to ensure that the manufacturers and sellers observe uniformity and transparency in prices, stocks and quality of their goods.

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

THE CONSUMER IN THE MARKETPLACE :
We participate in the market both as producers and consumers. As producers of goods and services we could be working in any of the sectors discussed earlier such as agriculture. Industry, or services. Consumers participate in the market when they purchase goods and services that they need. These are the final goods that people as consumers use.
What is the need for rules and regulations or steps in the market that would promote development?
These could be for the protection of workers in the unorganised sector or to protect people from high interest rates charged by moneylenders in the informal sector.
Similarly, rules and regulations are also required for protecting the environment.

For example, moneylenders in the informal sector adopt various tricks to bind the borrower: they could make the producer sell the produce to them at a low rate in return for a timely loan; they could force a small farmer like Swapna to sell her land to pay back the loan. Similarly, many people who work in the unorganised sector have to work at a low wage and accept conditions that are not fair and are also often harmful to their health. To prevent such exploitation, we have talked of rules and regulations for their protection. There are organisations that have struggled for long to ensure that these rules are followed.
Likewise, rules and regulations are required for the protection of the consumers in the marketplace. Individual consumers often find themselves in a weak position. Whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyer, as if the seller has no responsibility once a sale is completed! The consumer movement is an effort to change this situation.
Exploitation in the marketplace happens in various ways.
Sometimes traders indulge in unfair trade practices such as when shopkeepers weigh less than what they should or when traders add charges that were not mentioned before, or when adulterated/defective goods are sold.
Markets do not work in a fair manner when producers are few and powerful whereas consumers purchase in small amounts and are scattered. This happens especially when large companies are producing these goods.
At times false information is passed on through the media, and other sources to attract consumers.
Hence, there is a need for rules and regulations to ensure protection for consumers.

Illustration 1
    When do consumers participate in the market?
Solution
    Consumers are participants in the market process when purchase goods and services for their use.

Illustration 2
    When do markets tend to be unfair?
Solution
    Markets do not work in a fair manner when there are a few and powerful producers and consumers purchase only in small amounts and are scattered.

Illustration 3
    What is the need for rules and regulations in the market place?
Solution
    Rules and regulations are needed for the protection of the consumers when they find themselves in a weak position.

CONSUMER MOVEMENT :
The consumer movement arose out of dissatisfaction of the consumers as many unfair practices were being indulged in by the sellers.
There was no legal system available to consumers to protect them from exploitation in the marketplace.
For a long time, when a consumer was not happy with a particular brand product or shop, he or she generally avoided buying that brand product, or would stop purchasing from that shop. It was presumed that it was the responsibility of consumers to be careful while buying a commodity or service.
It look many years for organisations in India, and around the world, to create awareness amongst people.
 More  recently, India witnessed an upsurge in the number of consumer groups.
 Because of all these efforts, the movement succeeded in bringing pressure on business firms as well as government to correct business conduct which may be unfair and against the interests of consumers at large.
A major step taken in 1986 by the Indian government was the enactment of the Consumer Protection Act1986, popularly known as COPRA.

Illustration 4
    Why did consumer movements arise?
Solution
    Consumer Movements arose due to dissatisfaction of the consumer as many unfair practices were being  indulged by the seller.

Illustration 5
    What major step was taken by Indian government in 1986?
Solution
    Indian government enacted the Consumer Protection Act in 1986 to protect consumers against unfair trade practices. 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.
 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.
 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.
 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.
 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.
 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.
 

Consumer Right : 
1.    SAFETY IS EVERYONE’S RIGHT
Example of Reji :
Reji’s suffering shows how a hospital, due to negligence by the doctors and staff in giving anaesthesia, crippled a student for life. While using many goods and services, we as consumers, have the right to be protected against the marketing of goods and delivery of services that are hazardous to life and property. Producers need to strictly follow the required safety rules and regulations. There are many goods and services that we purchase that require special attention to safety. For example, pressure cookers have a safety valve which, if it is defective, can cause a serious accident. The manufacturers of the safety valve have to ensure high quality. You also need public or government action to see that this quality is maintained. However, we do find bad quality products in the market because the supervision of these rules is weak and the consumer movement is also not strong enough.
2.    Information about goods and services
When you buy any commodity, you will find certain details given on the packing. These details are about ingredients used, price, batch number, date of manufacture, expiry date and the address of the manufacturer. When we buy medicines, on the packets, you might find ‘directions for proper use’ and information relating to side effects and risks associated with usage of that medicine. When you buy garments, you will find information on ‘instructions for washing’.
Why is it that rules have been made so that the manufacturer displays this information? 
It is because consumers have the right to be informed about the particulars of goods and services that they purchase. Consumers can then complain and ask for compensation or replacement if the product proves to be defective in any manner.
Similarly, one can protest and complain if someone sells a good at more than the printed price on the packet. This is indicated by MRP’ – maximum retail price. In fact consumers can bargain with the seller to sell at less than the MRP.
In recent times, the right to information has been expanded to cover various services provided by the Government .
In October 2005, the Government of India enacted a law, popularly known as RTI (Right to Information) Act, which ensures its citizens all the information about the functions of government departments.
Any consumer who receives a service in whatever capacity, regardless of age, gender and nature of service, has the right to choose whether to continue to receive the service.
Suppose you want to buy toothpaste, and the shop owner says that she can sell the toothpaste only if you buy a tooth brush. If you are not interested in buying the brush, your right to choice is denied.

