Development
Income
and other goals
Most people have higher income as a
developmental goal.
People have other departmental goals than higher income like:
People have other departmental goals than higher income like:
Well-being of a family
Closeness with friends and colleagues
Equal treatment and security
Respect and freedom
Opportunities to improve his skills
People have a mix of goals for development. Income is measurable goal in terms of money. There are many developmental goals which are not measurable.
The non-measurable developmental goals are sometimes more important than measurable developmental goals like income. Non-measurable developmental goals like respect, security and equality are more important than income when it comes to working women and encouraging more women to work.
National
Development Comparison
It is easier to compare things when we compare
them using a particular criterion or characteristic. Countries with more
income are considered more developed than other countries that have less
income. The income of a country is the sum of the incomes of its entire
population.
Different countries of the world have different populations, so total income is not a reliable criterion to compare national development. A more reliable criterion for comparing national development is the average income or per capita income. Average income of a country= Total income of the country/ Population of the country.
Based on its per capita income, India falls in the category of low-income countries. Per capita income hides individual income disparities. Countries with equitable distribution of income have no rich and no poor. Countries without equitable distribution of income have rich and poor people.
Different countries of the world have different populations, so total income is not a reliable criterion to compare national development. A more reliable criterion for comparing national development is the average income or per capita income. Average income of a country= Total income of the country/ Population of the country.
Based on its per capita income, India falls in the category of low-income countries. Per capita income hides individual income disparities. Countries with equitable distribution of income have no rich and no poor. Countries without equitable distribution of income have rich and poor people.
Other
criteria of economic development
People have many different developmental goals
other than income. Higher income alone cannot bring about
development. Several criteria other than per capita income are used to
evaluate the economic development in different countries and states.
Some criteria other than income used to compare development are:
Some criteria other than income used to compare development are:
Life expectancy
Infant mortality
Literacy rate
Net attendance ratio
Gross enrollment ratio
A community also needs public facilities for education and training, affordable healthcare, and provisions for adequate food and nutrition for development. Body mass index is an interesting way to find your health status.
Countries with lower per capita income than India have comparable or higher developmental performance on other criteria.
Sustainability
of development
As more and more development happens, more and
more resources get used up. Increase in cultivation is an indicator of
development. The resources used for development may be renewable resources
or non-renewable resources. We have limited stocks of non-renewable
resources that are lost forever once used.
Renewable resources get stored by nature in a period of time like groundwater which gets replenished by nature. Use of renewable resources faster than what nature can restore can lead to their scarcity. If development continues at its present pace, there may be a time in future when we may run out of resources and no further development would be possible.
The concept of sustainability of development comes in here. Sustainability of development involves finding ways for continuous development without the risk of running out of resources or causing irreparable damage to environment.
Sustainability of development would involve:
Renewable resources get stored by nature in a period of time like groundwater which gets replenished by nature. Use of renewable resources faster than what nature can restore can lead to their scarcity. If development continues at its present pace, there may be a time in future when we may run out of resources and no further development would be possible.
The concept of sustainability of development comes in here. Sustainability of development involves finding ways for continuous development without the risk of running out of resources or causing irreparable damage to environment.
Sustainability of development would involve:
More efficient use of our existing resources
Finding fresh reserves of resources
And coming up with innovative ideas and
technology to use new resources in place of conventional ones.
Sectors of The Indian Economy
Introduction
- Sectors of the Indian Economy
All the activities that involve the production
and distribution of products and services are examples of economic activities.
Economic activities are classified into three different groups i.e. primary
sector, secondary sector and tertiary sector.
Primary sector include activities that use natural resources to produce natural goods like agriculture, dairy farming, poultry, fishing, mining, and forestry. The primary sector is also called the agriculture and related sector.
Secondary sector include activities that use natural products or other raw material for industrial manufacturing of goods. The secondary sector is also called the industrial sector.
