Pesticide Resistance Essay

Insect attack is a serious agricultural problem leading to yield losses and reduced product quality. Insects can cause damage both in the field and during storage in silos. Each year, insects destroy about 25 percent of food crops worldwide. The larvae of Ostrinia nubilalis, the European corn borer, can destroy up to 20 percent of a maize crop. European corn borer:A major pest in southern and central Europe. Insect resistant Bt maize is already being grown in Spain, France, Germany, Portugal and the Czech Republic. Western corn rootworm beetles feeding on a maize cob. Certain cultivars of Bt maize are resistant to this serious pest. GM rootworm resistant crops are not approved for cultivation in the European Union but are now being grown in the US. The â€Å"Bt concept† – pest resistant transgenic plantsBacillus thuringiensis, or Bt, is a bacterium that has attracted much attention for its use in pest control. The soil bacterium produces a protein that is toxic to various herbivorous insects. The protein, known asBt toxin, is produced in an inactive, crystalline form.When consumed by insects, the protein is converted to its active, toxic form (delta endotoxin), which in turn destroys the gut of the insect. Bt preparations are commonly used in organic agriculture to control insects, as Bt toxin occurs naturally and is completely safe for humans.More than 100 different variations of Bt toxin have been identified in diverse strains ofBacillus thuringiensis. The different variations have different target insect specificity. For example, the toxins classified under Cry1a group target Lepidoptera (butterflies), while toxins in the Cry3 group are effective against beetles.Researchers have used genetic engineering to take the bacterial genes needed to produce Bt toxins and introduce them into plants. If plants produce Bt toxin on their own, they can defend themselves against specific types of insects. This means farmers no longer have to use chemical insecticides to control certain insect problems.| Critics claim that in some cases the use of insect resistant crops can harm beneficial insects and other non-target organisms. Extensive ecological impact assessments have been addressing these issues. In the field, no significant adverse effects on non-target wildlife nor long term effects of higher Bt concentrations in soil have yet been observed. New concepts on the way Bt crops have been planted commercially for more than eight years. Other naturally occuring insecticidal compounds are now becoming available as alternatives to the Bt approach. Among these are chitinase, lectins, alpha-amylase inhibitors, proteinase inhibitors, and cystatin. Plants genetically modified to express these defense proteins are still in early stages of development.

Mba in Operation Management

NOTE 1: A candidate with a  MBA in Operation Management  would be able to look after a factory or other operations of the factory in a   better manner as compared to others due to their competency and knowledge regarding handling the operations of an   organization. Depending on the type of organization, one might be responsible for a few activities / regions in the initial   stages and consequently growing up to handling broader areas. This career involves handling a few plants/ vendors initially,   followed by the responsibility for an entire factory and eventually undertake a more strategic view like global sourcing /   alternate materials / imports etc. Operations managers pursue careers in service organizations involved in activities such as banking, transportation, insurance, and government, as well as manufacturing firms involved in producing industrial and consumer products. Typical careers in operations management involve activities such as forecasting, supervision, purchasing, inventory planning and control, operations scheduling and control, process methods and planning, quality management, warehouse management, and production planning in diverse industries such as banking, manufacturing, and retailing. Career opportunities in operations management can also involve work in management consulting firms or the development of computer systems for planning and scheduling. NOTE 2: Operations Management  is a comprehensive production-related responsibility that includes Inventory Management, Vendor Development, and Purchase Management. It also includes areas that demand multi-disciplinary skills like SCM (Supply Chain Management) and ERP (Enterprise Resource Planning). An MBA in Operations Management teaches students to manage the processes that lead to successful production and distribution of product(s) in any business organization. Students will learn to oversee manufacturing – product creation, development, production – and its distribution to sales outlets. An MBA Programme in Operations & Supply Chain Management is designed to expand your knowledge of operational efficiencies and effectiveness, while satisfying customer requirements as skillfully as possible from the point-of-origin to the point-of-consumption. A candidate with an MBA in Operations Management would be able to look after a factory or other operations of the factory in a better manner as compared to others due to their competency and knowledge regarding handling the operations of an organization. Manufacturing is one of the most important areas for any product-based business. Management of large as well as small manufacturing companies involves various production and operational techniques and theories. These skills are especially useful for engineering graduates. The career options in the field of Operations Management are: – * Quality Control * Material Management * Productivity Improvement * Inventory Control * Production Planning Supply Chain Management * Logistics The focus of Operations Specialists is not engineering problems, but managerial implications of engineering problems. The specific skills required are behavioural, technical, and statistical. These techniques are largely applied to manufacturing organizations. There are a few consultancies that work with such organizations in this functional area, thereby offering attractive career opportunities to MBAs. In Pharma, you can have the following career options: – * Pharmaceutical Inventory Management * Pharmaceutical Manufacturing Management * Pharmaceutical Quality Control * Total Quality Control * Inventory Management * Statistical Process Control * ISO 9000 Series Quality System Standard Note 3: http://sawaal. ibibo. com/jobs-and-careers/after-doing-mba-operations-what-type-jobs-one-find-manufacturing-industries-518541. html Note 4:

Index Funds and Mutual Funds

Whether money is be the root cause of evil or not, I don†t know. What I do know it that since the dawn of man, the concept of currency had been intimately intertwined with human society. It helps form the basis of governments, and most laws. The world stock market is where these global force that powers our atomic age society merges into a complex matrix of financial void; opportunity in it†s most complex form. The raw power of the stock market that can either bring a man to rapid success, or completely ruin him. Two of the prominent worlds of the stock market are the topic for this research paper: Index Funds and regular mutual funds. To my horror, these two terms are incredibly vague words and each have many different parts with their own specific characteristics. I will be comparing and contrasting the over shared characteristics of both kinds of stock market investing. Let us begin by explaining what both these terms actually mean. Indexing, in its simplest form, means buying all of the stocks, bonds or other instrument of a market, or asset class, instead of trying to pick winners and losers. Index investors are content with the average performance of a market. When they invest, they buy all an amount of all the stocks within the index with the knowledge that some individual stocks will gain and some will lose. The hope and assumption is when investing in index funds, that the overall net change of all the stocks in the index average out to a gain. This is usually the case as the normal trend for a market is to gradually climb. Index investors are skeptical that on average a money manager can improve on the average performance without raising risk. They are even more skeptical after fees are subtracted. The best known index, the Standard & Poor's 500 (S&P 500), is a collection of the top 500 major US stocks. However there are dozens of others, including the Euro Top 100, the largest European stocks; EAFE, a broad global index of companies from numerous countries; and the Lehman Brothers Aggregate Bond Index, a collection of government and commercial bonds. Other names for index investing include â€Å"asset class investing† and â€Å"passive investing.† As the name suggests, passive investing is basically a no brainier. The philosophy is not to worry about what individual stocks will gain or lose but to place your risks on the market as a whole. An asset class is simply a category of investment, such as stocks or bonds. No surprises – You instantly know whether your gaining or losing as your profits are based on the overall conditions of the market, or at least the section of the market you invested in. With an actively managed mutual fund investment, you may not know until the very end that the fund manager just lost you or gained you a great deal of free money. Low maintenance – No thinking required. In this sense its kinda like a slot machine just on a much larger scale and on a slot machine†¦ you never win. There is no debating over which stocks to buy, for how long to keep them. Your money stays put; you always know where it is unlike mutual funds where its always being shuffled around. Low Taxes – Taxes on distributions among shareholders is significantly less with index funds as opposed to mutual funds. This saves time and money. Low Expenses – Stock managers charge money. The better they are, the more they charge which boils down to the more you make, the more is taken out of you profit. The average general stock fund takes 1.5% of your assets each year for expenses. Some funds charge much more. The average index fund charges only 0.46%, which means more of your money, is left behind. Lower risk – As you invest in an index, your stocks are generalized throughout the market. This diversification holds a lower risk then picking out individual stocks yourself. Average returns – Investing in an index fund means you'll never beat the market. You'll never even match it, since fund expenses will knock a little off your returns. And even though most actively managed mutual funds don't beat the market over time, a few managers have consistently posted outstanding performances. No downside protection – Mutual fund managers often increase their holdings of bonds and cash if they think the market is poised to fall. Index funds offer no such safeguards: If the market plunges, you'll go down with it. That's why most financial planners say index funds are best suited for long-term investors who can ride out dips in the market. High minimums – While index funds generally have low expenses, you may need a lot of money to get started. For example the Vanguard fund requires an initial investment of $3,000 to go into one of its popular index funds; other funds require $1,000 to $5,000. And once you're in, it might be expensive to get out: Many index funds charge a fee to investors who don't hold onto their shares at least a year, or more. No fun – Like I said, it†s a no-brainer. Which means you sit and watch your money travel up and down a little red line on you television screen while watching CSPAN. Not as exciting as getting the newspaper the next day and finding out your fund just quintupled. A mutual fund is a company that combines, or pools, investors' money and, generally, purchases stocks and/or bonds. Ideally, a fund's size and efficiency, combined with experienced management, provide advantages for investors that include diversification, expert stock and bond selection, low costs, and convenience. In terms of legal structure, a mutual fund is a corporation that receives preferential tax treatment under the U.S. Internal Revenue Code. The most common type of mutual fund, called an open-end fund, allows investors to buy and sell stock in it on an ongoing basis. The mutual fund issues shares of stock to investors in exchange for cash. However, unlike most cooperations do, mutual funds don†t issue a set amount of shares; new shares are issued as each new investment is made. Investors thus become part owners of the fund itself, and thereby the assets of the fund. The fund, in turn, uses investors' cash to purchase securities, such as stocks and bonds. This makes up the majority of the assets that the fund makes for itself. There are two main types of mutual funds, a load and no-load fund. Basically speaking, a load fund is one that has a sales charge, and a no-load does not. Those that do have sales charges simply add them on to the net asset value of the fund, thus coming up with a new, higher offering price per share. The underlying values of the fund†s shares do not change. An investor selling shares will still receive only the net asset value. A no-load fund is simpler. The net asset value is used for both the purchase price and the selling price. Therefore, the two prices are always the same. Diversification – As opposed to independent stock investing. Your money is more diversified but not as Cost – Again, as opposed to individual investing. Funds usually have trading cost discounts and can spread internal cost over the large shareholder base. Professional Management – You have a professional fund manager who watches the stock and decides where it should go and when it should go there. Tax planning difficult – because the timing of taxable distribution is uncertain. You cannot choose the sale dates for yourself and therefore there is much uncertainty on when your taxable distributions are made. Uncertainty – For competitive reasons with other mutual funds, the funds usually don†t disclose the report of a transaction until after its been made. This leaves you constantly one step behind in knowing where you money is. Manager changes – A fund can all of a sudden change a manager which you will not find out about in a timely manner. You don†t know who†s handling your money and have little control over it yourself.

