International Journal of Advance & Innovative Research Volume 1, Issue 1 ISSN: 2394-7780

International Journal of Advance and Innovative Research
Volume 1 , Issue 1 ) : October - December 2014
CONTENTS
Research Papers
IMPLICATIONS OF FDI IN THE GROWTH OF SERVICES SECTOR IN INDIA
1 - 12
Ms Shivani Dixit and Ms Anjana Sharma

INNOVATIVE SOLUTIONS TOWARDS SUSTAINABLE DEVELOPMENT: FINANCIAL
LITERACY SHOULD ACCOMPANY INCLUSION
13 - 18
Dr. Anindita
ORGANIZED SECTOR RADIO TAXI OPERATOR IN GUWAHATI - A CASE STUDY ON
PRIME CAB
19 - 25
Dr. Tazyn Rahman

TECHNICAL EFFICIENCY OF AFFILIATED DEGREE COLLEGES IN BARAK
VALLEY
Monalisa Das and Subhrabaran Das
26 - 31

Volume 1, Issue 1 : October - December, 2014
IMPLICATIONS OF FDI IN THE GROWTH OF SERVICES SECTOR IN INDIA

Ms Shivani Dixit1 and Ms Anjana Sharma2
Assistant Professor, Institute of Management Studies, Ghaziabad.
Faculty2, DPS, Meerut Road, Ghaziabad
1
ABSTRACT
Flow of the FDI to the countries of the world truly reflects their respective potentiality in the global
scenario. India has been ranked at the third place in global FDI in 2009 and will continue to remain
among the top five attractive destinations for international investors during 2010-11, according to United
Nations Conference on Trade and Development (UNCTAD). One of the most significant contributors to
Indias booming economy is the development of the services sector. The basic objective of this paper is to
emphasize on the implications of FDI in India specifically in services sector. The contribution of services
sector in Indian economy is now almost half of GDP. The FDI Inflows to Service Sector has helped the
development of several industries in the service sector of the Indian Economy, such as Tele
Communication, Financial and Non financial, Hotel & Tourism, and many others. A look at FDI statistics
shows that distribution of FDI is uneven across sectors. The paper also find out the reasons responsible
for more of investment in services sector.
Keywords: FDI, Services Sector, GDP.
INTRODUCTION
Since the early 1990s developing countries have increasingly liberalized, privatized and deregulated their
service industries, with a view to greater participation in the global economy. More welcoming policies
on FDI have been a prominent component of this trend. National policies on FDI typically feature
measures aimed at both attracting and discouraging inflows. Policies to attract FDI such as tax breaks,
favorable regulatory treatment and subsidies of various sorts are usually focused manufacturing.
Meanwhile, policies restricting inward FDI are mainly concentrated in the service sector. This paper
focuses on the aspects of FDI in the services sector in India.
Services now constitute the largest recipient sector of FDI, accounting for about two third of FDI inflows
worldwide, and about 55% of FDI inflows into developing countries. However, very little systematic
quantification and analysis are available on the policies on FDI in services. Countries welcome FDI
because of its potential benefits for employment creation, capital accumulation, transfer of technology,
improved provision of services and increased competition. Nevertheless, inward FDI can also impose
costs in the form of displacement of local firms and workers and possible monopolistic practices, and
there can be valid economic rationales for restricting inward FDI. There may also be non-economic
reasons for limiting foreign ownership and control, relating to national security or economic nationalism.
Services are generally subject to more restrictions than manufacturing and natural resources. For example,
such industries as telecommunications, banking, transportation and electricity provision are often viewed
by host countries as strategic or sensitive. These sectors are typically subject to economic or prudential
regulation, because of tendencies towards natural monopoly or other market failures, although such
market failures do not in themselves provide a clear-cut rationale for discrimination between local and
foreign investors.
Service sector has emerged as the largest and the fastest growing sector in the global economy in the last
two decades, providing more than 60% of global output and, in many countries, an even larger share of
employment. The growth in services has also been accompanied by the rising share of services in world
1

transactions. Testimony to the rise in international supply of services is the fact that trade in services has
grown as fast as trade in goods in the period 1990-2003 (i.e.; 6% per annum). Interestingly, outward FDI
from India has also grown rapidly and in 2003 outward FDI stock in services constituted around 25% of
total outbound FDI stock. However, though the growth of service sector in India is in line with the global
trends, there are two unique characteristics of Indias service sector growth.
First, the entire decline in the share of agriculture sector in GDP, i.e., from 32% in 1990 to 22% in
2003, has been picked up by the service sector while manufacturing sectors share has remained
more or less the same. In general, such a trend is mainly experienced by high income countries and
not by developing countries.
And second, in spite of the rising share of services in GDP and trade, there has not been a
corresponding rise in the share of services in total employment. This jobless growth of Indias
service sector, with no corresponding growth in the share of manufacturing sector; has raised doubts
about its sustainability in the long run.
Further, it is found that growth pattern in the service sector has not been uniform across all services in
India. Some services have grown fast in terms of their share in GDP and also in terms of their share in
trade and FDI (e.g., software and telecommunication services). But there are some services, which have
grown fast but have not been able to improve their share in international transactions (e.g., health and
education) while there are some services that have in fact witnessed a negative growth and also a low
share in international transactions (e.g., legal services).One of the probable reasons for this lopsided
growth in services is the fact that reforms in India at the sectoral level have evolved in an ad-hoc way
rather than as part of a coherent overall strategy. Though there exists an overall industrial policy and
agricultural policy in India, there is no integrated service policy. Consequently, the pace of reforms and
their impact lacks uniformity across sectors. Moreover, most of the services have for a long time been in
the public domain and they suffer from both external constraints in terms of high barriers to trade, as well
as domestic constraints in terms of being highly regulated services with state monopolies. These services
consequently suffer from inefficiencies and low growth.
Our services sector is attractive but due to lack of banking sector reforms and closure of retail sector for
foreign investors, FDI is not taking up. But still, India remains a preferred destination for foreign
investment and that is evident from the strong foreign institutional investors (FII) inflows. The services
sector, despite the 30% dip in FDI, topped the chart in attracting maximum investment. Therefore, this
paper strives to examine current status and future prospects of the Indian economy with special reference
to the role FDI in services sector in achieving higher rate of economic growth and the removal of
structural constraints.
COMPOSITION OF SERVICES SECTOR IN INDIA
In India, the national income classification given by Central Statistical Organization is followed. In the
National Income Accounting in India, service sector includes the following:
Trade, hotels and restaurants (THR)

Transport, storage and communication
Financing, Insurance, Real Estate and Business Services
Community, Social and Personal services
SECTORAL COMPOSITION OF GDP GROWTH

During the process of growth over the years, the maximum part of the GDP in the economy was generated
from the primary sector but now the service industry is devoting the maximum part of the GDP. This
2

share of agricultural sector in real GDP at 1993-94 prices declined from 55.53% in the 1950s to 28.66%
in 1990s. The share of industry and services increased from 16% to 27.12% and 28.09% to 44.22%
respectively during the same period. The service sector output increased at a rate of 6.63% per annum in
the period 1980-81 to 1989-90 (i.e. pre-reform period) compared with 7.71% per annum in the period
1990-91 to 1999-2000 (i.e. post-reform period). The tertiary sector emerged as the major sector of the
economy both in terms of growth rates as well as its share in GDP in 1990s. It is to be noted here that
while agriculture and manufacturing sectors have experienced phases of deceleration, stagnation and
growth, the tertiary sector has shown a uniform growth trend during the period 1950-51 to 1999-2000
(Joshi, 2004, 2008). The share of this sector in GDP further increased to 55.1% in 2006-07. This sector
accounted for 68.6% of the overall average growth in GDP in the last five years between 2002-03 and
2006-07 (Economic Survey, 2006-07).
FDI IN THE SERVICES SECTOR
The availability of cheap labour has attracted several foreign investors looking for avenues to reduce their
labour costs. To a casual observer it appears that the increased FDI in sectors such as power management,
IT, telecom, etc. is responsible for the rapid developments in these fields. These fields provided India with
abundant employment and avenues for improving Indias infrastructure. But a close examination of the
data by several economists reveals that there exist very weak casual linkages between the service sector
and the FDI invested in it. The reasons for this could be fourfold:
Very weak linkages of service sector with the host economy: The nature of work in the service sector
fuelled by FDI is restricted to a few metropolitan centers performing back office jobs- IT and
otherwise. Moreover, the kind of work necessarily requires an extremely skilled workforce and does
not form much of a value add for the common Indian man. The firms behave like isolated export
points that have a very weak interrelationship with the economy of the host country, negating the
advantage of the FDI.
Nature of services expected: The services that are exported to India are at the lower end of the value
addition chain. Therefore, there wouldnt be much of a value add in terms of expertise that is expected
to be made available as the end result of these investments.
Crowding out: Most of the FDI in this sector comes by way of Mergers and Acquisitions and not as
direct investment. Therefore, there is greater probability for replacing the local service providers.
Employee welfare: The stringent employee welfare plans in place in the country of origin of the FDI
necessitates the firing of the cheaper labour in the time of crisis.
There are even some studies that show that the long run causality links run from the output of the sector to
the FDI investments- the better the performance of the sector, the higher number of foreign investors it is
expected to attract. Some of them also claim that the impact of FDI on the service sector can swing its
output both in the positive and the negative direction. This ambiguity in the impact on this sector makes it
all the more difficult to frame appropriate precautionary regulations.
MAJOR POLICY ISSUES
The major policy issues in the services sector are1) the Domestic policy Issues including FDI,
Disinvestment, Tariff and tax Issues, Credit and Finance related issues and other policy Issues- General
and Sector specific; 2) Domestic Regulations- Sector Specific and General; 3) Market Access Issues due
to domestic regulations, subsidies and other barriers; and 4) Other Issues like bilateral, regional and
multilateral negotiations and policies of multilateral institutions. This paper focuses on Domestic policy
issues including FDI only.