Activities that support the manufacturing and distribution of goods produced in the primary and secondary sectors are called tertiary sector activities like education, healthcare, accounting, legal services, law and order, fire-fighting, and office administration. The tertiary sector is also called the services sector. The primary, secondary and tertiary sector economic activities are interdependent on each other.
Primary sector include activities that use natural resources to produce natural goods like agriculture, dairy farming, poultry, fishing, mining, and forestry. The primary sector is also called the agriculture and related sector.
Secondary sector include activities that use natural products or other raw material for industrial manufacturing of goods. The secondary sector is also called the industrial sector.
Activities that support the manufacturing and distribution of goods produced in the primary and secondary sectors are called tertiary sector activities like education, healthcare, accounting, legal services, law and order, fire-fighting, and office administration. The tertiary sector is also called the services sector. The primary, secondary and tertiary sector economic activities are interdependent on each other.
Comparing
Different Sectors
The primary, secondary and tertiary sectors of
the economy involve the production of a large number of goods and services.
Every product or service has a value.
The final values of goods are used to calculate the production in a sector. The sum of the total production in the three sectors in a year for a country gives the gross domestic product or GDP for that country in that year.
GDP is a globally accepted indicator of the size and health of a country’s economy. The contribution of different sectors to the GDP of a country depends on the state of development of that country’s economy. An economy starts developing based on natural resources and products, so at the initial stage of development, the primary sector is the biggest contributor to GDP.
In a developing economy, industrialisation creates fresh job opportunities and people use more and more manufactured goods. Here the secondary sector becomes the biggest contributor to GDP. In developed countries, people can afford and demand more services which leads to a rapid growth in the tertiary sector. Thus, the tertiary sector is the biggest contributor to the GDP. The tertiary sector has become the largest sector in India’s economy.
The tertiary sector has expanded due to:
The final values of goods are used to calculate the production in a sector. The sum of the total production in the three sectors in a year for a country gives the gross domestic product or GDP for that country in that year.
GDP is a globally accepted indicator of the size and health of a country’s economy. The contribution of different sectors to the GDP of a country depends on the state of development of that country’s economy. An economy starts developing based on natural resources and products, so at the initial stage of development, the primary sector is the biggest contributor to GDP.
In a developing economy, industrialisation creates fresh job opportunities and people use more and more manufactured goods. Here the secondary sector becomes the biggest contributor to GDP. In developed countries, people can afford and demand more services which leads to a rapid growth in the tertiary sector. Thus, the tertiary sector is the biggest contributor to the GDP. The tertiary sector has become the largest sector in India’s economy.
The tertiary sector has expanded due to:
The government’s initiatives for the expansion
of essential services
The development of agriculture and industries
support services
The rapid development and expansion of
communication and information services
Distribution
and creation of employment
The tertiary sector has become the largest
contributor to India’s GDP. The primary sector is the largest employer with
more than 50% of the working population engaged in it.
The increase in production in manufacturing and services is not matched by an increase in employment opportunities in these sectors. The primary sector has a share of only 25% in the GDP, indicating its low productivity as more people than required are engaged in agriculture.
Removing a few workers would not affect agricultural production as some agricultural workers only appear to be employed. This is called underemployment or disguised unemployment. The surplus workers could be employed more gainfully elsewhere. Many workers in the manufacturing and services sectors suffer from underemployment.
More employment opportunities can be generated by:
The increase in production in manufacturing and services is not matched by an increase in employment opportunities in these sectors. The primary sector has a share of only 25% in the GDP, indicating its low productivity as more people than required are engaged in agriculture.
Removing a few workers would not affect agricultural production as some agricultural workers only appear to be employed. This is called underemployment or disguised unemployment. The surplus workers could be employed more gainfully elsewhere. Many workers in the manufacturing and services sectors suffer from underemployment.
More employment opportunities can be generated by:
Improving rural infrastructure
Providing easy, affordable loans to farmers to
increase production
Promoting agro-based industries like crushers,
grain polishing mills and cold storage facilities
Expanding education and healthcare services
Promoting the tourism sector
Proper implementation of employment generation
schemes
NREGA guarantees 100 days of employment per year to every person willing to work, or an unemployment allowance if work is not provided. The National Rural Employment Guarantee Act is one such scheme launched by the Central government in 2005.