New York in the 18th Century Essay Example | Topics and Well Written Essays - 1500 words

New York in the 18th Century - Essay Example The 1741 New York conspiracy was largely believed to have occurred in the 18th Century. But by 19th century most historians started to doubt about its existence and the justifications of the slave killings that took place. Even Daniel Horsmanden had to try and counteract the criticism by writing a detailed account of the trials so as to justify the court’s actions and wipe the doubts of peoples mind. But his was a one-sided story and did not convince many people. Historians have gone ahead to give an account of what they believe must have been the process of events for the same. First of all, the situation in New York at the time facilitated a lot to the growth of suspicions about a conspiracy. This is because the alleged conspiracy arose at a time of economic decline with increased competition between the colored slaves and the poor whites. There was a severe winter at the time and the British government had just declared war on Spain leading to increased anti-Spanish and anti-Catholic feelings. All this amidst increased fires and destruction of property was enough to elicit feelings of insecurity from the slaves. The 1712 New York Slave Revolt where about 20 slaves came together to destroy property to avenge the injustices they had been put through and in the process killing nine whites and six others being injured, was also very fresh in the minds of the white population. The political factions would also instill fear about slavery to the white community to achieve other objectives.

If I were the president of the United States Assignment

If I were the president of the United States - Assignment Example Additionally, by working together with the volunteers, the veterans will be understood and be better appreciated in the society by eradicating negativity associated with the veterans. Education has become very expensive especially higher education which is vital in the success of manpower development . The development of policies targeting the less privileged in the society which changes the society and improves the accessibility of education. However, challenges will exist in the funding process because of the increasing demand for educational support. Healthcare department is almost very expensive with the main challenge being at the cost and accessibility. However, the success of the affordable healthcare policy can be achieved by equipping the hospitals and the health care centers. I will address several issues of cost by offering better medical services by improving accessibility in the process. In addition, the cost of of drugs and support services can be improved and be made accessible by opening new centers and developing medical database. The development of the computerized data storage for the patient will improve accuracy in

The Passion of the Christ Essay Example | Topics and Well Written Essays - 1000 words

The Passion of the Christ - Essay Example His sufferings then start from henceforth with the soldier spitting on him and physically hitting him, his disciples abandoned him with Peter, who swore beforehand never to leave Jesus, denying him three times as Jesus has prophesied. In the chaos that was happening, Judas hung himself after attempting to return the thirty pieces of silver the Sanhedrin gave him in exchange to betraying his master, which was not accepted. When Jesus was brought to Pontius Pilate, the crowd cried for him to be crucified and Pilate was left to no choice but to wash his hands and give Jesus to the hands of his accusers. The drama of Jesus’ flogging, with all the sweat and blood mixing as he parades with his cross to the mountain of Golgotha along with the soldiers and other prisoners were witnessed not only by the common people but by his disciples as well and Jesus’ family particularly his mother, Mary. During his crucifixion, the soldiers witnessed the miracle that happened as the earth quaked and the release of both water and blood as one soldier struck Jesus’ side to make sure he was already dead. In the temple, the priests felt the quake as well and witnessed the destruction of the curtain separating the holy place from the most holy place. The story ends with the resurrection of Jesus, with the hole on his hand proving his identity. The movie pictures Jesus who is similar to any other man who was able to feel pain, vulnerable to the harsh realities of this world like betrayal, outrage and temptations. When he was praying in the garden, Satan was depicted as a man in a black hood with a pet snake who has been torturing Jesus by questioning his ability to save the world and like anyone else, Jesus had the tendency to yield to temptation as it was presented when he said, â€Å"If it is possible, let this Chalice pass from me.† This shows to the modern man that as Jesus was able to avoid sinning by giving in to temptation, the same is true with anyone . An individual may always choose to avoid sinning by being strong when being tempted or be weak enough and succumb to temptation. However, Jesus also with his words showed that man can avoid succumbing to temptation if he yields to the will of God as he said â€Å"Let you will be done.† Jesus is also portrayed as a meek lamb brought to the slaughter as the Bible says, having no objections to the soldiers or high priest about what he is being accused of. Jesus could have had always been able to defend himself, with Pontius Pilate able to see and understand that his accusers brought Jesus to his presence because of jealousy, it would have been easy for Jesus to justify himself. Still, he did not fight back instead, he let the high priest succeed in his desire of getting Jesus hung on the cross, treated like an evil criminal, flogged and spat on yet without retaliation. The Jesus story portrayed in the film is a very moving story which is directed not only to those who believe in Jesus but also to those who do not believe because of ignorance. At some angle, the movie acts as an educational means to proclaim the reality behind the passion of Jesus, why he came to die and what sort of manner he died. This has been a great contribution to understanding and imagining the hardships Jesus had gone through only to save humanity from their sins. I believe seeing the movie which has courageously shown the brutality of the

U02d1 Corporate Responsibility for Compliance Essay

U02d1 Corporate Responsibility for Compliance - Essay Example Here in the case of a health care organization, the licensing allows the professionals and gives them a legal right to work in the industry and in the profession (Pozgar, 2007). Accreditation has been expressed as a voluntary organization which provides the institution with an authorization which is based on the predetermined standards and the measurement criteria (CS & MSN, 2010). The GDP of the country has been directly influenced by the cost of health care in the country. There are several different aspects like the fee for service, the taxation that is set for the support and development of Medicare and Medicaid services and the managed care for all. There have been several discussions and arguments that the health care is not driven by the customers and is mainly by the employers. Private organizations tend to be very strict about their functioning with very little or no transparency in the operations and with little or no accountability to the public. The accreditation process for all companies is relatively much more on the outcomes than the structure and the process that is being used by the organizations. The state and federal licensing have a relatively more transparent process and the working of the company is relatively much more available for the general public to see as compared to that of the private organizations. The private bodies also have the ability to make any changes without providing any kind of notification to the public while the state or federal bodies need to notify all changes to the public. The private bodies are relatively able to manage their finances well while the states of federal are dependent on the funding and the sponsors to a great extent. Irrespective of whether the organization is privately held or if it is a part of the state and federal operations the main factors that need to be considered is the need for compliance and ability to stay in track with all

The Difference between Slaves and Servants Essay

The Difference between Slaves and Servants - Essay Example When it comes to putting servants to work, the nature of the work depends on the master being â€Å"merciful or cruel†. When the master shows mercy the work given to servants is light and they are well taken care of in terms of the food given to them and their lodgings. Under a cruel master, however, â€Å"servants have very wearisome and miserable lives6†. Upon arrival, many servants do not even know how to make their cabins and are at the mercy of the other servants who may choose to help them or not. Thus fresh arrivals may have to spend a few nights under the open sky before they can make their own lodgings. Their daily work schedule begins with work at 6 in the morning, a break at 11 and then back to work at 1. They will work again until six in the evening and then go back home. Living in places which provide little cover, they are exposed to the elements such as â€Å"the cold of the night†. Their situation leads Ligon to say, â€Å"Truly, I have seen such cruelty there done to servants, as I did not think one Christian could have done to another†. However, this does not make the life of the slave a bowl of cherries since they too faced cruelty and were apt to fight for their freedoms. The servants, however, decided to rebel against their masters in a bloody plot to kill the masters and overthrow the ruling of the island. Unluckily for the servants, the plot was discovered and the leaders of the plot were put to death. This method of resistance is certainly a result of the cruel treatment given to the servants. The slaves, however, seem to be more accepting of their lot in life and since they are treated somewhat better than the servants, are more apt to show their resistance in more subtle ways. They may even express their feelings with music or by looking towards the â€Å"heaven for revenge†.

