Current Trends in Economics, Business and Sustainability: Proceedings of the International Conference on Economics, Business and Sustainability (ICEBS 2023) 981993365X, 9789819933655

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Contributions to Environmental Sciences & Innovative Business Technology

J. Aloysius Edward K. P. Jaheer Mukthar Edwin Ramirez Asis K. Sivasubramanian Editors

Current Trends in Economics, Business and Sustainability Proceedings of the International Conference on Economics, Business and Sustainability (ICEBS 2023)

Contributions to Environmental Sciences & Innovative Business Technology Editorial Board Members Allam Hamdan, Ahlia University, Manama, Bahrain Wesam Al Madhoun, Air Resources Research Laboratory, MJIIT, UTM, Kuala Lumpur, Malaysia Mohammed Baalousha, Department of EHS, Arnold School of Public Health, University of South Carolina, Columbia, SC, USA Islam Elgedawy, AlAlamein International University, Alexandria, Egypt Khaled Hussainey, Faculty of Business and Law, University of Portsmouth, Portsmouth, UK Derar Eleyan, Palestine Technical University—Kadoori, Tulkarm, Palestine, State of Reem Hamdan , University College of Bahrain, Manama, Bahrain Mohammed Salem, University College of Applied Sciences, Gaza, Palestine, State of Rim Jallouli , University of Manouba, Manouba, Tunisia Abdelouahid Assaidi, Laurentian University, Sudbury, ON, Canada Noorshella Binti Che Nawi, Universiti Malaysia Kelantan, Kota Bharu, Kelantan, Malaysia Kholoud AL-Kayid, University of Wollongong, Leppington, NSW, Australia Martin Wolf, Center for Environmental Law and Policy, Yale University, New Haven, CT, USA Rim El Khoury, Accounting and Finance, Notre Dame University, Loauize, Lebanon

Editor-in-Chief Bahaaeddin Alareeni, Middle East Technical University, Northern Cyprus Campus, Kalkanlı, KKTC, Türkiye

Contributions to Environmental Sciences & Innovative Business Technology (CESIBT) is an interdisciplinary series of peer-reviewed books dedicated to addressing emerging research trends relevant to the interplay between Environmental Sciences, Innovation, and Business Technology in their broadest sense. This series constitutes a comprehensive up-to-date interdisciplinary reference that develops integrated concepts for sustainability and discusses the emerging trends and practices that will define the future of these disciplines. This series publishes the latest developments and research in the various areas of Environmental Sciences, Innovation, and Business Technology, combined with scientific quality and timeliness. It encompasses the theoretical, practical, and methodological aspects of all branches of these scientific disciplines embedded in the fields of Environmental Sciences, Innovation, and Business Technology. The series also draws on the best research papers from EuroMid Academy of Business and Technology (EMABT) and other international conferences to foster the creation and development of sustainable solutions for local and international organizations worldwide. By including interdisciplinary contributions, this series introduces innovative tools that can best support and shape both the economical and sustainability agenda for the welfare of all countries, through better use of data, a more effective organization, and global, local, and individual work. The series can also present new case studies in realworld settings offering solid examples of recent innovations and business technology with special consideration for resolving environmental issues in different regions of the world. The series can be beneficial to researchers, instructors, practitioners, consultants, and industrial experts, in addition to governments from around the world. Published in collaboration with EMABT, the Springer CESIBT series will bring together the latest research that addresses key challenges and issues in the domain of Environmental Sciences & Innovative Business Technology for sustainable development.

J. Aloysius Edward · K. P. Jaheer Mukthar · Edwin Ramirez Asis · K. Sivasubramanian Editors

Current Trends in Economics, Business and Sustainability Proceedings of the International Conference on Economics, Business and Sustainability (ICEBS 2023)

Editors J. Aloysius Edward Faculty of Commerce and Management Kristu Jayanti College Autonomous Bengaluru Bangalore, Karnataka, India Edwin Ramirez Asis Universidad Senor de Sipan Chiclayo, Peru

K. P. Jaheer Mukthar Department of Economics Kristu Jayanti College Autonomous Bengaluru Bangalore, Karnataka, India K. Sivasubramanian Department of Economics Kristu Jayanti College Autonomous Bengaluru Bangalore, Karnataka, India

ISSN 2731-8303 ISSN 2731-8311 (electronic) Contributions to Environmental Sciences & Innovative Business Technology ISBN 978-981-99-3365-5 ISBN 978-981-99-3366-2 (eBook) https://doi.org/10.1007/978-981-99-3366-2 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore

Contents

Adaption of Livelihood Practices by Hawkers During COVID 19 Jolt – An Empirical Study with Special Reference to the Tenkasi Town . . . . . . . . L. Joshua Paul Moses and B. Pavala Kumar Role of IoT in Business Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A. V. Karthick and S. Gopalsamy Moderating Effect of Board Size and Board Independence Between Women on Board and ESG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. G. Thirumagal, Abhijeet Tirkey, and S. Suresh A Review on Economic Assessment on Solid Waste Management . . . . . . . . . . . . E. Eswara Reddy and Tinto Tom The Impact of Marital Status on Female Labour Force Participation Rate – A Study on Bangalore City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nikitha Kishore

1

9

16

26

36

Welfaronomics of Price Discrimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K. Nupur Temani and C. V. Suganthamani

44

A Case Study on the Buying Behaviour of Online Customers in Bangalore . . . . . V. Raju

54

The Financial Intermediation of the Shabari Tribal Finance and Development Corporation Limited, Nashik (STFDC) in Welfare of Scheduled Tribe Community of State of Maharashtra . . . . . . . . . . . . . . . . . . . . . Mahendra R. Agale and Umesh S. Bharatiya

66

“Macro-economic Impact of COVID 19: Case Story of Trade-off Between Industrial Revolution and Traditional Workforce in Bangladesh” . . . . . . . . . . . . . S. Jobayear Ahmed

74

Impact of Climate Change on Agriculture Sector in Kerala with Special Reference to Champakulam and Ramankary Gramapanchayath . . . . . . . . . . . . . . Deepa K. Thomas

92

Construction of Optimal Portfolio Using Sharp Index Model with Special Reference to Banking, Pharmaceutical and FMCG Sectors . . . . . . . . . . . . . . . . . . 100 S. Balaji and J. Aloysius Edward

vi

Contents

Growth of OTT Platforms in India During the Covid–19 Lockdown . . . . . . . . . . . 108 Christy Thomas and M. M. Nirmala Economic Dimension of Primary Health Centres in Kerala: Understanding the Kerala Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Sherin George Industry 4.0 - It’s Impact and Scope Towards Sustainable Business Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 M. Mary Josephine and M. Muninarayanappa Indian Rupee: Is It Unpredictable? A Regression Model to Predict the Value of the Indian Rupee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Bijin Philip, Kaushal Bajaj, and Wanshika Pareek Food Sustainability in India – A Challenge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 Pratishtha Pandey and Meenakshi Panchal Economics of Unaided Schools in Kerala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 T. Sindhu Krishnadas Darken Phase of MSME Due to Covid 19 in India . . . . . . . . . . . . . . . . . . . . . . . . . . 162 P. Remmiya Rajan and Adithya Dinesh Consumer Attitudes Towards Organic Food Products in Tirunelveli District . . . . 168 M. Esakkidevi and S. Mabel Latha Rani Assessing Effectiveness of Factor Investing Strategy in Generating Alpha Returns During Covid-19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180 J. K. Singh, Aanchal Gupta, and Cherry Uppal An Overview of Pay Disparity and Gender Gap Among Selective IT Employees in Urban Bangalore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185 S. J. G. Preethi and Kumar Rajat Verma Overcoming the Challenges of Establishing Islamic Banks in India: A Case Study of Al-Arafah Islamic Investment Bank . . . . . . . . . . . . . . . . . . . . . . . 192 Anitha F. N. D’Souza and H. Sai Sundar A Study on Utility and Feasibility of Digital Marketing Tools with Lead Acquisition, Lead Nurturing and Client Engagement . . . . . . . . . . . . . . . . . . . . . . . . 198 U. Prasanna Kumar and R. Arthi

Contents

vii

A Detailed Study on Consumer Intention on Usage and Preference on Using Taxi Aggregator Apps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 K. Nithin and P. C. Gita A Study of Gender Budgeting in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Roli Misra and Vishnu Kumar A Study on Business Resilience of MSME’s with Special Reference to Pandemics/Crises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227 K. Dhanalakshmi and Srihari Jwalapuram A Study on CBDCS and e-Rupee with Special Reference to e-Yuan . . . . . . . . . . . 239 Sharon Francis Joseph and J. Peter Leo Deepak A Study on Reskilling and Networking on Linkedin on Employee Recruitment Success and Career Advancement . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 Dushyanth Ganapathy and Stephen Deepak Assessment on Enhancing Business Customer Acquisition for Autonomous Mobile Robots (AMR) in Industrial Automation and Robotics Industry . . . . . . . . 257 Mohammed Haris Didat Khattal and A. John William Impact of Covid 19 on Oil Prices, Gold Prices and Indian Stock Market . . . . . . . 265 Binu Joseph Impact of Russia-Ukraine War on Metal Exchange . . . . . . . . . . . . . . . . . . . . . . . . . 273 Kenneth K. John and Justin Nelson Michael Problem of Environmental Sustainability: With the Special References on Houseboat Tourism Industry in Kerala . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 M. J. Aswathy Servqual Analysis of Customer Experience on Day-Care Facilities in Global Centre Institute, Sharjah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 Gopika Krishna Gopalakrishnan and D. Ravindran Significance of Employee Engagement and Succession Planning on Organizational Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299 Reon George and Sheeja Krishnakumar The Economic Impact of Fertilizer Application in Floriculture . . . . . . . . . . . . . . . 306 S. Prasanna Bhoopathy and Neelu S. Kumar The Effect of Capital Structure on the Profitability of FMCG Companies . . . . . . 313 D. Eshwari and M. K. Baby

viii

Contents

A Study on User Experience of Amazon Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 Hebin Simon Kuttikaden and Joseph Charles Tamilmaran Daniel Author Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329

About the Editors

Dr. J. Aloysius Edward, is a dean, the faculty of Commerce and Management and a professor in School of Management (MBA programme), Kristu Jayanti College, Autonomous, Bangalore. Further, Prof. Aloysius coordinates quality assurance activities of the college as the director of Internal Quality Assurance Cell (IQAC) of the college, and he spearheaded the 3 cycles of accreditations of NAAC as the head of the Core Committee. Under his directorship, the college got accredited with A++ grade by NAAC with CGPA of 3.78 out of 4 on 21 December 2021 which is the second highest in the country and the highest score in Karnataka state. Dr. Aloysius has spearheaded the International Accreditation of MBA programme of the college by ACBSP (Accreditation Council of Business Schools and Programmes) USA as the champion. Dr. Aloysius has been nominated as the member of Implementation of NEP 2020 in the State of Karnataka–Faculty of Commerce and Management by the Govt of Karnataka on 19 June 2021. He has was the resource person for more than 25 national seminars on ‘NEP 2020 Curriculum Framework and its Implementation’ and addressed more than 1000 teachers on NEP 2020. He presented the paper on ‘Systematization of Internal Quality Assurance System–Kristu Jayanti College, Bangalore: A Case Study’ in International Conference on ‘Quality Assurance—Foundation for Future’ in Madrid, Spain, organized by INQAAHE in April 2011 besides more than 35 papers published and presented in various national and international journals and conferences excluding five books. Prof. Aloysius served as a resource person in various national and international conferences and workshops across the country including Refresher Courses for the teachers. International and National Awards Prof Aloysius Edward J. received the first ever ‘Best Teacher Award’ in 1999 by St. Joseph’s College Society, Jakhama, Nagaland. Dr. Aloysius Edward was honoured with the ACBSP’s Teaching Excellence Award 2018 from Region 10 of ACBSP at Kansas City, USA, on 08 June 2018 Missouri State, USA, during the International Conference by the Accreditation Council for Business Schools and Programmes (ACBSP), USA. The award was for Region 10 which comprised of 16 countries in South and Southeast Asia including India. Prof Aloysius received Dr. APJ Abdul Kalam Life Time Achievement National Award for achieving outstanding excellence in the field of teaching, research and publications on 24 February 2018 from International Institute for Social and Economic Reforms. Dr. Aloysius also received the ‘Principal Excellence Award 2020’ by Higher Education Forum—Gujarat Chapter. Prof. Aloysius organized more than 20 international conferences including two sponsored by AICTE, 15 national conferences/workshops including conferences highlighting various quality parameters in higher education including two conferences sponsored by

x

About the Editors

NAAC, more than 30 MDPs and FDPs as the conference convenor/programme coordinator/programme chair. He is the resource person for more than 100 national/international conferences, workshops, and FDPs including 30 FDPs on OBE. Prof. Aloysius is part of conducting training programmes for college and school teachers on ‘Psycho-social understanding of current generation learners’. He conducted more than 55 training programmes across the country in various schools and colleges. He conducts training programmes for plywood industries personnel on management concepts and cost reduction techniques. Moreover, Prof. Aloysius assists institutions in setting up of the Internal Quality Assurance Systems and grant of autonomous status and 16 institutions benefited so far. Dr. Aloysius is an external examiner of University of West of Scotland, Scotland, for the MBA International Business and Finance, and he is a member of BoS and BoE in Bangalore University for M.Com programme and a member of BoS, Management Studies in Christ University and Symbiosis University, Pune. He is the member of editorial board in World Journal of Management and Economics and Empirical Economic Letters. Prof. Aloysius is the vice chair and a member Relations Committee, ACBSP, USA. He is a member in Innovation Forum of Confederation of Indian Industry (CII), a member of Industry-Institute Panel of Bangalore Chamber of Industry and Commerce (BCIC) and is also a member in HR/IR Panel and Manufacturing Excellence Panel of CII. Dr. Aloysius has 29 years of teaching and corporate experience, and he specializes in finance, accounting and taxation. Prof Aloysius is a consultant for quality assurance and improvement and is an advisor for personal investment and tax planning. Dr. Aloysius has travelled extensively. He visited the United States of America, England, Scotland, Ireland, Japan, China, Hong Kong, Malaysia, Singapore, Dubai, Russia, Turkey, Thailand, Italy and Spain as part of international academic exposure. K. P. Jaheer Mukthar is a research faculty in the Department of Economics at Kristu Jayanti College Autonomous, Bengaluru, India. With a strong focus on technology, business and sustainability, Jaheer Mukthar K. P.’s research contributions have made a significant impact in these areas. Jaheer Mukthar K. P. has an impressive publication record, with 42 papers published in indexed journals. His research has been recognized and awarded at various international conferences, including the 13th GIMAC conference in Turkey and the ICBT 2022 conference in Turkey, among others. His excellence in research has also earned him Best Paper Awards from renowned conferences, such as the 6th Equal Opportunity Conference in Bahrain. In addition to his publications and conference contributions, Jaheer Mukthar K. P. is also an esteemed guest editor for three books for Springer Nature, showcasing his expertise in the field. He is also serving as an associate editor for the Academy of Marketing Studies Journal and the International Journal of Business Ethics and Governance, further demonstrating his commitment to scholarly excellence. Jaheer Mukthar K. P.’s reputation as a distinguished academic extends to his role as an Editorial Review Board member for six Scopus-indexed journals, including the International Journal of E Business Research, Sage Open, JOEUC, IJABIM, and MAJCAFE, among others. His research, publications, and editorial roles demonstrate his commitment to academic excellence and his significant contributions to the scholarly community.

About the Editors

xi

Edwin Ramirez Asis is a senior professor at the Universidad Nacional Santiago Antúnez de Mayolo, Huaraz, Perú, has a PhD management and is a research professor recognized by the National Council of Science, Technology and Technological Innovation, Peru. He has 15 years of experience in teaching and learning, as well as writing scientific papers and has ten articles published and indexed in Scopus and Web of science. His research interest is information society, innovation in microfinance and digital marketing. He is currently the director of the School of Administration at the Faculty of Administration and Tourism and a research professor, Administration and Tourism, Santiago Antúnez de Mayolo National University. Email ID: [email protected] Dr. K. Sivasubramanian is currently working as an assistant professor, Department of Economics, Kristu Jayanti College, Autonomous, Bengaluru. He published 27 research papers in various indexed journals. He also received three Best Research Paper awards from various international conferences. He is also a reviewer of various Scopus-indexed international journals.

Adaption of Livelihood Practices by Hawkers During COVID 19 Jolt – An Empirical Study with Special Reference to the Tenkasi Town L. Joshua Paul Moses1(B) and B. Pavala Kumar2 1 Department of Management Studies, VHNSN College (Autonomous), Virudhunagar, India

[email protected] 2 Department of Business Administration, VHNSN College (Autonomous), Virudhunagar, India

Abstract. The outburst of COVID pandemic affected the economy of various nations across the globe and lives of billions of people. The pandemic virus took away lives of thousands of people. Despite its adverse effect on health of many people, it also affected the livelihood of each family across the Nation. The economy of each country was severely disturbed due to various reasons of restrictions during the pandemic. This study tried to understand the ill effects of Lockdown on the livelihood of street vendors. The crisis faced during covid-19 situation by the hawkers of Tenkasi town was studied. Keywords: COVID · Pandemic · Livelihood · Traumatic problems

1 Introduction Ramification in Livelihood Every street trader supports an average of three others as employees or partners or workers on commission with whooping turnover of Rs 80 crores a day. The entrepreneur on the street may have been the proprietor, a lessee, an employee or working for a commission. They are all autonomous persons. All of them earned a livelihood, bare but sufficient. The capital and earnings of the workers from the informal sector has been worn out in trying to feed themselves during the extended lockdown period. Vendors were in need to resume their selling to make their survival and the government had to take steps to begin to reopen markets and allow vendors back on the streets during the partial lockdown. Livelihood promotions need to take place for the vendors including those selling essential and non-essential goods. The lock down and keeping oneself away from others had been hard for any individual during lock down. Humans being a social animal need interaction, care and affection from another individual in domestic and official front. The limitation to interact with others had literally caused many psychotic disorders among the individuals. Despite these social bonding reasons, the financial constraints during the lock down due to limitations in the working hours and travel have been major reasons for the arousal of psychotic symptoms in the street vendors. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 1–8, 2023. https://doi.org/10.1007/978-981-99-3366-2_1

2

L. Joshua Paul Moses and B. Pavala Kumar

2 Need for the Study The Town Vending Committees (TVCs) were supposed to start surveying and registering vendors before the subsequent lockdown. Making efforts to survey and register more vendors for access to government benefits has been tedious for the vendors. The real problems of vendors were not only to survive the financial draught but to make their livelihood. The street vendors form the one third of the unorganized retail sector.