Organized
and Unorganized Sector
Economic activities can be classified into
organised and unorganised sectors depending on their conditions of employment.
The organized sector is characterized by:
Fixed working hours
Job security
Paid leaves and various other benefits
The unorganized sector is characterized by:
Irregular work
Job security
No benefits
However, people work in the unorganized sector as:
The organized sector has less job
opportunities
Companies from the organised sector operate in
the unorganised sector to save taxes and avoid giving the employees their due
benefits.
In the last decade, a lot of people in the
organised sector have lost their jobs
People who need protection in the unorganised sector:
Landless farm labourers
Small and marginal famers
Traditional artisans like weavers and potters.
The vulnerable groups in urban areas include:
Casual labourers
Street vendors
Rag pickers
People employed in small-scale industries
People from the scheduled castes and tribes need extra protection as they face social discrimination.
Public
and Private Sector
Based on the ownership, economic activities
can be classified into public and private sectors.
An economic activity owned and managed by the government is called a public sector activity. An economic activity owned and managed by an individual or a group of individuals is called a private sector activity.
The main objective of private sector activities is to make a profit. The motive of public sector activities is to make a profit and also provide essential services.
The services provided by the government through the public sector are:
An economic activity owned and managed by the government is called a public sector activity. An economic activity owned and managed by an individual or a group of individuals is called a private sector activity.
The main objective of private sector activities is to make a profit. The motive of public sector activities is to make a profit and also provide essential services.
The services provided by the government through the public sector are:
Basic essential services
Infrastructure development services
Community support services
It is the primary responsibility of the government to provide basic essential services like education, healthcare, housing, food and nutrition and safe drinking water to all the people. The private sector cannot provide such services at a reasonable cost. Private sector companies sell their products at a price higher than the production cost to make a profit and stay in business.
The government bears a part of the cost for some commodities to make them available at a reduced price to some sections of society.
Money And Credit
Definition
and Modern Forms of Money
IN the early times, people used to exchange
one commodity for another, depending on their requirement under the barter
system. However, exchanging goods in the barter system required double
coincidence of wants.
However, money eliminates the need for double coincidence of wants. Since money enables the exchange process, it is also called a medium of exchange. Early forms of money were things of daily use.
Modern currency:
However, money eliminates the need for double coincidence of wants. Since money enables the exchange process, it is also called a medium of exchange. Early forms of money were things of daily use.
Modern currency:
Uses paper notes and coins made of relatively
inexpensive metals
Has no value of its own
Has a value only because it is authorised by
the government of a country
In India, the Reserve Bank of India is the only legal authority that can issue currency notes and coins on behalf of the central government. The Rupee is India’s currency and nobody can refuse to accept a payment made in rupees in India.
Bank
- Types of Deposit
People deposit their extra cash in
bank. A bank in addition to keeping the money also pays interest on the
deposit to the depositor. Thus bank deposits are also called demand deposits.
A person simply needs to have an account with the bank to deposit money. A cheque can be used to make payment directly from a bank deposit without using cash.
A cheque is a written instruction to a bank by an account holder to pay a specific sum to a specific person from his deposit. A cheque has all the information about the person to whom payment is to be made, the amount and date of payment and signature of account holder issuing the cheque.
A person simply needs to have an account with the bank to deposit money. A cheque can be used to make payment directly from a bank deposit without using cash.
A cheque is a written instruction to a bank by an account holder to pay a specific sum to a specific person from his deposit. A cheque has all the information about the person to whom payment is to be made, the amount and date of payment and signature of account holder issuing the cheque.
Credit
and Terms of Credit
As per the Reserve Bank of India, banks hold
about 15% of their deposits as cash to arrange for daily withdrawals by
depositors.