Organization and Organizational Change Assignment

Organization and Organizational Change - Assignment Example With time constraint, management must maximize its time to alleviating the most pressing problems or issues. By identifying the actual performances, management can focus more time on the poor performances. After the poor performances are resolved, management can focus on improving the poor performance activities. Next, the author rightfully observes change management can allocate time to increasing performance outputs. Finally, management can use the remaining time to increase the average-rated activities. Resolving the above average performances, management can now use any possible time to ensuring retention of the best rated performances. Dean Anderson emphasized â€Å"different factors contribute to the change management process† (Anderson 31). The author correctly states that several factors are used in the formulation of the change management decisions. One of the factors is the competitors. When the competitor reduces its selling prices, the other competitors are persuaded to reduce their selling prices. Further, another factor is technology. When the author rightfully insists some competitors introduce new product technologies, all competitors are persuaded to acquire similar or even better product technology. For example, one company offers online booking services to its current and future customers. To retain customers, competitors are persuaded to implement similar online booking or marketing services. Furthermore, the author correctly insists changes in government statutes contribute to responsive change management strategies. For example, some governments require companies to reduce their factory smoke stack emissions. Consequently, management must comply. New government policies may require factory facilities to stop including all ozone layer damaging ingredients in the production process. Professor Robert Paton (51) emphasized â€Å"Companies must do their best to alleviate any resistance.† Some employees dislike learning

Terrorism and Torture Essay Example | Topics and Well Written Essays - 4000 words

Terrorism and Torture - Essay Example There is an equilibrium of political, social and economic factors that are overwhelmed by recent developments in the nature of capitalism, which substantiate the contemporary use of torture as both legal and illegal means to achieving desired goals of ruling regimes. When the news of torture and abuse of prisoners at Guantanamo Bay and Abu Gharib Jail in Iraq came out, it became starting point of detailed discussions on the ethics of interrogating with bodily harm and mental threats. Legally questioning the inhuman treatment of suspects and the imprisoned has become an important aspect of the debate on torture. There is a long and deeply entrenched debate on the matter that whether torture is permissible under certain conditions or not. The debate is of course multidisciplinary as it draws arguments from various branches human knowledge ranging from criminology to political philosophy. The emergence of 'global risk society' in twenty first century has been the locus around which such debates on torture are popping up. The underlying spirit of the pro-torture arguments is the fact that the threats to security in twenty first century are decentred and uncertain. ... Curiously, terrorism and anti-terrorism in our times aim at the one and same thing: the destruction of the enemy more than victory over him.The widening debates over the permissibility of torture for greater common good cannot be examined by detaching from the state of affairs from which the possibility of such debates arises. Influential theorists such as Hardt and Negri (2004) have argued that the present world is characterised by a civil war of global reach. The global civil war is the primordial resistance to what they understand as the materialisation of 'Empire' in which total subsumption of life has become a reality. Thus, the resistance to the empire is a fight to save life from being conquered by the global war machine of the new transnational capitalist empire. Therefore, the fight to save life from being organised under the same logic of immaterial capitalist organization is inevitably and increasingly dealt with bodily torture and organised and directed mental harm.It is important to note that the debate on torture did not come into existence in a vacuum. It is not an attempt to answer theoretical questions, which are inspired from hypothetical models from philosophers' gambles. On the other hand, as a matter of fact, the state of affairs concretely necessitates the debate on torture for the purpose of creating an adequate policy framework to deal with the complexities of new forms of violence and crimes that increasingly spreading throughout the world. The critical question is that how the constitutional democracies could answer the challenge of respecting human rights while effectively countering and mitigating the effects of

Information Technology as an Element of Competitive Advantage Essay

Information Technology as an Element of Competitive Advantage - Essay Example Logistics management is an integrating function that coordinates the entire activities in logistics, together with logistic activities related to other functions such as marketing, finance, sales manufacturing and information technology (Long 2003, p.12). There are a number of components in logistics management, since it covers the entire business supply chain. Transportation logistics is one of the most discussed parts in these supply chain management. How a firm moves its goods from a certain location to a different one can have a monumental impact on the general performance (Long 2003, p.10. In a number of cases, this sector of the supply chain becomes given to a third party that deals in the transportation. This enables a business to manage all the seasonal and market demand changes, reducing the desire to hire and fire workers based on the business cycles. Nevertheless, transportation is just but a piece of logistics. There exist sectors in supply chain that get governed by this logistic management. These are; warehousing, supply, order fulfillment, transportation and also customer service (Long 2003, p.11). Supply Supply majors with the capability of securing goods or even raw materials that will later get sold to the consumer as finished goods. Running an appropriate supply requires considerable forecasting in demand, and the sound understanding of the minimum requirements in production to turn to profits (Long 2003, p.10). All the buyers based in the purchasing department, are solely responsible for getting the necessary raw material or goods, for the best available price and having the products in their possession when needed. Firms should have knowledge of the trends in the market to predict the supply that people will need, and to use this information to manage raw materials for the production of goods in order to meet the high demand. Manufacturers find this sector of the supply chain a little complex (Long 2003, p.11). They can employ a few vendors to make sure they will always locate all the raw materials the firm requires. They should always be aware of the lag times for these raw materials to reach their base. If any raw material takes three months to arrive from the date of purchase or order, the business should have not less than a three month supply on hand (Long 2003, p.14). The suppliers should be at all times monitored and counted. Transportation The transportation logistics does not only apply to the acquisition of raw materials and goods to the warehouse, but to supply all the retail locations (Long 2003, p.15). In other instances, the sales force moves with the goods at hand in a way to different retail stores, as with beverages and snacks. In a number of instances, leading retailers get shipments of goods from these warehouses. Where the movement of goods takes freight through country borders or state lines, management in logistics should address compliance with the set regulations whether local, federal and even international. Vehicles that get registered improperly or failure to reach the Transportation Department regulations can totally spoil a firm’s ability to transport goods when required (Long 2003, p.16). Such delays lead to additional costs as other third parties must become hired to take the goods where they should be on time. This is also a reason as to why a number of

Database Design and Implementation Coursework Essay Example for Free

Database Design and Implementation Coursework Essay The aim of this database design and implementation coursework is to design and develop a Quorum Party Database system that will be interacted with the system online by the party goers who are enthusiastic to go and attend parties. It means that party goers/end users will become as a member by registering the site of our on-line party service company. We also create a prototype for web front-end form that will allow end users to check and register in Quorum Party database by including some sample required data. After the given scenarios have been read, firstly, we need to make some assumptions that can be determined to be correct or faulty and can be clarified unclear business rules or procedures before building a database system. According to the coursework, the conceptual data model diagram has to be drawn using the Chen notation and the logical relational schema is needed to produce which defines the relationships between different tables. Both conceptual data model and logical relational schema have to be checked with 3NF, third normalization form. The considered tables should be created and inserted in DBMS Microsoft Access with some extra required information. Queries, reports and forms have to be produced with the sample data by writing SQL coding for given A1 to A6 from the Sample Applications of course work scenario. Finally, the snapshots of the resulting output produced should be shown once queries, reports and forms successfully run using the appropriate tools in the chosen DBMS Microsoft Access.

