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✅Class 10: Economics - Understanding Economic Development
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✅Class 10: Economics - Understanding Economic Development

Chapter 1 - Development
Key Concepts
  • Per Capita Income: Average income earned per person in a certain area.
  • Literacy Rate: Percentage of population over a certain age who can read and write.
  • Infant Mortality Rate: The number of deaths of infants under one year old per 1,000 live births.
  • Attendance Ratio: Proportion of students attending school compared to the total number of individuals who are within the official age group.
  • Life Expectancy: The average period a person is expected to live.
  • Gross Enrolment Ratio: Number of students enrolled in a given level of education, regardless of age, compared to the population of the age group that officially corresponds to the same level.
  • Human Development Index (HDI): Composite statistic of life expectancy, education, and per capita income indicators.
  • Purchasing Power Parity (PPP): A calculation that measures prices in different areas using a common basket of goods, allowing for a more accurate comparison of living standards
Introduction
  1. Interdisciplinary Nature
      2. Understanding development requires an interdisciplinary approach: 2.1. Economics: Analyzes material aspects and wealth distribution. 2.2. History: Provides context influenced by past events and decisions. 2.3. Political Science: Examines how democratic processes can realize developmental goals.
3. Development Promises: Diverse Perspectives:
Development means different things to different people, based on their personal aspirations.
Conflicting goals: 3.1. Individual aspirations may conflict (e.g., siblings' expectations). 3.2. Societal/Group interests may clash (e.g., industrialists vs. tribals).
4. Contrasting Developmental Goals:
  • Different individuals or groups prioritize different developmental outcomes.
  • Development for one group may be detrimental to another.
5. Key Takeaways:
  • Development is subjective and multifaceted.
  • There's no one-size-fits-all definition; it's deeply personal and influenced by various factors including historical, political, and economic contexts.
  • Conflicts in development goals suggest the need for a balanced approach, considering all stakeholders
Income and Other Goals
1. Income and Developmental Goals:
Common desires include regular work, better wages, and fair prices for products, essentially pointing towards the need for more income.
However, development isn't solely about economic growth or income: 1.1. People value non-material aspects like equal treatment, freedom, security, respect, and non-discrimination. 1.2. These aspects, though not easily quantifiable, significantly impact life quality.
2. Quality of Life:
Life quality depends on both material and non-material things: 2.1. Money/material possessions are crucial but not the sole determinants of a good life. 2.2. Non-material factors (friendships, social respect, etc.) play an essential role, though they're often overlooked due to measurability challenges.
3. Comprehensive Development Considerations:
People consider various factors for development, not just income: 3.1. Job scenario: Apart from salary, individuals consider family facilities, working environment, learning opportunities, job security, and work-life balance. 3.2. Gender equality: Women's paid work enhances dignity, but respect for women ensures shared housework and acceptance of women's external jobs. 3.3. Safety and security: A secure environment enables more opportunities for everyone, especially for women in diverse job roles or businesses.
4. Holistic Development Goals:
Development encompasses a blend of goals: 4.1. Not just focused on better income. 4.2. Includes crucial life aspects like job security, social equality, respect, and a safe environment.
5. Key Takeaways:
Developmental aspirations extend beyond income to other life quality factors.
Non-material elements, though harder to measure, are equally or more vital for holistic development.
A balanced approach considering both material and non-material goals is essential for true development.
National Development
National Development: Diverse Perspectives
  • 1.1 Individual Goals and National Development:
    • People have different life goals; this diversity extends to views on national development.
    • There isn't "one" solution to national development that fits all perspectives.
  • 1.2 Conflicts and Resolutions:
    • Different development ideas can conflict.
    • Essential to consider fairness, justice, and inclusivity.
    • Assess if ideas benefit the majority or a select few.
  • 1.3 Evaluating Development Ideas:
    • Not all ideas hold equal weight.
    • Need criteria to determine the most beneficial and just path.
How to Compare Different Countries or States
Comparing Development Among Countries/States
  • 2.1 Basis for Comparison:
    • Development can mean different things, leading to different "developed" statuses.
    • Similarities and differences exist when comparing entities (like students or countries).
  • 2.2 Criteria for Comparison:
    • Depends on the purpose (e.g., health for sports, intelligence for debate teams).
    • Development comparison often based on key characteristics (though opinions on what's important can vary).
  • 2.3 Income as a Comparative Factor:
    • Generally, higher income = more development.
    • More income implies access to necessities and luxuries.
  • 2.4 Country's Income:
    • Total income of all residents.
    • Total income not ideal for comparison due to population differences.
  • 2.5 Average (Per Capita) Income:
    • Total income divided by total population.
    • Used for a more accurate comparison between countries.
  • 2.6 World Development Reports:
    • Published by the World Bank.
    • Uses per capita income for country classification.
    • High income (US$ 49,300+/year), low income (US$ 2,500-/year), and middle income categories.
  • 2.7 India's Status:
    • Low middle income country (US$ 6,700/year in 2019).
    • "Developed" generally refers to high-income countries, excluding Middle Eastern and certain small countries.
 
Income and Other Criteria
1. Development Indicators: 1.1 Income: A crucial factor, but not the sole indicator of development. 1.2 Other Aspects: Security, respect, equal treatment, and freedom are also essential.
2. Per Capita Income Analysis: 2.1 Haryana, Kerala, Bihar (2018-19): Varying levels of per capita income. - Haryana: Highest (Rs 2,36,147). - Bihar: Lowest (Rs 40,982). 2.2 Inference: Higher income doesn't directly equate to higher development.
3. Other Development Indicators: 3.1 Infant Mortality Rate (IMR): Higher in Haryana compared to Kerala, despite higher income. 3.2 Education: Significant dropouts in Bihar after elementary school. 3.3 Insight: Development is multidimensional; income is not the sole criterion.
4. Public Facilities: 4.1 Income Limitations: Cannot buy all essentials for a good life. 4.2 Collective Measures: Often more effective and economical. - Example: Community health measures, public education. 4.3 Kerala's Case: Low IMR due to strong health/education systems. 4.4 Public Distribution System (PDS): Better health/nutrition in states with effective PDS.
5. International Comparisons: 5.1 Sri Lanka: Ahead of India despite being smaller. 5.2 Nepal/Bangladesh: Better life expectancy than India, despite lower income.
6. Human Development Index (HDI): 6.1 People-Centric: Focus on health, well-being, and overall living conditions. 6.2 Improvements and Components: Constant updates for more accurate representation.
7. Potential Additional Aspects for Human Development Measurement: 7.1 Mental Health: Often overlooked but crucial. 7.2 Quality of Life: Not just the length, but the life quality. 7.3 Environmental Factors: Pollution levels, access to clean water/air. 7.4 Political Freedom & Human Rights: Essential for true development. 7.5 Technological Access: Digital literacy, internet access, etc.