3 Statement of the Problem The informal sector faced a deadly punch during the lockdown. The lockdown had closed the one of biggest segment of the self employed which represents the harnessed entrepreneurial spirit of India – street vendors, hawkers, itinerant sellers. People engaged in the business of selling on the streets, in the metros, in small towns, in rural hubs accounted to four crores according to the National Federation of Hawkers across India. The shutdown of 20,000 long-distance and suburban trains across India has ended up in vanish of 70–80 lakhs vendors who sold everything, from food to flashlights. The economic crunch has caused too many havoc in the livelihood among the street vendors. This has resulted in the psychotic disturbances in the personal life of hawkers.

4 Research Gap As the covid-19 became a deadly disease many countries announced and asked the people to be quarantined their selves. Indian Government also introduced many conditions and rules to control the disease. As a part of this all the stores were closed and many restrictions were made for them like reducing business time, following hygienic activities in the store. By this many hawkers were affected. As a result their sale is stringed. This study deals with the subject related to the influence of pandemic lockdown on livelihood of hawkers in Tenkasi district. In this study we see about the factors which are responsible for the impact of livelihood of the hawkers during the pandemic situation.

5 Objectives of the Study • To study the crisis encountered by the hawkers during covid-19 situation. • To identify the factors that causes traumatic problems in the hawkers. • To understand the means and methods adopted by the hawkers.

6 Scope of the Study In this research, we can find about the problem faced by the hawkers during the COVID pandemic time which shook the livelihood of the hawkers. This study has more scope because this study is related to current topic which is more complicated to all the countries as the covid-19 is a disease which is reason for more deaths in the previous years. So it is necessary to know the livelihood of the local vendors.

Adaption of Livelihood Practices by Hawkers During COVID 19 Jolt

3

7 Review of Literature Abi Adams-Prassl et. al. discussed in their research paper on evidence from the UK, US and Germany showing impact of COVID-19 on labor market differ considerably across countries. German Economy having a short-time work scheme was less likely to be affected by the crisis. Workers in occupations which couldn’t be done from home were likely to have reduced their work hours, lost their jobs and suffered falls in earnings. Less educated workers and women were raw victims to the economic crisis. Anish Agarwal et. al. analyzed the need of shutting down the economy helped in fighting the pandemic situation. They also analyzed the possibility of getting similar returns when partially opening up the economy after the first global local down. The authors tried to understand the effects of the various interventions that could be adopted and its implications on health and economy. Akesson, J. et. al. studied the people’s belief on the effect of COVID on health. The study brought out three important empirical findings. The study group, fed with experts’ opinion, dramatically overestimated the dangerousness and infectiousness of COVID-19 relative to expert opinion. The study group with partial access to expert information corrected their beliefs about the virus. Third group who were less willing to take pro-tective measures believed that COVID-19 was means to the “fatalism effect”.

8 Tools and Analysis The Mean Score analysis was used in to find the factors which caused a fear or traumatic problems among the hawkers and Garret ranking method was used to find the major traumatic symptoms experienced by the Hawkers. Mean Score Analysis Mean Score analysis was carried out to find the factors which caused a fear or traumatic problems among the hawkers (see Table 1). Calculation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

(80*5) + (40*4) + (20*3) + (5*2) + (5*1) = 635 0.282 (70*5) + (30*4) + (30*3) + (18*2) + (2*1) = 598 0.266 (50*5) + (80*4) + (10*3) + (8*2) + (2*1) = 618 0.275 (40*5) + (90*4) + (12*3) + (4*2) + (4*1) = 608 0.270 (40*5) + (70*4) + (20*3) + (10*2) + (10*1) = 570 0.353 (55*5) + (65*4) + (12*3) + (18*2) + (2*1) = 589 0.262 (132*5) + (4*4) + (4*3) + (6*2) + (4*1) = 704 0.313 (43*5) + (100*4) + (4*3) + (2*2) + (1*1) = 632 0.281 (50*5) + (80*4) + (12*3) + (6*2) + (2*1) = 620 0.276 (81*5) + (52*4) + (10*3) + (4*2) + (3*1) = 654 0.291 (74*5) + (60*4) + (10*3) + (3*2) + (3*1) = 649 0.288 (66*5) + (71*4) + (5*3) + (5*2) + (3*1) = 642 0.285 (73*5) + (65*4) + (12*3) + (8*2) + (2*1) = 679 0.302

4

L. Joshua Paul Moses and B. Pavala Kumar Table 1. Factors causing psychological problems

S.No.

Particular

1 2

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Pandemic time 80

40

20

5

5

Price determination

70

30

30

18

2

3

Fear of people

50

80

10

8

2

4

Fear about covid-19

40

90

12

4

4

5

Lack of goods

40

70

20

10

10

6

Lack of man power

55

65

12

18

2

7

Police restriction

132

4

4

6

4

8

Government rules

43

100

4

2

1

9

Timing of business

50

80

12

6

2

10

People mindset 81

52

10

4

3

11

Price of raw material

74

60

10

3

3

12

Health issues

66

71

5

5

3

13

Lack of transportation

73

65

12

8

2

14

Environment

75

65

11

5

4

15

Hygiene

68

71

9

1

1

14. (75*5) + (65*4) + (11*3) + (5*2) + (4*1) = 682 0.303 15. (68*5) + (71*4) + (9*3) + (1*2) + (1*1) = 654 0.291 Interpretation From the above it is clear that variable Police restriction has the highest mean score of 0.313 compared to other factors. Following this, Environment has second high mean score with 0.303. The restriction of the Police caused major traumatic problems among the Hawkers. Garret Ranking The psychological problems faced by Hawkers were analyzed using Garret ranking method. The respondents were requested to rate the various issues such as depression, irritability, criticizing, anxiety, over sensitive, feeling stress and confusion in the order of

Adaption of Livelihood Practices by Hawkers During COVID 19 Jolt

5

most/frequent occurrence. Garrets ranking tool was used in determining the respondents’ assignment of rank for the traumatic problems experienced by the Hawkers. STEP 1: Ranking given by for the problems faced by the Hawkers are given below (see Table 2). Table 2. Ranking of respondents opinion to problems in their livelihood S.No

Factors

Rank

Total

1

2

3

4

5

6

7

1

Depression

66

26

25

16

11

1

5

150

2

Irritability

1

15

44

25

43

7

7

150

3

Criticizing

11

31

19

16

34

27

12

150

4

Anxiety

5

9

5

34

31

46

20

150

5

Oversensitive

13

10

13

24

12

31

47

150

6

Feeling stress

20

33

16

12

6

30

33

150

7

Confusion

26

27

27

22

15

7

26

150

STEP 2: The ranks given by the respondents were converted into percentage using the below formula. The Garrett’s table value was obtained for each percent position using Garrett’s table (see Table 3). Table 3. ... Rank

Calculation

Percentage

Garrett’s Table Value

1

=100*(1 − 0.5)/ 7

7.14

78

2

=100*(2 − 0.5)/ 7

21.42

65

3

=100*(3 − 0.5)/ 7

35.71

57

4

=100*(4 − 0.5)/ 7

50

50

5

=100*(5 − 0.5)/ 7

64.28

43

6

=100*(5 − 0.5)/ 7

78.57

31

7

=100*(5 − 0.5)/ 7

92.85

21

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L. Joshua Paul Moses and B. Pavala Kumar

Formula. Percent position = 100(Rij - 0.5)/Nj Rij = rank given for the i variable by the j respondent Nj = Number of variables ranked by the j respondent

Table 4. ...

Adaption of Livelihood Practices by Hawkers During COVID 19 Jolt

7

STEP 3: Summation of the scores was worked out for each rank column and mean scores was calculated by dividing the total score by the number of the respondents (see Table 4). The ranks were given 1,2,3,4,5,6,7 in the descending order of mean score to obtain the final ranking (see Table 5). Table 5. Ranking of Traumatic problems experienced by hawkers S.No.

Factors

Total score

Average

Rank

1

Depression

9736.48

64.48

1

2

Confusion

7882.2

52.2

2

3

Irritability

7698.98

50.98

3

4

Feeling stress

7396.98

48.98

4

5

Criticizing

7355.71

48.71

5

6

Anxiety

6165.83

40.83

6

7

Over sensitive

6109.46

40.46

7

Interpretation It is observed that from the problems, depression has been ranked first, Confusion has been ranked second, Irritability is in third position, Feeling stressed in fourth position, Criticizing ranked as the fifth, Anxiety is in 6th position, Over sensitive is in 7th position. Findings It is clear that variable Police restriction has the highest mean score of 0.313 compared to other factors which was the reason to reason to cause most of the traumatic problems. The major problems faced by them were depression and confusion while anxiety was ranked last by the hawkers. Suggestions and Conclusion In this study, the pandemic situation plays a vital role in impact of livelihood of hawkers. Sales volume of them also affected a lot in the covid-19 situation. Government did not take necessary steps to help the hawkers to overcome the crisis faced by them during the pandemic situation. This study reveals the role of COVID-19 on the livelihood of hawkers. Livelihood of hawkers could have been improved by helping them with proper guidance and emotional support along with the proper financial assistance.

References Adams-Prassl, A., Boneva, T., Golin, M., Rauh, C.: April 23. Inequality in the impact of the corona virus shock: evidence from real time surveys [Text]. https://www.inet.econ.cam.ac.uk/ working-paper-pdfs/wp2018.pdf (2020)

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Agarwal, A., Alomar, A., Sarker, A., Shah, D., Shen, D., Yang, C.: Two burning questions on covid-19: did shutting down the economy help? Can we (partially) reopen the economy without risking the second wave? In Papers (2005.00072; Papers). arXiv.org. https://ideas.repec.org/p/ arx/papers/2005.00072.html (2020) Akesson, J., Ashworth-Hayes, S., Hahn, R., Metcalfe, R.D., Rasooly, I. Fatalism, beliefs, and behaviors during the covid-19 pandemic (Working Paper No. 27245; Working Paper Series). National Bureau of Economic Research. https://doi.org/10.3386/w27245 (2020)

Role of IoT in Business Sustainability A. V. Karthick1(B) and S. Gopalsamy2 1 Department of Computational Logistics, Alagappa University, Karaikudi, India

[email protected] 2 Department of International Business, Alagappa University, Karaikudi, India

Abstract. The application of Big Data, Artificial Intelligence, Advanced Robotics Technology and their interconnectedness for industrial process is known as ‘smart business manufacturing’ which uses these technologies to improve industrial performance and optimize the energy and workforce needs. The Internet of Things (IoT) is a current development in computer science, information technology and advanced commercial manufacturing technology that is changing how manufacturing organizations manufacture from digital to intelligent. In the recent years incorporating the virtual reality technology is used for smart business manufacturing process. It is significant in the perspective of intelligent manufacturing to build a smart business based on network technologies and business manufacturing in order to accomplish advanced manufacturing. The adoption of smart factories should also take into account industrial needs as well as the current state of affairs. Because production has diverse properties, there are still many technological fields and information field needed for overcoming the challenges that are resolved in order to speed up the adoption of business sustainability. The advantages of traditional manufacturing enterprises have been declining as a result of the new challenges. Therefore, compared to other high technology disciplines, intelligent manufacturing technology receives far greater attention from industrialized countries. Three strategies have been put forth by China Manufacturing 2025, Europe 2020 Strategy and Industry 5.0 Strategy. The pace of reindustrialization and manufacturing reflow has sped up in the United States. Due to its profound and lasting effects on global production in the future, the development of intelligent manufacturing has garnered attention. Keywords: IoT · manufacturing · business · technology · sustainability

1 Introduction The adoption of cutting-edge technologies into the manufacturing sector, including the Internet of Things (IoT), wireless sensor networks, big data, cloud computing, embedded systems, and mobile Internet, has sparked the fourth industrial revolution. As a result, the German government’s “High-Tech Strategy 2020 Action Plan” included a strategic effort with the name “Industries 4.0” that was proposed and adopted. Similar concepts were also presented by other major industrialized nations, such as “Industrial Internet” from the United States and “Internet Plus” from China. The Industries 4.0 © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 9–15, 2023. https://doi.org/10.1007/978-981-99-3366-2_2

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defines production-oriented Cyber-Physical Systems (CPS) that integrates manufacturing facilities, warehousing systems, logistics, and even social requirements in order to build the global value creation networks.

2 Review of Literature Information network and intercompany value chain are combined in a research programme for integrating significant model-driven engineering techniques in manufacturing for smart factories. The technological underpinning is a technology vision and design of a smart factory in the petrochemical industry. Highlights the success factors in that must be present for the linked smart factory to be successfully introduced. Describe a new work profile for employees and thoroughly discuss the numerous learning modules with their unique learning aims and mapping scenarios in order to present a diversity of learning modules for the smart factory in Industry 4.0. (Shiyong Wang et al., 2016) in their paper they combine IWNs, the cloud, and fixed or mobile terminals with smart artefacts including devices, goods, and conveyors. It provides a framework for a smart factory that combines smart shop-floor items with an industrial network, the cloud, and supervisory control terminals. To build a selforganized manufacturing system, sophisticated negotiation mechanisms and distributed self-decision making are carefully built. For instance, Chen and Muraki offer a methodology to improve online planning and controlling systems by selecting the appropriate parameters. A collection of use cases for applying fuzzy logic features to a variety of production challenges is provided along with the software application that was designed to help plan and execute work tasks more effectively. The self-programming software that is intended to serve as the basis of an autonomous plug-and-play manufacturing system is also covered. Here, the authors frequently attempt to automate particular tasks by entrusting the required work to computer models and optimise production procedures through the deft merging of generated data and software. They typically use the term “smart business architecture” to describe a more comprehensive view of software-based digital production.

3 Technologies for Business Sustainability The important term Cyber-Physical Systems (CPS) first appeared in the USA in 2006. If a system is used for communication and discrete information processing, it is given the suffix “Cyber.” The real systems are additionally referred to as “physical” systems. This shows that the CPS is independent and can establish itself and expand on its own. Another noteworthy characteristic of the CPS is its capacity to connect via open, global information networks like the Internet. This enables systems to connect at any time, alter, end, and rebuild their connections while in use. Anywhere in the CPS, data, information, and services are accessible and can be used. CPS can refer to things, products, gadgets, structures, manufacturing plants, or logistical components that have embedded systems. Microprocessors or pocket-sized computers are embedded systems. They play a major role in the implementation of CPS. The corresponding system is managed, regulated or controlled by merging elements from the hardware and software

Role of IoT in Business Sustainability

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worlds. The adaptable and intelligent systems mentioned above are made possible by this technology. To operate intelligent manufacturing plants, a production environment needs Cyber-Physical Production Systems (CPPS). The CPPS’s job is to direct production adjustments and coordinate each CPS individually. The three main sorts of the internet can be connected with the aid of this platform. On the human internet, social networks are the primary means of communication. Additionally, there are the Internet of Things and Services previously noted by (Wang, Q. Zhu et al., 2020). A smart factory must have cloud computing solutions. Here, numerous IT benefits are made accessible over the Internet in the form of customizable, needsbased services. In a cloud approach, data or services are often outsourced to an internal or external service provider. These services always charge based on consumption. The authors of this paper (AV.Karthick et al., 2019) explained that there are three different service components. Infrastructure-as-a-service refers to the provision of computation, storage, and network capacity by a cloud provider. (Frank Herrmann, 2018) in this article explained a product that will be produced with an automatically readable data carrier is called a “digital product memory,” and it contributes to a completely decentralized manufacturing environment. Products thus become information carriers in and of themselves. Independent of the server systems, the pertinent data is transferred to the processing devices. A crucial step toward autonomous, decentralized production and for personalized products is digital product memory. It makes it possible to continuously document products over the course of the product life cycle in Industrial IoT Hierarchical Structure.

4 Hierarchical Framework Structure of IoT in Business Arena The building techniques for factories with smart business practices are a topic of significant discussion. There are currently no established standards for the implementation of smart factories. (Nadege Benkamoun Benkamoun et al. 2014) created a class diagram to represent the manufacturing system from several perspectives of entities and functions. An examination of adaptive and flexible manufacturing is really made in their consideration of past works on the concept of the smart business. (Bai Lin et al., 2009) published architecture for cloud manufacturing systems designed specifically for aerospace conglomerates, making it simpler to organize manufacturing resources. The physical resource layer, the industrial network layer, the cloud layer, and the layer for supervision and control terminals make up the structure of a smart factory as seen in Fig. 1. Through the use of an industrial network, the physical resources have been turned into intelligent things that can communicate with one another. 4.1 Physical Resources Layer Among the physical resources were packing supplies, conveyor systems, and technologically advanced machinery. It was largely responsible for performing tasks like processing, watching, and assembly. The primary data source for the higher application was information about the manufacturing process. It encompasses a range of tangible items, such as intelligent machinery, products and conveyors.

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A. V. Karthick and S. Gopalsamy

Fig. 1. Hierarchical Structural framework of IoT in Business

4.2 Network Industrial Data Layer The network layer was used to connect the layers within the smart factory. Field bus, Modbus, and Ethernet were utilised to connect the controller and actuator in accordance with distributed control. To connect the numerous pieces of equipment, Ethernet and DDS were used to build the self-organized network. The connection between the hardware and the cloud platform was made possible by the combination of Ethernet and OPC UA, which permitted data transfer. In the smart factory, the network layer, which is governed by sensing and control, is crucial. Modern cloud computing technologies have made it necessary for data transfer, information exchange between intelligent devices, and the production of cloud platforms to use real-time and dependable network procedures. Modern information technologies and its associated technologies offer a crucial means of satisfying the aforementioned needs. In addition to facilitating communication between artefacts, it builds a vital infrastructure that connects the physical resource layer and cloud layer. The IWN has advantages over wired networks like industrial Ethernet given the unstable characteristics of the smart factory. 4.3 Cloud Intelligence Layer The cloud service layer included the cloud platform, a Hadoop-based service cluster system that provided data storage and computing capabilities for data applications. The packing line’s ontology model, which created a relationship between objects in the dimensions of structure and interaction, was constructed using the cloud platform. Another form of important infrastructure supports the smart factory. The term “Cloud” refers to a network of computers that provides tier-based services like Infrastructureas-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). Thanks to cloud computing, even the Internet can be virtualized as a huge resource pool. As a result, the cloud presents a particularly adaptable choice for important industrial requirements.