DOMESTIC POLICY ISSUES: FDI
Some important policy issues in the case of FDI in services sector for India are the following:
Opening retail trade: where FDI is prohibited (except single brand product retailing subject to 51%
cap) while there is a large unorganized sector with low tax compliance. Along with allowing FDI in
retail in a phased way beginning with metros, the existing mom and pop shops (kirana shops) could be
incentivized to modernize and compete effectively with the retail shops foreign or domestic.
Raising FDI cap in the Insurance sector from 26% has been in the Governments agenda for long but
could not be implemented for various reasons. Given the practical difficulty in raising FDI cap in the
insurance sector as a whole, at least some segments of the Insurance sector can be opened up further.
One such segment is health insurance and FDI cap at least in health insurance can be raised in India
on a priority basis as it will also help the export of super-specialty hospital services. There is also a 10
year disincentive clause in the insurance sector which could be removed. FDI restrictions in
reinsurance sector could also be removed and foreign reinsurance companies should be allowed to set
up their representative offices and function in India through a network of branches and divisions.
In the Banking Sector there is scope for further liberalization. Though Foreign Investment (FDI + FII)
of 74% is allowed, there are licensing requirements. There is also limit of 10% on voting rights in
respect of banking companies. While many concerns have to be addressed here particularly in the light
of the recent global financial crisis, atleast some segments of this sector could be opened up to foreign
investment in areas like rural banking with the help of mobile technology.
FDI in Animation studio needs to be liberalized as there is good scope for this.
In Construction Sector, though 100% FDI is allowed under automatic route, there are conditions like
minimum capitalization norms of US$10 million for wholly owned subsidiaries and US$ 5 million for
joint venture, minimum area norms under each project- 10 hectares in case of development of
services, housing plots and built-up area of 50,000 sq.mts. in case of construction development project
and any of the above in case of a combination project. Besides, original investment cannot be
repatriated before a period of 3 years from completion of minimum capitalization. Some of these
conditions could be relaxed.
For Uplinking News and current affairs TV channel, foreign investment cap is 26% (FDI + FII) under
FIPB route and not automatic route. Besides there are conditions like the portfolio investment in the
form of FII/ NRI deposits shall not be persons acting in concert with FDI investors, as defined in the
SEBI regulations: the company permitted to uplink the channel to certify the continued compliance of
this requirement through the company secretary at the end of each financial year; etc. While the
foreign investment cap could be raised atleast upto 49% in the case of these services, other conditions
mentioned above need to be examined for relaxation.
Telecommunications: In the case of ISP without gateway, the 26% disincentive clause in 5 years to
companies listed in other parts of the world could be relaxed.
Air Transport Services: 49% FDI is allowed (100% for NRI Investment) subject to no direct or
indirect participation by foreign airlines thus preventing those with experience from operating in this
sector. Ministry of Civil Aviations initiative to liberalize this sector needs to be taken to its logical
conclusion, while security concerns are also addressed
FDI in Railways: FDI is not allowed in railways. FDI upto 26% could be thought of which can help in
modernization of railways.

SECTOR-WISE SPLIT OF FDI IN INDIA
At present India is the leading country pertaining to the IT industry in the Asia- Pacific region. With more
international companies entering the industry, the FDI has been phenomenon over the year. The telecom
industry is one of the fastest growing industries in India with a growth rate of 45%.The rapid development
of the telecommunication sector was due to the FDI inflows in form of international players entering the
market and transfer of advanced technologies. The FDI in automobile Industry has experienced huge
growth in the past few years. The increase in the demand for cars and other vehicles is powered by the
increase in the levels of disposable income in India. The options have increased with quality products
from foreign car manufacturers. The introduction of tailor-made finance schemes, easy repayment
schemes has also helped the growth of this sector. For the past few years the Indian Pharmaceutical
industry is performing well. The varied functions such as contract research and manufacturing, clinical
research, R&D pertaining to vaccines are the strengths of this industry in India. The FDI in
Semiconductor sector in India were crucial for the development of the IT and ITES (Information
Technology Enabled services) sector in India. Electronic hardware is the major component of several
industries such as IT, telecommunication, automobiles, electronic appliances and special medical
equipments. Tourism is one of the largest services. This industry has the potential to grow at a high rate
and ensure consequential development of the infrastructure.
STATEMENT ON SECTOR-WISE FDI INFLOWS FROM AUGUST 1991 TO SEPTEMBER 2005
The sector-wise analysis of FDI inflow in India reveals that maximum investment in India has come from
the service sector including the telecommunication, IT, travel and many others.
Table: 1.1 Statement on sector-wise FDI inflows from august 1991 to September 2005
Sr. No.
Sector
1
Electrical Equip.
2
Transportation Industry
3
Services Sector
4
Telecommunications
5
Fuel (Power & Oil Refinery)
6
Chemicals
7
Food Processing Industry
8
Drugs & Pharmaceuticals
9
Cement and Gypsum products
10
Metallurgical
Source: www.dipp.nic.in
Amount of FDI Inflows (in million USD)

4266
3070
2840
2730
2505
1818
1172
936
715
544
Post liberalization, the trend of investments was predominantly in the services and the manufacturing
sector. This period was also characterized by controlled investments. However, lately there has been a
drastic paradigm shift towards the services sector with industries in the primary sector also figuring
predominantly in the top 15 list (Ref table: 1.2). The manufacturing sector which is said to benefit most
from the FDIs has been reduced to a small fraction.
Table: 1.2 Statement on sector-wise FDI inflows from April 2000 to august 2009
Sr.
No.
1
2
Sector
Services Sector
Computer Software and Hardware
Amount of FDI Inflows

(In million USD)
21728.36
9334.00
%age of total FDI

Inflows
22.14
9.48
5

3
4
8119.57
7309.16
8.46
7.46
5
6
Telecommunications
Housing & Real Estate(including Cineplex,
multiplex, and commercial plazas)
Construction
Automobile
6090.31
4205.41
6.09
4.36
Power
4009.26
4.13
Metallurgical
2945.51
2.89
9
10
Petroleum and Natural Gas

Chemicals (other than fertilizers)
2598.08
2257.64
2.57
2.33
11
12
Electrical Equip.
Trading
1886.42
1772.79
1.95
1.76
13
Cement and Gypsum products
1692.82
1.71
14
Information & Broadcasting (including

Print Media)
1610.28
1.66
1614.61
1.65
15
Hotel and Tourism
Source: www.dipp.nic.in
As the statement reveals that the maximum amount of FDI inflows are coming from the services sector.
But the inflow of FDI into this sector has been biased towards few of the services sectors. Sectors that
have received largest approvals are telecommunications, consultancy services and financial services. The
telecommunication sector, including radio paging, cellular mobile, basic telephone services, is the most
favored FDI sector. The Telecom sector has attracted $891 million FDI in April-May 2010-11. The
second most favored is the service sector that attracted $578 million investment during the same period.
Further, metallurgical industries and power sector clinched third and fourth place with an investment of
$461 million and $313 million respectively. This is the result of the continued effort of Government to
make the FDI policy more attractive and investors friendly. One of the striking features of Indias FDI
flows is the growing proportion of outward FDI from the services sector. The share of services in total
FDI outflow increased to around 45% in the period 1999-2003, in which non-financial services constitute
around 36%, trade is around 5% and the rest was from financial and other services.
WHAT EXPLAINS GROWTH IN INDIAS SERVICES SECTOR?
The literature on the growth in service sector primarily argues that when an economy grows, both demand
side and supply side factors operate that lead to higher growth in the service sector as compared to the
other sectors and also lead to a larger share of service sector in total employment. These factors are:
DEMAND-SIDE FACTORS:
a. High- Income elasticity of demand for final product services: It implies that at any relative price of
services the quantity absorbed rises more than quantity of commodities as real income per capita
increases.
b. Slower productivity growth in services: It has been long argued that productivity growth in services
is slower than that in manufacturing sector. Different explanations have been put forward for it.
Following Verdoons Law, Kaldor (1966) argued that there will be a negative relationship labour
productivity growth in the economy as a whole and the productivity growth in the non-manufacturing
sector because most activity outside the manufacturing sector particularly land-based activities such as
6

agriculture and many service activities are subject to diminishing returns. Further, the unbalanced
growth models by Baumol (1967) helped in popularizing the notion that because of their labourintensive nature, service sector activities cannot be made more efficient through capital accumulation,
innovation, or economies of scale. It has also been argued that in the creation of new ways of satisfying
wants, technological changes are as important in service sector (such as health care) as in commodity
sectors, but when it comes to cost reduction for existing products or services, technological change is
more frequent and more powerful in its effects in the commodity sector. Therefore, productivity of
service sector relative to productivity of commodity sector may vary inversely with income level of the
country.
c. Structural changes: Along with the notion of services being generally unprogressive there are
arguments about structural changes that take place with growth in the economy. Greenfield (1966) and
Francois (1990) argue that demand for producer services in total intermediate demand by
manufacturing firms grow with development because higher specialization is now more profitable.
This expansion is linked to growth in more roundabout process of production and the associated
conversion of local markets into national markets. With technological progress and development,
services also become more crucial to co-ordinate production processes: to create and absorb new
innovations and to increase the benefit- extracting capacity in production and consumption. All these
lead to higher use of services in the growth process.
A) SUPPLY SIDE FACTORS:
a. Trade Liberalization and Reforms: Three supply side factors that lead to higher supply of services
are increased trade, higher FDI and improved technology. But there are two distinguishing
features of trade liberalization of services: First, imports of services must be locally produced
and, secondly liberalization of services leads to enhanced competition, which is both domestic
and foreign. In fact, if foreign participation merely substitutes for domestic factors and the sector
does not expand, i.e., the degree of competition remains the same, then there cannot be a positive
growth impact on account of scale effect. On the other hand, even without scale effects and even
if service sector does not posses endogenous growth attributes, import of foreign factors that
characterize services sector liberalization can still have positive effects because they are likely to
bring with them the source of endogenous growth, namely, technology. Studies show that growth
of Indias services sector can be attributed to:
Structural Changes that have led to increase in usage of services by other sectors;
Lower tariff and non-tariff barriers to trade; and
Other reforms carried out in the 1990s.
PROSPECTS OF INDIA AS FDI DESTINATION
Prospects of India as FDI destination for foreign countries may be counted on several grounds, which are
outlined as:
Rationalization of FDI policy: Government of India (GoI) has recently further reviewed the policy
of FDI, which allow FDI under automatic route up to 100% in case of setting up of green field
investment projects, distillation and brewing of potable alcohol, laying of natural gas and LNG
pipeline, etc. (DIPP, 2006). With such policy initiatives GoI can expect more FDI inflow in the
natural resource and infrastructure sector since world trend of FDI inflow in the recent times showed
attraction towards such sector.