Role Of Industrialization In Economic Development Economics Essay

Role Of Industrialization In Economic Development Economics Essay INTRODUCTION Industrialization is regarded essential for rapid development of the country since industrial revolution. The countries which merely rely on agriculture have remained under developed, whereas nations which developed industries achieved high rates of development. The advanced countries encourage industrialization on large scale and transferred advantages to agriculture. They achieved balance of growth in various sectors of economy. Pakistan at the time of partition in 1947 has negligible industrial base. The government has been utilizing all available resources for rapid development of the manufacturing sector.  We examine the industrial performance as follows: From 1947 to 1950 In 1947, in the West Pakistan the major product was cotton but there was no big factory to process and manufacture the cotton whereas East Pakistan was the main producer and supplier of jute. Out of 921 Pakistan only got 34 industries. Government of Pakistan being aware of the importance of industrialization called an industrial conference in dec. 1947. The conference recommended the establishment of industries which used locally produced raw material like jute, cotton and skin. The private sector was encouraged to establish industries. For the implementation of above a development board and Pakistan industrial and Credit Corporation were established in 1948. The contribution of industrial sector to GDP was 6.9% in 1950. From 1950 to 1960 The private sector did not invest in heavy industries due to lack of capital, technical knowhow and absence of entrepreneurship. The government took initiative and established PIDC in 1952. The major investment of PIDC was in paper and paperboard, cement, fertilizer, jute mills and suigas pipelines. The contribution of industrial sector to GDP rose from 9.7% to 11.9%. From 1960 to 1970 This year covers 2nd five and 3rd five year plan. In 2nd five year plan 22.2% of the total outlay was for the growth of industrial sector. The country achieved self sufficiency in essential consumer goods. The contribution of industrial sector to GNP went up to 11.8% from 1960-65. The 3rd five year plan could achieve a partial success due to war with India in 1965. The growth rate was 7.8% against the target plan of 10%. Growth in 1970s The industrial performance of production, growth and exports was disappointing from 1971 to 1977. The main reason were separation of east Pakistan, suspension of foreign aid, fall in exports due to loss of market ( east Pakistan), devaluation of rupee up to 131%, nationalization of industries, labor unrest, recession in world markets and reduction in investment incentives. The annual growth rate fell up to 2.8%. Growth from 1977 onward The government took number of initiatives to revise the economy. Some industries were denationalized and private sector was encouraged to invest. The growth rate was 5.7% in 1989-90. Current Growth According to the economic survey of Pakistan, 2009-2010, manufacturing accounts 18.5% 0f GDP and 13% of total employment. Large scale manufacturing and small scale manufacturing accounts 12.2% and 4.9% of total GDP respectively. Manufacturing Sector in Regional Countries Role of industrialization in economic development The role of industrial sector is summarized as follows: In industrialization there is optimum utilization of scarce resources. The quality and quantity of manufacturing sector increase. It increases the national income of the country. It increases the production of goods and services. The labor receives higher wages. The income of workers increase and there living standard also improves When industrial production increase that increase exports and revenues of the government. It generates new employment opportunities. Industrialization provides machinery like tractors, threshers, harvesters and spray machines to increase the production of agriculture sector. As the industrial sector expands, its production increases and cost of production decreases. The quality of products improved due to technology Industrialization increases the supply of goods for internal and external markets. The government receives revenue in the form of custom and excise duties, sales and income taxes from the industrialists due to which government revenue increases. Causes of industrial backwardness in Pakistan The main causes of industrial backwardness are divided as follows: Historical Causes The British collected raw material for their industries from subcontinent on the one hand, on the oilier; they captured this area for final products. So no industry in this area. The areas with Muslim majority were kept backward to favor Hindus. The few industries, which were setup in India, were in coastal cities of Calcutta, madras and Bombay. Raw material and skilled labor were not available in the area that is now in Pakistan. Economic Causes The infrastructure required for the growth of industries is inadequate. For the foster mobility of labor, capital, transport and communication facilities are in sufficient. It is obstructing expansion of industries in Pakistan. The amount if capital required in the capital intensive industries like steel, iron, chemical and automobiles quite high. Huge capital is also required to establish and expand industries like textile, carpet, sugar and paper etc. Most of exports are comprised of raw material, while our main imports are machinery, petrol which requires heavy foreign exchange. Due to shortage of foreign exchange, less imports of machinery, this leads to less development of industries. Now days due to inflation people have low level of income thats why they demand less industrial goods, it obstructs industrial development. There is also shortage of power like electricity and gas due to which many industries are shutting down. There is less foreign investment in the country due to terrorism which is also the main hurdle in industrial development. Due to recent flood, the economy of the country is going worst. Therefore people do not take risk to invest in Pakistan. Political Causes There have been frequent changes in government since 1947 in Pakistan due to which local and foreign investors hesitate to invest in long term projects. Kashmir issue has been a bone of contention between Pakistan and India since independence. People remain frightened about the war between both countries. This situation leads low investment. The government of Pakistan nationalized industrial sector in 1970s. People still fear that the government may once again nationalize the economy. Therefore they invest less. Social and Geographical Causes On the one hand there is less awareness to invest in large scale industries due to lack of education and information. On the other hand the capital intensive industries require highly qualified professionals which are in lack of Pakistan. So low industrial development. Pakistan has extreme climate. Sometimes we have drought and other time heavy rain and flood. Moreover most of the land is covered with mountains and deserts. PRINCIPAL INDUSTREIS OF PAKISTAN The principal industries of Pakistan are as follows: Textile Industry It is the most important and largest industry of the economy of Pakistan. Pakistan received 17 textile units in 1947. The industry is facing problem like shortage of raw material, tough competition in international market due to domestic high prices. Sugar Industry In 1947, Pakistan received two sugar mills. Now we have 78 sugar industries across the country. The industry is producing 2.4mn tones of sugar against 2.9mn tines of demand. Pakistan is importing sugar since last few years. The production of sugar can be increased by giving incentives to farmers. Chemical Industry There was hardly any chemical industry in 1947. Now Pakistan has 12 units but this industry is not meeting domestic requirement of chemicals. Fertilizers Industry Fertilizer plays an important role in increasing agriculture production. At present 10 units are producing different types of fertilizers which meets 70% of the domestic requirement. 30% is imported from Germany, UK, USA and Norway. Cement Industry There are 25 cement plants in Pakistan. The installed capacity of these plants is 13mn tones per annum. This industry is based on local raw material. Jute Industry At the time of independence there was not a single unit of jute in Pakistan. At present 12 units are working in Pakistan but they are not meeting domestic requirements. Large quantity is imported from china and Bangladesh. Engineering Goods Industry This industry got importance in 3rd five year plan. Now there are four industries like HMC Taxila, Heavy Foundry Taxila, Pakistan Machine Tool Factory Landhi, and Pakistan Steel Mills Karachi. Pakistan Steel Mills Corporation The mill was set with the total cost of 25.550mn with the help of Russia. Its productive capacity is 1.1mn tones of raw steel per annum. Now a day it is going down due to corruption and mismanagement. Cigarette Industry At present Pakistan has 22 factories producing cigarette at Jhelum, Akora Khattak. The raw tobacco used in manufacturing is produced domestically. PERFORMANCE OF PUBLIC INDUSTRIAL SECTOR The performance of public industrial sector is the role of PIDC, so we review the role of PIDC. Role of PIDC: Pakistan industrial development corporation (PIDC) was established in 1952. It was the only public sector involved in manufacturing. It established industries in backward areas, created employment opportunities and reduced regional disparities. By June 1972, it had established 60 industrial projects. The nationalization of industries under the economic reforms order affected the performance of PIDC. A number of important and profit yielding projects were transferred to other corporations under the Presidential Ordinance No. v of 1974. PIDC was left with only 8 projects out of 60, which were not profit making. NATIONALIZATION OF INDUSTRIES The government of Pakistan under the economic reforms order, 1972 nationalized 32 private industries. The 52 projects already under taken by PIDC and the 32 nationalized units were regrouped on functional basis and laced under 12 corporations. The corporations were: Federal chemical and ceramic corporation (FCCP) Federal light engineering corporation (FLEC) National design and industrial services corporation (NDISC) State heavy engineering and machine tools corporation (SHEMTC) Pak tractor corporation (PTC) Pak automobile corporation (PAC) National fertilizer corporation of Pakistan (NFCP) State electrical corporation (SEC) Pakistan industrial development corporation (PIDC) Pak steel mills corporation (PSMC) State cement corporation of Pakistan (SCCP) State petroleum refinery and petrochemical corporation (SPRPC) In 1974, PTC and SEC were merged in PACO and the number of corporations was decreased from 12 to 10. Later on FLEC, NDISC and SHEMTC were merged into state engineering corporation (SEC). The number of corporation was decreased from 10 to 8. Reasons of Nationalization failure The public manufacturing sector was burdened with a number of conflicting tasks and objectives which reduced its efficiency. The corporations were over staffed and were mostly managed by non-professionals persons. The labor unrest reduced performance. The skilled personnel migrated to Gulf States and caused shortage of skilled persons. The prices of raw material increased due to decline in production of the corporations on account of flood and untimely rains. The price of petroleum products increased and raised the cost of production. PRIVATIZATION OF SOEs IN PAKISTAN In the first four decades the government policy about the private and public sector has not clear. In 1988, the government issued disinvestment ordinance to adopt the policy of privatization. The governments privatization policy is to off-load the public sector; the process would e carried out in three phases. Different institutions will be sold to private sector and the revenue generated will generally be used for debt retirement. Meaning of Privatization A process of transferring state owned enterprises to the private sector. Objectives of Privatization Minimizing budgetary support/deficit Sale of shares of enterprises to fill budgetary gap Incentives for the workers for efficient work Developing share market Provision of share ownership to workers or employees Insulating the economy from political interference Achieving rapid industrialization Methodology of Privatization The privatization can be undertaken in the following ways: Sale of individual SOEs by inviting bids from the private sector Sale of shares of SOEs through stock exchange Encouraging employees to make management groups and purchase enterprises Encouraging prospective investors to form modaraba companies to purchase the shares of SOEs Entering into lease management contracts with employees for a specific period to enable them to buy out units Privatization of SOEs in Pakistan The government of Gen. Zia-Ul-Haq on 16th July 1988 issued Disinvestment Ordinance and a National Disinvestment Authority was created under the chairmanship of Aziz Zulfiqar. A privatization commission was formed on July 22, 1991 to formulate recommendations for privatization and deregulation. In the initial phase MCB, ABL had been privatized. IMPORTANCE OF FOREIGN INVESTMENT IN INDUSTRIAL DEVELOPMENT The policy of privatization, deregulation and liberalization has greatly widened the foreign investment in the country. The government has taken several measures to increase the flow of foreign private investment. The foreigners can now avail monetary and fiscal concessions equally with the local investors. They can invest in the fields of their choice like power generation, petro-chemical petroleum gas fertilizers, hi tech industries, agro based industries and export oriented industries. Incentives to Foreign Investors Foreign exchange controls have been relaxed for foreign investors. Foreign investors can participate in local projects on equality basis. Ceiling on payment of royalties abolished. No requirement of obtaining NOC from provincial government or locating the projects anywhere in the country except notified negative areas. SOURCES OF INDUSTRIAL FINANCE The main sources of industrial finance are: Industrial Development Bank of Pakistan Investment Corporation of Pakistan National Investment Trust Equity Participation Fund Bankers Equity Fund Modarabas, Leasing Companies COTTAGE AND SMALL SCALE INDUSTRY The cottage and small scale industry has a great significance for a developing country. It forms as important part of the manufacturing sector. It contributes 5% to GDP and employees 80% of the labor force. Its share in manufacturing sector export is about 30% in Pakistan. Cottage Industry The industry which is carried on in the home of the artisan is known as cottage industry. He is usually assisted in his work by the members of his family and the job may be whole time or part time. E.g. wood work, handmade carpets, toys etc. Small Scale Industry The firms employing less than 10 persons are classified as small scale industries in the national accounts and its fixed assets do not exceed Rs. 2mn in Pakistan. CONCLUSION We can conclude that manufacturing is the third sector of our economy and it is the backbone of any country. It plays a very important role in the economic development of a country. Pakistan has been a backward country in industrial sector due to different historic, political and economic causes. For the revival and growth of the industrial sector, these problems should be solved. The law and order situation must be improved. The security of capital must be assured and the degree of bureaucratic control to be minimized. A clear cut policy should be chalked out for the local and foreign investors. The industrial growth can further be accelerated by ring sick industrial units into operation, installing new factories and providing maximum incentives to the working community.