Role of IoT in Business Sustainability

13

4.4 Control/Terminal Layer for Supervision End-user devices including smartphones, desktop computers, and electrical boards were scattered throughout the terminal layer in the workshop, office, monitoring centre, and other locations. The output of cloud processing was shown using terminal devices, which also provided remote operation and maintenance monitoring. Additionally, clients could use the intelligent terminal to view the order in real time. It links people to the smart factory. It connects individuals to the smart factory. People can access the information offered by the cloud, apply a different configuration, or carry out maintenance and diagnosis, even remotely, using terminals like PCs, tablets, and mobile phones. 4.5 Application Demonstration The application of AI technology takes place over the Internet. Presently, AI uses big data as an input. As a result, in a future smart factory, all tools and equipment will be intelligent. Each device will operate as a separate data centre. They are able to diagnose themselves and make predictions. As they will be able to work together too remotely and intelligently control and dispatch machinery. No matter what the tool or instrument, their operations and upkeep procedures will be professional IoT based outsourced service providers helped passive repair become active repair. Neither the central control room nor staffs are needed for the method. Due to the secured wireless network in the smart factory, personnel are not required to interfere with the manufacturing process.

5 Technical Challenges in Adopting the IoT for Business Updating of new technology needs a huge investment burden and also to train the staffs, conversion of old to new technology is complex and challenging process. (Shiyong Wang et al., 2016) in this article discloses the human-centered, standards-based and semantically disconnected describe the smart factory. Through the entire production chain and beyond, it must be extremely adaptable, reconfigurable, dependable and accurately traceable. First is the factory workers have lack a common grasp of smart factory implementation and knowledge. They do not fully understand the benefits of smart factories. The use of highly automated, IT-driven manufacturing techniques is the second element of smart factories. The intercompany value chain and information must be horizontally integrated, and the manufacturing system, customized production, and product life cycle network must be vertically integrated. Third, a number of technical problems need to be overcome in order to speed up the adoption of smart factories. In particular, the implementation of smart factories requires high bandwidth networks and connectivity. And finally, there are structural issues. The smart factory has to achieve systematic process reuse and improve understanding of complex structures. In order to adopt a smart factory, the manufacturing process must be made more controllable, which will increase production. In order to establish a smart factory, it is necessary to improve production output, boost process controllability, and reduce manual involvement in the workshop. Intelligent hardware and software are needed to develop the smart business factories. These consist of manufacturing-specific big data analytics software, high bandwidth

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A. V. Karthick and S. Gopalsamy

IWN devices, integrated information systems, and intelligent machine controls. Prior to considering the off-the-shelf goods, however, the underlying technological issues need to be addressed. Manufacturing makes advantage of big data and its analytics. Future big data applications will be extremely beneficial. The utilisation of big data is now feasible because to the development of cloud computing, which enables scalable compute and storage capacities. Although big data analytics in general and cloud computing are crucial, we should concentrate on specific big data elements that are relevant to manufacturing. Entropy and other unanticipated events may result from the self-organized process, according to a wide theory of self-organization called modelling and analysis of systems. In order to choose the appropriate control strategies, we must therefore define the model for the dynamical equations of the self-organized manufacturing system. Self-organized system theories, on the other hand, are still a hot topic in complex system research despite their infancy. Concerns about property and cyber security must be emphasised. Without security, they wouldn’t have the guts to run our intelligent factories. Business-oriented smart factories are more vulnerable to security problems than traditional Internet applications. On the one hand, we must protect a range of data regarding customers, suppliers, company goals, and know-how. These kinds of data are usually kept in the public cloud rather than a business’s exclusive data centre. For instance, if hackers disclose this confidential information, there may be serious financial consequences or possibly legal repercussions. In contrast, the cloud is linked to real people, real devices, and real other physical things. If the control mechanism fails, these creatures might act destructively and directly harm property.

6 Conclusion In traditional security solutions cannot be used in IoT, as the IoT business grows, the businessman must deal with challenges connected to the protection and privacy of their data. Scalability is also difficult because electronic devices are becoming more and more common. Production is done using a technology-based manufacturing system that is integrated into corporate operations for sustainability. To satisfy industrial demands, it combines the control, processing, and communication processes. This article adds to the corpus of knowledge already available. By examining the needs and significant issues, researching recently developed technology, reviewing the research that has already been conducted for a smart factory, and making recommendations to manufacturers who are implementing a smart factory within the context of industry, one can create a smart factory. To solve the challenges posed by this, it unifies data flow both horizontally between partners, suppliers, and clients as well as vertically from development to finished product (Richards, G. et al., 2021). Industry 4.0 takes decentralised decisions and creates a virtual representation of the real world in order to enable smart factories via CPS. The drive toward smart industries may accelerate significantly as a result of the growing use of CPS systems and equipment. A smart factory is not a fully automated plant. A sustainable business aims to satisfy each customer’s unique needs as closely as is feasible and reasonable. Consequently, the tendency

Role of IoT in Business Sustainability

15

in corporate development is toward greater human-machine interaction. This permits a balanced relationship between human adaptability and machine reproducibility. As such scenario, choices are still made by individuals.

References Chen, B., Wan, J., Shu, L., Li, P., Mukherjee, M., Yin, B.: Smart factory of industry 4.0: key technologies, application case, and challenges. IEEE Access. 6, 6505–6519 (2018) Osterrieder, P., Budde, L., Friedli, T.: The smart factory as a key construct of industry 4.0: a systematic literature review. Int. J. Prod. Econ. 221, 1–16 (2020) Shi, Z., Xie, Y., Xue, W., Chen, Y., Fu, L., Xu, X.: Smart factory in industry 4.0. Syst. Res. Behav. Sci. 37(4), 607–617 (2020) Wang, S., Wan, J., Li, D., Zhang, C.: Implementing smart factory of industrie 4.0: an outlook. Int. J. Distrib. Sens. Netw. 12, 1–10 (2016) Kalsoom, T., Ramzan, N., Ahmed, S., Ur-Rehman, M.: Review advances in sensor technologies in the era of smart factory and industry 4.0. MDPI Sens. 20, 1–22 (2020) Okano, M.T.: IOT and industry 4.0: the industrial new revolution. In: International Conference on Management and Information Systems, pp. 75–82 (2017) Fatima, Z., Tanveer, M.H., Waseemullah, S.Z., Naz, L.F., Khadim, H., Ahmed, N., Tahir, M.: Production plant and warehouse automation with IoT and industry 5.0. Appl. Sci. 12(4), 2053 (2022) Herrmann, F.: The smart factory and its risks. MDPI Syst. 6, 1–15 (2018) Madakam, S., Lake, V., Lake, V., Lake, V.: Internet of things (IoT): a literature review. J. Comp. Commun. 3(05), 164 (2015) Benkamoun, N., ElMaraghy, W., Huyet, A.-L., Kouiss, K.: Architecture framework for manufacturing system design. In: Procedia CIRP, vol. 17, pp. 88–93 (2014) Wang, Q., Zhu, X., Ni, Y., Gu, L., Zhu, H.: Blockchain for the IoT and industrial IoT: a review. Internet Things 10, 10081 (2020) Bai, L., Hu, M., Liu, M., Wang, J.: BPIIoT: a light-weighted blockchain-based platform for industrial IoT. IEEE Access. 7, 58381–58393 (2019) Goundar, S., Bhardwaj, A., Nur, S.S., Kumar, S.S., Harish, R.: Industrial internet of things: benefit, applications, and challenges. In: Innovations in the Industrial Internet of Things (IIoT) and Smart Factory, pp. 133–148. IGI Global, Wellington, New Zealand (2021) Yadav, S.K., Sharma, K.: Industrial automation: overview of the IoT (IoT). Int. J. Sci. Eng. Res. 75–81 (2017) Mondal, D.: The internet of thing (IoT) and industrial automation: a future perspective. World J. Model. Simulation. 15, 140–149 (2019) Ding, L., Jiang, W., Zhou, Y., Zhou, C., Liu, S.: BIM-based task-level planning for robotic brick assembly through image-based 3D modeling. Adv. Eng. Inform. 43, 100993 (2019) Karthick, A.V., Ramaraj, E., Ganapathy, R.: An efficient multi queue job scheduling for cloud computing. In: IEEE WCCCT, pp. 164–166 (2014) Karthick, A.V., Ramaraj, E., Kannan, R.: An efficient tri queue job scheduling using dynamic quantum time for cloud environment. In: International Conference on Green Computing, Communication and Conservation of Energy (ICGCE), pp. 871–876 (2013) Richards, G., et al.: A collaboratively developed platform to introduce fundamentals of IoT and IIoT. In: Proceedings of the Conference on Learning Factories (CLF) (2021)

Moderating Effect of Board Size and Board Independence Between Women on Board and ESG P. G. Thirumagal1(B)

, Abhijeet Tirkey1 , and S. Suresh2

1 School of Management Studies, VISTAS, Chennai, Tamil Nadu, India

[email protected] 2 Department of Management Studies, Rajalakshmi Engineering College, Chennai, Tamil Nadu,

India

Abstract. This study on Moderating Effect of Board Independence and Board Size between Women on Board and ESG has used 28 companies five years data (2017–2021). Eviews software was used for analysis. Multiple Regression was used to find the moderating effect. Board Independence, Board Size and Size of the Company has significant impact on ESG, Environmental, Social and Governance factors. There is no moderating effect of Board Size and Board Independence between Women on Board and ESG. The companies should try to include more Independent Directors so that ESG Score can be improved. Woman on board has no impact on ESG, Environmental and social factors whereas it has significant positive impact on Governance factors. This shows that the companies should include sufficient number of Women Directors in their board which improves their Governance factors because SEBI and other regulatory bodies giving more importance to Corporate Governance factors than their financial results. ESG has an impact on firm performance. Keywords: ESG · Board Size · Board Independence · Women on Board

1 Introduction A company’s corporate financial interests are referred to as “ESG” and they are largely focused on producing moral and environmentally sound results. Capital markets utilize ESG as a technique to evaluate companies and project their financial performance. The use of environmental criteria takes into account the environmental impact and risk management procedures used by a corporation. Resource management, direct and indirect greenhouse gas emissions, and the business’s overall capacity to resist physical climatic difficulties are a few of these (like climate change, flooding, and fires). The concept of “governance” refers to how a business is handled and operated. The goals of the ECG analyst include a deeper comprehension of shareholder rights, the relationship between leadership incentives and stakeholder expectations, and the internal controls in place to support leadership accountability and transparency. The social, economic, and environmental (ESG) lens makes it easier to evaluate how a business handles the possibilities and © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 16–25, 2023. https://doi.org/10.1007/978-981-99-3366-2_3

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hazards presented by changes in these factors. Earlier iterations of suitability-focused strategy and regulatory frameworks have some of these needs addressed, such as: Environmental, social, and governance performance, or “ESG,” is what investors refer to when evaluating a potential investment opportunity based on how well a company complies with key ESG principles. Even if it dates back some time, it has been more common since the 1960s. This concept persisted during the COVID-19 epidemic as more customers prioritized ESG principles in their choice-making. Organizations that prioritize social and environmental responsibility usually display traits of strength and profitability that draw in long-term investors. Therefore, ESG investing has evolved to identify three fundamental targets, which are as follows, in order to produce long-term returns that beat the market: To identify businesses that tout strong ESG performance. To choose investments wisely based on which businesses are most likely to maintain positive, consistent growth, giving investments a better level of security. To inspire those who want to make ethical and responsible investments as well as in ethical and responsible business practices. With ESG, businesses may position themselves favourably or unfavourably in the public eye. Even while not adhering to modern ESG standards and best practices can have a significant negative impact on an organization’s future, doing so can help firms boost their competitive position and attract investors. These are some of the goals of ESG for corporates in order to maintain a dominant market position:

2 Literature Review Raphael (2020) have conducted the study highlights the social aspect of ESG analysis and the many techniques to measuring and analyzing the social dimension. During his studies, he read a wide range of literature on socioeconomic disparities. Dana Ioana RUSU (2020) investigates the effect of ESG variables on investor behaviour, as well as the interaction between (ESG) factors, financial performance (CFP) and investment behaviour. Ngo, Thi Tam (2020) investigates “How does the ESG Factor connect to conventional factors?”. In his research, he built ESG pertain portfolios and ESG factor portfolios based on ESG scores, and he also estimated return, standard deviation, and sharp ratio to demonstrate portfolio performance. Sofia Magnér (2020) investigates the influence that sustainability indices on Corporate Sustainability standards, as well as how businesses react to the needs. Radovan Vojtko, Matus Padysak (2020) has performed a research titled “A Quant’s Perspective on ESG Investing Strategies.“ Their study focuses on ESG aspects and socially responsible investing. According to the experts, the biggest problem with ESG investment is from ESG data. ESG ratings differ among datasets, complicating all studies for academics, practitioners, and businesses alike. Emre Zehir, Aslı Aybars (2020) All firms were first sorted according to ESG-based ratings in decreasing order for the research based on portfolio performance. Lovis Björkil and Malvina Martinsson (2020) have undertaken research titled “ESG rating, a stock performance enhancer during the Covid-19 epidemic in Sweden?” The study’s goal was to see if ESG ratings of sustainability had an influence on the stock returns of Swedish enterprises in the midst of the Covid-19’s broad adoption. Helena Naffa, Ma´te´ Fain (2020) a research has looked at how well ESG-related megatrend investments performed using pure factor portfolio approach in global stock markets. The risk-adjusted investing

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performance of ESG-related megatrends in global stock markets is investigated in this study. His study was divided into nine key areas for the years 2015–2019, encompassing sociological megatrends like urbanization, Millennials, and ageing, as well as governance megatrends like cybersecurity, disruptive technologies, and robots. Megatrends in the environment including food security, energy efficiency, and water shortage. Anders DrangeBirkeland&Sondre Olav ThomassenNes (2021) has performed research on ESG and stock market performance during COVID-19, as well as whether ESG served as a resilience element. During their research, they examined 188 Nordic listed corporations from February 19 to March 23, as well as the recovery period from March 23 to June 5. Ting-Sang Kim, Zhichuan (2021) investigates the relationship between ESG and financial performance. Monika Mittal1, Manoj Pareek, Shubham Sharma, Sandeep Singh, Raman Kumar, Jasgurpreet Chohan (2021) investigates the potential effects of climate risk and ESG considerations on the insurance business. Subhash Abhayawansa, Shailesh Tyagi (2021) the study discovered that based on the numerous ESG ratings and categories, assessments of an organization’s ESG performance may fluctuate noticeably. Ilze Zumente and J¯ulija Bistrova (2021) Research has been done on the topic of ESG Importance for Shareholder Value Creation in the long term: Literature vs. Practice. Their research attempts to assess if firms are aware of the benefits of ESG and, as a result, whether they will start paying more attention to ESG issues. Imlak Shaikh (2021) (ESG) practices and firm performance have been the subject of a research named “AN INTERNATIONAL EVIDENCE.” Rim El Khoury, Nohade Nasrallah, Bahaaeddin Alareeni (2021) it is interesting to understand the fundamental rules that govern ESG reporting given that it is not yet mandated in every country. Jagjit Singh Saini, Mingming Feng, Jim DeMello (2021) Investor interest in sustainability has increased as a result of increased investor understanding of environmental and climatic concerns. Many investors decide which investments to make today based on a company’s likelihood of long-term survival. This study investigates the sustainability performance mediating role on the relationship between stock returns and earnings fluctuations in order to determine whether or not a company’s sustainability performance influences the informativeness of its profits. Li Li Eng, Mahelet Fikru, Thanyaluk Vichitsarawong (2021) the researchers in their article have compared the informativeness of sustainability disclosures in corporate reports to (ESG) disclosure ratings. Erin Oldford, Neal Willcott, Tanner Kennie (2021) there are two objectives for this paper. The purpose of this essay is to first evaluate the condition of (ESG) pedagogy at business schools and schools in swiftly implementing ESG pedagogy. The study is divided into two parts, each of which employs a different technique. Ritu Kumar (2022) investigates the concept of ESG (Environment, Social, and Governance) from a variety of views and approaches According to the researcher, we went down to the history of ESG and looked into the evolution of responsible investment in order to understand the revolution of ESG to this day. Burcu Gurol, Valentina Lagasio (2022) this study is to look at the connection between bank sustainability performance and board structure. The sample of 35 European banks included in the empirical quantitative analysis is listed in the EUROSTOXX 600. Ramya Rajajagadeesan Aroul, Sanjiv Sabherwal, Sriram V. Villupuram (2022) The researchers employed S&P Global for the 2019–2020 test to “examine the relationship between

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19

Real Estate Investment Trusts’ (REITs’)” (ESG) performance. Florian Barth, Benjamin Hübel and Hendrik Scholz (2022) examine how (ESG) practices affect the cost of credit default swaps (CDS). The authors achieve this by contrasting businesses from Europe and America while accounting for indirect and nonlinear effects. This study complements past work that concentrated on linear and direct effects using bond rates and US company credit ratings.

3 Methodology The study was confined for the 28 companies – CIPLA Limited, Aurobindo Pharma Limited, Lupin Limited, Sun Pharmaceutical Industries Limited, Cadila Healthcare Limited, Maruti Suzuki India Limited, TVS Motor Company Limited, Tata Motors Limited, Eicher Motors Limited, Ashok Leyland Limited, HDFC Bank Limited, Kotak Mahindra Bank Limited, ICICI Bank Limited, Axis Bank Limited, IndusInd Bank Limited, State Bank of India, Bank of Baroda, Punjab National Bank, Bharat Petroleum Corporation Limited, Reliance Industries Limited, Oil and Natural Gas Corporation Limited, Petronet LNG Limited, Indian Oil Corporation Limited, Tata Consultancy Services Limited, Infosys Limited, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited. The data has been taken for 28 companies and sample data period was collected for 5 years i.e. years 2017, 2018, 2019, 2020 and 2021. 3.1 Model ESG = β1 (AGE) + β2 (ATR) + β3 (BINDEP) + β4 (BSIZE) +β5 (LEV) + β6 (LNTA) + β7 (WOB) + β8 (WOB) ∗ (BSIZE) + C Where ESG = Environmental, Social and Governance, BINDEP = No. of Independent Directors, LNTA = Size of the companies, WOB = Women in Board of Director, LEV = Leverage, SIZE = Number of Board of Directors, ATR = Asset Turnover Ratio, AG = Asset Growth, AGE = Age of the company C = Constant. Statistical Tools Used are Descriptive Analysis, Normality Test, Variance Inflation Factors, Cusum Test, Unit Root, Breusch Godfrey serial correlation LM test, Heteroskedasticity Test: Breusch – Pagan – Godfrey, Correlation and Multiple Regression. Eviews was used for analysis.

4 Analysis and Discussion According to the result of Normality Test, P value is 0.55 which is greater than 5% level of significance that implies that disturbance is normally distributed (Fig. 1). Stability: This is to test the stability of the dependent variable. Figure 2 has shown that all the residuals were stable and the cumulative sums were located within the two standard deviation band, implies that the data have stability.