Key Takeaway: Development is a multi-faceted concept. It's not just about earning more money, but about improving the quality of life in various aspects, including health, education, and living conditions. The balance between income and other factors is crucial for genuine human development. This calls for a broad view that considers various factors contributing to a well-rounded human development approach.
Sustainability of Development
1. Concept of Sustainable Development:
1.1 Definition: Sustainable development refers to the type of development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
1.2 Importance: It's crucial due to limited resources and the need for long-term wellbeing of both humanity and the planet.
2. Types of Resources:
2.1 Renewable Resources:
  • Definition: Resources that can be replenished naturally.
  • Concern: Even renewable resources like groundwater can be overused if consumption exceeds the rate of replenishment.
2.2 Non-renewable Resources:
  • Definition: Resources with a fixed quantity; they cannot be replenished.
  • Concern: These resources will eventually deplete, even if new sources are discovered.
3. Global Impact of Environmental Degradation:
3.1 Interconnectedness: Environmental consequences don't adhere to political or geographical boundaries.
3.2 Collective Future: The sustainability issue is global, not specific to any region or nation.
5. Specific Examples:
5.1 Groundwater in India:
  • Concern: Serious threat due to overuse in many regions.
  • Statistics: About 300 districts report a water level decline of over 4 meters in the past 20 years; one-third of the country overuses groundwater.
  • Projection: 60% of the country will overuse groundwater in another 25 years if current trends continue.
  • Areas of Impact: Includes Punjab, Western U.P., central and south India's hard rock plateau areas, some coastal regions, and rapidly growing urban settlements.
5.2 Exhaustion of Natural Resources - Crude Oil:
  • Global Concern: At the current rate of extraction, crude oil reserves will last only 50 more years.
  • Country-Specific Challenges:
    • India: Dependence on imports due to low reserves, vulnerability to price increases.
    • USA: Low reserves leading to securing oil through military or economic means.
6. New Issues in Sustainability:
  • 6.1 Development Nature and Process: The sustainability question introduces new challenges regarding how we understand and approach development.
Human Development Report and Its Importance
1. Inadequacy of Income as a Sole Development Indicator:
  • 1.1 Issue: While income level is crucial, it doesn't provide a comprehensive view of development.
  • 1.2 Need for Broader Criteria: Recognition that development must be assessed by more holistic measures.
2. Criteria for Holistic Development:
  • 2.1 Requirement: Instead of a long, less practical list, a few key indicators are more beneficial for measuring development.
  • 2.2 Key Indicators:
    • Health Status: Reflects the overall well-being and healthcare quality accessible to the population.
    • Education Levels: Indicate the population's literacy, knowledge base, and access to educational resources.
3. Human Development Report (HDR):
  • 3.1 Published By: United Nations Development Programme (UNDP).
  • 3.2 Function: Compares nations based on a composite index of the key development indicators:
    • Educational levels
    • Health status
    • Per capita income
  • 3.3 Importance: Shifts focus from purely economic measures to a broader understanding of well-being.
4. HDR and India's Context:
  • 4.1 Comparison with Neighbours: The HDR also provides a platform to compare the developmental progress of a country relative to its neighbours.
  • 4.2 HDR 2020 Insights:
    • Specific data from the 2020 report could give insights into where India and its neighbouring countries stand in terms of these holistic development indicators.
Chapter 2 - Sectors of the Indian Economy
Introduction
  1. Sectoral Classification
    1. Primary, Secondary, and Tertiary
        • Primary: Involves direct extraction of natural resources (e.g., agriculture, fishing, mining).
        • Secondary: Involves processing of primary sector goods (e.g., manufacturing, construction).
        • Tertiary: Involves providing services (e.g., transportation, education, banking).
    2. Organised and Unorganised
        • Organised: Structured sector with regulations, employee benefits, and legal protections (e.g., corporate offices).
        • Unorganised: Lacks formal structure, often with less job security and benefits (e.g., small traders, agricultural laborers).
    3. Public and Private
        • Public: Owned and operated by the government (e.g., state schools, public hospitals).
        • Private: Owned and operated by individuals or companies (e.g., private businesses, private hospitals).
  1. Key Concepts
      • Gross Domestic Product (GDP): Total value of goods and services produced within a country during a specific period.
      • Employment: The condition of having paid work.
  1. Changing Roles of Sectors
      • The service sector's growth is notable.
      • Agriculture is decreasing in relative importance compared to industry and services.
      • These changes can be observed in daily life and through media sources.
  1. Impact of Sector Changes
      • Examples of problems include unemployment.
      • Government intervention can help address these issues.
      • Discussion should include the real-life impact, especially on those in the unorganised sector.
  1. Data Sources
      • GDP data: Real Time Handbook of Statistics on Indian Economy.
      • Employment data: National Sample Survey Organisation (NSSO), now known as National Statistical Office (NSO).
  1. Activities for Enhancing Understanding
      • Interact with various workers (e.g., shop owners, mechanics) to understand their economic contributions.
      • Classify different economic activities based on sectoral classification.
      • Collect and discuss news articles related to economic sectors.
      • Visit unorganised sector enterprises to understand real-life situations
Comparing the Three Sectors
1. Understanding Economic Activities and Sectors
  • 1.1. Categories of Economic Activities:
    • Primary Sector: Involves direct extraction of resources from nature (e.g., agriculture, fishing, mining).
    • Secondary Sector: Involves processing of resources extracted by the primary sector (e.g., manufacturing).
    • Tertiary Sector: Involves providing services (e.g., banking, education, transportation).
  • 1.2. Interdependence:
    • These sectors are highly interdependent and contribute collectively to the production of goods and services.
2. Measuring Total Production: Gross Domestic Product (GDP)
  • 2.1. Valuation of Goods and Services:
    • Rather than counting the physical output, total production is measured in terms of value (price).
    • Only the value of 'final' goods and services is considered to avoid double counting, as the value of intermediate goods is included in the pricing of the final products.
  • 2.2. Gross Domestic Product (GDP):
    • The sum of the value of final goods and services produced in all sectors during a year.
    • Indicates the total size of an economy.
  • 2.3. Calculation of GDP:
    • Conducted by a central government ministry in collaboration with departments across states and territories.
    • Involves collecting information on the volume of goods and services and their prices.
3. Historical Changes in Sector Importance
  • 3.1. Development Phases:
    • Initially, the primary sector was the dominant sector.
    • Over time, technological and procedural advancements led to the growth of the secondary sector.
    • Most recently, developed countries have seen a shift toward the tertiary sector becoming the most dominant.