What Is A Learning Journal Psychology Essay

What Is A Learning Journal Psychology Essay A learning journal is a way of capturing and recording your thoughts, impressions, concerns, questions and reflections. This provides an informal yet focused place to express whatever comes to mind. Its purpose is to enhance further insights on how you learn experiences through the process of writing and thinking about how you learn. Your learning journal is personal and will reflect your experiences, preferences and personality. Why am I completing a learning journal as part of my study of social psychology? The learning journal will help enhance further understanding about social psychology and how we can adapt these personal experiences individually, as social psychology mainly focuses on dealing with social interactions this can help us understand how we can socially connect with ourselves and others through interacting insights and experiences that are reflected in our learning journals. This can influence our perceptions and interpretations of how each of us understands social psychology and how we can observe it which also indicates implications it may have had on your level of understanding and to help identify your strengths, weaknesses and preferred preference of the unit. What do I hope to learn from this assignment? From this assignment i hope to learn skills and abilities that will give me a thorough and deeper knowledge as to how i can express and reflect on my own ideas and to help me understand how they build on what i already know using it in my own independent research. Through the development of this learning journal I also hope that this will not only broaden and reflect my personal views and ideas of the content but to further extend my knowledge of the assignment. This will enable me to gain experience and to help me understand and accomplish intellectual processes, goals and tasks that are required in order to reflect upon. Self and Identity Which aspect of the topic has interested me most? Why? The aspect of this topic that caught my interest would be development of the social self I have found this topic aspect very interesting as it explains and reflects on how people see and identify ones social self. To me this broadens my insights as to how and why each individual is looked upon socially because of their self concept, self esteem, self knowledge and social self. This also demonstrates how each individual is looked upon and how their roles can vary from others which help show the social world that surrounds us and how each one of us can develop and become part of the social world. This not only relates to me but to any individual according to the development of the social self. What are the main ideas, concepts and evidence related to this aspect? The main ideas that cover multiple concepts on how the social world is developing includes the roles we play, the social identities we form, the comparisons we make with each other, our successes and failures, how other people judge us and the surrounding culture. In relation to the development of the social self a concept that related towards this aspect include the looking glass self which is a social psychological concept which was created by Charles Horton Cooley in 1902. This concept states that a person self grows out of societys interpersonal interactions and the perceptions of others. This mainly refers to people shaping their self-concepts based on their understanding of how others perceive them. One evidential way this can be perceived is through social comparisons (Festinger, 1954) which help us evaluate ourselves compared to others. What short quote from the text or reading illustrates an important point related to this aspect? An important point that signifies this aspect is found in the text book states that The self- concept has become a major social-psychological focus because it helps organize our thinking and guide our social behaviour. (PP.68) In stating this tells us that according to our self image we can base this on the way we live in a social world which can have an influence on the way we think and how we portray ourselves and other individuals we can also say that social experiences also play a part in developing ones social self. How is the aspect relevant to my social world? This aspect is relevant to my social world because it demonstrates how our social image and social perceptions can shape who we are and how we are viewed upon. The self can be analysed through multiple stages for the development of the social self, the social self concept Who am I? comes from ones self, social knowledge can explain how an individual predicts themselves. Self esteem self sense of how much their worth and social self which shows how roles as a student, family member and friend which can be used for a group identity. Prejudice and discrimination Which aspect of the topic has interested me the most? Why? An aspect of the topic Racial Prejudice has interested me the most because it shows how people can have a negative evaluation towards certain individuals or groups based on attitudes with certain biological characteristics. I find this of great awareness because racial prejudice affects people and populations all over the world and is linked with discrimination which also exists in today. What are the main ideas, concepts and evidence related to this aspect? The main ideas that come with racial prejudice can somewhat come out of ignorance for disliking others. As racial prejudice has common similarities with stereotyping, discrimination and hatred we know that prejudice is an attitude which is a distinct combination of feelings, inclinations to act, and beliefs. Further Concepts and evidence relating to this aspect include racial prejudice has been found between several self-report measures of religiousness and racial prejudice; however, no experiment has examined the direct effect of religion on racial attitudes. An experiment that was conducted by Jane Elliott (Born 1933) who was an anti-racism activist illustrated how biological characteristics through the experiment Blue eyes, brown eyes which was conducted to identify how biological features play a role in racial prejudice. What short quote from the text or reading illustrates an important point related to this aspect? Racial prejudice illustrates important points that relate towards the topic In the context of the world, every race is a minority. The individual in society (PP.182). This is an important point which clarifies how each individual is categorised in certain groups based on their biological characteristics and how they are viewed based on that fact which connects with racial prejudice and how individuals shape our understanding of racial prejudice to not only use certain attitudes towards biological differences but to categorise and judge that is based on the racial prejudice perspectives of the world. Multiple statements can help shape up how racial prejudice is present Im a Cablinasian. Tiger Woods, (1997) describing his caucasion, black, Indian and asain ancestry is a good example. How is the aspect relevant to my social world? As social reality is distinct from biological realities racial prejudice is relevant to my social world because it exists within todays society and is put into different groups within the sociological world. This is relevant in terms of judging and classifying based on race and, or gender which complies with racism and discrimination that also take place within the social world we live in today because of this racial justice is a problem and puts negative insights on minority groups based on biological characteristics. Due to this aspect becoming relevant to the social world racial prejudice affects many people in the social world based on each individuals attitudes towards certain individuals that shape the social world we live in today. Conformity and obedience Which aspect of the topic has interested me most? Why? One of the interesting aspects i have found in this topic is Milgrams obedience experiment. By Stanley Milgram (1963). I find this aspect of the topic interesting because his experiment demonstrates conformity and obedience to determine how far people were willing to go in order to obey the commands of an authority figure and how this experiment illustrated social influence. What are the main ideas, concepts and evidence related to this aspect? Main ideas that relate to this are evidently contrary to Milgrams conclusion that people blindly obey authorities to the point of committing evil deeds because we are so susceptible to environmental conditions. Because of this social psychology has become one of the most famous and controversial experiments. There are concepts behind conforming as it can be defined as adjusting ones behaviour and or thinking to match those of other people or group standard, the base line as to why people confirm is because it is suggested that everyone does it. It is evident to say that when the first subject of the Milgram experiment, Emily, quit the moment she was told the protocol. This isnt really my thing, she said with a nervous laugh when our second subject, Julie, got to 75 volts and heard Tyler groan, she protested: I dont think I want to keep doing this. Jeremy insisted: You really have no other choice. I need you to continue until the end of the test. In saying so this demonstrates how social influence can affect individuals thoughts, perceptions and behaviors in order to confine with obedience. What short quote from the text or reading illustrates an important point related to this aspect? Milgrams (1965, 1974) experiments tested what happens when the demands of authority clash with the demands of conscience. This illustrates an important point in relation to this aspect because according to Milgram human moral nature includes a tendency to be empathetic, kind and good according to our relationships and group members, this also shows inclination towards being chauvinistic, cruel and evil to others. According to the shock experiments reveal not blind obedience but conflicting moral tendencies that lie deep within based on this social influence plays a role in Milgrams experiment in order for people to show signs of obedience and conformity. How is this aspect relevant to my social world? This aspect is relevant to my social world because in society today we are conforming and being obedient under certain instances for example schools require conformity such as wearing school uniform is an example of compliance conformity which is like norms that we must order and obey. An example of being obedient in todays society would be joining the army you must follow and obey instructions in order to qualify the required norms they have set for you. These are all things that happen in the social world we live in because of this the social world and the larger world we are part of is when an individual fully understands the events that are happening around them. This involves the part of life that affects them and their surroundings and in this case conformity and obedience are clearly recognised in todays social world this is the result of social influence. Conclusions What value has this journal been for my learning of social psychology? This journal has valued in teaching me about social psychology and how it deals with social interactions. This has also helped me understand and explain how the thought, feeling and behavior of individuals are influenced by the actual, imagined or implied presence of other people because of this i now have a higher level of knowledge about social psychology. The journal has also observed social psychology as to how it looks at ranges of social topics that have been explained and how people can interact and understand how social psychology is being used. What are the strengths and weaknesses of my journal? For me figuring out my weaknesses is just as important  as figuring out my strengths because I believe that our strengths come from our weaknesses and our weaknesses come from our strengths. I think that a strength that is present in my journal is that it is structured briefly yet descriptive at the same time which makes it reflect upon my understanding of tasks and at the same time has the required information in order to properly state and explain my information. My learning journal is slightly focused more on the topic and should evaluate my points into further detail but aside from that I believe my journal has a good and brief layout in order for anyone to reflect upon. Did I get out of this assignment what I hoped for? Yes i believe that i have acquired some more knowledge towards the desired skills and abilities that I hoped for when writing my journal. This has given me deeper insights to each aspect of the topics. I have expressed and reflected my own personal ideas, this has also helped me build up on what was required for the completion of this learning journal. As I mentioned earlier in my introduction the learning journal has helped enhance my understanding about social psychology and has demonstrated how social psychology can be adapted in the society we live in and how it works around us.