20

P. G. Thirumagal et al.

20

Series: Residuals Sample 2017 2156 Observations 140

16

12

8

4

Mean Median Maximum Minimum Std. Dev. Skewness Kurtosis

-7.46e-15 -2.427402 53.40131 -50.78181 20.82202 0.174101 2.715102

Jarque-Bera Probability

1.180737 0.554123

0 -50

-40

-30

-20

-10

0

10

20

30

40

50

Fig. 1. Normality Test 40 30 20 10 0 -10 -20 -30 -40 40

50

60

70

80

90

CUS UM

00

10

20

30

40

50

5% S ignific anc e

Fig. 2. Unit Root

Augmented Dickey Fuller test is used to check stationary of the data. It was observed from Table 1, that the p value of all the variables were less than 1% which proves that the data were stationary. Table 1. Augmented Dickey Fuller test: All selected Industries: 2017–2021 Variables

t – Statistics

P

ESG

– 8.966797

0.0000

AGE

– 8.332620

0.0000

ATR

– 3.066605

0.0317

BINDEP

– 8.160541

0.0000

BSIZE

– 10.88200

0.0000

WOB

– 5.677373

0.0000

LEV

– 4.488162

0.0003

LNTA

– 4.534957

0.0003

Moderating Effect of Board Size and Board Independence

21

Auto Correlation: Breusch–Godfrey Serial correlation LM test is used to test the auto correlation. In Table 2, the probability of F statistic and probability of Chi square is greater than 5%, it found that there was no autocorrelation in the data which implies that the data can be further used for hypothesis testing and forecasting. Table 2. Serial Correlation LM Test: All selected Industries: 2017–2021 F-statistic

1.156141

Prob. F(2,123)

0.3181

Obs*R-squared

2.583303

Prob.Chi-Square (2)

0.2748

Heteroskedasticity: Breusch–Pagan–Godfrey test is used to test the heteroskedasticity. Table 3 shows that the probability of F statistics and the probability of Chi Square is more than 5%, reveals that there was no heteroskedasticity and the data have uniform spread of the variance. Table 3. Heteroskedasticity Test: All selected industries: 2017–2021 F-statistic

0.726680

Prob. F(12,127)

0.7232

Obs*R-squared

8.995148

Prob. Chi-Square(12)

0.7033

Scaled explained SS

7.483778

Prob. Chi-Square(12)

0.8241

Moderating Effect of Board Size between Women on Board and ESG: H01: There is no significant impact of AGE, ATR, BINDEP, BSIZE, LEV, LNTA, WOB and WOB_BSIZE on ESG. ESG = β1(AGE) + β2(ATR) + β3(BINDEP) + β4(BSIZE) +β5(LEV) + β6(LNTA) + β7(WOB) + β8(WOB) ∗ (BSIZE) + C Table 4 shows that ATR, BINDEP, LEV and LNTA has p value of less than 5% which shows that these variables have significant impact on ESG. AGE, BSIZE, WOB, has p value more than 5% which shows that these variables have no significant impact on ESG. Since p value is more than 5% for WOB_BSIZE, there is no moderating effect of BSIZE between Women on Board and ESG. R2 was estimated as 0.3933 which was 39.33% indicated that 39.33% of the variation in ESG were explained by independent variables together. This model could be generalized for all the companies of selected five industries as F statistics was significant at 1% level of significance. ESG = (0.086609)(AGE) + (0.107362)(ATR) + (0.540733) (BINDEP) + (−2.587387)(BSIZE) + (−1.554270)(LEV) + (10.59332)(LNTA) +(0.830322)(WOB) + (−0.042968)WOB_BSIZE + (−93.15990)(constant).

22

P. G. Thirumagal et al. Table 4. Moderating Effect of Board Independence between Women on Board and ESG

Dependent Variable: ESG Method: Least Squares Variable

Coefficient

Std. Error

t-Statistic

Prob.

AGE

0.086609

0.066220

1.307899

0.1932

ATR

0.107362

0.035458

3.027875

0.0030*

BINDEP

0.540733

0.109246

4.949678

0.0000

BSIZE

– 2.587387

1.436750

– 1.800861

0.0740

LEV

– 1.554270

0.567657

– 2.738047

0.0070

LNTA

10.59332

1.754446

6.037984

0.0000

WOB

0.830322

1.024124

0.810763

0.4190

WOB_BSIZE

– 0.042968

0.092390

– 0.465077

0.6427

C

– 93.15990

21.46248

– 4.340594

0.0000

R-squared

0.393386

Mean dependent var

37.40000

Adj. R-squared

0.351390

S.D. dependent var

22.20856

S.E. of regression

17.88596

Akaike info criterion

8.674659

Sum squared resid

41588.00

Schwarz criterion

8.884776

Log likelihood

– 597.2261

Hannan-Quinn criter

8.760044

F-statistic

9.367147

Durbin-Watson stat

1.783164

Prob(F-statistic)

0.000000

Moderating Effect of Board Independence between Women on Board and ESG: ESG = β1(AGE) + β2(ATR) + β3(BINDEP) + β4(BSIZE) +β5(LEV) + β6(LNTA) + β7(WOB) + β8(WOB) ∗ (BINDEP) + C Table 5 shows that ATR, BINDEP, BSIZE, LEV and LNTA has p value of less than 5% which shows that these variables have significant impact on ESG. AGE, WOB and WOB * BINDEP has p value more than 5% which shows that these variables have no significant impact on ESG. Since p value is more than 5% for WOB_BINDEP, there is no moderating effect of board independence between Women on Board and ESG. R2 was estimated as 0.3924 which was 39.24% of the variation in ESG were explained by independent variables together. This model could be generalized for all the companies of selected five industries as F statistics was significant at 1% level of significance ESG = (0.092304) (AGE) + (0.110282) (ATR) + (0.518475) (BINDEP) + (–3.163281) (BSIZE) + (–1.615132) (LEV) + (10.77869) (LNTA) + (0.273656) (WOB) + (0.001717) WOB_BINDEP + (–88.11065) (Constant)

Moderating Effect of Board Size and Board Independence

23

Table 5. Moderating Effect of Board Independence between Women on Board and ESG Dependent Variable: ESG Method: Least Squares Variable

Coefficient

Std. Error

t-Statistic

Prob.

AGE

0.092304

0.065082

1.418270

0.1585

ATR

0.110282

0.035121

3.140098

0.0021

BINDEP

0.518475

0.221348

2.342353

0.0207

BSIZE

– 3.163281

0.691918

– 4.571756

0.0000

LEV

– 1.615132

0.551974

– 2.926101

0.0041

LNTA

10.77869

1.722911

6.256093

0.0000

WOB

0.273656

0.758765

0.360660

0.7189

WOB_BINDEP

0.001717

0.013700

0.125363

0.9004

C

– 88.11065

24.12366

– 3.652458

0.0004

R-squared

0.392450

Mean dependent var

37.40000

Adjusted R-squared

0.350389

S.D. dependent var

22.20856

S.E. of regression

17.89975

Akaike info criterion

8.676200

Sum squared resid

41652.16

Schwarz criterion

8.886318

Log likelihood

– 597.3340

Hannan-Quinn criter

8.761586

F-statistic

9.330468

Durbin-Watson stat

1.792698

Prob(F-statistic)

0.000000

5 Conclusion Board Independence Board Size and Size of the Company has significant impact on ESG, Environmental, Social and Governance factors. This shows that number of Independent Directors in the board and Size of the company has positive impact on ESG and Size of the board has negative impact on ESG. The companies should try to include more Independent Directors so that ESG Score can be improved. Woman on board has no impact on ESG, Environmental and social factors whereas it has significant positive impact on Governance factors. This shows that the companies should include sufficient number of Women Directors in their board which improves their Governance factors because SEBI and other regulatory bodies giving more importance to Corporate Governance factors than their financial results. ESG has an impact on firm performance. This shows that the companies should give more importance on ESG factors apart from focusing on profit and reducing the cost. Investors should give more importance for investment in ESG companies which automatically influences companies to improve their ESG Score.

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P. G. Thirumagal et al.

References Melinda, A., Wardhani, R.: The effect of environmental, social, governance, and controversies on firms’ value: evidence from Asia, ISSN: 1571-0386 (2020). https://doi.org/10.1108/S1571038620200000027011 Birkeland, A.D., Nes, S.O.T.: ESG and Stock Market Performance during COVID-19 (2021) Gurol, B., Lagasio, V.: Women board members’ impact on ESG disclosure with environment and social dimensions: evidence from the European banking sector (2022). https://doi.org/10.1108/ SRJ-08-2020-0308 Chairani, C., Siregar, S.V.: The effect of enterprise risk management on financial performance and firm value: the role of environmental, social and governance performance (2021). https://doi. org/10.1108/MEDAR-09-2019-0549 Mgbame, C.O., Aderin, A., Ohalehi, P., Chijoke-Mgbame, A.M.: Achieving Sustainability through Environmental Social Governance Reporting: Overcoming the Challenges (2020). https://doi. org/10.1108/s1479-359820200000009002 Zhang, D., Wang, C., Dong, Y.: The impacts of COVID-19-related shocks on financial limitations and SDG performance explain the influence of SDGs on economic recovery (2021). https:// doi.org/10.1057/s41287-021-00499-6 Dana Ioana RUSU (cas. TRIBIT): The impact of environmental, social and governance factors on investors’ behavior – an experimental study in the realm of sustainable investment. J. Public Admin. Finance (2020) Oldford, E., Willcott, N., Kennie, T.: Can student managed investment funds (SMIFs) narrow the environmental, social and governance (ESG) skills gap? (2021). https://doi.org/10.1108/mf07-2021-0317 Zehir, E., Aybars, A.: Is there any effect of ESG scores on portfolio performance? Evidence from Europe and Turkey (2020). https://doi.org/10.1108/JCMS-09-2020-0034 Newell, G., Marzuki, M.J.: The environmental sustainability transparency status of 99 global real estate markets from 2016 to 2020 (2022) Naffa, H., Fain, M.: Performance measurement of ESG-themed megatrend investments in global equity markets using pure factor portfolios methodology (2020). https://doi.org/10.1371/jou rnal.pone.0244225 Zumente, I., Bistrova, J.: ESG importance for long-term shareholder value creation: literature vs. practice (2021). https://doi.org/10.3390/joitmc7020127 Shaikh, I.: Environmental, social, and governance (ESG) practice and firm performance: an international evidence. J. Bus. Econ. Manag. 23(1), 218–237 (2021). ISSN 1611-1699/Eissn 2029-4433 Xu, J., Liu, F., Shang, Y.: R&D investment, ESG performance and green innovation performance: evidence from China (2020). https://doi.org/10.1108/K-12-2019-0793 Saini, J.S., Feng, M., DeMello, J.: Corporate Sustainability Performance and Informativeness of Earnings. Emerald Group Publishing Limited (2021). https://doi.org/10.1108/AJB-12-20200198 Liang, C., Yuan, T., Cebula, R.J., Wang, S., Foley, M.: Fulfillment of ESG responsibilities and firm performance: a zero-sum game or mutually beneficial (2021). https://doi.org/10.3390/su1 31910954 Eng, L.L., Fikru, M., Vichitsarawong, T.: Comparing the Informativeness of Sustainability Disclosures versus ESG Disclosure Ratings, International Standard Serial Number (ISSN) 2040-8021 (2021) Björkil, L., Martinsson, M.: ESG rating, a booster of stock performance during the Covid19 pandemic in Sweden? (2020)

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Linnenluecke, M.K.: Environmental, Social and Governance (ESG) Performance in the Context of Multinational Business Research (2022). https://doi.org/10.1108/MBR-11-2021-0148 Mittal, M., Pareek, M., Sharma, S., Singh, S., Kumar, R., Chohan, J.: A sustainable environmental change and esg initiatives by the manufacturing and others service industries during COVID19 pandemic. IOP Publishing (2021). https://doi.org/10.1088/1755-1315/889/1/012081 OuldDaoudEllili, N.: Environmental, Social, and Governance Disclosure, Ownership Structure and Cost of Capital: Evidence from the UAE (2020). https://doi.org/10.3390/su12187706 El Khoury, R., Nasrallah, N., Alareeni, B.: ESG and financial performance of banks in the MENAT region: concavity–convexity patterns (2021). https://doi.org/10.1080/20430795.2021.1929807 Vojtko, R., Padysak, M.: Quant’s Look on ESG Investing Strategies (2020). https://doi.org/10. 2139/ssrn.3504767 Semet, R.: The social issue of ESG analysis. SSRN Electron. J. (2020). https://doi.org/10.2139/ ssrn.3838372 Aroul, R.R., Sabherwal, S., Sriram, V.: ESG, operational efficiency and operational performance: evidence from Real Estate Investment Trusts. https://doi.org/10.1108/MF-12-2021-0593 Ritu, K.: ESG, Sustainability, and Path Forward (2022). https://doi.org/10.48047/IJIEMR/V11/ I02/17 Kim, S., Li, Z.: Understanding the impact of ESG practices in corporate finance (2021). https:// doi.org/10.3390/su13073746 Arvidsson, S., Dumay, J.: Corporate ESG Reporting Quantity, Quality and Performance: Where to Now for Environmental Policy and Practice? © 2021 The Authors. Business Strategy and The Environment published by ERP Environment and John Wiley & Sons Ltd (2021). https:// doi.org/10.1002/bse.2937 Abhayawansa, S., Tyagi, S.: Sustainable investing: the black box of environmental, social and governance (ESG) ratings (2021). https://doi.org/10.3905/jwm.2021.1.13 Gillan, S.L., Hartzell, J.C., Koch, A., Starks, L.T.: Firms’ environmental, social and governance (ESG) choices, performance and managerial motivation (2021) Magnér, S.: Sustainability Indices and ESG-ratings, the Impact on Corporate Sustainability – a case study using the perspective of a fast-growing Swedish bank, pp. 1401–4084 (2020) Li, T.-T., Wang, K., Sueyoshi, T., Wang, D.D.: ESG: Research progress and future prospects (2021). https://doi.org/10.3390/su132111663 Thi Tam NGO: How does the ESG Factor Connect to Conventional Factors? and the Impact of ESG on Portfolio Performance. Louvain School of Management, Universitécatholique de Louvain, 2020. Prom., Nguyen, Anh (2020)

A Review on Economic Assessment on Solid Waste Management E. Eswara Reddy1 and Tinto Tom2(B) 1 School of Economics and Commerce, CMR University, Bengaluru, India 2 CMR University, Bengaluru, India

[email protected]

Abstract. Environmental economics studies the financial impact of environmental policies. Various economy environmental models formulated by economists to convey economic activities and their external effects. Waste management become a global issue. If waste is disposed or recycled in ethical and responsible way it reduces the negative effects on the environment. Currently it is not happening in the case of India around 42 million tons of solid waste generated annually. 3Rs method is the suitable method to manage the waste. Because it integrated sustainable frame work. Urbanization, privatization, huge population etc. are the main reason for huge waste generation. These waste possess various toxic components. So to manage it, we need more system oriented approach. The possible strategies we have to adopt into our system the limitation of it can be resolved step by step. So that these method will be cost effective and possible one for our system. Implementation of strong rules and awareness about the issue also may help some extend to control wastes and to manage waste. Keywords: Waste Management · Environmental Issues · Disposal · Human Health · E-waste

1 Introduction Environmental Economics is branch of Economics. It gets so much of importance and relevance at present scenario. Because all kind of human activities are districting the environment and now environment start to react in the form of flood, climatic change etc. Human activities create huge quantity of waste but we lack strategies to manage those waste. Management of waste become a head ace to the authorities. Solid waste means any kind of garbage which is from various sources such as food, paper, glass, leather etc. Almost all countries are facing this problem, india is not an exceptional. Because our population is high so the quantity of waste generation also high. To over this issues we need a proper plan and method. Waste become an important environmental issue now the days, due to lack of proper methods and strategies. Traditional method for the waste management that is land fill. Even that create a lot of social and health problems. At present, we can give more priority

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 26–35, 2023. https://doi.org/10.1007/978-981-99-3366-2_4

A Review on Economic Assessment on Solid Waste Management

27

for recycling of waste and proper disposal of biodegradable waste and reduce of nondegradable items. population growth is positively related to the quantity of waste. For the safety environment as well as for our own existence we need to go with proper plan for the waste management (Fig. 1).

Metals Plasc

Solid Waste Paper Organic Fig. 1. Solid waste

1.1 Waste: An Environmental Issue Neha Gupta et al. studied about Current Status of Solid Waste Management in Indian Municipalities. They conveyed that the quantity of solid waste increases day by day. Municipal Solid waste management is an environmental issue in our country. It is because of the urbanization, privatization and huge population. Mismanagement of solid waste may make negative environmental impacts. Yash Pujara et al. studied about Solid waste management in Indian municipalities to attain sustainable development goal. The study mainly concerned about municipal solid waste and its impacts on environment. In Indian scenario open dumping is the common method for the disposal of waste. This method has significant environmental and health impact. We need to adopt integrated solid waste management method like composting, anaerobic digestion etc. So that pressure on land can be reduced and further problems also may decline with these methods of waste management. Herat and Agamuthu discussed about E-waste: Problem or Opportunity Challenges and Solution in Asian Countries. They have the opinion that e-waste can be managed with proper strategies. Otherwise it may create a lot of environmental problems. All countries specially developing countries are facing problem with proper management

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E. Eswara Reddy and T. Tom

of electronic and electric wastes. It is estimated that Asian countries annually generate around 20-50 million tons of handling may harm environment and human health. In the near future quantity will increase again that may lead to huge environmental problems. It is better to have a solution as early as possible. Singh and Sharma studied about Integrated Plastic Waste Management: Environment and Improved Health Perspective. Plastic is a non-degradable item at the same time during incineration it generate toxic gases. Plastic waste management one of the major issue of the present situation. Around 300 million metric tons of plastic produced annually. Plastic consider as boon and bane at the same time, because it has many uses but at the same time it becomes a core reason for environmental pollution. We need to find a solution for this issue otherwise it may affect our own existence (Fig. 2).