Where should consumers go to get justice?
3.    Consumers have the right to seek redressal against unfair trade practices and exploitation. If any damage is done to a consumer, she/he has the right to get compensation depending on the degree of damage. There is a need to provide an easy and effective public system by which this can be done (refer to the example as given on pg. 82-83 of the lesson).
The consumer movement in India has led to the formation of various organisations locally known as consumer forums or consumer protection councils.
They guide consumers on how to file cases in the consumer court. On many occasions, they also represent individual consumers in the consumer courts.
These voluntary organisations also receive financial support from the government for creating awareness among the people.
If you are living in a residential colony, you might have noticed name boards of Resident Welfare Associations. If there is any unfair trade practice meted out to their members they take up the case on their behalf.
Under COPRA, a three-tier quasi-judicial machinery at the district, state and national levels was set up for redressal of consumer disputes.
The district level court deals with the cases involving claims upto Rs. 20 lakhs, the state level courts between Rs. 20 lakhs and Rs. 1 crore and the national level court deals with cases involving claims exceeding Rs 1 crore. If a case is dismissed in district level court, the consumer can also appeal in state and then in National level courts. Thus, the Act has enabled us as consumers to have the right to represent in the consumer courts.

Illustration 7
    What is meant by ‘Right to be informed’?
Solution

 ‘Right to be informed’ means that consumers have the right to be informed about the particulars of goods and services they purchase. This right helps the consumers to complain and ask for a compensation or replacement if the product is not as per specifications given on the packing.

Illustration 8
 List the possible specifications given on the packet of a good.
Solution
The packet contains details about ingredients used, price, batch number, date of manufacture, expiry date, address of the manufacturer and the MRP. Some items may have information directions for use or risks involved.

Illustration 9
    Explain the judicial mechanism for dealing with consumer cases.
Solution
A three tier judicial machinery has been set under COPRA at district, state and national levels for redressal of consumer disputes. Claims upto 20 lakhs are dealt at district level, between 20 lakhs and 1 crore at national level. The consumer can appeal to a higher court, if the case is dismissed at lower level.

LEARNING TO BECOME WELL-INFORMED CONSUMERS :
When we as consumers become conscious of our rights, while purchasing various goods and services, we will be able to discriminate and make informed choices. This calls for acquiring the knowledge and skill to become a well-informed consumer.
The enactment of COPRA has led to the setting up of separate departments of Consumer Affairs in central and state, government.
The posters that you have seen are one example through which government spread information about legal process which people can use. You might also be seeing such advertisements on television channels.

TAKING THE CONSUMER MOVEMENT FORWARD :
India has been observing 24 December as the National Consumers’ Day. It was on this day that the Indian Parliament enacted the Consumer Protection Act in 1986. India is one of the countries that have exclusive courts for consumer redressal.
The consumer movement in India has made some progress in terms of numbers of organised groups and their activities. There are today more than 700 consumer groups in the country of which only about 20-25 are well organised and recognised for their work.
However, the consumer redressal process is becoming cumbersome, expensive and time consuming. Many a time, consumers are required to engage lawyers. These cases require time for filing and attending the court proceedings etc.
In most purchases cash memos are not issued hence evidence is not easy to gather. Moreover most purchases in the market are small retail sales. The existing laws also are not very clear on the issue of compensation to consumers injured by defective products.
After 20 years of the enactment of COPRA, consumer awareness in India is spreading but slowly. Besides this the enforcement of laws that protect workers, especially in the unorganised sectors is weak. Similarly, rules and regulations for working of markets are often not followed.
Nevertheless, there is scope for consumers to realise their role and importance. It is often said that consumer movements can be effective only with the consumers’ active involvement. It requires a voluntary effort and struggle involving the participation of one and all.