A major portion of the remaining deposits is used by banks to give loans to people. The depositors of a bank are allowed to withdraw their deposits on demand and are paid interest on their deposits. The borrowers taking loans repay it to the bank along with interest.
The interest charged on loans is more than the interest paid by the banks on deposits. The difference between the interest charged on loans and the interest paid on deposits is the bank’s income or profit.
The loan given by a bank is also referred to as credit.
A loan or credit is subject to certain conditions that the borrower must agree to. These conditions are called terms of credit and include:
A major portion of the remaining deposits is used by banks to give loans to people. The depositors of a bank are allowed to withdraw their deposits on demand and are paid interest on their deposits. The borrowers taking loans repay it to the bank along with interest.
The interest charged on loans is more than the interest paid by the banks on deposits. The difference between the interest charged on loans and the interest paid on deposits is the bank’s income or profit.
The loan given by a bank is also referred to as credit.
A loan or credit is subject to certain conditions that the borrower must agree to. These conditions are called terms of credit and include:
A specified rate of interest
Security against the loan to recover the money
if the borrower fails to repay it. This security is called collateral
The assets accepted as collateral are land or
property, vehicles, livestock, standing crops and bank deposits
A borrower needs to submit certain documents
like proofs of identity, residence, employment and income to avail a loan
The lender reserves the right to sell the
collateral in case of non-repayment to recover the loan amount.
A loan is usually given for a specific duration of time and needs to be completely repaid by a specified date. The borrower repays the loan in cash, by cheque or by card in instalments, or as a one-time repayment, as specified in the mode of repayment.
Collateral is the security provided by a borrower against a loan, and it can be sold in case of non-payment. Credit can bring about a positive or a negative change in a person’s life.
Formal
and Informal Credit
The different sources of credit are:
Banks
Traders
Cooperative societies
Landlords
Moneylenders
Relatives and friends
Banks and cooperative societies constitute the formal sector of credit. Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit.
The formal sector provides only marginally more credit than the informal sector currently. The credit activities of the formal sector are supervised by the Reserve Bank of India. The RBI gives credit to all at low interest rates.
In the informal sector there is no supervisory body. The credit activities of this sector are only driven by profit with much higher interest rate. A high rate of interest means that a borrower spends more money to repay the loan and is left with less money for himself. This also leads to a debt trap.
The rich at present have more access to cheaper credit from the formal sector, while the poor still have to depend on loans at higher rates of interest from the informal sector. Cheaper credit is essential for development in a country. The formal sector offers more affordable credit and so it must increase its lending to more and more people, especially in the rural areas.
SHEG
(Self Help Groups)
Poor households in India largely depend on the
informal sector for their credit requirements. Banks demand collateral against
a loan that the poor people are unable to provide.
To cater to this problem is organising self-help groups. A group of 15-20 members save regularly to create a savings pool. Members of the group can take small loans from their combined savings. The loans bear interest at low rates.
After saving regularly for a few years, a self-help group becomes eligible for a loan from a bank without providing any collateral. The bank loan is used to generate more income and employment opportunities for the members of the group.
The members of a self-help group make all the decisions jointly and are jointly responsible for the repayment of loans.
Banks also extend loans to poor women organised in self-help groups. Self-help groups allow poor people access to affordable and easy credit. The Grameen Bank of Bangladesh is a brilliant example of meeting the credit needs of the poor at affordable rates.
To cater to this problem is organising self-help groups. A group of 15-20 members save regularly to create a savings pool. Members of the group can take small loans from their combined savings. The loans bear interest at low rates.
After saving regularly for a few years, a self-help group becomes eligible for a loan from a bank without providing any collateral. The bank loan is used to generate more income and employment opportunities for the members of the group.
The members of a self-help group make all the decisions jointly and are jointly responsible for the repayment of loans.
Banks also extend loans to poor women organised in self-help groups. Self-help groups allow poor people access to affordable and easy credit. The Grameen Bank of Bangladesh is a brilliant example of meeting the credit needs of the poor at affordable rates.