Climac Change Scarcity of water,foo d,energy

Health Issues WasteEnvironmental Issues

Ozone Deple on

Polluo ns Green House Gas

Fig. 2. Waste: Environmental Issues

1.2 Waste Management for Environment Protection Surbhi Sharma et al. studied about Waste to Energy for Economy and Environmental Protection Based on Hydrogen Energy. He conveyed a great idea that is formulation of energy from waste. Due to high population and urbanization demand for energy increased exponentially. The Conventional energies make damage to environment.So that now the focus shifted towards alternative methods like renewable and green energy eg. Hydrogen. It is a cleaner energy with high content of energy. This methods may create a new path towards waste management. Xianlai zeng et al. studied about China’s Experience and Lessons in Managing ewaste Environmental Friendly. Study convey that China is giving a model to other countries about the management of waste. E-waste become a global issue. It leads to various

A Review on Economic Assessment on Solid Waste Management

29

environmental problems. In the case of electrical equipment and electric China is the largest producer and consumer. The country polluted so much because of illegal e-waste importation and informal recycling. But the country was able to exhibit how to control it for other countries from series pollution to regulation and control of waste. Herat and Agamuthu reviewed about E-waste: An Opportunity or Problem Challenges and Solutions in Asian Countries and conveyed that the countries are not having environmental friendly e-waste management system. Many countries around the world are struggling with e-waste. It harms environment and human health. At the same time it possess a lot of toxic components. Now countries emphasizes to reuse, servicing, remanufacturing, recycling and disposal etc. for the management of e-waste. These methods can control the e waste up to some extent. Yen Dan Tong et al. done a case Study about Role of Informal Sector for Sustainable Development of Municipal Solid Waste Management in Vietnam. The study Point out the role of informal sector towards the waste management. Informal sector waste collection has an important role for the waste recycling. But this sector is not recognized in any government policies in Vietnam. They play a crucial role for the society so that officials have to establish an effective waste recycling system and implement policies for the improvement of the livelihood of the people who work in this informal sector. Jagdeep et al. studied about Development and Problems to the Global waste management. The study speak about reason for huge waste generation because of population growth, economic development and industrialization. The current waste management is not sufficient for long term sustainable development. In the future to manage waste we need more system oriented approach that should consider the root causes for the problems. So that problems related to it will be under control (Fig. 3).

Fig. 3. Waste Management and Environmental Protection

1.3 Management of Nonbiodegradable Waste Bulkeley and Askins studied about Waste interfaces of municipal policy and biodegradable waste. The study try to convey that there is a need to engage with the institutional

30

E. Eswara Reddy and T. Tom

and infrastructural dimensions of the systems of provision within which waste management occurs, and to take seriously.For the waste management we need a system that is sustainable which engage both institutional and infrastructure dimension within which we have to take seriously the everyday situations. Pattnaik and Reddy studied about Municipal Solid Waste Management in Puducherry. Here various methods are adopted to manage municipal solid waste. Puducherry municipality adopted various strategies for the waste management such as door to door collection segregation of waste at source, composting organic waste and non-biodegradable waste send for recycling. Limitations prevailing in the system will be resolved step by step. It may be a model to others the pop up problems can be resolved in the later stage. Biplob Nandy et al. conveyed in their study Recovery of Consumer Waste in India: The Contribution of household and the informal sector for paper,glass and plate, that all group of people plays an equal role in the management of waste and recycling of it. Both informal sectors and households in India play a very prominent role in recovering consumer waste.It is efficiently recovered in India. Because the waste recovery take place in multiple stages and the final waste reaches to municipal corporation is biodegradable waste which are non-recyclable waste. Kyrikou and Briassoulis studied about Biodegradation of agricultural plastic. It protects the crop at the same time it may create environmental problems. But if we can use bio degradable polymer in the agriculture sector we can avoid the negative effects of it. Because bio degradable polymers can be converted by microorganisms to carbon dioxide, water, bio mass without any negative environment impact. It will protect crop after the use it can dispose properly. Such kind of polymer should be use in the other areas as well. Davis and Song studied about the Impact of biodegradable packaging on waste management. The success of it is very much depends on Establishment of appropriate collection, transportation and treatment technologies etc. Packaging waste forms are consider as a major part of the municipal solid waste. Many of these are non-biodegradable and it is very difficult to reuse and recycle. In this situation we can use biodegradable packing material for the single use disposal. Later on it can compost without any problem as a proper way of disposal (Fig. 4). 1.4 Waste: Impact on Health Md. Shhrab Hussain et al. reviewed on Waste management practices and their impact on human health. It convey the idea that there should be a proper method for disposal of medical waste otherwise it may leads to a lot of health issues. In the developing world, clinical solid waste management become a major challenge. The inappropriate disposal of clinical waste create significant health issues and environmental problems. One of the major reason for the inappropriate disposal clinical waste is because of lack of proper legislation, lack of specialised staff and awareness. Rahul Rautela studied about E-waste management: Its effects on human health and environment. He proposed the idea that a sustainable approach need to implement for the effective e-waste management. The problem of e waste arise due to lack of technical

A Review on Economic Assessment on Solid Waste Management

31

Fig. 4. Non-Biodegradable waste Management

knowledge, low financial development, poor infrastructure, poor community engagement etc. In order to solve the issue we need a sustainable approach that should consider informal sector as a major sector for managing e wastes. Misra and Pandey studied about Hazardous waste: Impact on environment and health for the better waste management. The study conveys that waste generation is part of development activities.): Industries are essential part of the modern world. Generation of waste from these industries increasing day by day. These waste from industries hazardous to human health and environment. For the solution we should have proper cost effective strategies that should be environment friendly. J.N Ihedioha et al. studied about Assessment on human health based on heavy metal contamination in soil of municipal solid waste dump in Oyo, Nigeria and the writers convey that heavy metals contaminating soil. Heavy metals in the soil increases contaminates soil that leads to ecological risk as well as human health risk of the residents nearby. Cadmium become a reason for 98–99% of the total ecological risk. The area where hazard index less than one, there was no health issues observed. 3R methods can be used in order to manage heavy metals so that the negative effects can be reduced. Priyabrata Banerjee et al. studied about solid waste management in India, and the writers convey that huge demand for nuclear energy may lead to high radioactive solid wastes. In the present situation we need to give more priority to environmental safety and human health. Awareness should be given to the society in order to reduce the waste. Because radioactive solid waste and hospital wastes create a great impact on environment and public health because these are the carrier of infectious diseases and other toxic elements (Fig. 5).

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E. Eswara Reddy and T. Tom

Fig. 5. Waste: Impact on Health

1.5 Recycling as Waste Management Method Maaru Tanaka studied about recent development in recycling in waste management in Japan. They have a basic approach to manage waste such as reduction in waste, encourage waste environmental friendly disposal etc. Recycling is one of the basic approach to municipal solid waste. Based on the data 1996, 5.6% is the material recovery rate of municipal solid waste collected by municipalities. Great amount of landfill area covered by bulky wastes such as electric appliances. So in order to encourage recycling Japan target containers, packages and electric appliances. Even this idea can be used by other nations to manage waste. Ramzy Kahht et al. reviewed about Exploration on e-waste management system in the US. They try to develop the habit of recycling by encouraging and giving awareness to people. Quantities of e-waste keep increases around the world. In 2005 more than 1.36 million metric tons of e-waste discarded in the coming years it will increase much more. Various countries already implemented legislation in relation with electronic take back and recycling systems. E-market for returned deposit is a strategy to collect e-waste and for recycling. Lee and Paik studied about Waste management and recycling behaviour of Korean household. Recent economic development and industrial growth become reason for serious environment problem in Korea. The country doesn’t have much carrying capacity because the population density is 481 people per square kilometre. So the government implemented a volume based waste fee payment system. It needs every households have to purchase a certified plastic cover for waste disposal. Because of it solid waste level decreased in Korea and recycling increased. Even this method may work in certain areas of our country that may make a change in volume of waste. Minelgaite and Liobikiene discussed about Problem of waste in European Union and its influence on waste management behaviour. In EU the level of waste generation very much depends on economic development and these countries, there is a positive relation

A Review on Economic Assessment on Solid Waste Management

33

between rrecycling behavior and waste generation. Waste generation is a global issue. There is a significant difference in the waste generation in EU countries. Because it is very much depends on economic development. The solution to the waste, is encouraging 3R methods (Reducing, Reuse, Recycle) Among these methods recycling is the most important and practically possible one because the efforts to reduce waste significantly influenced recycling process. David C Wilson et al. studied about role of informal sector in recycling of waste. A lot of people find their livelihood based on recycling of waste items. It is very essential to consider livelihood of the informal sector and working conditions and efficiency in recycling. There are a lot of positive characteristics is visible in relation with informal recycling associated with health and social problems and even it creates a lot of economic benefit as well (Fig. 6).

Fig. 6. Process of Recycling

2 Conclusion Environmental Economics will become a prominent discipline. In the later stage volume of waste especially solid waste increases too much at the same time it has to dispose in a proper way. Environmental economics will be able to give a proper solution to these problems. Waste generation is part of human life. So we need a proper strategy to dispose it. That may cost much but disposal of waste is very essential. Waste is a environmental issue the negative effects of it has to reduce as much as possible otherwise it may affect our own existence. Non-biodegradable waste should be recycled and reused as much as possible. Otherwise disposal of such items may lead to environmental issues because those are the some of the sources of toxic components. To have a better future we should have the power to control these waste. Let’s seek for much better strategies and methods.

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References 1. Gupta, N., Yadav, K.K., Kumar, V.: A review on current status of municipal solid waste management in India. Journal of Environmental Sciences 37, 206–217 (2015). ISSN 10010742, https://doi.org/10.1016/j.jes.2015.01.034 2. Pujara, Y., Pathak, P., Sharma, A., Govani, J.: Review on Indian Municipal Solid Waste Management practices for reduction of environmental impacts to achieve sustainable development goals. Journal of Environmental Management 248, 109238 (2019). ISSN 0301-4797, https:// doi.org/10.1016/j.jenvman.2019.07.009 3. Herat, S., Agamuthu, P.: E-waste: a problem or an opportunity? Review of issues, challenges and solutions in Asian countries. Waste Manage. Res. 30(11), 11131129 (2012). https://doi. org/10.1177/0734242X12453378 4. Singh, P., Sharma, V.P.: Integrated plastic waste management: environmental and improved health approaches. Procedia Environmental Sciences 35, 692–700 (2016). ISSN 1878-0296, https://doi.org/10.1016/j.proenv.2016.07.068 5. Sharma, S., Basu, S., Shetti, N.P., Aminabhavi, T.M.: Waste-to-energy nexus for circular economy and environmental protection: Recent trends in hydrogen energy. Science of The Total Environment 713, 136633 (2020). ISSN 0048-9697, https://doi.org/10.1016/j.scitotenv. 2020.136633 6. Zeng, X., Duan, H., Wang, F., Li, J.: Examining environmental management of e-waste: China’s experience and lessons. Renewable and Sustainable Energy Reviews 72, 1076–1082 (2017). ISSN 1364-0321, https://doi.org/10.1016/j.rser.2016.10.015 7. Herat, S., Agamuthu, P.: E-waste: a problem or an opportunity? Review of issues, challenges and solutions in Asian countries. Waste Manage. Res. 30(11), 1113–1129 (2012). https://doi. org/10.1177/0734242X12453378 8. Tong, Y.D., Xuan Huynh, T.D., Khong, T.D.: Understanding the role of informal sector for sustainable development of municipal solid waste management system: A case study in Vietnam. Waste Management 124, 118–127 (2021). ISSN 0956-053X, https://doi.org/10.1016/j. wasman.2021.01.033 9. Singh, J., Laurenti, R., Sinha, R., Frostell, B.: Progress and challenges to the global waste management system. Waste Manage. Res. 32(9), 800–812 (2014). https://doi.org/10.1177/ 0734242X14537868 10. Bulkeley, H., Askins, K.: Waste interfaces: biogedradeable waste, municipal policy and everyday practice. The geographic journal 175, 251–260 (2009). https://doi.org/10.1111/j.14754959.2008.00310.x 11. Pattnaik, S., Vikram Reddy, M.: Assessment of Municipal Solid Waste management in Puducherry (Pondicherry), India. Resources, Conservation and Recycling 54(8), 512–520 (2010). ISSN 0921-3449. https://doi.org/10.1016/j.resconrec.2009.10.008 12. Nandy, B., et al.: Recovery of consumer waste in India – A mass flow analysis for paper, plastic and glass and the contribution of households and the informal sector. Resources, Conservation and Recycling 101, 167–181 (2015). ISSN 0921-3449, https://doi.org/10.1016/ j.resconrec.2015.05.012 13. Kyrikou, I., Briassoulis, D.: Biodegradation of agricultural plastic films: a critical review. J Polym Environ 15, 125–150 (2007). https://doi.org/10.1007/s10924-007-0053-8 14. Davis, G., Song, J.H.: Biodegradable packaging based on raw materials from crops and their impact on waste management. Industrial Crops and Products 23(2), 147–161 (2006). ISSN 0926-6690. https://doi.org/10.1016/j.indcrop.2005.05.004 15. Hossain, S., Santhanam, A., Nik Norulaini, N.A., Mohd Omar, A.K.: Clinical solid waste management practices and its impact on human health and environment – A review. Waste Management 31(4), 754–766 (2011). ISSN 0956-053X, https://doi.org/10.1016/j.wasman. 2010.11.008

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16. Rautela, R., Arya, S., Vishwakarma, S., Lee, J., Kim, K.-H., Kumar, S.: E-waste management and its effects on the environment and human health. Science of The Total Environment 773, 145623 (2021). ISSN 0048-9697. https://doi.org/10.1016/j.scitotenv.2021.145623 17. Misra, V., Pandey, S.D.: Hazardous waste, impact on health and environment for development of better waste management strategies in future in India. Environment International 31(3), 417–431 (2005). ISSN 0160-4120. https://doi.org/10.1016/j.envint.2004.08.005 18. Ihedioha, J.N., Ukoha, P.O., Ekere, N.R.: Ecological and human health risk assessment of heavy metal contamination in soil of a municipal solid waste dump in Uyo, Nigeria. Environ. Geochem. Health 39(3), 497–515 (2016). https://doi.org/10.1007/s10653-016-9830-4 19. Banerjee, P., Hazra, A., Ghosh, P., Ganguly, A., Murmu, N.C., Chatterjee, P.K.: Solid Waste Management in India: A Brief Review. In: Ghosh, S.K. (ed.) Waste Management and Resource Efficiency, pp. 1027–1049. Springer, Singapore (2019). https://doi.org/10.1007/978-981-107290-1_86 20. Tanaka, M.: Recent trends in recycling activities and waste management in Japan. J Mater Cycles Waste Manag 1, 10–16 (1999). https://doi.org/10.1007/s10163-999-0006-5 21. Kahhat, R., Kim, J., Xu, M., Allenby, B., Williams, E., Zhang, P.: Exploring e-waste management systems in the United States. Resources, Conservation and Recycling 52(7), 955–964 (2008). ISSN 0921-3449. https://doi.org/10.1016/j.resconrec.2008.03.002 22. Lee, S., Paik, H.S.: Korean household waste management and recycling behaviour. Building and Environment 46(5), 1159–1166 (2011). ISSN 0360-1323, https://doi.org/10.1016/j.bui ldenv.2010.12.005 23. Minelgait˙e, A., Liobikien˙e, G.: Waste problem in European Union and its influence on waste management behaviours. Science of The Total Environment 667, 86–93 (2019). ISSN 00489697, https://doi.org/10.1016/j.scitotenv.2019.02.313 24. Wilson, D.C., Velis, C., Cheeseman, C.: Role of informal sector recycling in waste management in developing countries. Habitat International 30(4), 797–808 (2006). ISSN 0197-3975, https://doi.org/10.1016/j.habitatint.2005.09.005

The Impact of Marital Status on Female Labour Force Participation Rate – A Study on Bangalore City Nikitha Kishore(B) Kristu Jayanti College, Bangalore 560077, India [email protected]

Abstract. Women have made some strides in the workplace and in achieving gender equality in society over the past 20 years. Today, there are more educated and employed women than ever before, and there is a growing understanding that efforts to combat poverty and advance economic growth must include gender equality. Proof of this awareness can be found in the adoption of the 2030 UN Agenda for Sustainable Development, as well as in the commitment of world leaders to “achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value,” (Sustainable Development Goal (SDG) 8, target 8.5.) as well as “to achieve gender equality and empower all women and girls,” by 2030 (SDG 5). Women’s opportunities in the workplace are far from equal to men’s, notwithstanding the advancements made thus far and the international commitments to securing future improvement. Keywords: Marriage · FLFPR · Employment

1 Introduction Marriage is a big decision in everyone’s life. It influences one’s lifestyle, social status, economic conditions, etc. It has been observed that marriage and having children can have the opposite effect on women’s labour force involvement than they do on men. Compared to married males, who have the highest percentage of labour force participation at 96.1%, just over half (52.1%) of married women aged 25 to 54 are employed. Given that women’s job is still influenced by home and caregiving responsibilities in a manner that men’s employment is not, this demonstrates how marriage appears to reinforce traditional gender roles. The labour force participation rate for unmarried women is 65.6%, whereas the rate for divorced women is 72.6%, further demonstrating how marriage and having children influence the women workforce. Marriage is a choice, a celebration, a life changing event that is estimated to occur about 40 million times a year globally. This study will analyze the economics of marriage with a special focus on Female Labour Force Participation.

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 36–43, 2023. https://doi.org/10.1007/978-981-99-3366-2_5

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2 An Indian Overview of the FLFP When it comes to women’s participation in the labour market, India, a nation that often sets the bar high, presents a dismal scenario. The rise in the number of women seeking a job in various fields has been one of the most notable trends in India’s labour market over the past few decades. Though somewhat slowly, the long-standing social norms, biases, taboos, and impediments that discourage women from seeking paid employment and that businesses use to discourage women from working are eroding. Women employees feel discriminated against when they see male coworkers with comparable experience being paid more. The emphasis on planning has recently turned away from preparing women for their traditional roles as housewives and mothers and toward recognizing their value as producers who significantly increase household and national wealth. In India, women are more likely than males to be unemployed or work irregular hours, and the majority of women workers do not have access to social security or health care benefits, making job-related disorders like mental stress and other health issues secret. Sample Heading (Third Level). Only two levels of headings should be numbered. Lower level headings remain unnumbered; they are formatted as run-in headings.

3 Area of Study Women’s literacy and enrollment rates in educational institutions are still frighteningly low, particularly for rural women, women from scheduled caste families, and women from scheduled tribal families. Thus, despite a slight reduction in female workforce engagement in urban areas, the overall participation of urban women in the labour market—24% vs. 90% for men—remains glaringly low. According to research, this low level is caused by a mix of supply and demand issues. Social norms regarding the gendered division of domestic work worries about a woman’s family status if she works, a higher increase in home productivity of women relative to their market productivity with an increase in their education levels, and a lack of job opportunities near their homes are some of the factors that support the low levels of urban women in the labour market. 3.1 Impact of Marriage on Labour force Participation Changes in marital status unquestionably have an impact on labour force participation. Marriage has been found to provide a variety of variations in women’s labour force participation and greater diversity in FLFP than in men across various household types. While being a newlywed couple, especially one with small children, is linked to lower participation rates for women and higher rates for men, women who live alone are more likely to be in the labour market. On the other hand, a single mother is more likely to be employed than a typical woman of prime working age. It is also highlighted that having children has a greater impact on labour force participation than marriage. This is especially true for families with children under the age of six and single mothers who are raising multiple children. This can result in dependents working in extended-family and single-parent families. Policies and programmes that don’t take gender analysis into account, especially the part family dynamics and institutions play in women’s access to job prospects, may fail to

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address the needs and concerns of women. The newly available information and analysis discussed in this paper highlight the necessity of integrating a gender perspective into analyses and evaluations of labour market outcomes. Marriage and parenthood shouldn’t limit women’s ability to participate fully in society. They also shouldn’t serve as a justification for discrimination, even in the workplace. The combined duty of society and parents in raising children also needs to be acknowledged more. Only when these social points are understood can there be true development in the economic sense.