  • 3.2. Sector Shift Reasons:
    • Agricultural advancements: Improvement in farming methods increased output, allowing more people to engage in other sectors.
    • Industrial Revolution: Introduced new manufacturing methods, leading to the rise of factories and the secondary sector.
    • Service-based Economy: Development leads to a higher demand for and provision of services, emphasizing the tertiary sector.
4. Sector Trends in India
  • 4.1. Current Scenario:
    • The passage suggests an analysis will follow regarding India's sector-wise production and employment data, hinting at possible similarities or differences with developed countries.
  • 4.2. Analysis Anticipation:
    • A detailed examination is expected in subsequent sections, likely comparing India’s economic journey to the patterns observed in developed nations
Primary, Secondary, Tertiary Sectors
1. Sectors of the Indian Economy:
  • 1.1 Primary Sector: Involves direct use of natural resources (Agriculture, Mining, Fishing, etc.).
  • 1.2 Secondary Sector: Involves the transformation of raw materials into goods (Manufacturing, Construction, etc.).
  • 1.3 Tertiary Sector: Involves providing services (Transportation, Banking, Education, etc.).
2. Sectoral Changes Over Time (1973-74 to 2013-14):
  • 2.1 Shift in Dominance: Tertiary sector became the largest in terms of production, surpassing the primary sector.
  • 2.2 Reasons for Tertiary Sector Growth:
    • 2.2.1 Expansion of basic services in developing countries.
    • 2.2.2 Development of primary and secondary sectors leading to higher demand for services.
    • 2.2.3 Increased demand for services with rising income levels.
    • 2.2.4 Emergence of new services, especially IT-based ones.
3. Employment Trends:
  • 3.1 Disparity in Sectoral Employment:
    • 3.1.1 Primary sector remains largest employer; however, contributes less to GDP.
    • 3.1.2 Secondary and tertiary sectors contribute more to GDP but employ fewer people.
  • 3.2 Underemployment:
    • 3.2.1 Visible in primary sector; people work less than their potential due to lack of alternative job opportunities.
    • 3.2.2 Also exists in urban service sector (casual workers, street vendors, etc.).
4. Strategies for Employment Generation:
  • 4.1 Agricultural Improvements:
    • 4.1.1 Investment in irrigation, transportation, storage, and agricultural credit.
    • 4.1.2 Potential for more employment within agriculture through infrastructural development.
  • 4.2 Rural Industrialisation:
    • 4.2.1 Promoting industries in semi-rural areas based on local resources and demand.
    • 4.2.2 Examples include processing plants, cold storages, and honey collection centers.
  • 4.3 Expansion in Services:
    • 4.3.1 Education and health sectors have significant potential for job creation.
    • 4.3.2 Tourism, regional craft, and IT services also hold potential, with proper planning and government support.
5. Short-term Measures:
  • 5.1 MGNREGA 2005:
    • 5.1.1 Provides a legal guarantee for 100 days of employment in rural areas.
    • 5.1.2 If employment is not provided, unemployment allowances are given.
    • 5.1.3 Focuses on work that increases land productivity.
Division of Sector as Organised and Unorganised
1. Division of Economic Sectors:
1.1 Organised Sector:
1.1.1 Features:
  • Regular employment and assured work.
  • Adherence to government rules and regulations (Factories Act, Minimum Wages Act, etc.).
  • Provides employment benefits (overtime pay, paid leave, pensions, medical benefits, safe working environment).
1.1.2 Challenges:
  • Slow expansion, leading to limited employment opportunities.
1.2 Unorganised Sector:
1.2.1 Features:
  • Small, scattered units with less government control.
  • Irregular, low-paid jobs without formal employment benefits.
  • Employment is not secure, with no protections for workers.
1.2.2 Predominant in:
  • Rural areas: landless laborers, small farmers, sharecroppers, artisans.
  • Urban areas: casual workers, street vendors, small-scale industry workers.
2. Protection for Unorganised Sector Workers:
2.1 Need for Protection:
  • 2.1.1 Exploitation and low wages.
  • 2.1.2 Lack of job security and benefits.
  • 2.1.3 Social discrimination, especially for workers from marginalized communities.
2.2 Measures for Support:
  • 2.2.1 Timely provision of agricultural essentials (seeds, credit, storage, marketing outlets) for rural workers.
  • 2.2.2 Support for small-scale industries in procurement and marketing.
  • 2.2.3 Protection policies for casual workers in both rural and urban areas.
3. Challenges and Trends:
3.1 Organised Sector Evading Responsibilities:
  • 3.1.1 Strategies to avoid taxes and regulations, leading to an expansion in unorganised practices.
3.2 Increasing Vulnerability:
  • 3.2.1 Job losses in the organised sector pushing workers into the unorganised sector.
  • 3.2.2 Majority of marginalized communities' workers are in the unorganised sector, facing both economic and social discrimination
Sectors in Terms of Ownership - Public & Private Sectors
1. Economic Sectors Based on Ownership
  • 1.1 Public Sector:
    • Owned and operated by the government.
    • Examples include Railways, Post Office.
    • Assets are government-owned.
    • Services are provided to benefit the public.
    • Funded by taxes and government revenues.
    • Purpose: Not primarily for profit; focuses on public welfare and services that are not profitable for private sectors to provide.
  • 1.2 Private Sector:
    • Owned by individuals or companies.
    • Examples include TISCO, RIL.
    • Assets are privately owned.
    • Services are provided to earn profits.
    • Customers pay to avail services.
    • Purpose: Profit-driven; doesn't provide services that aren't profitable.
2. Rationale Behind Public Sector Services
  • 2.1 Scope of Services:
    • Government spends on a wide range of activities.
    • These activities cater to things needed by society as a whole.
  • 2.2 Reasons for Government Intervention:
    • High Costs: Some services require large investments, unaffordable for private entities.
    • Accessibility and Equity: Private sector might not provide essential services at a reasonable cost for all.
    • Public Welfare: Ensuring services are available to everyone, not just those who can afford them.
  • 2.3 Funding:
    • Governments fund these services through taxes and other sources of revenue.
    • Aim is not to generate profit, but to ensure public welfare and service accessibility
Chapter 3 - Money & Credit
Money as a Medium of Exchange
1. Money's Role in Daily Life
1.1 Prevalence: Money is involved in numerous daily transactions.
Example: Buying goods, exchanging services, or promises of future payments.