French Revolution :: European Europe History

French Revolution Essay: What were the reasons and results of the French revolution? In 1789 financial times were hard in France. The peasants were upset that the nobles were living lavish lives collecting taxes, while they suffered. The prices on food were rising and the people were starving. The French social system was outdated and consisted of three classes. The first class consisted of the clergy. They paid no taxes and led the best lives. The second estate was the nobles. These were people who held top jobs in the government. The third and largest estate was the peasants. The people paid the most taxes and suffered the most. These people paid for Frances deficit spending. Deficit spending is when the country spends more money than is coming in. Louis XIV left France deeply in debt. Through out the 1700 taxes gradually rose to help repay this debt. By 1789 half its taxes went to paying the interest on this debt. This frustration led to revolt. On August 4th peasants attacked the Bastille. The peasants raided the Bastille but found no arms. This lead to a massive change in the government. The French government, in late August issued the Declaration of the Rights of Man. The Document was modeled in part of the American Declaration of Independence. In it stated that all men are born and remain free. Man also had the right to enjoy natural right or the right to property, security and resistance to oppression. It also said there are no different in man except his virtues and talents. It also granted freedom of religion and called for taxes to be levied according to ones pay. But this was still not enough for some. Working class citizens called sans-culottes pushed the revolution into some more radical action. By 1791 many sans-culottes demanded France become a republic. They also wanted the government to guarantee the government gives them living wages. Wars waged over France between those who supported the republic and those who opposed it.

No Christmas :: essays research papers

When Christmas Couldn’t Come   Ã‚  Ã‚  Ã‚  Ã‚  We lived in the farmhouse until my dad lost his job in 1994. No longer able to afford a mortgage, let alone utilities in the old, drafty house we moved into a smaller house two doors down. My mom called the new house â€Å"cozy† – making the best of a situation I couldn’t begin to understand; words like â€Å"WIC†, â€Å"welfare† and â€Å"debt† meant nothing to me at the time. I missed the barn that longed to be explored, the hill where at eight, I saw my first snowfall and of course, my room. The new house wasn’t mine, it was Miranda’s, a friend who moved away, my room wasn’t mine, it was hers. My mind raced with thousands of questions, all of them pitying myself, feeling bad for Andrea, forgetting about my family, all of them until my mom told the four of us that Christmas couldn’t come that year.   Ã‚  Ã‚  Ã‚  Ã‚  The words fell out of my mom’s mouth like hail from a winter sky, pelting me in the face, stinging my entire body. What did she mean Christmas couldn’t come, that we could no longer afford any â€Å"extras†, that things were going to be â€Å"different†? Instantly my eyes swelled with things unfamiliar to a tomboy, my heart raced my shortening breath as I struggled to empathize with my parents, searching for a question, an answer, something to make it better. Before that November day I never thought about money or affording things; I grew up in a upper-middle class family where eating out was a commonality, vacations were assumed and for all I knew money could have grown on tress. I was eleven, self-absorbed in wants and wishes where the new house was a drag not more affordable and sharing a room was suffocating, not compromising. Life, for me, had never consisted in cutting corners or working to make ends meet, I simply lived getting what I wanted, not what I needed. Only after that conversation with my