4 Objectives The study’s main goal is to examine how marital status affects female labour force participation in Bangalore. The study’s secondary goal is: • To investigate the relationship between marital status and labour market outcomes. • To give suggestions to improve women’s participation in the labour market

5 Hypothesis of the Study The study aims to test the following statistical hypothesis based on the aforementioned objectives: 1. The institution of marriage is social in nature and has no significant relationship with the people’s economic circumstances and decisions.

6 Statement of the Problem Married life continues to have a gendered impact on both men and women’s labour market, such as their involvement in the labour force, the kind of employment they have, and the types of underutilization of labour they are subject to. However, without gender equality in families, society and economies will not be able to develop. In this study, a strong correlation between the labour force participation rates of men and women and the make-up of their households was revealed. Female labour force participation is significantly lower among women who live with a partner and children than among women who live alone. For men, the pattern is completely the opposite. There is a gendered effect of marriage on labour force participation since it increases men’s participation while decreasing women’s. Due to gendered social norms, marriage encourages males to work more, grow professionally, and obtain highly skilled positions, whereas it has the reverse effect on women’s employment outcomes. This study expresses this affect through the use of a statistical tool- Chi Square on a sample population in Bangalore.

7 Significance of the Study It is true that over the previous ten or twenty years, economic development has helped certain countries better their status. The fact that economic development has exhibited a gender bias, with as many as 70% of the world’s impoverished being women even today,

The Impact of Marital Status on Female Labour Force

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is even more startling. Since 1980, economic reforms have had a conflicting impact on women’s economic position, with more women performing low-status unpaid jobs. Employment prospects for women in the private sector in general and in export-oriented businesses, in particular, grew as a result of economic reform. However, any increases in employment could be offset by declines in conventional industries that have a high proportion of female employees. The gender implications of the changes in the structure and pattern of employment alone may be sufficiently shown through analysis. In-depth information on socioeconomic traits and how marriage and employment are related must be gathered for this reason. The significance of the current study is increased in this perspective. It has been stated that neo-classical development planning techniques, particularly in the Third World, can undermine the economic status of women, which can have a “ripple effect.” When attempting to describe interhousehold gender interactions concerning women’s marriage, family life, and employment, micro-level research of the current type takes increased significance.

8 Scope of the Study The study examines how marriage affects women in Bangalore. As Bangalore is a city with a variety of career prospects, the research also focuses on analysing the causes of unemployment among married women. The current study is conducted from the perspective of women through a simple random sampling technique with a sample size of 60.

9 Area of the Study Karnataka is a state located in the southwest region of India. Based on socioeconomic indicators and growth rate, this state was chosen. One of the states with the greatest population growth, Karnataka is also referred to as the IT capital of India. In terms of area, Karnataka is the seventh-largest state in India. It has thirty districts. 319 people per square kilometre make up the state’s population. Karnataka’s population is growing at a decadal growth rate of 15.7%. Bangalore District is situated in Karnataka State’s southeast. Bangalore had a population of 8,443,675 in 2011, according to Indian Census figures, with 4,391,723 men and 4,051,952 women. In 2017, the estimated urban population of Bangalore was 12.34 million, up from 8.5 million in 2011. In comparison to other states, urban areas have greater rates of employment and literacy for both men and women.

10 Results and Discussion Bangalore in Karnataka was chosen as the study’s universe since the researcher is familiar with the region and can thus likely solicit the assistance of many respondents. The period of the study is 4 months. The population comprises single, married, divorced and widowed individuals who were residents of Bangalore. The study combines descriptive and analytical elements. Both primary data and secondary data are used. The study’s secondary data came from a variety of sources, including articles, websites, lecture books, reports, journals, research papers, etc.

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Chi Square Test Analysis on Marriage, Childcare and Labour Market Outcomes 1. Null Hypothesis: There is no relation between marital status and labour market outcomes. 2. Alternate Hypothesis: There is a significant relation between marital status and labour market outcomes (Tables 1, 2 and 3).

Table 1. Table of observed values Labour Market Outcome

Marital Status

SL.NO. Criteria

Before Marriage After Marriage Total

1

Ready to work Overtime

38

6

44

2

Constant number of Man-days regardless of personal life

56

46

102

3

Equal consideration for promotions with male counterparts

50

42

92

4

Salary Increment

58

54

112

5

Available Leisure Time

50

40

90

252

188

440

TOTAL Primary Source.

Table 2. Table of expected values Labour Market Outcome

Marital Status

SL.NO. Criteria

Before Marriage After Marriage Total

1

Ready to work Overtime

25.2

2

18.8

44

Constant number of Man-days regardless 58.42 of personal life

43.58

102

3

Equal consideration for promotions with male counterparts

52.7

39.3

92

4

Salary Increment

64.15

47.85

112

5

Available Leisure time

51.5

38.5

90

TOTAL

262

196

458

Primary Source.

The Impact of Marital Status on Female Labour Force

41

Table 3. Calculation of X2 (O-E)

(O-E)2

25.2

12.8

163.84

6.50

56

58.42

−2.42

5.85

0.10

50

52.7

−2.7

7.29

0.13

58

64.15

−6.15

37.82

0.58

50

51.5

−1.5

2.25

0.04

6

18.8

−12.8

163.84

8.71

46

43.58

5.85

0.13

42

39.3

2.7

7.29

0.18

54

47.85

6.15

37.82

0.79

40

38.5

1.5

2.25

Observed Values (O)

Expected Values (E)

38

TOTAL

2.42

(O-E)2 /E

0.05 17.21

Primary Source.

Calculated χ2 = 12.28 Tabular χ2 = 9.49. Degrees of Freedom = (2–1) (5–1) = 1 x 4 = 4. According to the percentage points of chi square distribution 0.05 0f 4 is 9.49. Significance Value = 0.05. Thus, Since Calculated χ2 > Tabular χ2. Therefore, our Null hypothesis is rejected, and the alternate hypothesis is accepted. Thus, there is a significant relationship between the Variables of Marital Status and Labour Market Outcomes.

11 Suggestions Based on the study, 38.7 percent of the women respondents agreed that adequate measures were put up by the government to encourage women to join the labour market. 38.7 per cent were unsure if such provisions were made by the government while 22.6 percent of them disagreed with this notion. The following suggestions are made for the overall improvement of female participation in the labour market by women in Bangalore city. • In Bangalore, the unemployment rate for educated women over the age of 29 is comparatively high. To protect this prospective population, action should be taken. People in this age bracket are searching for jobs that will support both their home and work lives. • When compared to single women, the proportion of unemployed married women is relatively high. Through various strategies of flexible working schedules, parental leaves (up to the length of 20 weeks), and childcare subsidies, the participation of married women can be boosted.

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• The government ought to put and filter women in their 30s on such a massive scale. Retooling the skill sets and making connections with the appropriate businesses will play a role in this. Again, this will significantly simplify the procedure for educated women. • Urban women must have access to high-quality, subsidised daycare. In rural India, women participate to a good extent. Urban India is where it is dangerously low. Since society benefits from that child, the government should assume a sizable portion of the burden. • Workplaces that value families should welcome mothers with young children. For feeding, there are nurseries available. Long maternity leaves should be available, with the government paying for the benefit by supporting private firms. • Every large private company of a particular size should offer a 1–2 year unpaid sabbatical period so that a woman can take time off for her family before returning to her job. She won’t have to interview again after the 1–2 years she spends caring for the children thanks to this. • Married women who file jointly are eligible for considerably greater tax benefits, including much bigger tax deductions. In actuality, working women who are part of large joint families require an additional break and should receive higher tax reimbursements from the government. That would free up a tonne of underutilised potential that has been trapped in joint families. • Even if they don’t have any additional family responsibilities, women in metropolitan India occasionally give up looking for employment on their own. There needs to be a cultural stigma against this. Everyone must work, regardless of gender. It is time to abandon the sexist notion that women should take care of the home while men should work. • The government may develop cultural initiatives to make it socially acceptable for males to take a break in collaboration with religious leaders and social workers. Even if they wanted to, men are now unable to choose to be full-time caregivers for children. More women can enter the workforce once society permits males to care for their children. To achieve this, both men and women must shed their sexist views about gender roles. • The labour force participation rate can be raised with the right knowledge of the labour market and the identification of local market demand. Thus, rightly educating women can improve labour participation. • Another urgent requirement is skill-based education. Although soft skills are vital in today’s employment market, educational institutions frequently disregard them. • From the data collected many women advocated the need for flexibility within an organization. For example, if work timings were flexible, women would be able to engage in labour activities more freely. The provision of Work from home should also be available. • Other provisions like childcare, security and the need for social change, education, communication, economic equality, opportunities and facilities for married women and better support systems, etc. are some of the suggestions from women respondents.

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12 Limitations of the Study • The selected Sample is limited to 62. Hence findings cannot be generalized. • Respondents might be biased. Thus, the acquired data might not be accurate. • Respondents are mainly from Urban areas, so the perspective of the rural population is neglected.

13 Conclusion Further analysis of the female labour force participation rate in Bangalore by age, educational level, and social and religious characteristics reveals more shortcomings. To fully understand the impact of these factors on the rate of female labour force participation, it is necessary to go beyond our brief attempt to identify some of the elements and their probable relationship with female labour force participation. Women’s full economic involvement and inclusion in the development process are crucial for promoting economic growth and development. Due to their weakened position in the job market and the increased opportunity costs connected with their domestic responsibilities, many women—especially older and less skilled women—withdrew from it. The pressures on women are only expected to grow under the socioeconomic patterns that are already in place. Governments that want to keep or grow female labour force participation must concentrate on cutting opportunity costs and raising the rewards of employment.

References 1. Azcona, et al.: The Impact of Marriage and Children on Labour Market Participation (2020) 2. Jyoti, T.: Married women in urban workforce in India: Insights from NSSO data. Urdhva Mula 11 (2018) 3. Rosina, G.: International Day of Families: How marital status shapes our labour outcomes (2020) 4. Afridi, F., et al.: Why are fewer married women joining the work force in rural India? A decomposition analysis over two decades (2017) 5. Roy, S.N., Mukherjee, R.: Marriage Factor and Women’s Employability in India: A Macro Analysis (2013) 6. Claudia, G.: The U-Shaped Female Labour Force Function in Economic Development and Economic History (1994) 7. Aparna, M., Gupta, D.: Social Status as a Driver of Female Labour Force Participation in India A Neighbourhood Level Analysis (2017) 8. Fletcher, E.K., et al.: Women and Work in India: Descriptive Evidence and a Review of Potential Policies (2017) 9. Chaudhary, R., Verick, S.: Female labour force participation in India and beyond (2014)

Welfaronomics of Price Discrimination K. Nupur Temani(B)

and C. V. Suganthamani

Department of Economics, Kumuraguru College of Liberal Arts and Science, Coimbatore, India [email protected]

Abstract. Does price discrimination really lead to social welfare or is this an oxymoron? The purpose of this paper is to investigate how price discrimination helps societal welfare. The welfare associated with various degrees of price discrimination is examined with the help of appropriate case studies in the respective field. The findings suggest that social welfare exists in justified price discrimination, but extreme cases are outside the scope of social welfare dynamics. The findings are discussed in terms of the effects of various schemes on various segments of society. Keywords: Price discrimination · social welfare · case study

1 Introduction Price discrimination primarily means a strategy in which same product or service is offered at various prices depending on the buyers’ purchasing power or the customer base the vendor is trying to attract. Both the government and market players use price discrimination as a strategy to achieve their respective goals (i.e., market players set prices based on a three-degree scale in accordance with their preferences of capturing market, while the government uses price discrimination to attempt to fairly distribute resources among the have-nots). In this paper we are attempting to investigate how price discrimination increases societal welfare. For instance, Small and marginal farmers are charged 65% of the total cost for micro irrigation installation under the National Mission for Sustainable Agriculture scheme, while other farmers in non-DPAP/DDP/NE&H regions will be charged 75% of total cost of installation [1]. This ten percent price difference explains the disparity in allocation and affordability. Poor farmers would not be able to afford it, so they are charged comparatively less, whereas other farmers could afford it to some extent, so they are charged a relatively higher price. This is a case wherein price discrimination attempts to improve the welfare of the society.

2 Need for the Study Economics as a subject exists to solve the problem of unlimited wants and limited resources and the mismatch between them; the entire focus of economics lies in the allocation of limited resources. One significant challenge for economics is to answer © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 44–53, 2023. https://doi.org/10.1007/978-981-99-3366-2_6

Welfaronomics of Price Discrimination

45

the question “For whom to produce?” There is huge inefficiency in the distribution of resources between the haves and have-nots. The distinction between haves and have-nots is used because a section of society is provided with adequate resources while the other suffers from lack of resources. Therefore, through price discrimination, government involvement, and welfare schemes the poor receive a limited yet sufficient amount of allocation for them. This study is necessary because we must consider the extent to which price discrimination can increase the wellbeing of the underprivileged.

3 Objectives of the Study • To examine whether Price discrimination creates welfare in the society • To know the different perspectives of price discrimination

4 Degrees of Price Discrimination The researcher has used case studies to substantiate the relationship between Price discrimination and Societal welfare. 4.1 First Degree Price Discrimination Concept of first-degree price discrimination entails a strategy in which customers are charged based on the highest price they are willing to pay for a product or service. When given the choice to choose a price for 1 kg of tomatoes, for instance, a consumer will offer the highest price they would be willing to pay based on the utility (value) they obtain from 1 kg of tomatoes. The auction is another classic example of first-degree price discrimination in action. Bids are placed in an auction by interested parties and the items are sold to the person who makes the highest bid. The bid price is determined by the buyer’s willingness to pay. Despite the fact that a minimum bid is set, customers are willing to bid the highest price that is suitable for them above the minimum limit. This is the epitome of first-degree price discrimination because each person in an auction is charged the maximum price that they are willing to pay. First-degree price discrimination, however, is only a theoretical idea in business because it would be tedious to constantly gauge consumer’s level of willingness to pay. Furthermore, from the seller’s standpoint, it is practically impossible to assess each customer’s readiness to pay. Therefore, it is clear that using first-degree pricing discrimination in business is not economical, but it has shown to be highly beneficial when it comes to policies. The “GiveItUp Campaign” ideally operates on the principle of first-degree price discrimination. Case 1: GiveItUp Campaign. LPG is a highly efficient and cleaner fuel [2] than firewood which according to the 2011 Indian census, 63 percent of rural households use, but because many people could not afford LPG, they were forced to use harmful alternatives such as firewood, biomass, coal and dung to meet their cooking and heating needs in rural India [3]. As a result, the government began subsidising LPG to make it affordable at market prices. However, once the subsidies were implemented, the Indian Government

46

K. Nupur Temani and C. V. Suganthamani

was faced with a massive annual subsidy burden because domestic LPG was heavily subsidised [4]. Hence the government launched the “Give it up” campaign in 2015 to better target the LPG subsidy to those who truly need it. LPG users who could afford the connection at market price were asked to voluntarily surrender their subsidy as part of this campaign and as of July 28, 2015, 13,86,885 consumers had voluntarily given up their LPG subsidies [5]. Participants in the Giving Up LPG campaign willingly gave up their subsidies in order to help the poor. This campaign had two aims: the welfare of the poor (those who cannot afford LPG at market pricing and received a subsidy) and the concept of first-degree price discrimination. It is clear from the above case that LPG users who could afford at market price gave up their subsidy and paid higher price willingly while those who couldn’t afford were provided with subsidy and they paid lower price according to their respective willingness. Therefore, this is the case of first-degree pricing discrimination. Analysis of First-degree price Discrimination. In the first degree, price discrimination is based on the consumer’s willingness to pay. Such pricing is widely assumed to eliminate deadweight loss [6]. When demand and supply are out of balance, or sync, deadweight loss occurs, causing the price of a product to be inaccurately reflected, resulting in goods being overvalued or undervalued. Deadweight loss is a societal cost caused by market inefficiency. As a result, first degree price discrimination can rule out inefficiency caused by deadweight loss in such cases.

4.2 Second Degree Price Discrimination Second-degree price discrimination involves charging customers different prices depending on the quantity they consume. Case 1: Indian Textile Market. India’s textile market is a textbook example of seconddegree price discrimination. In the market, a single pure cotton bedsheet costs Rs. 350, but when a consumer buys 10 pieces, the price per piece drops to Rs. 270. The price disparity of Rs.80 here represents price discrimination caused by the difference in quantity purchased. Hence through this strategy of second-degree price discrimination the seller offers the buyers different combination of packages to choose from. Case 2: Indian Vegetable Market. There is a quantity-based pricing system in the vegetable market. According to the market data, the average onion price is 2597.00 INR/Quintal (Price Updated at: Wed Mar 03 2:30:11 UTC 2022) across 21 different varieties of onion [7], whereas the average retail price of Onion across all India is |35.28 per kg [8], which is 3528.00 INR/Quintal. As can be seen in Fig. 1, buying onions in wholesale quantities is different from purchasing onions in retail quantities. The discrimination of 931 INR/quintal (3528 – 2597) is purely based on the quantity purchased. Analysis of Second-degree Price Discrimination. Second-degree price discrimination occurs when a seller is unable to distinguish one consumer type from another and is thus restricted to a price schedule that encourages self-selection. The price is determined solely by the quantity purchased, regardless of whether the consumer is wealthy or

Welfaronomics of Price Discrimination

47

4000 3500 INR / QUINTAL

3000 2500 2000 1500 1000 500 0 Series1

Average onion wholesale price

Average onion retail price

2597

3528

Fig. 1. Onion market - Second Degree Price Discrimination

impoverished. The fact that high-value buyers pay more has nothing to do with the classification type in this case. “Under second-degree price discrimination, the firm can’t target customers by their type, only by their actions” [9]. Hence in the second level not much of social welfare can be noticed since it is totally dependent on the quantity of goods purchased.