Globalization And The Indian Economy
Globalization
- Introduction
India has changed tremendously in the last two
decades.
Till the 1990’s, choice of goods was limited to the products produced in the country. Today, there is a wide range of commodities for the consumers to choose from in India. One of the main reasons for such rapid transformation is the spread of MNCs. The rise of MNCs resulted in the integration of production, trade, investment and markets across the globe.
The seeds of such MNC’s were sown during colonial times. In the 18th and 19th centuries, Europe-based companies carried out trade with their colonies in Asia and Africa. However, during the colonial period, the colonies produced raw material and food stuff, while the colonising countries produced finished goods.
From 1950’s, new MNCs grew in North America, Europe and Japan. They wanted to spread to areas where they could produce their goods cheaply and find markets for them. Countries in Asia, Africa, and Central and South America were the ideal places for these MNC’s to set up offices and factories as Labour and other resources were cheap with a huge market potential.
One there was liberalization of policies and trade and production barriers were lifted, MNC’s were able to enter Asian, South American and African countries to set up factories to exploit cheap labour and large markets. Production and markets became global.
Till the 1990’s, choice of goods was limited to the products produced in the country. Today, there is a wide range of commodities for the consumers to choose from in India. One of the main reasons for such rapid transformation is the spread of MNCs. The rise of MNCs resulted in the integration of production, trade, investment and markets across the globe.
The seeds of such MNC’s were sown during colonial times. In the 18th and 19th centuries, Europe-based companies carried out trade with their colonies in Asia and Africa. However, during the colonial period, the colonies produced raw material and food stuff, while the colonising countries produced finished goods.
From 1950’s, new MNCs grew in North America, Europe and Japan. They wanted to spread to areas where they could produce their goods cheaply and find markets for them. Countries in Asia, Africa, and Central and South America were the ideal places for these MNC’s to set up offices and factories as Labour and other resources were cheap with a huge market potential.
One there was liberalization of policies and trade and production barriers were lifted, MNC’s were able to enter Asian, South American and African countries to set up factories to exploit cheap labour and large markets. Production and markets became global.
Production
- Global Interlink
There are many factors that MNCs take into
account while setting up factories and offices for production in a country:
Proximity to markets where they can sell their
products
Availability of cheap labour, both skilled and
unskilled,
Availability of other resources like raw
material, and infrastructure
Favorable Government Policies
To set up factories, MNCs put in money or foreign investment to buy land, machinery and other equipment.
There are various ways in which the MNCs invest in countries:
They collaborate with local companies
They buy local companies
They place orders with small local producers.
MNCs invest in small producers to make and supply the products to them and sell
it under their banner.
Thus, by setting up partnerships with local companies, closely competing with the local companies or by buying them up, and by using the local companies for supplies, MNCs exert influence on production at distant locations and interlink them.
Through the ages, foreign trade has been a major link between different countries and civilisations. By trading with other countries and regions, producers can sell their products in new markets and compete there with the local goods.
Consumers hence can have a greater variety to choose from than what is produced domestically. Prices also tend to become more and more competitive as local goods are forced to contend with goods made in another country.
With globalisation, such integration, linking and competition, of markets and trade has increased tremendously.
Globalization
and Its Impact
Globalisation has influenced the Indian
economy since 1991 but has had an uneven impact on the Indian economy. Some
sectors have gained while others have suffered losses. Competition among
producers has resulted in lower prices and a greater choice of goods. The
biggest benefit has been for the well-off urban middle-class consumers who can
afford to buy a wider range of goods.
MNC’s have posted tremendous profits and invested more and more in India since liberalization. MNC investment and production has largely been in the consumer goods sector like automobiles, electronic items, fast foods, cold drinks and mobiles. Some have also invested in sectors like power and banking.
Government policies have favoured MNC’s by providing them state-of the-art facilities in Special Economic Zones (SEZs), a five-year tax holiday, and flexible labour laws. Local companies who have collaborated with MNC’s to supply them raw material or services have also gained from globalisation. Indian companies like Tata Motors, Ranbaxy and Asian paints emerged as multinationals by spreading their operations worldwide.