Large and growing domestic market: Because of fast growing disposable income, increased
availability and use of consumer finance and credit cards complement the keenness of the average
Indian to adapt to and assimilate global trends. This has led to the creation of rapidly growing
consumer base and one of the worlds largest markets for manufactured goods and services.
Versatile, skilled human capital: An unparalleled resource of educated, hard working, skilled and
ambitious workforce is the hallmark of Indias human capital.
Sound economic performance: Indian economy is growing at 7% annual average growth rate from
the 1993. Most recently, GDP growth rate increased to 9.2% for the second quarter of 2006-07.
Definitely, this is a good sign because investors are attracted towards rapidly growing countries.
Tax Measures: Double taxation avoidance treaty is one of the main achievements in the field of tax
regime, which is at present implemented with 79 nations. It will definitely boost up confidence of
foreign investors since tax on both corporate profit and dividends are treated as disincentive by
investors.
Liberalized investment policy: The policy on FDI has been progressively liberalized since 1991.
Today, the FDI policy in India is widely reckoned to be among the most liberal in the emerging
economies and FDI up to 100% is allowed under the automatic route in most sectors and activities.
Recently, FDI up to 100% has been permitted under automatic route in civil aviation, automobiles,
and telecommunication, power and road sectors.
FICCI had conducted a survey in 2004 on the experience of investment by the foreign investors in
India. According to them Indias strengths as FDI destination lies in following: The respondents had
identified market size, highly skilled manpower and low cost of infrastructure and operation as
important motivating factors for their entry into Indian market.
PROSPECTS FOR GROWTH IN THE SERVICES SECTOR
One of the major drivers of service sector growth in the post globalization era in India is the IT and ITES
sector. That is why NASSCOM (2005) says that, The It and BPO industries can become major growth
engines for India, as oil is for Saudi Arabia and electronics and engineering are for Taiwan. Indias IT and
BPO industries could account for 10-12% Indias GDP by 2015 (NASSCOM, 2005, p.80). According to
NASSCOM (2005), Indias offshore IT and BPO industries hold the potential to create over 9 million jobs
in 2010, 2.3 million direct jobs and 6.5 million indirect/ induced jobs. The revenue generation from total
software and services segment is likely to touch $ 60 billion mark by 2010 as per NASSCOM estimates.
In addition, there is a huge potential for growth in the services sector because of increase in disposable
income, increasing urbanization, growing middle class, a population bulge in the working age groups
providing demographic window of opportunity, and emergence of a wide array of unconventional/ new
services like IT, ITES, new financial services (ATMs, credit cards) and tourism services (eco-tourism,
health tourism) etc.
POLICY MEASURES FOR THE DEVELOPMENT OF THE SERVICES SECTOR
In post 1991 period, there were several measures undertaken by the government to develop services
sector, especially through deregulation of some-sectors of services sector. FDI varying between 26% (in
print media) to 100% in IT sector, BPOs, e-commerce activities, infrastructure etc. has been permitted.
There are several other promotional measures taken by the government to sustain the growth of services
sector. For example, having realized that in knowledge- intensive world driven by IT, integration with
global economy cannot take place without making quality telecom services accessible at affordable prices,
a large number of steps like launching of National Telecom Policy 1994, New Telecom Policy 1999,
Broad Band Policy 2004 etc were undertaken. In addition to this, a number of promotional measures have
8

been taken up in IT and ITES segment, trade, tourism, banking and insurance and real estate sectors. India
has emerged as a top destination for off shoring as per Global Service Location Index 2007. There is a lot
of scope for future expansion as only 10% of the potentially addressable global IT/ITES market has been
realized. The remaining 90% (worth $ 300 billion) remains to be tapped as per An Approach to the 11th
Five Year Plan (Joshi, 2007).
CHALLENGES: BARRIERS TO FDI IN SERVICES
There are several reasons why developing countries on average, remain restrictive on FDI in services or
have other barriers to investments in services. Apart from the sensitivity of services with cultural, social,
distributional or strategic significance, there are also economic concerns.
Countries restrict FDI to avoid the risk of foreign investors out-competing domestic investors.
Services where domestic investors are not able to cater to the growing demand, or where domestic
service- providers do not have the ability or capacity to provide the required quality of services,
are where the least barriers exist. These are also services sectors where the government is
encouraging FDI. These include infrastructure services like telecommunications.
The sale of public utilizes to foreign firms raises complex issues related to privatization and the
regulation of natural monopolies. Countries without the necessary regulatory framework may lose
by rushing into liberalization, particularly when a reversal of liberalization is hard to achieve or
when liberalization has systemic implications, as in the case of the financial industry.
Entry by large service transnational corporations involves competition policy considerations and
many host countries may not feel ready to deal with the technical and legal issues involved.
Industries that are characterized by lack of competition are also likely to be subject to more
regulations.
It is difficult to assess the impact of liberalization in particular service sector, especially if it

employs a large number of unskilled people. In such cases, as for example in the distributive
services, it becomes important to undertake an in-depth study prior to the decision to allow foreign
firms. Many countries lack the will or expertise to undertake such an analysis.
Ground level hassles continue to be a major impediment for foreign investors.
Transport, Road, Power and water availability continue to remain a cause of concern for investors,
as revealed in the survey of FICCI, 2004.
Approval procedure of FDI in India is time consuming.
One of the most prominent hurdles in attracting FDI inflow is its stringent labour laws, which
discourage the entry of Greenfield FDI because of the fear that the company concerned would not
be possible to downsize the labour strength in the time of downturn of business. (Planning
Commission, 2002).
High rate of tariff barriers, excessive red-tapism and bureaucracy and barriers of perception pose
as a challenge in realizing FDI inflow in India.
Finally, since a number of services closed to foreign investors are monopolies and, in any event,
need to be regulated, domestic regulations are often difficult to put in place.
The above reasons for barriers to FDI in services indicate that though the services sector has provided
ample opportunity for trade and growth in the region, it has also, in the process of liberalization, exposed
economies to competition in a sector that, for a long time, has been predominantly under public
monopoly. Lack of domestic competitive skills may erode domestic investments in some services. It may
9

also lead to higher prices of services that were earlier available at a subsidized rate under government
ownership. The rise in prices could translate to higher inflationary pressures, reducing the overall welfare
of economies. To circumvent such spirals it is important for the region to have appropriate domestic
regulations in place, which will assure better quality of services at affordable prices. Clear domestic
regulations increase transparency in the system and encourage FDI. To sustain the momentum of growth
in services trade in the region, conscious efforts should be made to improve the competitive advantage of
the region as a whole.
CONCLUSION
The crux of the analysis is that FDI has helped the Indian Economy to grow and the investment profile
has also been very diverse. While the silver lining is continuous increase in FDI for services sector, the
nominal amount of investment for manufacturing and agriculture is a matter of grave concern. Moreover
signs for 2010 dont seem to be very encouraging, clearly requiring GoI to go extra mile to achieve the
parity with its peers in FDI inflow. To sustain the momentum of growth in services trade, conscious
efforts should be made to improve the competitive advantage of the sector as a whole. The prospects of
India as a FDI destination would be realized if some of its constraints could be overcome. Bureaucratic
hassles, corruption and time consuming procedures should be reduced to attract more FDI inflow. After
all a more transparent investment system will benefit and secure future prospect of FDI inflow in India.
To sum up the present paper it provides a brief overview of performance, prospects and problems
encountered by the services sector in Indias economy. It is heartening to note that India is called the
service hub of the world because of huge FDI inflows. A number of sector specific measures have been
taken up by the government of India to promote IT and ITES and other sun-rise sectors like Telecom,
Organized retail, Hospitality, Entertainment and Financial services sectors. That is why; the futurists are
very optimistic regarding the bright future and performance a head of the sector. To conclude On the
tourism front, it is incredible India, but on the economic front, it is clearly Opportunity India.
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Singh Bhimpal, FDI Inflows in Indian Industry (2005). Methodology, Compilation and Reporting of
Foreign Direct investment Statistics: The Indian Experience, Reserve Bank of India, Mumbai.
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Chakraborty Chandana, Nunnenkamp Peter, March 2006. Economic Reforms, Foreign Direct
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Jha, Raghbendra, Recent Trends in FDI Flows and Prospects for India, Australia South Asia Research
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Economic Affairs, Ministry of Finance, Government of India
12

INNOVATIVE SOLUTIONS TOWARDS SUSTAINABLE DEVELOPMENT:

FINANCIAL LITERACY SHOULD ACCOMPANY INCLUSION
Dr. Anindita
Associate professor, Jaipuria Institute of Management Studies, Ghaziabad
ABSTRACT
The world is changing perhaps more dynamically than ever before in its history. This new age,
lightning-speed leap in the pace of transformation has been enabled by a world which is integrally
connected by four rapid forms of connectivity. These are environment, people, economy and ideas. Out of
these economic integration is must for sustainable development. But in India the rural population -the
other side of mankind- development in financial literacy followed by inclusion is minimal. Rural areas
that are the principal target of the government's goal of financial inclusion have only 38% of bank
branches and only 40% of the country's population has bank accounts. For India and other emerging
economies, where more than half the population doesn't have a bank account, this paper has a message:
You can't pull the nation forward with the single horse of financial inclusion; you must ride in tandem
with financial literacy also.
The study not only tells about the impact of financial literacy but also how consumers use savings,
investment and debt management techniques in their personal finances,"
Key words sustainable development, financial literacy, financial inclusion, saving, investment, rural,
urban, risk averse
INTRODUCTION
It is a fact of life that education contributes to financial literacy. Financial literacy can broadly be defined
as providing the familiarity with and understanding of financial market products, especially, rewards and
risks, in order to make informed choices. Viewed from this standpoint, financial literacy primarily relates
to personal financial literacy to enable individuals to take effective actions to improve overall well-being
and avoid distress in the matter that are financial. Financial literacy then becomes very important and
indispensable for better financial behavior and discipline. To be effective, financial literacy needs to
inform and empower the individual and would need to cover a wide range of subjects on personal
financial management including savings credit, investments , customer protection and so on. But such
literacy can take different forms. while Indians know more about saving, Americans know more about
investing. Internet-savvy Indians are 20% more financially than Americans. The survey of 2,500
individuals or families was conducted by financial website InvestmentYogi.com. Financial literacy was
assessed by asking respondents to answer simple questions related to interest rates, savings and the
growth of money.
The report cannot be extrapolated to the whole of India, particularly the rural areas that are the principal
target of the government's goal of financial inclusion. Today, only 38% of bank branches are in rural areas
and only 40% of the country's population has bank accounts. The banking system has been asked to first
target all habitations having a population in excess of 2,000. According to finance minister Pranab
Mukherjee, there are around 73,000 such areas. Banks will cover 20,000 villages this year (by March 31).
The remaining 53,000 will be covered in 2011-2012. This will be through both bricks-and-mortar
branches and banking correspondents (BCs). The latter are agents for the banks -- normally individuals,
but the Reserve Bank of India (RBI) has recently allowed companies to be appointed as BCs also.
13