2. Why Money?
2.1 Simplicity & Convenience: Money simplifies trade because it's universally accepted.
2.1.1 Trade Flexibility: Can be exchanged for various commodities or services.
2.1.2 Preference: People prefer receiving money to directly bartering goods/services.
3. Case Study: Shoe Manufacturer
3.1 Scenario Without Money: Exchanging shoes for wheat directly is complex and inconvenient.
3.1.1 Need for Double Coincidence: Finding a farmer who both wants shoes and has wheat to exchange.
3.2 Scenario With Money: Simplifies transactions.
3.2.1 Selling Process: Manufacturer sells shoes for money.
3.2.2 Buying Process: Uses money to buy wheat or any commodity.
4. Double Coincidence of Wants
4.1 Definition: A situation where two parties agree to sell and buy each other's commodities directly.
4.2 Barter System: Direct exchange of goods without money, requiring double coincidence.
5. Money as a Medium of Exchange
5.1 Elimination of Double Coincidence: Money removes the need for this coincidence.
5.2 Simplified Transactions: Money facilitates trade, acting as an intermediary in the exchange process.
Modern Forms of Money
1. Evolution of Money:
  • 1.1 Early Forms of Money:
    • Initially, commodities like grains and cattle were used as money in India.
    • Transitioned to metallic coins (gold, silver, copper) which lasted until the previous century.
  • 1.2 Modern Currency:
    • Consists of paper notes and coins.
    • Not made of precious materials or of everyday utility.
    • Accepted due to government authorization.
2. Characteristics of Modern Currency:
  • 2.1 Authority:
    • Issued by the Reserve Bank of India on behalf of the central government.
  • 2.2 Legal Aspect:
    • Indian law prohibits currency issuance by entities other than the government.
    • Rupee is legalized as a medium of payment that can't be refused.
3. Deposits with Banks:
  • 3.1 Nature of Deposits:
    • People deposit extra cash in banks, which is safe and earns interest.
    • Deposits can be withdrawn on demand, hence called "demand deposits."
  • 3.2 Advantages:
    • Facilitates payments through cheques, eliminating the need for cash.
    • Widely accepted as a means of payment, thus considered as money.
4. Role of Cheques:
  • 4.1 Function:
    • A paper instruction to the bank to pay a specific amount from one's account to another.
  • 4.2 Impact:
    • Demand deposits and cheques together reduce the reliance on physical cash.
5. Importance of Banks:
  • 5.1 Facilitation of Modern Money:
    • Banks are crucial for the existence of demand deposits and cheque payments.
  • 5.2 Connection to Modern Forms of Money:
    • The modern economy heavily relies on banks for managing currency and deposits.
Loan Activities of Bank
1. Loan Activities of Banks:
1.1 Cash Reserve:
  • Banks retain a small proportion (e.g., 15% in India) of deposits as cash.
  • This reserve is used to satisfy daily withdrawal demands of depositors.
1.2 Utilisation of Deposits:
  • Majority of deposits are used to provide loans.
  • Loans cater to various economic demands.
2. Depositors vs. Borrowers:
2.1 Depositors:
  • People who save their surplus funds with banks.
  • They can withdraw and also earn interest on their deposits.
2.2 Borrowers:
  • Individuals or entities that take loans from banks.
  • They repay these loans with an interest.
3. Economic Mediation:
3.1 Role of Banks:
  • Banks act as intermediaries between depositors (have surplus funds) and borrowers (need funds).
3.2 Interest Rates:
  • Banks charge borrowers a higher interest rate than what is paid to depositors.
  • The interest rate differential constitutes the banks' primary income source.
Two Different Credit Situation
1. Concept of Credit:
1.1 Definition:
  • Credit involves receiving money, goods, or services now with a promise to pay back in the future.
2. Credit Scenarios:
2.1 Positive Credit Example (Salim):
  • Uses credit for working capital in production.
  • Helps in meeting production expenses and increasing earnings.
  • Plays a positive role by enhancing income potential.
2.2 Negative Credit Example (Swapna):
  • Takes credit for crop production.
  • Faces crop failure, making loan repayment impossible.
  • Forced to sell part of the land to repay, leading to a "debt-trap."
  • Ends up in a worse situation than before.
3. Implications of Credit:
3.1 Risk Factors:
  • Success of credit is contingent on several factors, including risk in the venture and potential for income generation.
3.2 Debt-Trap:
  • Negative credit situations can lead to a debt-trap, worsening the borrower's financial condition.
3.3 Importance of Support:
  • Availability of support in case of loss is crucial to determine the usefulness of credit.
Terms of Credit
1. Terms of Credit:
1.1 Components:
  • Interest Rate: The percentage of the loan amount charged by the lender.
  • Collateral: An asset owned by the borrower and used as a guarantee for repayment.
  • Documentation: Required paperwork for the loan.
  • Repayment Mode: How the loan is to be repaid (e.g., monthly installments, lump sum, etc.).
1.2 Importance:
  • These terms define the agreement between lender and borrower, influencing the feasibility and cost of the loan.
2. Collateral:
2.1 Definition: Assets that a borrower owns and uses as a guarantee until the loan is repaid.
2.2 Purpose:
  • Provides security for the lender; can be sold to recover loan funds if the borrower fails to repay.
2.3 Examples: Land, buildings, vehicles, livestock, bank deposits.
3. Variability in Credit Terms:
3.1 Factors Influencing Terms:
  • Nature of the lender (e.g., commercial bank, private lender, etc.).
  • Nature of the borrower (e.g., individual, business, risk profile, etc.).
3.2 Implications:
  • Terms of credit can vary significantly, affecting accessibility and affordability of loans.
Formal Sector Credit in India
1. Overview of Credit in India
1.1 Formal Sector Credit
  • Includes loans from banks and cooperatives.
  • Supervised by the Reserve Bank of India (RBI).
  • Must adhere to regulations, e.g., maintaining a minimum cash balance.
  • Required to lend to diverse sectors, including small scale industries and small borrowers.
  • Periodic reporting to RBI on lending activities.
1.2 Informal Sector Credit
  • Sources include moneylenders, traders, employers, relatives, and friends.
  • No supervision or regulation.
  • High interest rates, leading to a higher cost for borrowers.
  • Can lead to unfair repayment practices.
2. Impact of High-Cost Borrowing
2.1 On Borrowers
  • Larger portion of earnings used for loan repayment.
  • Reduced income for personal use.
  • Potential for increasing debt and debt traps.
  • High costs discourage entrepreneurial initiatives.
2.2 On Development
  • Necessity for more lending from banks/cooperatives for income growth.
  • Affordable credit is crucial for various economic activities and overall development.
3. Disparity in Credit Accessibility
3.1 Urban Households
  • 85% of poor households rely on high-cost informal credit.
  • Rich households access 90% of their loans from formal, low-cost sources.
3.2 Rural Households
  • Similar pattern as urban areas.
  • Rich benefit from cheap formal credit; poor are burdened by expensive informal loans.
4. Implications and Needs
4.1 Expansion of Formal Credit
  • Currently meets only half of rural credit needs.