IT-based companies, like Business Process Outsourcing companies (BPO’s), call centres, data entry operators, accounting firms and administrative service providers are another set of gainers. Small producers, have borne the negative impact as they have been forced to compete with MNCs. Some small producers who were hit the worst by MNC competition include dairy products, toys, vegetable oils, capacitors and batteries. They have either stopped production units or decreased the levels.
Labour employed in the factories, have increased working hours with insecure jobs. MNC’s often employ labour on a temporary basis. They have lost legal protection because labour laws have been liberalised in favour of the MNC’s and big companies. Labourers in most companies have to work overtime to earn their livelihood.
MNC’s have posted tremendous profits and invested more and more in India since liberalization. MNC investment and production has largely been in the consumer goods sector like automobiles, electronic items, fast foods, cold drinks and mobiles. Some have also invested in sectors like power and banking.
Government policies have favoured MNC’s by providing them state-of the-art facilities in Special Economic Zones (SEZs), a five-year tax holiday, and flexible labour laws. Local companies who have collaborated with MNC’s to supply them raw material or services have also gained from globalisation. Indian companies like Tata Motors, Ranbaxy and Asian paints emerged as multinationals by spreading their operations worldwide.
IT-based companies, like Business Process Outsourcing companies (BPO’s), call centres, data entry operators, accounting firms and administrative service providers are another set of gainers. Small producers, have borne the negative impact as they have been forced to compete with MNCs. Some small producers who were hit the worst by MNC competition include dairy products, toys, vegetable oils, capacitors and batteries. They have either stopped production units or decreased the levels.
Labour employed in the factories, have increased working hours with insecure jobs. MNC’s often employ labour on a temporary basis. They have lost legal protection because labour laws have been liberalised in favour of the MNC’s and big companies. Labourers in most companies have to work overtime to earn their livelihood.
Fair
Globalization
The fruits of globalisation have been unevenly
distributed. Those with education, wealth or skill, have benefitted the most
from globalisation. They include well-off consumers, MNCs, their suppliers and
employees, big Indian companies and IT-enabled industries like call centres.
People who are not so educated, wealthy or skilled in some profession, or those who have had to compete with MNCs have suffered. People suffered owing to globalization include small-scale producers and labour.
The government can take steps to ensure that the benefits of globalisation reach everyone:
People who are not so educated, wealthy or skilled in some profession, or those who have had to compete with MNCs have suffered. People suffered owing to globalization include small-scale producers and labour.
The government can take steps to ensure that the benefits of globalisation reach everyone:
Formulate labour laws that are effective and
watertight to ensure rights of workers
Have policies to protect the interests of the
small producers against the MNCs
Erect barriers to protect the domestic economy
from foreign trade and unfair competition from developed countries.
Align with other developing countries to
negotiate with WTO to impose trade restrictions like imposition of tariff and
quotas.
Apart from just the government, people from various professions also need to come out and raise their voices against unfair globalization and to protect the rights of its small producers and labourers. In the recent past, people have demonstrated against the unfair trade policies that are often encouraged in the name of globalisation. Such demonstrations have managed to influence some changes in the WTO’s policies regarding free trade.
Factors
that Enabled Globalization
Consumers’ rights include the right to safety,
the right to be informed, the right to choose, the right to seek redress, and
the right to represent in consumer courts.
When producers sell any goods or services, it is their responsibility to ensure their safety for the consumer. It is the right of the consumer to be offered only products that are safe. In case of any damage, the producer should compensate the consumer.
Consumers also have the right to be informed about the goods and services they buy including price, ingredients, batch number, expiry dates and manufacturer’s address.
Certain medicinal drugs need to be handled with care. Their packing must have directions about usage printed on them. Any side effects or risk to potential users must also be mentioned. In case of any misleading or false information, consumers can take the producer to the consumer court.