POSSIBLE MINEFIELD
Inclusion comes with potential dangers. Recent experiences in India in the microfinance arena show that
poor people take loans that they have no capacity to service. Farmers have also taken loans that they have
not been able to repay. Many have been driven to suicide because of debt problems. Unless financial
literacy goes hand in hand with financial inclusion, there could be a minefield ahead. "The mortgage crisis
[in the U.S.] proved that we did not have a handle on how poorly educated consumers taking the loans,
and agents offering the loans, really were," That's in the U.S., where financial inclusion is not a major
issue. For India and other emerging economies, where more than half the population doesn't have a bank
account, there is a message: You can't pull the nation forward with the single horse of financial inclusion;
you must ride in tandem with financial literacy also.
The saving versus investing aspect should have been logically deduced: According to Businessweek, the
household savings rate in China is 38% and in India 34.7%. At the other end of the spectrum, it is 3.9% in
the U.S. and 2.9% in Japan. It can be shored up like Indians use about 38% of monthly income to cover
monthly expenses -- they save or invest 62% of their salary. The people are risk averse.The real
takeaways from the survey are in the realm of financial behavior. Indians tend to be underinsured: Only
two-thirds of the participants report any insurance, including medical and life. Most report having clear
financial goals, with education as the most popular goal (true for all risk categories -- those comfortable
with some financial risk, much risk or no risk at all). Most Indians are not comfortable with taking risks,
however.
As could be expected, higher education is a good indicator of financial skills. Highly educated Indians
take on more financial risk; find better returns on investments and better rates for insurance policies; have
more financial goals in general and specifically more long-term goals; and hold more financial
instruments. Participants report an average of 1.67 loans per household, for either personal use, home
loans or car loans. Home loans are the most prevalent liability (and the soundest), and this applies for all
categories of risk tolerance and education. "Looking at how each education group distributes loans shows
that home loans are the most popular, with all categories having above 50% of loans in home loans," says
the survey report. "Post-grads have the highest concentration of car loans with 26% and the graduates
have the most personal loans as a share of all liabilities with 22%."
THE REAL INCLUSION
India requires a huge amount of financial inclusion. Therefore, one can also get the social objective
achieved without compromising on the commercial aspects of doing the business. There is huge potential
in rural and semi-urban markets. The savings rate in India is very high -- more than 34%. But in rural and
semi-urban markets the savings are invested in gold, which is an illiquid asset, or in land, which again
[does not offer] the right kind of return. Or in the best case situation, [their savings are] maybe in a fixed
deposit with a co-operative bank. So, rural India is not exposed to many of the high-return financial
products like equities or mutual funds or even insurance, which can take care of the risk part also. This is
where a company like Tata Capital, which has a strong name and a strong distribution network, can play
an important role in educating rural India, in terms of converting some of [their] non-productive or
illiquid assets, or low-income assets into relatively higher-income assets, which will also give them better
liquidity and better returns.
It is a long haul. This objective is not going to be achieved overnight. One needs to have a long-sustaining
ability, which is what the BCs should be ready to do. Services of different non banking financial
14

companies can be taken like Tata Capital and the Tata Group which can play an important role in
financial inclusion by bringing rural India and semi-urban India into a network of these financial products.
GROWING INTEREST: BANKS ARE REACHING OUT TO RURAL INDIA
In the western Indian state of Maharashtra, in the Mann Desh region, lives 39-year-old Lakshmi Shellar.
She spends a typical day in the field tending to her crops; she also rears buffaloes and sells their milk in
the village door to door. A widow since the age of 17, Shellar got in touch with Mann Deshi Mahila Bank,
a cooperative bank in rural Maharashtra, a few years ago, where she learned the basics about banking
products. Now she runs a financial literacy school by night, attended by 20 women from her village.
Women such as Shellar act as business facilitators to India's banks. Some work directly for the bank,
others through banking correspondents (BCs) such as microfinance institutions and nongovernment
organizations. Each facilitator is connected to hundreds of people. On behalf of the bank, they create
awareness about savings and other products, identify potential borrowers, collect and verify loan
applications, monitor borrowers' repayment and follow up for recovery.
Shellar's story is told whenever Duvvuri Subbarao, governor of the Reserve Bank of India (RBI), delivers
speeches on financial inclusion across the country. Subbarao hopes more women like Shellar will help to
promote banking deep within the country. It will be crucial for an organized financial system to find its
roots in rural India.
A December 2009 RBI report, "Financial Inclusion: Challenges and Opportunities," points out that the
country has 600,000 habitations -- clusters where the population is 100 or more -- but only 30,000 have a
commercial bank branch. Less than half the population has a bank account, with the disparity greater in
the northeast. Only about 10% of the people have life insurance, and less than 1% have other types of
insurance. A full 37% of the population still lives below the poverty line.
It is here that Subbarao sees opportunity. As incomes grow and awareness increases, aspirations rise
among the poor. Moreover, rural savings deposits tend to remain in customers' accounts. In the long run,
this reduces a bank's dependence on bulk deposits, minimizing the risk posed by sudden large
withdrawals. Subbarao stresses that some bankers will need to convert "what they see as a deadweight
[social] obligation into an exciting opportunity, and move aggressively on financial inclusion."
NO-FRILLS ACCOUNTS
Indian banks, especially those in the public sector, have made substantial efforts to tap the country's rural
population. But expanding through branches has been a costly -- and largely unsuccessful -- endeavor.
Out of 50 public sector and private sector banks, 26 have therefore appointed BCs, through which eight
million no-frills accounts have been opened as of March 31, 2009.
Using banking correspondents in such a way is gaining in popularity globally. A recent RBI directive
added six more types of correspondents -- including shop owners and public call office operators -- to the
existing categories of microfinance institutions and nongovernment organizations. In Brazil, several banks
have adopted the correspondent banking model, acquiring more than 15 million accounts this way. In the
networks of two of the largest players, half of account holders earn less than US$4 a day.
In India, few banks have been as active as State Bank of India (SBI), India's leading public sector bank,
which has 2.5 million no-frills accounts. It has expanded through 24,000 direct agents, including
thousands of nongovernment and microfinance organizations. "From 12,000 villages in 2008, we now
15

have a presence in 50,000 villages," O.P. Bhatt, SBI chairman, told business publication Business
India recently. The goal, he added, is to double that number by March.
Migratory labor is a target, as remittances through banks make it easier to send money home. Huge sums
are remitted across India, predominantly from migrant labor, and more than 90% occurs through informal
channels.
Banks have also added more sophisticated and diverse products. SBI, for instance, has a product where a
customer deposits up to US$21 at any one time for one to five years. At the end of the term, the customer
gets principal plus interest at a fixed deposit rate of 6% to 8%.
In the insurance space, SBI has Grameen Shakti, a dual-benefit life insurance product. For a five-year
term with a Rs.26,000 benefit, the premium is about Rs. 300 a year. Upon the group member's death, the
beneficiary receives the benefit. Upon maturity, the group member recovers half of the premiums paid
over the five years. SBI also has launched Chota SIP (Systematic Investment Plan), an equity-based
mutual fund plan with a minimum monthly investment of Rs. 100 over at least five years. Chota SIP
funds are invested in bigger funds, including a blue-chip fund, a balanced fund and a growth fund with a
small value component.
THE PRICE OF GROWTH
Despite banks' success with informal channels, reaching rural customers comes with a price tag. The main
challenge, bankers point out, lies in financial education: helping the masses to understand these products,
and the benefits of saving and investing. The faster users of banking services learn of the benefits, the
shorter will be the bank's gestation period in recovering its investments.
In response, financial literacy centers are being set up across India. Members of SEWA Bank -- a
cooperative bank established in 1974 by 4,000 self-employed women -- have held three-day financial
education camps in the state of Orissa. Such centers provide individual counseling services on responsible
borrowing and early savings. There are advantages to being connected to the financial sector, and there is
a need for the people to understand that.
Technology is expected to be one enabler. SBI's Tiny Cards concept, initiated in 2006, is a big step
forward. A microchip in a smart card stores a customer profile, including photograph, fingerprint and
transaction details. Says Anup Banerji, deputy managing director of rural business and national banking at
SBI: "This scheme has been rolled out in 19 states in India. In 2008-2009, the number of cards issued rose
from 270,000 to more than 2 million. In that same period, the number of no-frills accounts has doubled to
2.5 million."
SBI's Tiny Cards are connected to the network through a mobile phone or point-of-sale machine. They are
used along with handheld devices with fingerprint-scanning facilities, made available to women like
Shellar. If used through the banking-correspondent route, nongovernment organizations such as Zero
Mass Foundation and Little World, and technology providers such as Financial Information Network and
Operations (FINO), bear the cost of the devices. They, in turn, recover costs by working with banks
around predefined service agreements.
In the state of Andhra Pradesh, for instance, 350,000 people receive money from the government through
such programs as the National Rural Employment Guarantee Scheme, social security and pensions. Of the
16

2% commission SBI receives from the government for distributing these funds, it passes on 1.5% to the
correspondent or facilitator.
BRINGING LIFE TO ACCOUNTS