Automobile Scenario of India Essay

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 17. 5 million vehicles (including 2 wheeled and 4 wheeled) and exports about 2. 33 million every year. It is the world’s second largest manufacturer of motorcycles, with annual sales exceeding 8. 5 million in 2009. India’s passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3. 7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12 In 2009, India emerged as Asia’s fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2010, India is home to 40 million passenger vehicles and more than 3. 7 million automotive vehicles were produced in India in 2010 (an increase of 33. 9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation’s roads. The dominant products of the industry are two wheelers with a market share of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes. The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people. The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i. e. , from the consumers and go through the automakers and climbs up until the third tier suppliers. However the products, as channeled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. Note that, with a high cost of developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%. The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, India’s increasing per capita disposable income which is expected to rise by 106% by 2015 and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%. [18] Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing 26%[18] of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles. History The first car ran on India’s roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers. Embryonic automotive industry emerged in India in the 1940s. Mahindra & Mahindra was established by two brothers as a trading company in 1945, and began assembly of Jeep CJ-3A utility vehicles under license from Willys The Company soon branched out into the manufacture of light commercial vehicles (LCVs) and agricultural tractors. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands. [21] Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India’s robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. [22] In February 2009, monthly sales of passenger cars in India exceeded 100,000 units[23] and has since grown rapidly to a record monthly high of 182,992 units in October 2009. [24] Objectives of study: Since the Auto Component industry is growing substantially, it is very important to know and identify how the industry is growing and creating its own place in the industrial sector helping the economy to grow. So the objectives of the study are: 1. To understand and analyse the current status of Indian Automobile Industry. 2. To Analyse the trends in the automobile industry in India. 3. To study the growth potential and challenges faced by automobile industry in India. Market and its Growth. The automotive industry of India is categorized into passenger cars, two wheelers, commercial vehicles and three wheelers, with two wheelers dominating the market. More than 75% of the vehicles sold are two wheelers. Nearly 59% of these two wheelers sold were motorcycles and about 12% were scooters. Mopeds occupy a small portion in the two wheeler market however; electric two wheelers are yet to penetrate. The passenger vehicles are further categorized into passenger cars, utility vehicles and multi-purpose vehicles. All sedan, hatchback, station wagon and sports cars fall under passenger cars. Tata Nano, is the world’s cheapest passenger car, manufactured by Tata Motors – a leading automaker of India. Multi-purpose vehicles or people-carriers are similar in shape to a van and are taller than a sedan, hatchback or a station wagon, and are designed for maximum interior room. Utility vehicles are designed for specific tasks. The passenger vehicles manufacturing account for about 15% of the market in India. Commercial vehicles are categorized into heavy, medium and light. They account for about 5% of the market. Three wheelers are categorized into passenger carriers and goods carriers. Three wheelers account for about 4% of the market in India. Domestic Market Share for 2010-11(%)| Passenger Vehicles| 16. 25| Commercial Vehicles| 4. 36| Three Wheelers| 3. 39| Two Wheelers| 76. 00| Source: Society of Indian Automotive Manufacturing (SIAM) GROSS TURNOVER OF THE AUTOMOBILEINDUSTRY IN INDIA| Year| (IN USD MILLION)| 2004-05| 20,896| 2005-06| 27,011| 2006-07| 34,285| 2007-08| 36,612| 2008-09| 38,238| The production of automobiles has greatly increased in the last decade. Automobile Production. Automobile Production Trends (Number of Vehicles)| Category| 2004-05| 2005-06| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| Passenger Vehicles| 1,209,876| 1,309,300| 1,545,223| 1,777,583| 1,838,593| 2,357,411 | 2,987,296 | Commercial Vehicles| 353,703| 391,083| 519,982| 549,006| 416,870| 567,556 | 752,735 | Three Wheelers| 374,445| 434,423| 556,126| 500,660| 497,020| 619,194 | 799,553 | Two Wheelers| 6,529,829| 7,608,697| 8,466,666| 8,026,681| 8,419,792| 10,512,903 | 13,376,451 | Grand Total| 8,467,853| 9,743,503| 11,087,997| 10,853,930| 11,172,275| 14,057,064 | 17,916,035 | Automobile Sales. Automobile Domestic Sales Trends(Number of Vehicles)| Category| 2004-05| 2005-06| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| Passenger Vehicles| 1,061,572| 1,143,076| 1,379,979| 1,549,882| 1,552,703| 1,951,333 | 2,520,421 | Commercial Vehicles| 318,430| 351,041| 467,765| 490,494| 384,194| 532,721 | 676,408 | Three Wheelers| 307,862| 359,920| 403,910| 364,781| 349,727| 440,392 | 526,022 | Two Wheelers| 6,209,765| 7,052,391| 7,872,334| 7,249,278| 7,437,619| 9,370,951 | 11,790,305 | Grand Total| 7,897,629| 8,906,428| 10,123,988| 9,654,435| 9,724,243| 12,295,397 | 15,513,156 |. Automobile Exports Automobile Exports Trends(Number of Vehicles)| Category| 2004-05| 2005-06| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| Passenger Vehicles| 166,402| 175,572| 198,452| 218,401| 335,729| 446,145 | 453,479 | Commercial Vehicles| 29,940| 40,600| 49,537| 58,994| 42,625| 45,009 | 76,297 | Three Wheelers| 66,795| 76,881| 143,896| 141,225| 148,066| 173,214 | 269,967 | Two Wheelers| 366,407| 513,169| 619,644| 819,713| 1,004,174| 1,140,058 | 1,539,590 | Grand Total| 629,544| 806,222| 1,011,529| 1,238,333| 1,530,594| 1,804,426 | 2,339,333 | Supply Chain of Automobile Industry. The supply chain of automotive industry in India is very similar to the supply chain of the automotive industry in Europe and America. The orders of the industry arise from the bottom of the supply chain i. e. , from the consumers and go through the automakers and climbs up until the third tier suppliers. However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Automakers in India are the key to the supply chain and are responsible for the products and innovation in the industry. The description and the role of each of the contributors to the supply chain are discussed below. Third Tier Suppliers: These companies provide basic products like rubber, glass, steel, plastic and aluminium to the second tier suppliers. Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier Suppliers and OEMs( Original Equipment Manufacturers). They work on designs provided by the first tier suppliers or OEMs. They also provide engineering resources for detailed designs. Some of their services may include welding, fabrication, shearing, bending etc. First Tier Suppliers: These companies provide major systems directly to assemblers. These companies have global coverage, in order to follow their customers to various locations around the world. They design and innovate in order to provide â€Å"black-box† solutions for the requirements of their customers. Black-box solutions are solutions created by suppliers using their own technology to meet the performance and interface requirements set by assemblers. First tier suppliers are responsible not only for the assembly of parts into complete units like dashboard, breaks-axel-suspension, seats, or cockpit but also for the management of second-tier suppliers. Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After researching consumers’ wants and needs, automakers begin designing models which are tailored to consumers’ demands. The design process normally takes five years. These companies have manufacturing units where engines are manufactured and parts supplied by first tier suppliers and second tier suppliers are assembled. Automakers are the key to the supply chain of the automotive industry. Examples of these companies are Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main focus of these companies. Dealers: Once the vehicles are ready they are shipped to the regional branch and from there, to the authorised dealers of the companies. The dealers then sell the vehicles to the end customers. Parts and Accessory: These companies provide products like tires, windshields, and air bags etc. to automakers and dealers or directly to customers. Service Providers: Some of the services to the customers include servicing of vehicles, repairing parts, or financing of vehicles. Many dealers provide these services but, customers can also choose to go to independent service providers. Indian automotive companies †¢Chinkara Motors: Beachster, Hammer, Roadster 1. 8S, Rockster, Jeepster, Sailster †¢Hindustan Motors: Ambassador †¢ICML: Rhino Rx †¢Mahindra: Major, Xylo, Scorpio, Bolero, Thar, Verito, Genio †¢Premier Automobiles Limited: Sigma, RiO †¢San Motors: Storm Tata Motors: Nano, Indica, Indica Vista, Indigo, Indigo Manza, Indigo CS, Sumo, Venture, Safari, Xenon, Aria. Foreign automotive companies in India Vehicles manufactured or assembled in India †¢BMW India: 3 Series, 5 Series, X1. †¢Fiat India (in collaboration with Tata Motors): Grande Punto, Linea. †¢Ford India: Figo, Ikon, Fiesta, Endeavour. †¢General Motors India †¢Chevrolet: Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera. †¢Honda Siel: Jazz, City, Civic, Accord. †¢Hyundai Motor India:Santro, i10, i20, Accent, Verna Transform, Sonata Transform. †¢Land Rover:Freelander 2 †¢Maruti Suzuki: 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Versa, Eeco, Gypsy. †¢Mercedes-Benz India: C-Class, E-Class. †¢Mitsubishi[80] (in collaboration with Hindustan Motors): Lancer, Lancer Cedia, Pajero †¢Nissan Motor India: Micra. †¢Renault India:Fluence †¢Toyota Kirloskar: Etios, Corolla, Innova. †¢Volkswagen Group Sales India: †¢Audi India: A4, A6, Q5. †¢Skoda Auto India: Fabia, Laura, Superb, Yeti. †¢Volkswagen India: Polo, Vento, Jetta, Passat. Opel was present in India until 2006. As of 2011, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners. Vehicles brought into India as CBUs †¢Aston Martin: Vantage, Rapide, Virage, DB9, DBS, One-77. †¢Audi: A7, A8, S4, S6, S8, Q7, TT, R8, RS5. †¢Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur, Mulsanne. †¢BMW: 5 Series GT, 6 Series, 7 Series, X3, X5, X6, X6 M, M3, M5, M6 and Z4. †¢Bugatti: Veyron. †¢Chevrolet: Captiva. †¢Ferrari: California, 458 Italia, 599 GTB Fiorano, FF. †¢Fiat: 500, Bravo. †¢General Motors: Hummer H2, Hummer H3. †¢Honda: Civic Hybrid, CR-V. †¢Hyundai: Santa Fe. †¢Jaguar: XF, XJ, XK. †¢Koenigsegg: CCX, CCXR, Agera. †¢Lamborghini: Gallardo, Murcielago. †¢Land Rover: Discovery 4, Range Rover, Range Rover Sport. †¢Maserat: Quattroporte, GranTurismo, GranCabrio. †¢Maybach: 57 and 62. †¢Mercedes-Benz: CL-Class, GL-Class, M-Class, R-Class, CLS-Class, S-Class, SL-Class, SLK-Class, Viano, G-Class, SLS. †¢Mitsubishi: Montero, Outlander, Evo X. †¢Nissan: Teana, X-Trail, 370Z, GT-R. †¢Porsche: 997, Boxster, Panamera, Cayman, Cayenne, Carrera GT. †¢Rolls Royce: Ghost, Phantom, Phantom Coupe, Phantom Drophead Coupe. †¢Skoda: Yeti, Superb. †¢Suzuki: Grand Vitara, Kizashi. †¢Toyota: Prius, Camry, Fortuner*, Land Cruiser, Land Cruiser Prado. †¢Volkswagen: Beetle, Tiguan, Touareg, Phaeton. †¢Volvo: S60, S80, XC60, XC90. *Toyota Fortuner is imported as a CKD kit from Toyota Motor Thailand Commercial vehicle manufacturers in India Indian brands †¢Force †¢Hindustan Motors †¢Premier †¢Tata †¢AMW †¢Eicher Motors Joint Venture Brands †¢VE Commercial Vehicles Limited – VE Commercial Vehicles limited – A JV between Volvo Groups & Eicher Motors Limited. †¢Ashok Leyland- originally a JV between Ashok Motors and Leyland Motors, now 51% owned by Hinduja Group †¢Mahindra Navistar – a 51:49 JV between Mahindra Group and Navistar International †¢Swaraj Mazda – originally a JV between Punjab Tractors and Mazda, now 53. 