The Right to Information (RTI) Act, of 2005 gives citizens the right to know about the functioning of any government department. Consumers have the right to select or choose any product that they wish to buy. Consumers possess the right to seek redress and to demand compensation. While seeking any redress, the consumers have the right to represent in consumer courts.
In case of help required, consumers can seek help from consumer forums or councils and Resident Welfare Associations. In 1986, the government passed the Consumer Protection Act (COPRA), which ensures that consumers have the right to represent in consumer courts. COPRA establishes a three-tier structure. They are district level, state level and national level.
When producers sell any goods or services, it is their responsibility to ensure their safety for the consumer. It is the right of the consumer to be offered only products that are safe. In case of any damage, the producer should compensate the consumer.
Consumers also have the right to be informed about the goods and services they buy including price, ingredients, batch number, expiry dates and manufacturer’s address.
Certain medicinal drugs need to be handled with care. Their packing must have directions about usage printed on them. Any side effects or risk to potential users must also be mentioned. In case of any misleading or false information, consumers can take the producer to the consumer court.
The Right to Information (RTI) Act, of 2005 gives citizens the right to know about the functioning of any government department. Consumers have the right to select or choose any product that they wish to buy. Consumers possess the right to seek redress and to demand compensation. While seeking any redress, the consumers have the right to represent in consumer courts.
In case of help required, consumers can seek help from consumer forums or councils and Resident Welfare Associations. In 1986, the government passed the Consumer Protection Act (COPRA), which ensures that consumers have the right to represent in consumer courts. COPRA establishes a three-tier structure. They are district level, state level and national level.
Consumer Rights
Consumer:
Why consumer movements?
Rules and regulations are required to protect
people who are in a weak position. Consumers also need to be protected through
legislation and action that ensure them their rights. Individual consumers
are often scattered and not united. This makes them easy targets for
unscrupulous elements to exploit.
Sellers usually refuse to take any liability for goods once they are sold. Consumers also get cheated when shopkeepers use incorrect weights and measures, put extra charges in the bill, adulterate the foodstuff that they intend to sell, sell defective goods, or sell goods whose expiry dates have passed.
Big companies can also manipulate consumers who are individual, scattered and make small purchases. Big companies spend a lot of money on advertising to give out misleading information about their products. The consumer movement was born out of consumer dissatisfaction. Initially, consumers had no means or rules and regulations to address the malpractices of manufacturers and sellers or if they were not pleased with a product.
In the post-independence period in India, there were artificial food shortages and adulteration in India. The first consumer’s forum was formed in the 1960’s. Until the 1970’s, the role of the consumer movement was limited to exhibiting and writing in magazines and papers. Later, consumer groups started looking into malpractices.
The movement got a boost from the UN Guidelines for Consumer Protection formulated in 1985. In India, the enactment of the Consumer Protection Act of 1986 boosted the movement.
Consumers themselves have to come forward and fight for their rights in consumer forums and courts.
Sellers usually refuse to take any liability for goods once they are sold. Consumers also get cheated when shopkeepers use incorrect weights and measures, put extra charges in the bill, adulterate the foodstuff that they intend to sell, sell defective goods, or sell goods whose expiry dates have passed.
Big companies can also manipulate consumers who are individual, scattered and make small purchases. Big companies spend a lot of money on advertising to give out misleading information about their products. The consumer movement was born out of consumer dissatisfaction. Initially, consumers had no means or rules and regulations to address the malpractices of manufacturers and sellers or if they were not pleased with a product.
In the post-independence period in India, there were artificial food shortages and adulteration in India. The first consumer’s forum was formed in the 1960’s. Until the 1970’s, the role of the consumer movement was limited to exhibiting and writing in magazines and papers. Later, consumer groups started looking into malpractices.
The movement got a boost from the UN Guidelines for Consumer Protection formulated in 1985. In India, the enactment of the Consumer Protection Act of 1986 boosted the movement.
Consumers themselves have to come forward and fight for their rights in consumer forums and courts.