For a bank the size of SBI, acquiring new accounts is not the problem. The real issue, across the industry,
is deriving revenues from these accounts. India is still a country with over a billion people where nearly
half the nation is unbanked. There should be the inclusion of a small charge on the customers' end, to
make the banking correspondents' route more viable. The challenge for the bulk of the poor is financial
services, not affordability. Suzuki Motor Company in India, the manufacturer of Maruti cars, boasts of its
service network throughout the length and breadth of the country. Similar pride should be taken by State
Bank of India, the country's premier public sector bank, by expanding its reach throughout the country.
Since the buzzword "financial inclusion" is sweeping the country, it is time the SBI took the initiative and
established its presence in all rural areas.
The cost-benefit analysis of having presence in all areas will throw on a different light and may force
banks not to venture into unbanked areas where they will not find any viability to run a branch.
But in the years to come, India's rural population will also benefit through high incomes due to an
increase in disposal incomes of the middle class. This will create demand for all products and have its
impact on rural areas also.
But the real issue is in educating the masses about banking, the need for having an account, and creating
interest among rural populations to opt for banking services. Like postal services, banks should increase
their reach through deployment of men for a complete understanding of banking. Financial inclusion
without proper education is of no avail.
Funds distributed through government schemes, for instance, are rolled out into 400,000 accounts in
Andhra Pradesh, while the total number of no-frills accounts acquired has crossed 1.8 million in the state.
There is little or no life in accounts acquired outside such schemes; the average balance in such accounts
hovers around 50 cents. Meanwhile, costs to maintain the accounts continue to rise. BCs keep up servers
that interact with point-of-sale machines. The BC servers interact with a server at the bank. This server, in
turn, connects these accounts to the bank's core operations.
There are also operational issues -- like the facilitator's travel expense from branch to home and the
security of funds while at residence -- that have yet to be resolved. Expenses mount as new accounts
register, and there is already a mismatch between revenues earned and costs incurred in undertaking BC
operations. Banks charge BCs interest for the temporary overdraft provided to them. This adds to
operating costs. Further training of BC staff involves even more outlays. The commission paid by banks
to the BCs is not adequate for a viable business model. A majority of BCs have reported losses, and some
of them have even suspended their operations. This, in turn, affects the banks [since] it becomes difficult
for banks to [find substitutes for them]. Financial inclusion, however, is not an end by itself. It is a means
-- the end being social inclusion. Banks play the role of financial intermediation and, therefore, are an
important catalyst in attaining inclusive growth.
The government has been active in this area. The National Bank for Agriculture and Rural Development
(NABARD) launched two financial inclusion funds in 2007-2008 with about US$100 million each. These
funds have equal investments by the government and the RBI, and an additional 20% by NABARD. The
latter disburses these funds annually to Indian banks. One fund actively invests in developmental and
17

promotional activities in backward regions and unbanked areas. The second promotes the use of
technology in similar places. Yet bankers say greater support will be required to make the BC route a
success.
The opportunity lies at the bottom of the pyramid: The only way to reduce costs is to increase volumes.
As the country grows at 8%, job opportunities grow. As people start earning, their incomes will provide a
growing source of bank deposits -- and banks that are ahead of the curve in establishing a presence in the
hinterlands will likely have a first-mover advantage.
REFERENCES
Kochhar,Sameer R, Chandrashekhar R, Chakravarty, K C, Financial Inclusion, Academic Foundation
http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4578
http://fino-cofi.blogspot.in/2010/08/financial-literacy-required-to.html
http://www.cab.org.in/FILCPortal/default.aspx
www.inclusion.in/index.php?option=com_content&view...id...
18

ORGANIZED SECTOR RADIO TAXI OPERATOR IN GUWAHATI - A CASE

STUDY ON PRIME CAB
Dr. Tazyn Rahman
Dean (Academics), Jaipuria Institute, Indirapuram, Ghaziabad
ABSTRACT
According to the industry sources, unorganized operators dominate about 85% of the market. The car
rental industry grew from ` 30bn in FY03 to ` 200bn in FY11 notching up an annual average growth of
30%.The Radio cabs business has emerged as one of the fastest growing businesses in the Indian
transportation sector. The concept of 24-hour radio cabs caught up in the country about a decade back
with Delhi-based Mega Corp setting the wheels rolling under the Mega Cabs brand in cities such as
Bangalore, Mumbai, Calcutta, Chandigarh, Ludhiana and Amritsar. Guwahati also is not laying back in
this regard. Private luxury taxi operators in Guwahati are also planning to expand their fleets in the
absence of a state-owned service and the shift by most commuters to the economical yet comfortable
mode of transport. The Northeast is a prime destination for tourist, so the demand for car rental services
can only get bigger. In the absence of a state owned radio cab service in Guwahati, the private players
are eyeing big business.
My Taxi has the pioneered private taxi operators ( not radio taxi ) to hit the road in 2010 followed by
Prime Cabs. Prime Cabs launched in 2012 has emerged as the first organized Radio taxi service
provider. Prime Cabs offers a cab service that emulates the best taxi service norms across the world.
Their endeavor is to ensure that customers need for commuting is met every time they need to commute
and in as hassle free a manner as possible.
The prime objective of this study is to understand the customer perception and customer satisfaction level
on Radio Taxi services with special reference to the city of Guwahati and to offer suggestion to improve
the performance of the services
Key Words: Radio cabs, taxi operators, Northeast, Guwahati, Prime Cabs
SCENARIO OF ORGANIZED RADIO TAXI OPERATORS IN INDIA
The Radio cabs business has emerged as one of the fastest growing businesses in the Indian transportation
sector. Till 2003, the point-to-point taxi market in Indias big metropolitan cities was completely
unorganized. It was served either by unorganized, inconsistent and somewhat expensive private operators
or by state government controlled pre-paid taxis offering a standardized but low quality service. The
concept of 24-hour radio cabs caught up in the country about a decade back with Delhi-based Mega Corp
setting the wheels rolling under the Mega Cabs brand in cities such as Bangalore, Mumbai, Calcutta,
Chandigarh, Ludhiana and Amritsar. Today, 15,000 plus professionalized air-conditioned taxis are
available to customers in 6 big cities in a largely reliable, convenient and affordable manner. These
services are fast spreading to other cities and the sector is seeing an active interest from new entrants and
financial investors alike. Despite the glitches in the model, the underlying value of this service is
undeniable. New models are emerging with innovations on cost and technology in a bid to make these
services rapidly accessible to more and more customers. Delhi currently has over 5,000 AC radio cabs and
3,800 economy radio taxis plying on its roads. Mumbai based Meru Cabs has also done brisk business
since it started operations in 2006-07 to become one of the largest service providers in the country.
19

Private luxury taxi operators in Guwahati are planning to expand their fleets in the absence of a stateowned service and the shift by most commuters to the economical yet comfortable mode of transport. The
Northeast is a prime destination for tourist, so the demand for car rental services can only get bigger. In
the absence of a state owned radio cab service in Guwahati, the private players are eyeing big business.
Radio taxis are all set to do booming business here as private operators of the service go on an expansion
spree, bolstering their fleets to meet the mounting transport needs of the growing city. In North East and
in particular, Guwahati, My Taxi was the pioneered private taxi operators ( not radio taxi ) to hit the road
in 2010 followed by Prime Cabs in 2012 and both appear upbeat about what the future holds for them. My
Taxi started with 12 vehicles; today have a fleet of 75, which bears testimony to a substantial increase in
demand for the service with over 400 trips a day. It has posted a month-on-month growth of 12 to 15 per
cent. The Assam Tourism Development Corporation Ltd is also planning to start a dedicated airport radio
taxi service. Prime Cabs the first organized Radio taxi service launched services in Guwahati in 2012.
ORGANIZED RADIO TAXI OPERATORS IN GUWAHATI
Prime Cabs started its operation in July 2012. It is the first organized premium radio taxi service company
launch metered "Radio cabs" in Guwahati, Assam-the gateway to North East India. Prime Cabs offers a
cab service that emulates the best taxi service norms across the world. Their endeavor is to ensure that
customers need for commuting is met every time they need to commute and in as hassle free a manner as
possible. They ensure availability and the onboard technology ensures that a customer pays a fair fare
with a printed receipt for each transaction. Its aim is to quality ride to the destination; ensure that each cab
is well maintained as well as the chauffeur driving the cab is well trained. The cabs equipped with GPS
(Global Positioning System), immobilizer buttons, making it easier to keep things in place. Prime Cabs is
perhaps the first and the only player to offer complete 360 degree solutions to completely transform the
Guwahati personal transportation industry into an organized business. At Rs 17 per km, the firm claims to
offer the lowest fare on a radio cab ride in Guwahati and offering a comfortable and safe ride than any
other service, be it a taxi or an auto. On an average, it conducts 250 trips a day with call centre open for
bookings 24 hours.
OBJECTIVES OF STUDY
The prime objective of the study is to understand the customer perception and customer satisfaction level
on Radio Taxi services with special reference to the city of Guwahati and to offer suggestion to improve
the performance of the services. The paper has following objectives:
1.
2.
3.
4.
5.
6.
To analyse the demographic profile of the customers and overall satisfaction.