4.3 Third Degree Price Discrimination When different prices are quoted for different consumer groups, this is referred to as third-degree price discrimination. To carry out differential pricing in third degree, the consumers groups may be divided based on age, income, and gender. Consumer are remunerated with bulk purchase discounts and are punished with peak time prices depending on many external factors i.e., seasons, geographical barriers, raw materials, mobility and availability of goods etc. Case 1: Income tax Exemption Limit. India income tax slabs and rates are classified based on the age of individuals when paying taxes. Resident individual taxpayers are classified into three groups based on their age [10]. 1. Resident individuals below the age of 60 years 2. Resident senior citizens aged 60 years or above but below 80 years 3. Resident super senior citizens who are 80 years or above In the above Fig. 2, the tax exemption limit varies according to different consumers groups which in this case are classified based on their age. “Tax exemption is the monetary exclusion that reduces the taxable income”. There is a limit of higher exemption of Rs. 2.5 lakh in case of individuals below 60 years, Rs 3 lakh in case of senior citizens (60– 80 years) and Rs 5 lakh in case of super senior citizens (above 80 years). This particular

48

K. Nupur Temani and C. V. Suganthamani

Age (In Years)

>80

60-80

9.21at 1% % level of significance 0.01), Residential Status and level of satisfaction (12.456 > 18.31 at 1% % level of significance 0.01), monthly income and level of satisfaction is statistically significant at 5% level of significance with varied chi square value of (19.814 > 18.31at 5% level of significance), monthly income and money spent on purchase of organic food products at1%level of significance

Consumer Attitudes Towards Organic Food Products

175

with varied chi square value of (127.999 > 44.31) at 1% level of significance. The inference result shows that there is a significant close association between the demographic variables and organic consumer’s level of satisfaction. Factor Analysis - Consumer Attitudes Towards Organic Products

Table 3. KMO and Bartlett’s Test for Consumer Attitudes towards Organic Products KMO and Bartlett’s Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy

0.706

Bartlett’s Test of Sphericity

Chi-Square

1966.981

Degrees of freedom

351

Significance

0.000

Source: Derived

The high value of the Kaiser-Meyer-Olkin (KMO) test of sample adequacy (0.706) indicates that the correlation between the pairs of variables is explained by other variables; therefore, factor analysis is appropriate for this model. The population correlation matrix is indicated by the Bartlett’s test of sphericity, chi square. It is a matrix of intensities. The statistical test for sphericity is based on the significant X2 test. The value is 1966.981 dollars. Evidenced by a higher KMO Measure (0.706) and a significant Bartlett’s test result, the KMO and Bartlett’s tests indicate that factor analysis can be appropriately employed in this context. Thus, an attempt is made to analyze consumer attitudes towards organic products using factor analysis. Table 3 displays the results of a rotated factor analysis of consumer attitudes toward organic products. The above Table 4 exhibits the rotated factor loading for the Twenty-seven statements (variables) of respondent’s opinion about the attitudes towards organic products. It is clear from table that all the sixteen statements have been extracted into four factors (Table 5). Factor 1 – Environment Conscious: Factor one has factor loading for the eleven statements. They are all significantly loaded. Factor 2 – Health Conscious: Factor two has factor loading for the six statements. They are all significantly loaded. Factor 3 – Organic Conscious: Factor three has factor loading for the six statements. They are all significantly loaded. Factor 4 – Marketing Conscious: Factor four has factor loading for the four statements.They are all significantly loaded.

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M. Esakkidevi and S. Mabel Latha Rani Table 4. Rotated Factor Matrix for Consumer Attitudes towards Organic Products Statements

Component F1

F2

F3

F4

I felt that organic food results in less soil erosion

.821

.237

.103

.117

I felt that organic food helps protect animals

.786

.173

.147

-.030

I felt that organic food will be minimized chances of food-borne illness

.726

-.096

.179

.013

I felt that organic food keeps our water clean

.725

.219

.244

-.001

I felt that organic food conserves fossil fuels

.712

.373

.026

.311

I felt that organic food is becoming more affordable

.690

-.305

.054

-.415

I felt that organic food is Rich in antioxidants

.687

.109

.089

.273

I felt that organic food offers outstanding flavor

.661

.374

.014

.425

The organic products labels in the market are confusing

.513

-.440

.395

-.136

I felt that organic food builds strong future generations

.486

.384

.216

.361

Organics consumption helps protect the environment

.258

.710

-.163

.015

Organic products are of better quality

.065

.684

-.119

.033

I felt that organic food is healthy and safe

.088

.668

-.086

-.025

I felt that Stronger immune system

.150

.626

.081

.050

Organic product are of higher nutrition value

.026

.562

-.027

-.074

(continued)

Consumer Attitudes Towards Organic Food Products Table 4. (continued)

I would buy organic products for my family

.174

.506

.169

-.371

Organic products are safer and more reliable

-.205

.460

.181

-.363

I trust organic product

.210

.147

.837

-.031

I trust organic producers

.066

.143

.740

-.009

Consumption of organic products represents higher social status

.258

-.018

.695

.021

Organic products are very expensive

-.063

-.260

.676

.039

Most of the organic products are Not available in the market

.212

-.333

.568

.109

It is difficult to identify real organic products

.465

-.303

.500

-.220

There is a small variety of organic products

.146

-.187

.174

.739

There are a lot of selling locations for organic products

.280

.128

.429

.507

I prefer to buying organic products in the local market

.037

.056

142

.411

The packaging of organic products is less attractive

.367

.031

.276

.384

Source: Derived

177

178

M. Esakkidevi and S. Mabel Latha Rani Table 5. Consumer Attitudes towards Organic Products – Factor Wise Analysis

Sl. No

Factors

Eigen Value

Percentage of variance

Cumulative percentage of variance

1

Environment Conscious

6.995

25.909

25.909

2

Health Conscious 4.021

14.891

40.800

3

Organic Conscious

2.175

8.054

48.855

4

Marketing Conscious

1.839

6.812

55.667

Source: Derived

4 Suggestions 1. More attempts should be made to encourage female to buy organic food products 2. By using various sales strategies to reach out to the aged, young folks, housewives, and rural stream, the producers and marketers of organic food products should spread awareness. 3. In the Tirunelveli district, shops promoting organic food products are necessary. 4. Price reductions for organic products are feasible as consumers must choose products to consume.

5 Conclusion The perception of the market for organic food products is strongly influenced by consumers. To satisfy the fluctuating interest in organic products among urban consumers, the consumers of organic products must be distinctive and dynamic in accordance with the changing environment. From the study it can be concluded that most of the Tirunelveli district customers are aware of organic products but give less importance in their daily healthy. The factor analysis result shows four major factors such as environmental consciousness, health consciousness, organic consciousness, and marketing consciousness are some of the main driving forces for the purchasing of organic foods by the organic consumers in Tirunelveli. The essence of this study says that “Consumers buy environmentally friendly products to improve their well-being”. There is a relationship of gender, monthly income, and residential status with level of satisfaction and the analysis shows that there is a relationship between monthly income and money spent on purchase of organic products. Thus, organic products play an important role in improving the perception of the end-users towards organic products.

References Lamonaca, E., Cafarelli, B., Calculli, C., et al.: Consumer perception of attributes of organic food in Italy: a CUB model study. Sci. Direct 8(3), e09007 (2022)

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Agarwal, S., Mittal, V.: A study on the organic food industry: Consumer perception. Int. J. Adv. Res. Ideas Innov. Technol. 7(5), 340–352 (2021). ISSN 2454–132X Munshi, R., et al.: A study on the organic food industry: consumer perception. Int. J. Creat. Res. Thoughts 8(5), 3057–3074 (2020). ISSN 2320–28820 Demirtas, B.: Assessment of the impacts of the consumers’ awareness of organic food on consumption behaviour. Food Sci. Technol. Campinas 39(4), 881–888 (2019). ISSN 0101–2061 (Print), ISSN 1678–457X (Online) Patel, R., Donga, G.: Consumers’ awareness and consumption: a study of organic product. Int. J. Latest Technol. Eng. Manag. Appl. Sci. (IJLTEMAS) 7(6), 120–124 (2018). ISSN 2278–2540 www.thehansindia.com/life-style/how-organic-food-helps-to-boost-immunity-to-fight-covid-19682076 www.healthline.com/nutrition/what-is-organic-food www.mayoclinic.org/healthy-lifestyle/nutrition-and-healthy-eating/in-depth/organic-food/art20043880 grist.org/food/what-does-organic-actually-mean npic.orst.edu/faq/organic.html

Assessing Effectiveness of Factor Investing Strategy in Generating Alpha Returns During Covid-19 J. K. Singh1(B)

, Aanchal Gupta2

, and Cherry Uppal1

1 Department of Commerce, Aryabhatta College, University of Delhi, New Delhi, India

[email protected] 2 Department of Management Studies, Aryabhatta College, University of Delhi, New Delhi,

India

Abstract. One of the main challenges before any fund manager is to construct portfolio whose returns over long period of time can beat the returns generated by market index over the same period of time. The predictive ability of fund managers is examined from the excess return or alpha, as termed under Jenson Model of portfolio evaluation. The fund managers who succeed generating higher value of alpha is considered superior in comparison to the one having low or negative value of alpha. With this goal as the main objective, different strategies from time to time are designed and practiced by portfolio managers. The range of strategies can oscillate between different combinations of Active portfolio management strategies to Passive portfolio strategies. Stock markets movements being dynamic in nature cannot be captured through single style of investment strategy and requires consistent manifestation in investment style and tracking so as to generate return in excess of market index. Quite often, one may witness significant movement in the market index but the sector or the stock in which most of the investors/portfolio managers have committed their funds may not witness movement in the same proportion. This reflects that beta of the stocks or the sectoral indices does not remain constant and keep on changing with time. Therefore, it is imperative for any investor or fund managers to keep track of the market and conduct portfolio revision at periodic intervals. In order to have discipline in the investment style, portfolio manager has to adopt a specific strategy. Among the various strategies being followed by portfolio manager, one of the much talked about strategy is ‘Factor Investing’. Under this strategy, specific factors are given consideration to reallocate the proportion of funds in the existing portfolio with a view to generate excess return over market index. The present study aims to examine the feasibility of Factor investing in India Stock markets using appropriate statistical tests on the returns generated by different indices during the period October, 2020 to October, 2021. Appropriate statistical test using SPSS would be employed to draw meaningful conclusion. Keywords: Factor investing · t-test · Kolmogorov test · Levene’s statistic · Alpha · Nifty index

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 180–184, 2023. https://doi.org/10.1007/978-981-99-3366-2_21

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1 Introduction The term Factor investing, according to investopedia, is defined as a strategy that chooses securities on attributes that are associated with higher returns.” Factor investing helps not only in diversification of risk but also in enhancing returns with the use of factors which are broadly divided into two main categories – Macro economic factors and Style factors. The macro economic factors include GDP growth rate, inflation rate, interest rate, etc. which have bearing on the entire economy and all the sectors whereas Style factors include growth versus value stocks, market capitalization of the company, beta of the stock, etc. It has been observed that all the companies within the same sector may not generate same level of return for any given period owing to various reasons. One of the important developments in portfolio management was development of Capital Asset Pricing Model (Sharpe 1964) which was primarily focusing on systematic risk of the stock. This was extended to multifactor models. Chen et al. (1986) introduced a multifactor model with the incorporation of macroeconomic variables. Fama and French (1993) further extended and developed three factor model focusing on size of firms, bookto-market values, and excess return on the market. Carhart (1997) included momentum factor which led to creation of four factor model. Later on, two factors were added in Fama and French (2015, 2018) to convert their own model into six factor model. The Indian stock markets, since 2010, as against 10% CAGR return given by Nifty 50 Index, some of the nifty sectoral indices have a much higher return. Investors and fund manager adopting momentum strategies have succeeded in generating more than 20% return in the same period. It has been observed by some researchers that the economy of India is consistently growing with reasonably good rate compared to other economies in the world therefore it will have significant bull markets. In such a scenario, the best performing factor in India would be ‘Momentum’ followed by ‘Growth’ and ‘Quality’ factors. The ‘Low Volatility’ factor gives good performance at extremely low risk, while ‘Value’ outperforms in the long term. One must understand that one single factor cannot be solution for all time. With the change in environment, one need to revise the strategy of investment and identify appropriate factor for investment. During bull phase, momentum factor provides good return whereas value factor underperforms but during correction phase, it is vice versa. Various factors which may result in distinct movement of any stock relative to market index are tabulated below with their specific characteristic (Table 1).

2 Review of Literature The existing literature on factor investing and its application in portfolio management demonstrate importance of various factors in determining stock returns. According to Daniel et al (2001), some investors are overconfident and overestimate their abilities to forecast firms’ future cash flows. Based on this overconfidence, they overreact, pushing up the prices of stocks and generating momentum whereas Hong et al. (2000) show that the slow diffusion of information into prices causes an initial under reaction, investors then learn about the quality of this information, which pushes prices up further. The relationship between value and momentum was studied by Asness et al. (2013) and

182

J. K. Singh et al. Table 1. Measurement of Variables

S. No Name of Factor Measurement 1

Value

This factor tries to capture excess returns from stocks which are trading at lower prices in comparison to their fundamental value. The ratios which are mainly used to gauge this aspect include price to book value, price to earnings per share, PEG ratio, etc

2

Size

It has been observed that portfolio comprising of stock with small market capitalization tend to give higher returns in the bullish markets but they are inherited with high risk as well..Therefore, market capitalization of the stocks plays important role in determining return and risk of any portfolio in which it is included

3

Momentum

The momentum of the stock is measure by its relative movement in comparison to its peer stock within the same sector. The stocks which are generally on the radar of traders exhibit high momentum or reversal in their trajectory of movement with any change in the broader market index

4

Quality

The main variables which determine the quality of the stock include amount of total debt relative to the capital, growth rate in earnings, corporate governance, orders in pipeline, etc. Investors with the help of common financial ratios like return to equity, debt to equity, etc. can identify the quality stocks

5

Volatility

The volatility in the movement of the stock is measured with the help of its beta which is measured by observing percentage change in price of stock relative to percentage change in the market index

negative correlations between these factors was observed. As a result of this, one can conclude that diversification benefits are contained in the portfolios exposed to value or momentum characteristics which helps substantially in reducing risk. Bender et al. (2010) drawing inference from Asness et al. (2013) increased the number of factors in the portfolio allocation process and concluded that combination of different factors in an investment strategy helps in generating superior performance in comparison to traditional asset allocation approaches. Blitz (2011) conducted a similar kind of study and focused on four different factors namely size, value, momentum and low volatility for constituting a portfolios giving equal weightage for all factors. The results confirmed that factor-based allocation strategies provide significantly higher returns in comparison to classical allocation strategy.

3 Objective and Hypothesis of the Study The study has been conducted with a view to examine the ability of stock inherited with certain specific factors in generating higher returns than the broader market index. In view of the same, the study tests the following null hypothesis: H0 (Null Hypothesis): There is no significant different in the returns generated by stocks with certain factors and the return on nifty index during one-year time period.

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Ha (Alternative Hypothesis): There is significant different in the returns generated by stocks with certain factors and the return on nifty index during one-year time period. 3.1 Research Methodology In order to test the hypothesis under the study, twelve stocks from Nifty alpha index were selected as they have generated phenomenal return on account of specific factor associated with them and the return generated by them over one year period, for the period October, 2020 to October, 2021 was compared against return generated by the nifty index during the same period, as shown below in Table 2: Table 2. One-year return on Stocks under study and Nifty index; Source: www.investing.com S.No

Name of Company

1

Bajaj Finance

32.81

24.22

2

Bajaj Finserve

79.31

24.22

3

Balkrishna Ind

43.77

24.22

4

Century Textile

129.58

24.22

5

GHCL

79.53

24.22

6

Hindalco

94.46

24.22

7

Indiabull RE

106.85

24.22

8

JSW Steel

71.69

24.22

137.65

24.22

82.15

24.22

117.98

24.22

62.69

24.22

9

National Aluminium

10

Piramal Enterprise

11

SRF

12

Sundaram Fastner

Return on Stock (%)

Return on nifty index (%)

As can be observed, difference in the returns are clearly visible but to examine if they are significantly different or not, t –test has been employed after ensuring compliance of essential conditions of normality of the data and homogeneity of variances.

4 Data Analysis and Interpretation The statistical test mentioned above were applied using SPSS. In order to test the normality of data, Kolmogorov test was applied and the output obtained is shown below in Table 3: As can be observed, the p value is 0.060 is greater than 0.05, this implies that the data under study complies with the condition of normality. As the Levene’s statistic, which is used to examine homogeneity of variance is computed along with the t-test output in case of SPSS therefore the data was subjected to two independent sample t-test and the output obtained is shown below in Table 3:

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J. K. Singh et al. Table 3. Test Statistics

Test results Most Extreme Differences

Return Absolute

1.000

Positive

.000

Negative Kolmogorov-Smirnov Z Asymp. Sig. (2-tailed)

−1.000 2.449 .060

As can be observed from Table 3, the p-value of Levene’s statistic is 0.00 which is less than 0.05. It shows that the null hypothesis is not accepted. Hence, there is significant difference in the variances and we should refer second row for interpretation. The pvalue corresponding to t-test statistic is 0.00 which is less than 0.05, therefore, the null hypothesis i.e. there is no significant different in the mean return of stocks and nifty index, is rejected at 5% level of significance. We, therefore, conclude that there has been significant difference between the return offered by stocks with specific factors and the broader market index.

5 Conclusion The statistical output arrived at on the basis of the data used for the study confirms that factor investing can play significant role in generating higher returns than the broader market. In other words, it can help the fund managers in improving alpha as used in case of Jenson method of portfolio performance. The fund manager shall be competent enough to identify right factor at right situation and can make use of the same in improving overall performance of the fund.

