The previous article focused on the importance of environment in the corporate social responsibility (CSR) mandate of India. It highlighted that after the introduction of the Companies Act, 2013, there has been a growing awareness among the Indian companies towards sustainable practices. The strategies framed for the businesses in India now focus on their economic, social and ethical impact for fulfilling long term development goals. In the last few years, India witnessed a significant increase in average expenditure on CSR activities (Rai & Bansal, 2014). An increasing number of Indian companies nowadays report CSR information in their sustainability reports (Ghosh, 2016). These findings indicate a movement in a positive direction.Read more »
India highly depends on foreign investments in the form of foreign direct investments (FDI) to fund its economic growth (Demirhan & Masca, 2008). Amongst all the sectors, the manufacturing sector and service sector has undergone a transformation and experienced high growth rates in the past few years. However, from the data on FDI, it can be observed that few key industries belonging to these two sectors have boosted at a faster rate than the others and attracted more FDI than the others.
The previous article on making corporate social responsibility (CSR) mandatory mentioned that such a need arises due to the responsibility of profit-driven companies towards society including the environment. The CSR mandate caters to the strategies needed for building a cleaner environment. The importance of environment stems from its inclusion in the concept of sustainability as put forward by the Brundtland Commission in its report in 1987. The report emphasized maintaining a balance between the needs of the present generation and that of the future generation. It identified three dimensions of sustainability namely social, economic and environment. It argued that environmental concerns are significant and sustainable development is the one that satisfies the needs of the present generation but not at the cost of the ability of the future generations to satisfy their own needs (Kuhlman & Farrington, 2010). Read more »
The environmental policies of any country intend to bring its environmental concerns to the forefront in pursuit of sustainable development. India has emerged as the sixth largest economy in 2018. It is also the second most populous country in the world with over 1.35 billion people (World Population Review, 2018). The country has been doing fairly well in terms of the creation of economic opportunities and large-scale urbanization. With the changing times, the country’s demand for expansion of urban environment is increasing, resulting in a boost in its real estate and the industrial sector. This article critically analyses the environmental policies vis-a-vis of Mauritius, Singapore, Japan, the Netherlands, and the UK. Read more »
The Indian economy witnessed a high FDI inflow after the reform of economic liberalization. The increasing trend continued in the last financial year 2017-18. This increase can be attributed to factors such as the high rate of GDP growth, low inflation rate, exchange rate, trade openness and economic and political stability. Since 2000, the service sector and selected industries in the manufacturing sector showed significant growth and were able to attract a large fraction of the total FDI. One of the reasons due to which these industries performed well is the union budget of 1999-2000 which supported greater inflow of FDI through the automatic route (Singh, 2005). Increased FDI in these industries has opened up new doors for better technology, management and marketing networks. Furthermore, it has generated more employment opportunities and offered a high level of competition in domestic industries (Shapiro & Mathur, 2014). Read more »
The Indian pharmaceutical industry has emerged as the third largest country in the world in terms of volume with a turnover amounting to US $ 21.04 billion in 2009. In addition to this, the industry includes more than 20,000 licensed companies that employs 500,000 people (Industry, 2011). Furthermore, Indian pharmaceutical industry secured the top position among the science based industries through a range of capabilities in production and technology. In terms of market segmentation, leading 250 pharmaceutical companies have controlled 70 % of the market (PwC, 2012). Read more »
Foreign Direct Investment (FDI) is a key driver for the growth in the Indian economy in the context of other developing countries. FDI inflow is the investment made by enterprises through joint ventures (JV) or mergers & acquisitions (M&A), to carry out business activities in host countries. Advantages of FDI inflow include:
- building physical capital,
- developing the skill of domestic labour force,
- employment generation,
- increasing productive capacity and
- technology transfer and integration of the domestic economy with the world economy (Jayakumar, Kannan, & Anbalagan, 2014).
The Indian chemical industry has gained a major share in Asia’s growing contribution to the global chemical industry. It has also emerged as one of the preferred destinations for investment in the chemical industry worldwide (Chambers, Road, & Nadu, 2012). With the global share of 3 %, the Indian chemical industry covered a size of about $ 108 billion in 2012 and $ 290 billion in 2017 (Industry, Update, & Kapoor, 2018). Read more »