To understand the measure of satisfaction amongst the Respondent
To identify various components contributing towards the Customer satisfaction.
To find the correlation between different variable and overall job satisfaction
To understand the factors leading to Customer dissatisfaction
Propose suggestion for improvement.
RESEARCH METHODOLOGY AND SAMPLE

Research methodology used during the study conducted in this research paper is based upon real data
primary as well as secondary. The primary data are collected from 100 Prime Cab customers of Guwahati
city by using questionnaire method. Secondary data are collected from books, journals, newspapers,
company manuals, company website and informal talk with the officers and the employees.
LIMITATIONS OF THE STUDY
Getting information from respondents becomes problematic as we had to interview individuals who are
quite busy to give proper thought to the questions. Indifferent attitude of some respondents could have
20

affected the final findings. Respondents were less cooperative and were more conscious for getting their
identity disclosed. Respondents may be biased and may not be sincerely responding to the questionnaire
survey.
ANALYSIS AND INTERPRETATION OF DATA
Table 1 : Demographic Profile of Respondents
Sr. No
No. of
Respondents
8
Percentage
25 35 years
35 45 years
19
42
19
42
Gender
Above 45 years
Male
31
71
31
71
Marital Status
Female
Single
29
23
29
23
Married
Education Qualification Upto School Level
UG & PG degree
77
13
39
77
13
39
Professional degree
48
48
Student & Home maker

Professional ( Pvt. / Public )
9
56
9
56
Businessman
Below 2 Lakhs
2 4 Lakhs
4 6 Lakhs
Above 6 Lakhs
35
4
9
29
58
35
4
9
29
58
Demographic Factor
Age Group
Occupation
Income Group
Details
Below 25 years
Table 1 exemplify the demographic analysis of the respondents participated in the study. This includes
age, gender, marital status, education qualification, occupation and income groups. Age as an important
demographic variable not only determines an individuals physical and mental maturity but also depicts
his or her life experiences shows that 42% of the respondents are in the age group of 35 45 years and
31% belongs to age group of above 45 years. In gender wise distribution of the respondents the table
revealed that among the total respondents, 71 percent of the respondents were male and 29 percent were
female. In short, majority of the respondents were male in the study area. 77% of the respondents were
married. The another important variable education-wise classification of respondents shows that 48%
respondents belongs to the education group of professional degree and 39% belongs to the educated group
of UG / PG degree. It is clear from the above table that out of 100 respondents surveyed, 56% belongs to
the occupation group Professional, 35% belongs to the occupation group Businessman and the
remaining 9% belong to Student & Home maker. The table also reveals that out of the 100 respondents,
21

58% belong to the income group above 6 lakhs, 29% belong to the income group 4 - 6 lakhs, 9%
belong to the income group 2 - 4 lakhs and rest 4% belong to below 2 lakhs.
Table 2 : Sources of Information for Prime Cab Service
Sr. No
Factors
No. of Respondents
Percentage
Newspaper / Display Advertisement
Friends / Relatives
45
45
Other sources
18
18
Display on Cab
29
29
A customer is exposed to a number of stimuli in his daily routine that helps him/her in selection of
services. In order to study consumers perception it is very important to know about the source of
information from which the customer has obtained the information about the service. Table 2 exhibits that
45% of the respondents got information about Prime Cab service from Friend / Relatives, 29% of the
respondents got information about the service from Display on Cab and remaining from other sources.
Table 3 : Factor Influencing the Selection of Service
Sr. No
Influencing Factors
No. of Respondents
Percentage
Customer Support & SMS system
16
16
On Time Reporting
55
55
Cleanness of Cab
Comfort & Big Luggage space available

in Cab
Driver Behavior
16
16
In the competitive market it is very important to satisfy the customer needs. Selection of a service is
influenced by a number of factors. The importance given to a factor by a person may not be same as in
case of another. Some of them are satisfied with one aspect but dissatisfied with the other aspect. It was
found that in case of Prime Cab service Customer Support & SMS system, On Time Reporting, Cleanness
of Cab and Driver Behavior have been the influencing factors. Table 3 revealed that 55% of the
respondents preferred the services because of On Time Reporting and 16% of the respondents preferred
the services due to customer friendly service like 24 hours call center, cab and driver information via SMS
and another 16% of the respondents preferred the services for comfort journey and big luggage space.
Table 4 : Customer Pattern for Prime Cab Service
Sr. No
1
2
Detail of Customer Pattern

First Timer Customer
Repeat Customer
No. of Respondents
31
Percentage
31
69
69
From the table 4 it can be interpreted that, 69% of the respondents are repeat customer and 31% of the
respondents are useing the service for the first time. Majority of the customers are using the service
repeatedly due to its customer friendly service and On Time Reporting.
22

Table 5 : Frequency of Using Service Per Month
Sr. No
Frequency
No. of Respondents
Percentage
1
Rarely
32
32
2
2 3 times
42
42
3
Above 4 times
26
26
From the table 5 it can be interpreted that, 42% of the respondents used the service about 2 3 times in a
month and 32% of the respondents are rarely using the service.
Table 6 : Customer Pattern for using of Prime Cab Service
Sr. No
Service Used Pattern
No. of Respondents
Percentage
1
Airport Pick Up / Drop Out
46
46
2
Railway Station Pick Up / Drop Out
13
13
3
ISBT Pick Up / Drop Out
8
8
4
Whole Day Local Tour
4
4
5
Short Trip within City
29
29
Table 5 illustrates the customer pattern for using the service revealed the 46% of the respondents are
using the service for Airport pick up / dropping, 29% of the respondents are using the service for short
trip within city, 13% of the respondents are using the service for Railway Station pick up / dropping.
Table 7 : Satisfaction Level of Respondents
Sr. No
1
2
3
Satisfaction Level
Highly Satisfied
Satisfied
Not Satisfied
No. of Respondents
17
74
7
Percentage
17
74
7
From the table 8 it is evident that 74% of the respondents are satisfied with the service, 17% of the
respondents are Highly Satisfied and only 7% of the respondents are Not Satisfied with the service.
Majority of the respondents, who are Not Satisfied with the service are due to high fare rate and waiting
charges.
FINDINGS
Following are the major finding of the present study:
73% of the respondents are in the age group of 35 45 years and above 45 years. Majority of the
respondents were male in the study area and 77% were married.
Around 91% of the customers were belonging to Professional and Businessman travelling for official
or business trip. Majority of the Professionals belong to public sector companies.
87% of the respondents have higher education qualification like graduation or above.
58% respondents belong to the income group of above 6 lakhs, 29% belong to the income group 4
- 6 lakhs.
It was observed that word of mouth have played a major role in expanding the services and demand.
45% of the respondents got information about Prime Cab service from their Friend / Relatives.
23

To sustain in the competitive market it is very important to satisfy the customer needs upto their
expectation level. 55% of the respondents preferred the services because of On Time Reporting and
16% of the respondents preferred the services due to customer friendly service like 24 hours call
center, cab and driver information via SMS. The study also revealed that 69% of the respondents are
repeat customer due to above mentioned customer centric services.
46% of the respondents used the service for Airport pick up / dropping, which is growing very
rapidly.
The satisfaction level of the customer is very high, which is a very good sign for growth. 91% of the
respondents are satisfied with the services.
RECOMMENDATIONS
Guwahati is the 10th largest domestic airport with more than 2 mn traffic in FY12. Currently Prime
Cab does not have a counter at the airport, due to which almost 50% of the vehicles that go to the
airport comes back empty, which results in higher fuel cost and idle run. They should open a counter
at airport, which will result in better fuel efficiency and revenues.
A huge number of people commutating through rail and deluxe buses use radio taxi services, Prime
Cab should open a counter at Guwahati railway station and ISBT, Lokhora.
Prime Cab should maintain one type of fuel efficient car to minimize the spare inventory and
maintenance cost.
Prime Cab should maintain minimum education level for it driver as matriculation and pay special
attention to soft skills training of drivers like personal Greeting to customers, dealing with difficult
customers, handling money, hygiene and being On time.
Customer feedback form should be provided in each cab to gather Customer experience and to
improve service quality.
Presently only cash mode of payment is accepted. Company should accept credit / debit card.
Magazine and English and regional newspaper should be made available in each cab for customers.
CONCLUSSION
The Prime Cabs has a tremendous potential for growth in North East as the transport needs of the
corporate world and even of middle-class and affluent class is growing day by day. With Guwahati city
facing enormous parking problems, many residents would prefer to call up a radio taxi for the purpose of
visiting a shopping mall, a beauty saloon, or even to attend a late-night party. This option scores higher
points over wasting time in search of parking space for own vehicle, or negotiating treacherous snarls on a
leisurely weekend. The study shows that its customer satisfaction level is very high, which is a positive
point for its growth and expansion.
REFERENCES
JOURNAL
Xavier, M.J., Thamezhvanam, A., Swaminathan, T. N. ( 2010 ), Call Taxi Service on the Fast
Track, IMT Case Journal, 1(1): 1-13.
Pathania, N. ( 2012 ), Radio Cabs How Do They Work in Delhi?, CCS working paper No 266
published in Researching Reality Intership.
24

BOOKS
S. Neelamegham," Marketing in India, Cases and Reading, Vikas Publishing House Pvt. Ltd, III
Edition, 2000.
REPORTS:
Information Memorandum of Prime Cabs ( 2013 ) prepared by Algorism.
WEBSITES:
http://www.telegraphindia.com/1130617/jsp/northeast/story_17011569.jsp#.Uohxa9JBN9w
http://www.primecabz.com
25

TECHNICAL EFFICIENCY OF AFFILIATED DEGREE COLLEGES IN BARAK

VALLEY
Monalisa Das1 and Subhrabaran Das2
Research Scholar1 & Faculty2, Department of Economics, Assam University, Silchar, Assam
ABSTRACT
A production frontier captures all the possible combinations of inputs and output on an output space and
helps to estimates the efficiency level of producing units. Efficient management of resources in every
sector is a central issue with respect to our scarce resources. Higher education production frontier
involves several tangible and intangible inputs as well as outputs, and these outputs contribute to
economic development through development of human capital. The study measures the technical
efficiency of affiliated colleges in Barak Valley by using a higher education production frontier where
weighted results of successful students is taken as input and different institutional specific factors are
considered as output. Technical efficiency measures the productive capacity of the institute to produce
maximum possible level of outputs for a given level of inputs. The main objectives of the study are to
estimate higher education production frontier of affiliated degree colleges of Barak Valley and to
compare the technical efficiency scores of NAAC accredited Degree colleges and other Degree colleges.
The results of the study reveals that most of the Degree colleges are producing below frontier and number
of teaching staffs, number of non teaching staffs and years of establishment have positive impact on
determining the outputs of Degree colleges while types of affiliation has negative impact on it.
Key Words: Degree Colleges, Higher Educational Institutions, Production Frontier, Technical Efficiency.
1. INTRODUCTION
Efficient management of resources in every sector is a central issue with respect to our scarce resources
from the perspective of management. Recently, different organisations and institutions use various
methods to measure their efficiency and then search ways to improve them. This does not only apply to
profit-making organizations, but also in non-profit making organizations and the public sectors, including
educational institutions. Efficiency of Higher Educational Institutions (Degree colleges) is one of the
subjects of growing attention in recent years. The issue of efficiency in higher education in this region or
elsewhere has remained vague and problematic due to huge heterogeneity within the system itself. As the
resources are scarce so the optimal utilisation of resources are required in every sector. Therefore, it is
important to analyse whether the educational institutions are working efficiently or not.
One of the ways to find efficiency is measurement of technical efficiency, which specifies the relationship
between inputs and outputs in production processes. Technical efficiency can be defined in two ways;
either from input side or output side. From the input side, technical efficiency refers to the production of a
given amount of output with a minimum input combination (input orientated), while from the output side
it shows the ability of a firm, sector or institution to produce the maximum output with given inputs
(output orientated). The measurement of institution specific technical efficiency is based upon deviations
of observed output from the best production or efficient production frontier. A unit is considered efficient
if the actual production point lies on the frontier, and technically inefficient if it lies below the frontier.
Degree colleges produce skill, efficient and trained workers which increase labour productivity and
ultimately lead to economic development. But the labour productivity depends on the quality and level of
the education; hence efficient management of Degree colleges is necessary. In Barak Valley, numbers of
students in colleges are increasing day by day, but there are inadequate infrastructural facilities and low
success rate in most of the colleges. Thus the study focuses on measurement of technical efficiency of
26