  • Expansion necessary to reduce dependence on high-cost informal credit.
4.2 Equal Distribution
  • Disparity in access between rich and poor.
  • Essential for formal credit to be more equally accessible for economic equality and development
Self Help Groups for the Poor
1. Dependence on Informal Credit:
1.1 Reasons for Dependence:
  • Banks are scarce in rural areas.
  • Bank loans require extensive documentation and collateral.
  • Informal lenders provide loans despite the absence of collateral, but at higher interest rates and with less formal documentation.
2. Self Help Groups (SHGs):
2.1 Introduction:
  • Organize the rural poor, especially women, into small groups.
  • Members save regularly in a collective pool.
  • Comprises 15-20 members from a similar locality.
2.2 Financial Structure:
  • Savings amount varies (Rs 25 to Rs 100 or more).
  • Members eligible for small loans within the group.
  • Interest rates lower than informal lenders.
2.3 Bank Loans:
  • Eligibility for bank loans after consistent savings for a year or two.
  • Loans are in the group's name for self-employment opportunities.
2.4 Usage of Loans:
  • Releasing mortgaged land.
  • Meeting working capital needs (e.g., seeds, fertilizers, raw materials).
  • Purchasing assets (e.g., sewing machines, handlooms, cattle).
3. Decision Making in SHGs:
3.1 Loan Decisions:
  • Determined by group members.
  • Includes purpose, amount, interest, and repayment schedule.
3.2 Repayment Responsibility:
  • The group is accountable for loan repayment.
  • Peer pressure ensures repayment even without collateral.
4. Benefits of SHGs:
4.1 Financial Benefits:
  • Overcome the lack of collateral.
  • Access to timely loans with reasonable interest rates.
4.2 Societal Impact:
  • Acts as building blocks for organizing the rural poor.
  • Encourages financial self-reliance among women.
  • Platform for discussing social issues (health, nutrition, domestic violence, etc.).
Grameen Bank of Bangladesh
1.1 Overview:
  • Established in the 1970s.
  • As of 2018, serves over 9 million members across approximately 81,600 villages in Bangladesh.
1.2 Target Demographic:
  • Primarily women from the poorest sections of society.
1.3 Success Factors:
  • Demonstrated that underprivileged women are reliable borrowers.
  • Empowered women to initiate and successfully manage small income-generating activities.
1.4 Founder's Vision (Professor Muhammad Yunus):
  • Advocates for credit availability to the poor under fair and reasonable terms.
  • Believes that empowering millions with small credits can cumulatively lead to significant developmental progress.
  • Awarded the Nobel Prize for Peace in 2006 for his efforts in creating economic and social development.
Chapter 4 - Globalisation and the Indian Economy
Overview
1. Understanding Globalisation:
  • Definition: Integration between countries through foreign trade and foreign investments by multinational corporations (MNCs).
  • Key Aspects: Focuses on cultural, political, social, and economic interconnectedness globally.
  • Time Frame: Significant growth over the past thirty years.
2. Role of Multinational Corporations (MNCs):
  • Influence in Globalisation: Major force in connecting regions globally.
  • Reasons for Spread:
      1. Diverse production locations.
      1. Access to international markets.
  • Method of Expansion: Primarily through foreign trade and investments.
  • Examples & Case Studies: Use of real-world instances from the Indian context to illustrate concepts.
3. Integration in Globalisation:
  • Key Idea: Integration of production and markets.
  • Role of MNCs: Crucial in merging different markets and production locales.
  • Teaching Focus: Ensure clear understanding of integration concepts before proceeding.
4. Facilitators of Globalisation:
  • Technology: Rapid advancements acting as a catalyst.
  • Liberalisation:
      1. Trade policies: More open, reduced tariffs.
      1. Investment policies: Easier cross-border flow.
  • International Organisations: WTO and others exerting pressure for global integration.
  • Teaching Suggestions: Encourage explorations and discussions on pre and post-liberalisation, technology's role, and international negotiations.
5. Impact of Globalisation:
  • Development Contribution: Analysis of globalisation's role in development.
  • Reference Points: Relate to topics from previous chapters for a holistic understanding.
  • Local Contexts: Use local examples to explain global concepts, like the effect on farmers.
  • Teaching Approach: Interactive sessions, brainstorming, and role-plays for better engagement.
6. Resources for Further Information:
  • International Labour Organisation: www.ilo.org - Advocates for fairer globalisation.
  • World Trade Organisation: www.wto.org - Details on international trade agreements.
Introduction
1. Consumer Experience in the Modern World:
  • Availability of Goods:
      1. Wide range of products: Digital cameras, mobile phones, televisions, etc.
      1. Access to latest models and leading global manufacturers.
  • Automobile Evolution:
      1. Past scenario: Limited options (Ambassador, Fiat).
      1. Present scenario: Variety of global brands and models.
  • Expansion in Variety:
      1. Notable increase in available brands across various categories (apparel, electronics, food items, etc.).
2. Market Transformation:
  • Timeline:
      1. Significant change over the past two decades.
      1. Rapid transformation in product availability and variety.
  • Comparison:
      1. Past: Limited choice, less international influence.
      1. Present: Extensive options, strong global presence.
Production Across Countries
1. MNCs and Global Production:
  • Example of an MNC's Production Process:
      1. Designing: Conducted in research centers in the United States.
      1. Manufacturing: Components produced in China.
      1. Assembly: Done in Mexico and Eastern Europe.
      1. Sales: Finished products sold globally.
      1. Customer Support: Handled through call centers in India.
  • Historical Context:
      1. Mid-20th Century: Production was primarily organized within countries.
      1. Trade: Main connector between countries, involving raw materials, foodstuffs, and finished products.
      1. Colonies' Role: Exported raw materials and foodstuffs, imported finished goods.
2. Emergence of Multinational Corporations (MNCs):
  • Definition: Companies owning or controlling production in more than one country.
  • Strategy:
      1. Set up in regions with cheap labor and resources.
      1. Aim: Reduce production costs, increase profits.
3. Global Production Dynamics:
  • Global Sales vs. Global Production:
      1. MNCs not just selling globally, but also producing globally.
      1. Production process fragmented and dispersed worldwide.
  • Factors Influencing MNCs' Location Choices:
      1. Cost: Cheap manufacturing locations (e.g., China).
      1. Proximity to Markets: Areas close to major markets (e.g., Mexico for the US market).
      1. Skill Availability: Presence of skilled workforce (e.g., engineers in India).
      1. Language Proficiency: Availability of English-speaking professionals for customer service (e.g., India).
  • Cost-Savings: Can reach up to 50-60% for MNCs by choosing strategic locations.