5% owned by Sumitomo Group †¢Kamaz Vectra – A JV between Russia’s KaMAZ and the Vectra Group Foreign brands †¢Volvo †¢Tatra. †¢MAN – as a JV with Force Motors, makes MAN Trucks in India †¢Mercedes-Benz sells luxury buses in India †¢Daimler AG – manufactures BharatBenz, a brand of trucks based on the Fuso and the Mercedes Benz truck platforms, which Daimler AG owns †¢Scania †¢Iveco †¢Hino †¢Isuzu †¢Piaggio †¢Caterpillar Inc. Electric car manufacturers in India †¢Ajanta Group †¢Mahindra †¢Hero Electric †¢REVA †¢Tara International †¢Tata Opel was present in India until 2006. As of 2011, Opel only provides spare parts and vehicle servicing to existing Opel vehicle owners.. *Toyota Fortuner is imported as a CKD kit from Toyota Motor Thailand. Market Characteristics Market Size The Indian Automotive Industry after de-licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few years. The industry has attained a turnover of USD 35. 8 billion, (INR 165,000 crores) and an investment of USD 10. 9 billion. The industry has provided direct and indirect employment to 13. 1 million people. Automobile industry is currently contributing about 5% of the total GDP of India. India’s current GDP is about USD 650 billion and is expected to grow to USD 1,390 billion by 2016. The projected size in 2016 of the Indian automotive industry varies between USD 122 billion and UDS 159 billion including USD 35 billion in exports. This translates into a contribution of 10% to 11% towards India’s GDP by 2016, which is more than double the current contribution. Demand Determinants Determinants of demand for this industry include vehicle prices (which are determined largely by wage, material and equipment costs) and exchange rates, preferences, the running cost of a vehicle (mainly determined by the price of petrol), income, interest rates, scrapping rates, and product innovation. Exchange Rate: Movement in the value of Rupee determines the attractiveness of Indian products overseas and the price of import for domestic consumption. Affordability: Movement in income and interest rates determine the affordability of new motor vehicles. Allowing unrestricted Foreign Direct Investment (FDI) led to increase in competition in the domestic market hence, making better vehicles available at affordable prices. Product Innovation is an important determinant as it allows better models to be available each year and also encourages manufacturing of environmental friendly cars. Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be more inclined to use and replace cars. Also, increase in people with lesser dependency on traditional single family income structure is likely to add value to vehicle demand. Infrastructure: Longer-term determinants of demand include development in Indian’s infrastructure. India’s banking giant State Bank of India and Australia’s Macquarie Group has launched an infrastructure fund to rise up to USD 3 billion for infrastructure improvements. India needs about $500 billion to repair its infrastructure such as ports, roads, and power units. These investments are been made with an aim to generate long-term cash flow from automobile, power, and telecom industries. Price of Petrol: Movement in oil prices also have an impact on demand for large cars in India. During periods of high fuel cost as experienced in 2007 and first –half of 2008, demand for large cars declined in favour of smaller, more fuel efficient vehicles. The changing patterns in customer preferences for smaller more fuel efficient vehicles led to the launch of Tata Motor’s Nano – one of world’s smallest and cheapest cars. Key Competitors Tata Motors:Market Share: Commercial Vehicles 63. 94%, Passenger Vehicles 16. 45%. Tata Motors Limited is India’s largest automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility vehicle segments. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata Motors as has produced and sold over 4 million vehicles in India. Maruti Suzuki India: Market Share: Passenger Vehicles 46. 07% Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India’s largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. Since inception in 1983, Maruti Suzuki India has produced and sold over 10 million vehicles in India and exported over 500,000 units to Europe and other countries. The company’s revenue for the fiscal 2010-2011 stood over Rs 375,224 million and Profits After Tax at over Rs. 22,886 million. Hyundai Motor India:Market Share: Passenger Vehicles 14. 15% Hyundai Motor India Limited is a wholly owned subsidiary of world’s fifth largest automobile company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter. Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment, the Sonata Transform in the E segment. Mahindra & Mahindra: Market Share: Commercial Vehicles 10. 01%, Passenger Vehicles 6. 50%, Three Wheelers 1. 31% Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler segments directly. The company competes in the Light Commercial Vehicle segment through its joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles (including 44,533 three wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0. 6% over the previous year. Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was launched in South Africa. The company formed a new joint venture Mahindra Automotive Australia Pty. Limited, to focus on the Australian Market. Ashok Leyland: Market Share: Commercial Vehicles 16. 47% Against the backdrop of the sharp slump in demand for commercial vehicles, during 2008-09, Ashok Leyland registered sales of 47,118 medium and heavy commercial vehicles (M&HCV), 37. 5% less than in the previous year. This includes 16,049 M&HCV buses and 31,069 M&HCV trucks respectively, 8. 7% and 46. 3% less than in the previous year. Hero Honda Motors: Market Share: Two Wheelers 41. 35% Hero Honda has been the largest two wheeler company in the world for eight consecutive years. The company crossed the 15 million unit milestone over a 25 year span. Hero Honda sold more two wheelers than the second, third and fourth placed two-wheeler companies put together. Bajaj Auto: Market Share: Two Wheelers 26. 70%, Three Wheelers 58. 60% Bajaj Auto is ranked as the world’s fourth largest two and three wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Despite falling demand in the motorcycle segment, the company has succeeded in maintaining an operating EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 13. 6% of net sales and other operating income. From 1. 66 million motorcycles in 2007-2008, the company’s domestic sales fell by 23% to 1. 28 million units in 2008-2009. Key Success Factors The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India. Effective cost controls – Close relationship with supplies and goods distribution channels. Establishment of export markets – Growth of export markets Having an extensive distribution/collection network – Goods distribution channels Successful industrial relations policy – Ethical and tactical industrial relations Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles. Growth Potential: 1. Increasing demand for vehicles: Increase of disposal income ,easily availability of finance,invreasing consumer awareness and close linkage with global automobile trends. 2. Stable economic policies adopted by successive Governments: The Government of India has continuously made several reforms for the groeth of automobile sector in India. It has lowered the excise duties and have relaxed many policies to boost the local demand . Implemeentation of VAThas helped India to position itself as one of the leading low cost manufacturing sources . 3. Availability of low cost skilled manpower: The cost of quality manpower in India is one of the lowest in the world . Each year the huge number of engineering graduates are produced who provide their skill at comprising salaries . 4. Quality standards: Manufactured in India or â€Å"Made in India† brand is rapidly getting associated with quality. The Indian manufacturer have focussed on quality and most of the leading automobile manufacturer are ISO certified Key Challenges Faced by Indian Automobile Industry Indian auto industry is one of the most promising and growing auto industries across the world. But at this juncture the Indian auto industry is facing various challenges catering to the growing domestic market. Recently, SIAM (Society of Indian Automobile Manufacturers) organized an Annual Convention in association with the Ministry of Heavy Industries and Public Enterprises to discuss the current scenario of the auto industry as well as to define the key challenges faced by the industry. The meeting focused to pave a way to transform challenges into business opportunities and boost the status of automotive industry in India. Some of the key challenges discussed faced by auto industry are fuel technology and nurturing talented manpower. These challenges are explained below in detail: Fuel Technology: Technology is significant and needed to ignite the growth of auto industry. Whether it’s a two-wheeler or a car, technology drives the growth. The challenge of alternative fuel technology ensures a brighter vision of the auto industry in the country. The increasing environmental pollution has become a concern for manufacturers and all associated with the industry. All of them are struggling hard to come up with a holistic and integrated approach to reduce carbon dioxide emission. Some of the initiatives to reduce the level of automotive emission include introduction of fuel-efficient cars, obligatory periodic maintenance, and inspection of automotives, designing automotives with recyclable materials, use of alternative fuels like CNG, LPG, biodiesel, and introduction of electric and hybrid cars. Car manufacturer like Maruti Suzuki has already introduced the new concept of using recyclable substance for car production in its dazzling car Maruti Suzuki A-Star. After the production of Maruti Suzuki A-Star, the company thrives to apply the same concept in all its future car models. In addition, it is believed that the Bharat IV Emission Norms are stringent and are to become mandatory in the next couple of years. The growing industry is hunting for more advanced ways and measures to meet the stringent norms. Some of the cars and other automotives may even be phased out during that period. Nurturing Talented Manpower: Manpower and human resources has always been a key growth driver in any industry including the automobile industry. Though India has a vast pool of talented and skilled professionals, the country needs initiatives and support to treasure these resources to excel in all arenas of the industries. Automobile industry is no exception and highly skilled manpower will further become the most reliable source of competitive advantage across the global as well as Indian automobile industry. More than even before creativity, innovative ideas, and expertise in different areas have become an asset these days. Talking about cars, car designers infuse their creativity in their designed car models and that’s something which attracts car customers Further to that, the industry has to foster the talent for servicing and maintenance as well.