higher educational institutions in Barak Valley by considering the higher educational institutions as
analogous to a firm transforming inputs into outputs through a production process where typical inputs in
the education production function are the characteristics of the teaching and learning environment, while
output(s) are defined as students performance.
1.1. STRUCTURE OF HIGHER EDUCATION IN BARAK VALLEY
The Barak Valley consists of three districts viz: (1) Cachar, (2) Karimganj and (3) Hailakandi where both
public and private institutions operate simultaneously. At present there are 41 degree colleges, 1 Central
University (under it these 41 degree colleges are affiliated), 1 Medical College, 1 NIT, 1 Polytechnic
Institute, and few study centres of Distance Education which constitutes the set of Higher Educational
Institutions in Barak Valley. Here out of these 41 degree colleges 32 provide general education of either
single or combination of Arts, Science and Commerce streams, and the rest 9 are professional colleges 7
B.Ed. Colleges and 2 Law colleges). In Barak Valley, there are 15 NAAC accredited Degree colleges out
of which one is teachers training college, another one is central university and the rest 13 are three years
general degree colleges. The study is concentrated only on affiliated general degree colleges.
2. REVIEW OF RELATED LITERATURES
There are several literatures in the field of Economics of Education which have measured the performance
of the educational institutions by measuring the technical and allocative efficiency of the institutions.
Different authors across the worlds have used Stochastic Frontier Analysis (SFA) or Data Envelopment
Analysis (DEA) or both to estimate efficiency of Degree colleges, few of these are as follows:
Liu et al. (2012) analyze the technical efficiency of 40 Teachers colleges of Thailand by taking a
multiple input-output educational production function. They find that high personnels quality, more
intensity funds and more research and development have positive impact in the technical efficiency scores
of teachers colleges, while the years of establishment of the colleges has no impact on it.
Sav (2012) uses SFA to investigate possible differences in cost efficiencies of public relative to private
for-profit Higher Educational Institutions in US. The findings suggest that private institutions operated at
greater inefficiencies relative to their publicly owned counterparts. While the public minority serving
colleges shows inefficiency deterioration over time, the findings point to private institutions efficiency
gains.
Daghbashyan (2011) investigates the economic efficiency of higher education institutions in Sweden and
found that government financing is significant and negative. The characteristics of the academic staffs
found to have significant impact on the HEI cost efficiency.
John Robst (2001) has measured cost efficiency of Public Higher Education Institutions by using OSL
and MLE for a stochastic production frontier and examined the factors leading to inefficiency. The study
reveals that increase in tution fees lead to more inefficiency and institutions with less state share are more
efficient than institutions with more state share.
3. OBJECTIVES OF THE STUDY
The objectives of the study are as follows:
To measure the technical efficiency of Degree colleges in Barak Valley.
To analyse the role of institution specific factors in determining output of the Degree colleges.
To compare the efficiency scores of NAAC accredited Degree colleges with other Degree colleges.
4. HYPOTHESES OF THE STUDY
Based on the above objectives the study, the following hypotheses can be constructed:
There is no variation in efficiency scores of the Degree colleges.
The selected institution specific inputs have no impact on determining output level of Degree colleges.
There is no difference in efficiency scores of NAAC accredited/provincialised Degree colleges and
other institutions.
27

5. METHODOLOGY OF THE STUDY
This section is divided into two sub-sections. In the first sub section data sources and variables are
described, and in the second part methodology for data analysis and empirical model are discussed.
5.1. DATASET AND VARIABLES
The study adopts complete enumeration method for data collection. Here, all the general degree colleges
of Barak Valley are taken as sample for the study. To avoid heterogeneity in the dataset professional
colleges are omitted. Dataset of the study have been collected from the secondary sources, viz; Annual
Reports of Assam University Silchar (AUS), Result Booklets of AUS, and from the institutional records
of the Degree colleges.
Output of the Degree colleges in this study is taken as weighted results (WR) of the students graduated
from the institutions (rather than on numbers of pass out) which represents a better index of performance.
Weights are assigned to1st division 2nd and division 3rd division into 3:2:1 ratio. This study is based on
the available input variables viz; total number of teaching staffs (NTS), numbers of courses offered by the
Degree colleges (CO), type of affiliation (TAO), number of non-teaching staff (NNTS) and years of
establishment of the Degree colleges (YOE) are taken as inputs.
The justification of inclusion of number of teaching staffs (NTS) is that performance of HEI is always
positively affected by the teachers (Liu et al. 2012, Daghbashyan 2011). Courses offered by the Degree
colleges (CO) by the Degree colleges is also a crucial variable because it is observed that enrolment in a
particular Higher education institution is largely influenced by it, hence it is assumed that it will have a
strong impact in determining output of Degree colleges. Again status of a HEI is related with type of its
affiliation (TAO) and it is assumed to have strong impact on enrolment and performance. Type of
affiliation are divided into three categories viz; permanently affiliated, permitted, temporarily affiliated.
Permanent affiliation mainly depends on the institutional performance of the previous years; once an
institution gets its permanent affiliation then the infrastructural setup improves which may reflects better
performance of that institution. Success rate of the institution is not directly related with number of nonteaching staff (NNTS) but it has strong influence in proper management of the colleges, hence inclusion
of this variable is justified. Again there is a common perception that experienced education institute is
better than others and it generally attracts good quality students (Man and Fung 2011, Liu et al. 2012)
which ultimately results in better performance of HEI. Hence in this study years of establishment is
considered as crucial variable for determining performance of the Degree colleges.
5.2. METHODOLOGY FOR DATA ANALYSIS
The study adopted Stochastic Frontier model for analysis of data by framing a higher education
production function. An education production function is an application of the economic concept of a
production function to the field of education. Although higher education production function involves
many tangible and intangible inputs and outputs, but due to non-availability of data the study is restricted
to institution specific inputs only.
The stochastic frontier production function was independently proposed by Aigner, Lovell & Schmidt
(1977) and Meeusen & Van den Broeck (1977). The original specification involved a production function
specified for cross-sectional data which has an error term with two components, one to account for
random effects and another to account for technical inefficiency. This model can be expressed in the
following form:
Where; i=1,2...,n. Yi is the production (or the logarithm of the production) of the ith firm; Xik is a KX1
vector of input quantities of the ith firm, k is the vector of unknown parameters, i are random
28

components which follows N(0, ). ui are non-negative random variables which accounts for technical
inefficiency in production. Both the error components are independent of each other. For given values of
y
all the variables technical efficiency measures can be calculated as: TE ( y, x) =
1.
f ( x)
In this study, cross-section data linear stochastic frontier model is used for all the affiliated degree
colleges of Barak Valley. The empirical model of the study can be written as:
The variables (both output and inputs) are defined in earlier section. Here, the suffix i stands for a
particular HEI. TOA is a dummy variable which takes the value 1 for permanent affiliation and 0 for
others.
6. RESULTS AND FINDINGS
The results of the study show interesting findings. Most of the variables of this study are highly
significant for the model. Type of affiliation of the Degree colleges, Number of Teaching staffs and
number of non teaching staffs are significant at less than one percent, while courses offered by the HEI is
insignificant and years of establishment of the Degree colleges is significant at four percent level of
significance. The estimated results of the stochastic frontier model are shown in Table 1.
Variables
Constant
Table 1: Stochastic Frontier Estimates

Coefficients
Mean
Standard Error
-11.056
---7.085
|t|
1.561
P values
0.11
YOE
0. 380*
32.645
0.188
2.015
0.04
CO
-0.192
1.5483
3.277
0.058
0.93
NTS
0.6216***
29.612
0.113
5.465
0.00
NNTS
1.3459**
14.258
0.541
2.486
0.01
TOA
-18.001***
0.4838
2.185
8.237
0.00
Source: Estimated Results of SFA from the AUS Annual reports 2011 -12 & AUS Result Booklet 2012.
Note: *, ** and *** denote variables are significant at less than 5%, 1% and less than 0.01% level of
significance respectively.
The model is estimated by using Maximum Likelihood Estimation (MLE) method. The results reveals
that years of establishment has positive impact in determining outputs of the Degree colleges. It implies
that experienced Degree colleges are performing better than newly established Degree colleges. This is
might be due to the reason(s) that it attracts good quality of students and (or) for its efficiency in
managing the Degree colleges. The number of teachers is positively related with output. This implies that
more number brings good quality of teaching which helps to improve the performance of the Degree
colleges. Like number of teaching staffs, number of non-teaching staff is also significant and directly
related with output as it helps in management of the Degree colleges in an efficient manner. In this study
courses offered by Degree colleges is found insignificant, while type of affiliation is found highly
significant and inversely related with level of output of the Degree colleges. Generally, it is expected that
infrastructural facilities of Degree colleges and type of affiliation is positively related which positively
affect the performance of the Degree colleges. But in this study it is inversely related implying that
permanently affiliated Degree colleges are poor in their performance.
The estimated values of
and
indicate that errors variances of controlled and uncontrolled factors
respectively. The result shows that variation in output among the Degree colleges is due to inefficiency
term. The Adjusted R2 and R2 values for are 0.82 and 0.85, which indicates the measurement of goodness
of fit is very high for the model.
29