  • Benefits to MNCs: Immense advantages due to lower costs and higher profits.
Interlinking Production Across Countries
1. MNCs' Production Setup:
  • Location Preferences:
      1. Proximity to markets.
      1. Access to skilled and unskilled labor at low costs.
      1. Assured availability of production factors.
      1. Favorable government policies.
2. Investment by MNCs:
  • Definition: Money spent on assets (land, buildings, machines).
  • Type: Foreign investment, aimed at earning profits.
3. Joint Production:
  • Benefits to Local Companies:
      1. Financial support for additional investments.
      1. Access to the latest technology.
4. MNC Investment Strategies:
  • Common Route: Acquiring local companies to expand production.
  • Example: Cargill Foods' acquisition of Parakh Foods in India.
5. Power of MNCs:
  • Wealth Comparison: Many have wealth exceeding developing countries' budgets.
  • Influence: Significant power in decision-making processes.
6. Production Control:
  • Order Placement: MNCs in developed countries place production orders with small producers globally.
  • Examples of Industries: Garments, footwear, sports items.
  • Power Dynamics: MNCs have substantial control over various aspects like price, quality, delivery, and labor conditions.
7. MNCs' Global Interaction:
  • Methods:
      1. Setting up partnerships.
      1. Utilizing local companies for supplies.
      1. Competing with or acquiring local companies.
  • Outcome: Strong influence on production, leading to interlinked production across locations.
Foreign Trade & Integration of Market
1. Foreign Trade and Market Integration:
1.1 Definition: Foreign trade acts as a bridge between markets in different countries, allowing goods and services to move beyond domestic borders.
1.2 Historical Context:
  • Trade routes historically connected countries like India to the East and West.
  • Trading companies (e.g., East India Company) were drawn to regions like India due to these trade opportunities.
2. Functions of Foreign Trade:
2.1 Expanding Markets: Allows producers to sell beyond local markets and compete internationally.
2.2 Diversifying Options: Offers buyers a wider array of goods than what's domestically available.
2.3 Price Equalization: Opens up competition, often leading to price uniformity for similar products across countries.
2.4 Market Integration: Connects disparate markets, making them function as one.
3. Case Study: Chinese Toys in India:
3.1 Background: High demand for toys in India leads Chinese manufacturers to begin exporting there.
3.2 Impact on Indian Market:
3.2.1 Increased Choice: Buyers in India enjoy a wider variety of toys.
3.2.2 Price Reduction: Due to competition, toy prices in India decrease.
3.2.3 Market Preference: Chinese toys become more popular due to lower prices and novel designs, capturing 70-80% of the market.
3.3 Consequences:
3.3.1 Positive: Chinese manufacturers benefit from expanded business opportunities.
3.3.2 Negative: Indian toy makers experience losses due to decreased sales.
4. Key Takeaways:
4.1 Trade Connectivity: Foreign trade connects international markets, offering more choices to consumers and more opportunities for producers.
4.2 Competitive Dynamics: It introduces new competitive dynamics, which can be advantageous for some while challenging for others.
4.3 Market Influence: The presence of foreign goods can significantly influence local markets, both in terms of pricing and product availability.
What is Globalisation
1. Globalisation:
  • Definition: The process of rapid integration or interconnection between countries.
  • Characteristics: Involves international movement of goods, services, investments, technology, and people.
2. Role of Multinational Corporations (MNCs):
  • Search for cost-effective production locations globally.
  • Significant increase in foreign investments in various countries.
  • Control a substantial portion of foreign trade.
  • Example: Ford Motors' operations in India cater to both local and international markets.
3. Impact of MNC Activities:
  • Integration of production and markets across countries.
  • Enhanced global trade and investment flows.
  • MNCs are major players driving globalisation.
4. Aspects of Globalisation:
  • 4.1 Goods and Services: Movement and trade of products and services internationally.
  • 4.2 Investments: Flow of capital between countries, often directed by MNCs.
  • 4.3 Technology: Global sharing and transfer of technology.
  • 4.4 People: Migration for better income, jobs, or education.
    • Note: Limited growth in recent decades due to various restrictions.
5. Resulting Global Connectivity:
  • Regions worldwide are in closer contact now more than ever.
  • Not limited to economic factors but also cultural and social exchanges.
Factors that have enabled Globalisation
1. Enablers of Globalisation:
Key factors that have significantly contributed to the process of globalisation.
2. Technological Advancements:
2.1 Transportation: Improvements in transportation technology allow faster delivery of goods over long distances at lower costs.
2.2 Information and Communication Technology (ICT):
  • Rapid changes in telecommunications, computers, and the Internet.
  • Enhanced global connectivity through devices like telephones, mobile phones, and satellites.
  • The proliferation of computers in various fields and the extensive use of the Internet for information sharing.
  • E-mail and voice-mail services for instant global communication at minimal costs.
3. Liberalisation Policies:
3.1 Trade Barriers: Taxes on imports to protect domestic industries, regulating the amount and type of goods entering the country.
3.2 Post-Independence Era: India initially had barriers to protect budding industries post-independence.
3.3 Policy Changes in 1991: Introduction of liberalisation, reducing barriers for foreign trade and investment.
  • Aimed to enhance competition and improve domestic producer performance.
  • Supported by major international organisations.
3.4 Impact of Liberalisation: Easier import-export processes and establishment of foreign companies in India.
4. Role of Information Technology in Globalisation:
4.1 Case Study: Magazine Production:
  • Designing in Delhi for a London-based magazine, leveraging Internet and telecommunication.
  • Instant international payments through e-banking.
4.2 IT in Service Production: Major role in spreading out production of services across countries.
5. Containerisation:
Use of containers for intact loading onto various transport modes, reducing costs and increasing speed for exports.
Decreased air transport costs, leading to higher volumes of goods transported via airlines.
World Trade Organisation
1. World Trade Organisation (WTO)
1.1 Overview:
  • International organisation aimed at liberalizing global trade.
  • Initiated by developed countries.
  • Sets and enforces rules for international trade.
  • Membership: Approximately 160 countries.
1.2 Criticisms:
  • Developed countries maintain trade barriers, contrary to the principle of free trade.
  • Developing countries pressured to remove trade barriers, often to their disadvantage.
2. Debate on Trade Practices
2.1 Agriculture Sector:
  • Significant in India: major employment source and substantial GDP contribution.
  • Contrast with the US: only 1% of GDP and 0.5% of employment.
2.2 Subsidies and Global Trade:
  • US farmers receive substantial subsidies for production and exports.
  • Allows them to lower prices, outcompeting farmers in other countries.
2.3 Impact on Developing Countries:
  • Surplus products from developed countries sold at low prices, harming local farmers.