Consumer
Rights
Consumers’ rights include the right to safety,
the right to be informed, the right to choose, the right to seek redress, and
the right to represent in consumer courts.
When producers sell any goods or services, it is their responsibility to ensure their safety for the consumer. It is the right of the consumer to be offered only products that are safe. In case of any damage, the producer should compensate the consumer.
Consumers also have the right to be informed about the goods and services they buy including price, ingredients, batch number, expiry dates and manufacturer’s address.
Certain medicinal drugs need to be handled with care. Their packing must have directions about usage printed on them. Any side effects or risk to potential users must also be mentioned.
In case of any misleading or false information, consumers can take the producer to the consumer court.
The Right to Information (RTI) Act, of 2005 gives citizens the right to know about the functioning of any government department.
Consumers have the right to select or choose any product that they wish to buy.
Consumers possess the right to seek redress and to demand compensation. While seeking any redress, the consumers have the right to represent in consumer courts.
In case of help required, consumers can seek help from consumer forums or councils and Resident Welfare Associations.
In 1986, the government passed the Consumer Protection Act (COPRA), which ensures that consumers have the right to represent in consumer courts.
COPRA establishes a three-tier structure. They are district level, state level and national level.
When producers sell any goods or services, it is their responsibility to ensure their safety for the consumer. It is the right of the consumer to be offered only products that are safe. In case of any damage, the producer should compensate the consumer.
Consumers also have the right to be informed about the goods and services they buy including price, ingredients, batch number, expiry dates and manufacturer’s address.
Certain medicinal drugs need to be handled with care. Their packing must have directions about usage printed on them. Any side effects or risk to potential users must also be mentioned.
In case of any misleading or false information, consumers can take the producer to the consumer court.
The Right to Information (RTI) Act, of 2005 gives citizens the right to know about the functioning of any government department.
Consumers have the right to select or choose any product that they wish to buy.
Consumers possess the right to seek redress and to demand compensation. While seeking any redress, the consumers have the right to represent in consumer courts.
In case of help required, consumers can seek help from consumer forums or councils and Resident Welfare Associations.
In 1986, the government passed the Consumer Protection Act (COPRA), which ensures that consumers have the right to represent in consumer courts.
COPRA establishes a three-tier structure. They are district level, state level and national level.
Strengthen
Consumer Movement to Protect Consumer Rights
Consumers need to be aware of the choices
available to them.
The Consumer Protection Act enacted in 1986, independent departments of consumer affairs were formed in the Central and state governments. The departments regularly put out advertisements in newspapers and magazines, and on television to make consumers conscious of their rights. Several agencies like BIS, Hallmark and Agmark test the quality of various products sold in the market.
Only products that pass the test of quality are certified. For products that are crucial from a health or safety angle, certification is mandatory or compulsory. 24th December, 1986, is celebrated as the National Consumer Day.
There are over 700 consumer groups in the country, but only about 30 of them work efficiently. The process of redress might be difficult as consumers do not often take cash memos, and hence it is very difficult to prove anything conclusively against the wrongdoings of shopkeepers. The laws relating to compensation are often vague and their enforcement is weak. The progress in consumer awareness has been slow, but positive.
The Consumer Protection Act enacted in 1986, independent departments of consumer affairs were formed in the Central and state governments. The departments regularly put out advertisements in newspapers and magazines, and on television to make consumers conscious of their rights. Several agencies like BIS, Hallmark and Agmark test the quality of various products sold in the market.
Only products that pass the test of quality are certified. For products that are crucial from a health or safety angle, certification is mandatory or compulsory. 24th December, 1986, is celebrated as the National Consumer Day.
There are over 700 consumer groups in the country, but only about 30 of them work efficiently. The process of redress might be difficult as consumers do not often take cash memos, and hence it is very difficult to prove anything conclusively against the wrongdoings of shopkeepers. The laws relating to compensation are often vague and their enforcement is weak. The progress in consumer awareness has been slow, but positive.
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