6.1. TECHNICAL EFFICIENCY OF NAAC ACCREDITED/PROVINCIALISED AND NONPROVINCIALISED DEGREE COLLEGES
The study reveals a significant variation in terms of technical efficiency scores of provincialised and nonprovincialised Degree colleges within and between the groups. The technical efficiency score ranges from
0 to 1, closer the score to 1 indicates greater degree of efficiency and vice-versa. Here out of 31 Degree
colleges, most of the Degree colleges are producing below the production frontier. The technical
efficiency scores of 24 Degree colleges are below 0.9 and only 7 Degree colleges are producing near the
frontier. Provincialised Degree colleges in comparison to others are producing more with average
technical efficiency score 0.608; whereas the average technical efficiency score of Non- Provincialised
Degree colleges is 0.451. Out of 31 Degree colleges, 18 Degree colleges have efficiency score below the
ungrouped average 0.517, and out of these 18 inefficient Degree colleges 8 are provincialised and 10 are
non-provincialised Degree colleges. The technical efficiency score of Degree colleges for five different
ranges are shown in the following Table 2.
Table 2: Technical Efficiency Score of Degree colleges
Technical
Efficiency
Scores
0.0-0.2
0.2-0.4
0.4-0.6
0.6-0.8
0.81.0
Average TE
scores
Number of Provincialised
(NAAC Accredited)
Degree colleges
0
4
4
1
4
Number of NonProvincialised Degree

colleges
6
2
5
1
4
Both types of Degree

colleges
0.608
0.451
0.517
6
6
9
2
8
Source: Estimated result of Stochastic Frontier Analysis from AUS Annual Report 2011-12 & Result Book 2012
In this study almost 60 percent Degree colleges are technically inefficient in terms of producing
successful good quality student. The probable reason may be deficiency in resources management or lack
of complementary resource. It is observed that only the non-provincialised are operating at the minimum
efficiency range 0.0 to 0.2 and huge variation is observed in this group in terms of their technical
efficiency scores. 33 percent non-provincialised Degree colleges fall under lowest range, whereas 22
percent belong to highest range. No single provincialised HEI fall in lowest range and 31percent fall in
highest range. So it is observed that provincial Degree colleges are performing better than non-provincial
Degree colleges in Barak Valley.
7. CONCLUSIONS AND SUGGESTIONS
Degree colleges offers more skills and knowledge which helps in development of a region through
development of human resource. Affiliated degree colleges of Barak Valley provide higher education to a
large number of students who wants pursue higher education and helps to develop local community, but
majority of these Degree colleges are either over utilising or under utilising their resources. The study
reveals that the provincialised Degree colleges are more technically efficient compared to nonprovincialised Degree colleges although both contribute into the sector of higher education. Among the
determinants of technical efficiency number of academic staffs, non-teaching staffs, type of affiliation and
years of establishment have found to be highly significant, while courses offered by the Degree colleges
are found insignificant. Except type of affiliation all other significant variables are positively related with
the level of Degree colleges output. In this study only two Degree colleges are fully efficient and six are
highly efficient. Again 11 Degree colleges are moderately technically efficient and 12 have low
30

technically efficient scores. Hence in this study majority of colleges are technically inefficient. But the
technical efficiency score depends on a set of input variables; inclusion or exclusion of some inputs
variables may bring separate picture in technical efficiency score.
REFERENCES
1. Abbott, M. & Doucouliagos, C. (2003), The efficiency of Australian universities: A Data
Envelopment Analysis, Economics of Education Review 22, 189-97.
2. Daghbashyan, Z. (2011), The Economic Efficiency of Swedish Higher Education Institutions.
CESIS Electronic Working Paper Series, Paper No.245, The Royal Institute of Technology.
3. Erkoc, T. E. (2012), Estimation Methodology of Economic Efficiency: Stochastic Frontier Analysis
Vs. Data Envelopment Analysis, International Journal of Academic Research in Economics and
Management Sciences Vol. 1, 11-23.
4. Kumbhakar, S. C. & Lovell C. A. K. (2000): Stochastic Frontier Analysis, Cambridge University
Press: Cambridge UK.
5. Liu, W.B, Wongcha A, & Peng, K.C. (2012), Adopting Super-Efficiency And Tobit Model On
Analyzing the Efficiency of Teachers Colleges In Thailand, International Journal On New Trends
In Education And Their Implications, Vol.3.3, np. Web.
6. Man K. F. and Fung S. H. (2011), Operation Efficiency Assessment of Hong Kong Public Funded
UniversitiesA DEA Approach, 18th Annual Press Conference, Adelaide, Australia.
7. Robst, John. (2001), Cost Efficiency in Public Higher Education, The Journal of Higher education,
Vol.72, 730-750.
8. Sav, Thomas G. (2012), Minority Serving College and University Cost Efficiencies, Journal of
Social Sciences 8.1, 54-60.
9. Worthington, Andrew. (2001), An Empirical Survey of Frontier Efficiency Measurement
Techniques in Education, Education Economics 9, 3245-268.
31
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EXAMPLES OF REFERENCES
All references must be arranged first alphabetically and then it may be further sorted
chronologically also.
Single author journal article:
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Supply Chain Management, 2(3), 2933.
Bateson, C. D.,(2006), Doing Business after the Fall: The Virtue of Moral Hypocrisy,
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of a Union Commitment Scale. Journal of Applied Psychology, 12(1), 129-136.
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On Analyzing the Efficiency of Teachers Colleges In Thailand, International Journal on
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Text Book:
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2007). Designing and Managing the
Supply Chain: Concepts, Strategies and Case Studies (3rd ed.). New York: McGraw-Hill.
S. Neelamegham," Marketing in India, Cases and Reading, Vikas Publishing House Pvt. Ltd,
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Edited book having one editor:
Raine, A. (Ed.). (2006). Crime and schizophrenia: Causes and cures. New York: Nova
Science.
Edited book having more than one editor:
Greenspan, E. L., & Rosenberg, M. (Eds.). (2009). Martins annual criminal code:Student
edition 2010. Aurora, ON: Canada Law Book.
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Bessley, M., & Wilson, P. (1984). Public policy and small firms in Britain. In Levicki, C.
(Ed.), Small Business Theory and Policy (pp. 111126). London: Croom Helm.
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Young, M. E., & Wasserman, E. A. (2005). Theories of learning. In K. Lamberts, & R. L.
Goldstone (Eds.), Handbook of cognition (pp. 161-182). Thousand Oaks, CA: Sage.
Electronic sources should include the URL of the website at which they may be found,
as shown:
Sillick, T. J., & Schutte, N. S. (2006). Emotional intelligence and self-esteem mediate between
perceived early parental love and adult happiness. E-Journal of Applied Psychology, 2(2), 3848. Retrieved from http://ojs.lib.swin.edu.au/index.php/ejap
Unpublished dissertation/ paper:
Uddin, K. (2000). A Study of Corporate Governance in a Developing Country: A Case of
Bangladesh (Unpublished Dissertation). Lingnan University, Hong Kong.
Article in newspaper:
Yunus, M. (2005, March 23). Micro Credit and Poverty Alleviation in Bangladesh. The
Bangladesh Observer, p. 9.
Article in magazine:
Holloway, M. (2005, August 6). When extinct isn't. Scientific American, 293, 22-23.
Website of any institution:
Central Bank of India (2005). Income Recognition Norms Definition of NPA. Retrieved
August 10, 2005, from http://www.centralbankofindia.co.in/ home/index1.htm, viewed on
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International Journal of Advance and Innovative Research

Volume 1 , Issue 1 ) : October - December 2014

Ms Shivani Dixit and Ms Anjana Sharma

Dr. Tazyn Rahman

International Journal of Advance and Innovative Research

IMPLICATIONS OF FDI IN THE GROWTH OF SERVICES SECTOR IN INDIA

International Journal of Advance and Innovative Research

Trade, hotels and restaurants (THR)

SECTORAL COMPOSITION OF GDP GROWTH

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

Amount of FDI Inflows (in million USD)

Amount of FDI Inflows

%age of total FDI

International Journal of Advance and Innovative Research

Petroleum and Natural Gas

Cement and Gypsum products

Information & Broadcasting (including

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

It is difficult to assess the impact of liberalization in particular service sector, especially if it

Ground level hassles continue to be a major impediment for foreign investors.

Approval procedure of FDI in India is time consuming.

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

K Dr Maathai, Mathiyazhagan, Impact of foreign direct investment on Indian economy: a sectoral

Selvakumar M, Ambika T, Muthulakshmi S, Foreign Direct Investment in Services sector, PG and

Vachani, Sushil. 1997. Economic liberalizations effect on sources of competitive advantage of

A.T. Kearney (2007). FDI Confidence Index 2007, A.T. Kearney.

International Journal of Advance and Innovative Research

Swapna S.Sinha (2008) Competitive Analysis of FDI in china and India

Goyal, A. Krishn, Impact of Globalization on Developing Countries ( With Special reference to

International Journal of Advance and Innovative Research

INNOVATIVE SOLUTIONS TOWARDS SUSTAINABLE DEVELOPMENT:

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

BRINGING LIFE TO ACCOUNTS

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Kochhar,Sameer R, Chandrashekhar R, Chakravarty, K C, Financial Inclusion, Academic Foundation

International Journal of Advance and Innovative Research

ORGANIZED SECTOR RADIO TAXI OPERATOR IN GUWAHATI - A CASE

International Journal of Advance and Innovative Research

To analyse the demographic profile of the customers and overall satisfaction.

RESEARCH METHODOLOGY AND SAMPLE

International Journal of Advance and Innovative Research

Student & Home maker

International Journal of Advance and Innovative Research

Newspaper / Display Advertisement

Customer Support & SMS system

Comfort & Big Luggage space available

Detail of Customer Pattern

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

TECHNICAL EFFICIENCY OF AFFILIATED DEGREE COLLEGES IN BARAK

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International Journal of Advance and Innovative Research

International Journal of Advance and Innovative Research

Table 1: Stochastic Frontier Estimates

International Journal of Advance & Innovative Research Volume 1, Issue 1 ISSN: 2394-7780

International Journal of Advance & Innovative Research Volume 1, Issue 1 ISSN: 2394-7780