  • Developing nations challenge the fairness: they've reduced trade barriers, while developed countries continue subsidizing their farmers.
2.4 Case Study:
  • US cotton farms: often large-scale operations, able to lower prices for international markets due to heavy subsidies.
Key Takeaways:
  • WTO's objective of free trade is controversial due to perceived biases in how rules are applied between developed and developing nations.
  • Subsidies in developed countries lead to imbalances in global trade, often negatively impacting farmers in developing countries.
  • Fairness in global trade practices is a significant point of contention, with developing countries calling for equitable treatment and the removal of hypocritical practices.
Impact of Globalisation in India
  1. Advantages to Consumers:
      • Globalisation led to greater competition among local and foreign producers.
      • Urban, well-off consumers benefited from a wider choice of products, improved quality, and lower prices.
      • Resulted in a higher standard of living for these consumers compared to the past.
  1. Effect on Producers and Workers:
      • Foreign Investments:
        • MNCs increased investments in India, especially in sectors like cell phones, automobiles, electronics, soft drinks, fast food, and urban service sectors like banking.
        • Creation of new jobs and prosperity for local companies supplying raw materials to these industries.
      • Growth of Indian Companies:
        • Increased competition drove top Indian companies to invest in newer technology and production methods, raising production standards.
        • Successful collaborations with foreign companies were established.
        • Emergence of Indian Multinationals: e.g., Tata Motors, Infosys, Ranbaxy, Asian Paints, and Sundaram Fasteners spreading operations globally.
      • IT and Service Sector Boom:
        • Globalisation created opportunities for IT and service companies.
        • Examples include Indian companies producing magazines for foreign companies, call centers, data entry, accounting, administrative tasks, and engineering services being exported to developed countries.
  1. Changes in Work Conditions:
      • Majority of workers are now employed in the unorganised sector.
      • Conditions in the organised sector started resembling the unorganised sector, with lesser protection and benefits for workers like before.
Struggle of a Fair Globalisation
  1. Introduction
      • Globalisation has benefited individuals with education, skill, and wealth.
      • A significant portion of people have not shared the benefits of globalisation.
  1. Aim of Fair Globalisation
      • Create opportunities for all individuals.
      • Ensure better sharing of globalisation benefits.
  1. Role of Government
      • Implement policies protecting the interests of not only the rich and powerful, but all citizens.
      3.1 Labour Laws - Ensure proper implementation to secure workers' rights.
      3.2 Support to Small Producers - Assist small producers to improve performance and compete effectively.
      3.3 Trade and Investment Barriers - Utilization of barriers when necessary to protect domestic industries.
      3.4 WTO Negotiations - Advocate for fairer rules. - Align with other developing nations to challenge domination by developed countries.
  1. People’s Participation
      • Massive campaigns and representations by people’s organizations have influenced key WTO decisions.
      • Demonstrates the role individuals can play in the push for fair globalisation
Chapter 5 - Consumer Right
Overview
Consumer Rights and the Market: Revision Notes
  1. Introduction to Consumer Rights
    1. Context: Examines consumer rights in relation to market operations in India.
    2. Challenges: Highlights the inequality in market situations and weak rule enforcement.
    3. Objective: Sensitizes learners towards consumer rights and encourages participation in the consumer movement.
  1. Case Histories and Real-life Situations
    1. Exploitation Examples: Narratives of how consumers were exploited.
    2. Legal Aid: Instances where legal institutions assisted consumers in securing their rights.
    3. Personal Connection: Encourages students to relate these stories to their own experiences.
  1. Historical Aspect of Consumer Awareness
    1. Consumer Movement: Understanding that well-informed consumer awareness stems from long-term struggles and the consumer movement.
    2. Active Participation: Emphasizes the impact of people's active involvement in shaping consumer rights.
  1. Organisations Supporting Consumers
    1. Various Bodies: Details organizations that assist consumers in diverse ways.
    2. Critical Issues: Concludes with discussing significant, unresolved issues within India's consumer movement.
  1. Teaching Methodologies
    1. Interactive Learning: Encourages discussions, case studies, and group activities.
    2. Brainstorming: Suggests starting activities with brainstorming sessions.
    3. Roleplay: Identifies opportunities for roleplay to deepen understanding.
    4. Creative Expressions: Recommends creating posters collectively to contemplate the issues.
  1. Practical Experiences
    1. Field Visits: Organizing trips to consumer councils, organizations, dispute redressal commissions, shops, and markets.
    2. Purposeful Visits: Advises discussing the objectives, pre-visit preparations, and post-visit tasks (reports, projects, articles).
  1. Language-sensitive Exercises
    1. Communication Skills: Involves letter-writing and speaking activities, with attention to language nuances.
  1. Resource Materials
    1. Authentic Sources: Chapter content derived from verified websites, books, newspapers, and magazines.
    2. Example Websites:
      1. [Ministry of Consumer Affairs](https://consumer affairs.nic.in): Central Government’s portal.
      2. CUTS International: A consumer organization with a 40-year presence in India.
    3. Student Involvement: Encourages learners to gather materials for activities, including case histories from various sources like councils, commissions, and the internet.
Remember, these notes are structured for easy revision, highlighting key areas of focus, practical application, and interactive learning methods associated with understanding consumer rights in India. Copying this structure into a tool like Notion can help organize your study or teaching plan effectively.
Consumer in Market Place
  1. Consumer Role in the Marketplace
      • We act as both producers and consumers.
      • As producers: Work in sectors like agriculture, industry, or services.
      • As consumers: Purchase goods and services for use.
  1. Need for Rules and Regulations
      • Protection is required in various sectors:
        • Protecting workers in the unorganised sector.
        • Safeguarding people from exorbitant interest rates in the informal sector.
        • Environmental protection.
      • Exploitations observed:
        • Moneylenders binding borrowers unfairly.
        • Workers in unorganised sectors facing low wages and harmful conditions.
  1. Consumer Exploitation in the Marketplace
      • Consumers often find themselves in a weak position post-purchase.
      • Sellers sometimes evade responsibility after the sale.
      • The consumer movement aims to rectify this imbalance.
  1. Types of Exploitations
      • Unfair trade practices:
        • Incorrect weights by shopkeepers.
        • Hidden charges or costs.
        • Sale of adulterated/defective goods.
      • Imbalance in the market:
        • Few and powerful producers versus scattered consumers.
        • Large companies can manipulate markets.
        • False information sometimes disseminated to lure consumers.
  1. Examples of Market Manipulation
      • A company falsely advertised powder milk as superior to mother’s milk.
      • Cigarette companies denied the link between their products and cancer for years.
  1. Market Ethics
      • Debate: While tobacco's harmful effects are known, should companies be allowed to sell it freely?
Consumer Movement
1. Genesis of the Consumer Movement:
  • 1.1. Background:
    • Emerged due to consumer dissatisfaction.
    • Predatory practices by sellers; no legal protection system.
  • 1.2. Initial Consumer Reaction:
    • Avoidance of specific brands or shops.
    • Self-responsibility for purchasing decisions.
2. Evolution of Consumer Awareness:
  • 2.1. Global and Indian Context:
    • Slow, multi-year awareness building.
    • Shifted responsibility for quality to sellers.
  • 2.2. Origin as a 'Social Force':
    • Response to unethical trade practices.
    • Issues: food shortages, hoarding, black marketing, adulteration.
3. Organized Consumer Movement in India:
  • 3.1. 1960s:
    • Formative years due to pressing issues in food and service sectors.
  • 3.2. 1970s:
    • Activities: articles, exhibitions.
    • Consumer groups focused on ration malpractices, transport overcrowding.
  • 3.3. Modern Era:
    • Surge in consumer groups' numbers.
4. Impact of the Movement:
  • 4.1. Pressure on Entities:
    • Successful in influencing business and government practices.
    • Targeted unfair, anti-consumer business conduct.
  • 4.2. Legislative Achievement:
    • Consumer Protection Act 1986 (COPRA).
    • Landmark legislation for consumer rights. (Details in subsequent sections)
Consumer Rights
1. Consumer Rights and Safety
  • Every consumer has the right to safety against hazardous goods and services.
  • Producers must adhere to safety rules and regulations.
  • Public and government actions are required to maintain quality standards.
2. Case Study: Reji Mathew
  • Incident: Negligence in anesthesia led to Reji being crippled.
  • Legal Action: Compensation sought for medical negligence.
  • Outcome: National Commission held the hospital responsible and ordered compensation.
3. Information on Goods and Services
  • Consumers have the right to be informed about product details.
  • Details include ingredients, price, manufacture date, expiry, usage instructions, etc.
  • Defective products can be returned or compensated if information is properly disclosed.
4. Right to Information (RTI) Act
  • Enacted in 2005 by the Government of India.
  • Ensures citizens access to information about government functions.
5. Consumer's Right to Choice
  • Every consumer has the right to choose the services they receive.
  • Examples: Forced to buy additional products, denied choice.
  • Right to protest and seek redressal if choice is denied.
6. Redressal Mechanisms
  • Consumers can seek redressal against unfair practices.
  • They can file complaints in Consumer Disputes Redressal Commissions.
  • Cases can be filed individually or as a group (class action).
7. Consumer Forums and Organizations
  • Guide consumers on filing cases.
  • Represent consumers in commissions.
  • Receive government support for creating awareness.
8. COPRA (Consumer Protection Act)
  • Established three-tier judicial machinery for consumer disputes.
  • Levels: District (up to Rs 1 crore), State (Rs 1 crore to Rs 10 crore), National (exceeding Rs 10 crore).
  • Allows for appeals at higher levels if cases are dismissed.
9. Becoming Well-Informed Consumers
  • Consciousness of rights leads to informed choices.
  • Requires knowledge and skill.
  • Government efforts: Departments of Consumer Affairs, awareness campaigns, etc.
Where should consumer go to go justice
  1. Consumer Movement Advancement in India: 1.1. National Consumers' Day:
      • Celebrated on 24 December.
      • Marks the enactment of the Consumer Protection Act (1986).
      1.2. Consumer Redressal Authority:
      • Exclusive authority in India for consumer redressal.
      • Over 2000 consumer groups exist, with 50-60 being well-organized and recognized.
      1.3. Challenges in Consumer Redressal:
      • Process is cumbersome, expensive, and time-consuming.
      • Engagement of lawyers often required.
      • Difficulty in gathering evidence due to lack of cash memos.
      1.4. Amendment to COPRA (2019):
      • Includes online purchases.
      • Holds service providers and manufacturers accountable for deficiencies or defects.
      • Encourages dispute settlement through neutral mediators at all three tiers of Consumer Commissions.
      1.5. Consumer Awareness Spread:
      • Slow spread of awareness post COPRA enactment.
      • Weak enforcement of laws protecting workers, especially in unorganized sectors.
      • Often, market working rules and regulations are not adhered to.
      1.6. Consumer Involvement:
      • Realization of consumer role and importance.
      • Effectiveness of consumer movements hinges on active consumer involvement.
      • Requires a collective, voluntary effort and struggle.
Taking the Consumer Movement Forward
1. National Consumers' Day
  • Celebrated on 24th December in India.
  • Commemorates the enactment of the Consumer Protection Act, 1986.
  • Highlights India's commitment to consumer rights.
2. Consumer Movement in India
  • Over 2000 consumer groups, with around 50-60 being significantly active and recognized.
  • Progress seen in the organized activities and increasing number of groups.
3. Challenges in Consumer Redressal
  • Process is often cumbersome, expensive, and time-consuming.
  • The necessity of hiring lawyers and attending lengthy proceedings.
  • Difficulty in gathering evidence due to non-issuance of cash memos.
  • Predominance of small retail sales complicates accountability.
4. COPRA Amendment 2019
  • Strengthened consumer rights, including online purchases.
  • Held service providers or manufacturers accountable for deficiencies or defects.
  • Provision for penalties and imprisonment for violations.
  • Introduction of mediation as an alternative dispute resolution at all three-tier Consumer Commissions.
5. Consumer Awareness and Enforcement
  • Awareness is spreading but at a slow pace.
  • Weak enforcement of protective laws, especially in unorganized sectors.
  • Market regulations often bypassed or not adhered to strictly.
6. The Role of Consumers
  • Need for consumers to recognize their power and role in market dynamics.
  • Consumer movements require active participation from everyone.
  • Voluntary effort and collective struggle are key to effective consumer movements.
Extra Concepts
1. UN Guidelines for Consumer Protection (1985)
  • 1.1 Purpose:
    • Adopted for nations to implement consumer protection measures.
    • Advocacy tool for consumer groups to press their governments.
  • 1.2 Impact:
    • Foundation for the global consumer movement.
2. Consumers International
  • 2.1 Overview:
    • Umbrella body for consumer organizations.
  • 2.2 Membership:
    • Over 200 member organizations.
    • Representation from over 100 countries.
3. Quality Assurance Certifications
  • 3.1 Examples:
    • ISI, Agmark, Hallmark, +F.
  • 3.2 Function:
    • Logos/certifications assure consumers of quality.
    • Issued by organizations monitoring adherence to quality standards.
  • 3.3 Compliance:
    • Not mandatory for all producers.
    • Mandatory for products affecting health/safety or of mass consumption (e.g., LPG cylinders, food colors, cement, packaged water).
 
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