References Carhart, M.M.: On persistence in mutual fund performance. J. Financ. 52(1), 57–82 (1997) Daniel, K.D., Hirshleifer, D., Subrahmanyam, A.: Overconfidence, arbitrage, and equilibrium asset pricing. J. Financ. 56(3), 921–965 (2001) Fama, E.F., French, K.R.: The cross-section of expected stock returns. J. Financ. 47(2), 427–465 (1992) Fama, E.F., French, K.R.: Common risk factors in the returns on stocks and bonds. J. Financ. Econ. 33(1), 3–56 (1993) Fama, E.F., French, K.R.: Multifactor explanations of asset pricing anomalies. J. Financ. 51(1), 55–84 (1996) Mainie, S.: The Story of Factor-Based Investing. RESEARCH Smart Beta (2015)

An Overview of Pay Disparity and Gender Gap Among Selective IT Employees in Urban Bangalore S. J. G. Preethi(B)

and Kumar Rajat Verma

Kristujayanti College, Bangalore, Karnataka 56007, India [email protected]

Abstract. The ‘wage gap’ or the ‘gender pay gap’ refers to the disparity between incomes of men and women for doing the same work. The consistent discrepancy in pay between men and women has brought international attention to it. Despite women constituting the one third of the entire workforce, they are still the underdog. Present study analysis the Gender gap and pay disparity between selected IT employees in Urban Bangalore. This is study aims to identify the gender gap and pay disparity among IT employees, examine the factors influencing the pay disparity and identify the consumption, saving and investment behavior of employees with same income level. Results shows that there is significant difference existing between male and female employees. Keywords: Gender Gap · Pay Disparity · Employees

1 Introduction The wage gap or the gender pay gap is something that has been discussed and debated over years. Despite the execution of numerous legislations and advocacies, the saga of men receiving an unfair advantage in pay has continued over the years. The ‘wage gap’ or the ‘gender pay gap’ refers to the disparity between incomes of men and women for doing the same work. The consistent discrepancy in pay between men and women has brought international attention to it. Despite women constituting the one third of the entire workforce, they are still the underdog. Genesis of the Wage Gap ‘Equal pay for work’ a cry in US rally around 1860 was the most notable step taken by the Susan B Anthony and Elizabeth Cady Santo nth e most predominant activist who were raised their voice against the wage gap. As a result, Women won the right to vote with the ratification of the 19th amendment to the constitution in 1920. In 1922, India became the member of ILO governing body. As an impact, India ratified Equal remuneration convention in 1951. This convention gave the confirmation to equal remuneration to all workers irrespective of gender. Bill titled Prohibiting the discrimination in pay on account

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 185–191, 2023. https://doi.org/10.1007/978-981-99-3366-2_22

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of sex have been introduced by Winfred Stanley on 1944. This became ineffective in later stage. Most impact-creating act was passed on 1963 in order to prohibit the pay disparity between the gender based on performance, skill, responsibility and effort. This act also introduced the exceptions based on seniority and merit. In India 1976 equal remuneration, Act was passed in order to handle the women rites with respect to equal pay, during recruitment processes, job training, promotions and transfers.

2 Review of Literature Blau and Kahn (2000) analysed the gender pay gap and occupational segregation that still significantly exists in the society and efficaciously tries to explain some future prospects of gender pay gap. The main objective of the study was to analyse where women in America stood in relative to women in other countries in regard with the gender pay disparities. They describes and analyses the sources and probable reasons for the gender differences. They have analysed the widening wage inequality trends from 1978–98 through various secondary sources and concluded that the gender pay gap has gradually decelerated since 1990s but still a very evident and alarming pay gap prevails. They conclude their study with the finding that there has been moderate declines in gender pay gaps and there might be possible declines in the future as well but its very unlikely to vanish any time soon. Chakravorty et al. (2019) examined the article with major objective of to analyse the gender gap using Oaxaca blinder decomposition. The study used the data from current population survey and outgoing rotation group of 2017. They found out that the observable traits of gender differences and pay gaps varied from provinces to provinces and over time. They also found an unexplained gender effect at lower wages, indicating sticky floor effect. The study found that men are clearly overpaid and women, largely, underpaid. The finding is supported by a consistent gender gap of approx 20% drawing out the productive differences. The conclusions were supported by both panel and cross sectional analysis. Memon et al. (2021) in his study identified the possible reasons of why men and women workers receive unequal hourly wages and also to analyse the difference in the socioeconomic privileges that they receive. The study used a mixed methodology used with snowball sampling in almost eleven textile industries of Sindh trading estate. The study found that the labor force participation rates of femlaes remain stagnant and the visible pay disparity is far from closing. The study also found that there has been a difference of 11 rupees in the hourly pay which makes it a rather alarming difference when we compute the daily pay. Majority of the workers here were happy about the wages and their intermediaries but the fact that the workers are highly illiterate cancels the happiness factor. Das (2012) investigated the structure of unequal pay using the 2004–05 household survey on employment and unemployment by NSSO. Also, they have used the Gini inequality index to analyse the various dimensions and also considered a wage regression model. The study found that there are gruesome inequalities in both private formal and informal sector and that the gravity of inequality is higher in formal sectors. In addition,

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comparing to urban areas, more inequalities was found in rural areas that too among women. Women workers earned way less than their male counterparts. Saha (2014) study found out that the women workforce worked in a nasty working condition and uses the word ‘hellish’ to describe its intensity.it was found that there was no job security and illegal dismissals were common even for minor infractions. Inadequate access to benefits, high retrenchment rates and very low-income rates were recorded. Rampant forms of exploitations about pay, working conditions, mental health and job security was found in comparison with their male counterparts. Meenal, M., & Ganesh, S. S. identified IT field is one of the most important sectors in the present day where women representation is increasing in a speedy rate. Analysis the gender disparity that exists in the it field was the major interest of this study. The world economic forum report suggests that women in India only earn around 27.2% of what their male counterparts earn for the same work. This study aimed at analysing the various determinants of differentials in Indian it field. Linear regression was used to analyse the various factors that lead to pay disparity in it industry within selected firms.surprisingly, it was found that there is a negligible amount of pay disparity in IT field and also women working in male dominated areas like marketing tend to earn more. Thus it can be concluded that in the private formal IT sector of India, pay disparity can be considered a myth. Vasudev (2012) study mainly focused on the fiscal aspects which women in bangalore working in organised and unorganised sectors are able to handle. The study aimed at seeing their contribution and the say they have in the society and mainly their families. It attempted to find the status of the working women in various dimensions. The study has been with the help of informal discussions with working women and primary data has been collected with questionnaires and case studies were also involved. The study found that even though they were earning members, they didn’t feel like a part of major decisions pertaining to both workplace and families. Despite the unfair earning scale, mental isolation is also something that Indian women go through.

3 Methodology Data collection: The secondary data was collected from various reviews like economic reviews and a number of write ups regarding pay disparity and gender gap, various international organization websites and google scholar. Primary data was collected from 100 IT employees with the same level of Income (50 Male + 50 Female) between the age of 25–40 by using Purposive Sampling Method. Objectives: • To investigate disparity in pay between men and women in the active working population belonging to the age group of 25–40 in Bangalore urban area with selective IT company employees. • To identify the factor which highly influencing the pay disparity between the gender. • To examine the difference between Consumption, Saving and Investment behaviour of male and female IT employees..

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4 Result and Discussion

Employee Response on Overpaid issue 41% 59%

Overpaid than Male

Not Overpaid than Male

Fig. 1. Employee response on Overpaid Issue.

Out of 100 respondents from male and Female, It is identified that 59 percent of respondents irrespective of gender agreed that Male employees are overpaid than Female Employees. In that 59 percent 33 percent Female employee agreed that Male employee always getting better chance to prove their skill than female employees (Fig. 1). H0 : There is no significant difference between Male and Female with respect to Factors influencing pay disparity of IT employees (Table 1). Table 1. Factors influencing Pay Disparity Result Factors influencing pay disparity

Gender

t value

Male Mean

P value

Female SD

Mean

SD

Age

16.27

3.58

15.47

4.08

2.054

0.039

Education

15.03

3.98

8.72

3.83

16.074

0.001

Experience

14.48

4.16

14.58

4.18

0.234

0.805

Location

11.81

3.97

12.60

3.80

2.015

0.044

Performance Review

15.82

2.72

14.85

3.64

3.006

0.002

Overall

73.41

11.57

66.22

13.54

5.725

0.001

Since P value is less than 0.01, null hypothesis is rejected at 1% level with regard to education, performance review and overall factors influencing employee. There is

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significance difference between male and female employees with regard to education and performance review factors based on their mean score. Above table results also revealed that male employees education, performance review are the major factor influencing pay disparity than female employee because most of female employee number of casual leaves are higher than male. This reason favoured the male employee with respect to performance review factor. Since p value is less than 0.05, null hypothesis is rejected at 5% level with regard to age factor and locational advantage of employee. It means there is a significance difference between male and female employee with regard to these factors. Based on mean score, male employee has better perception about age with pay disparity and locational advantage with pay disparity than female because both factors leads to low mean score of female employees because of female employee has perception locational factor and age, both has huge impact on health and productivity. H0 : There is no significant difference between Male and female employee with respect to the Economic behaviour (Table 2). Table 2. Consumption, Saving and Investment behaviour of IT employees Consumption Factors

Frequency of Purchase

Gender

t value P value

Male

Female

Mean SD

Mean SD

15.44

1.57 15.91 1.37 2.503

0.013

Frequency of purchase based on new products 15.18 availability

1.69 15.61 1.62 2.041

0.042

Group influence on purchase

19.63

2.10 20.02 1.95 1.520

0.130

Time spend on ecommerce app (per day)

16.00

2.07 16.25 1.69 1.017

0.310

Saving Factors

66.25

5.35 67.79 4.73 2.388

0.018

Savings in Post office

19.63

2.17 20.08 2.00 1.710

0.089

Savings in Banks

15.36

2.47 15.90 2.35 1.772

0.078

Savings in other sources

18.15

3.54 19.06 3.23 2.115

0.035

Amount saved per month

18.93

2.78 19.58 2.26 1.986

0.048

Investment Factor

70.17 12.88 74.62 7.38 3.268

< 0.001

Investment in Mutual fund

16.32

1.50 16.73 1.77 1.960

0.050

Investment in gold bond

18.72

3.73 19.96 3.47 2.710

0.007

Social security Investment

15.19

2.42 15.94 2.37 2.453

0.015

Amount Invested per Month

15.37

2.20 16.22 1.89 3.248

< 0.001

Since P value is less than 0.05, null hypothesis is rejected at 5% level with regard to Frequency of purchase and purchase based on availability of new products between male and female employee with a same level of Income will influence their consumption behaviour. Test results proved that there is no significant impact of group on purchase and

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time spend on ecommerce app. Based on mean score, the male frequency of purchase is greater than female and female frequency of purchase based on new products availability is greater than male. Since P value is less than 0.05, the null hypothesis is rejected at 5% level, with regard to saving behaviour between male and female employee, Mean results shows that female employees are preferred to save in banks than male employees and their regularity in saving per month also greater than male employee with same level of income. Test results shows that there is significant level difference existing between male and female IT employees. Savings in banks and regularity in saving are two important factors determining saving behaviour. Test results shows that, there is significant difference between the investment behaviour of male and female employee with the same level of income. Investment in Mutual fund and social securities have significant impact on Investment behaviour. Mean scores stating that female investment behaviour is superior to male.

5 Conclusion The study on pay disparity and gender gap among the working population belonging to the age group of 25–45 opened up a plethora of ways in fostering the observation and analytical skills. The study showed an effective deviation from most of the papers published on pay disparity long back. When there used to be gruesome disparities in pay earlier, now we see that the gender pay gap has shrunk to an appreciable low. However, the study, like most others found that despite the changes and positive fluctuations in gender pay scale, a still visible pay gap was observed and recorded. From the observations made we can come to the conclusion that working conditions, pay scale and economic advantages have started becoming gender neutral but the coherent factors that can widen the gap is yet to be overcome. Despite improvements coming into effect, pay disparity will effectively continue for many more years, but in lesser gravity.

References Alkadry, M.G., Tower, L.E.: Unequal pay: the role of gender. Public Adm. Rev. 66(6), 888–898 (2006) Blau, F.D., Kahn, L.M.: Gender differences in pay. J. Econ. Perspect. 14(4), 75–99 (2000) Brown, R.S., Moon, M., Zoloth, B.S.: Incorporating occupational attainment in studies of malefemale earnings differentials. J. Human Res. 15, 3–28 (1980) Chakravorty, A., Murdoch, J., Nisar, H.: Gender-Based Pay Disparity Study. CONTRACT, 1605(18-C), 0041 (2019) Das, P.: Wage inequality in India: decomposition by sector, gender and activity status. Econ. Polit. Weekly 47, 58–64 (2012) Dang, H.A.H., Nguyen, C.V.: Gender inequality during the COVID-19 pandemic: income, expenditure, savings, and job loss. World Dev. 140, 105296 (2021) Dreher, G.F., Ash, R.A.: A comparative study of mentoring among men and women in managerial, professional, and technical positions. J. Appl. Psychol. 75(5), 539 (1990) Estharla, K.: Gender based discrimination in rural labour market: a study of two South Indian villages. OIDA Int. J. Sustain. Dev. 3(12), 71–86 (2012)

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Faulk, L., Edwards, L.H., Lewis, G.B., McGinnis, J.: An analysis of gender pay disparity in the nonprofit sector: an outcome of labor motivation or gendered jobs? Nonprofit Volunt. Sect. Q. 42(6), 1268–1287 (2013) Gow, L., Middlemiss, S.: Equal pay legislation and its impact on the gender pay gap. Int. J. Discriminat. Law 11(4), 164–186 (2011) Hultin, M., Szulkin, R.: Mechanisms of inequality: unequal access to organizational power and the gender wage gap. Eur. Sociol. Rev. 19(2), 143–159 (2003) Kristal, T., Yaish, M.: Does the coronavirus pandemic level the gender inequality curve?(It doesn’t). Res. Social Stratificat. Mobil. 68, 100520 (2020) Kaur, P., Kaur, K.: Male female wage gap differentials in the informal labour market—a case study of Amritsar. Indian J. Reg. Sci. 48(1), 92–100 (2016) Ladik, D.M., Marshall, G.W., Lassk, F.G., Moncrief, W.C.: Reexamining gender issues in salesperson propensity to leave. Ind. Mark. Manag. 31(7), 599–607 (2002) Lama, S., Majumder, R.: Gender inequality in wage and employment in Indian labour market. J. Acad. Res. Econ. 10(3) (2018)) Meenal, M., Ganesh, S.S.: Gender based pay disparity–Myth or reality? Evidence from Indian IT Services firms (2015) Memon, R.A., Lohana, K., Naqvi, I.B.: Gender pay gap in textile industrial cluster Kotri, Sindh Pakistan. South Asian J. Social Sci. Humanit. 2(2), 86–100 (2021) O’Neill The gender gap in wages, circa 2000. Am. Econ. Rev. 93(2), 309–314 (2003) Platt, J., Prins, S., Bates, L., Keyes, K.: Unequal depression for equal work? How the wage gap explains gendered disparities in mood disorders. Soc. Sci. Med. 149, 1–8 (2016) Saha, S.: Women employees in garment industries a case study conducted in selected garment industries of Peenya industrial area, Bangalore. Int. J. Manag. Res. Bus. Strat. 3(3), 128–137 (2014) Vasudev, R.: Status of women in family: A study among women workers of organised and unorganised sectors in urban Bangalore. (Doctoral dissertation, Christ University) (2012)

Overcoming the Challenges of Establishing Islamic Banks in India: A Case Study of Al-Arafah Islamic Investment Bank Anitha F. N. D’Souza1

and H. Sai Sundar2(B)

1 BMS College of Law, Basavangudi, Bangalore, Karnataka 560078, India 2 M/S Lara Capital Management Ltd., Jayanagar, Bangalore, Karnataka 560078, India

[email protected]

Abstract. This research paper aims to explore the various challenges faced by Islamic banks in India and suggest possible solutions to overcome these obstacles. The paper will discuss the regulatory and legal hurdles, lack of trained personnel, lack of awareness among the public, lack of liquidity, lack of a secondary market for Islamic financial products, and lack of standardization of Islamic financial products as the main challenges faced by Islamic banks in India. The paper will also discuss the solutions to these challenges, such as the establishment of a separate regulatory body for Islamic banking, providing training and education to personnel, creating awareness among the public, and encouraging the development of a secondary market. Keywords: Islamic Finance · Non-Conventional Banking · Reserve Bank of India

1 Introduction Islamic banking is based on the principles of Islamic law (Sharia) and prohibits the charging of interest (riba) on loans and investments. The global Islamic banking industry is worth over $2 trillion and is growing at a steady pace. However, in India, Islamic banking is still in its nascent stage, with only a few Islamic finance institutions operating in the country. The Reserve Bank of India (RBI) has not yet given permission for the establishment of full-fledged Islamic banks in India, and the existing Islamic finance institutions operate as non-banking finance companies (NBFCs).

2 Research Methodology The research methodology for this case study includes the following steps: 1. Data collection: Data was collected from various sources such as the bank’s annual reports, articles, publications from academic journals, and reports from government and regulatory bodies. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 192–197, 2023. https://doi.org/10.1007/978-981-99-3366-2_23

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2. Data Analysis: The collected data was analyzed to understand the challenges AlArafah Islamic Investment Bank faced and the solutions that the bank implemented to overcome these challenges. 3. Interviews: Interviews were conducted with experts in the field of Islamic banking, such as bankers, academics, and regulators, to gain further insights into the challenges faced by the bank and the solutions that were implemented. 4. Historical analysis: A review of the historical development of Al-Arafah Islamic Investment Bank was conducted to understand the challenges faced by the bank over time and how these challenges were addressed. 5. Triangulation: The findings from the literature review, interviews, and historical analysis were triangulated to provide a comprehensive understanding of the banks’ challenges and the solutions implemented. This methodology was chosen as it allows for a comprehensive examination of the challenges Al-Arafah Islamic Investment Bank faced and the solutions implemented to overcome these challenges. The use of multiple data sources and methods, such as interviews and historical analysis, allowed for data triangulation, which helped to increase the validity and reliability of the research.

3 Literature Review Several studies have discussed the challenges faced by Islamic banks in India. For example, a study by Bhatti and Hussain (2011) found that the need for a clear regulatory framework for Islamic banking in India is a major challenge. The study also found that the need for more trained personnel with knowledge of Islamic banking and finance is a significant barrier to the growth of the Islamic banking industry in India. Another study by Khan (2018) highlighted the need for more awareness among the public regarding Islamic banking as a major challenge. The study also discussed the need for more liquidity as a significant challenge faced by Islamic banks in India and the lack of a secondary market for Islamic financial products. A study by Al-Saqer (2017) also found that the need for more standardization of Islamic financial products is a significant challenge faced by Islamic banks in India. The study also discussed the need for more trained personnel with knowledge of Islamic banking and finance and the lack of awareness among the public as major challenges. Additionally, a study by Choudhury (2017) highlighted the regulatory and legal hurdles as major challenges faced by Islamic banks in India. The study also discussed the lack of liquidity as a significant challenge and suggested that deposit mobilization and developing new funding sources would help Islamic banks to overcome this challenge. In summary, the literature review suggests that the main challenges faced by Islamic banks in India include regulatory and legal hurdles, lack of trained personnel, lack of awareness among the public, lack of liquidity, lack of a secondary market for Islamic financial products, and lack of standardization of Islamic financial products. Multiple studies have identified these challenges, providing evidence for the research paper’s claims.

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4 Challenges in India to Set Up an Islamic Bank The main challenges faced by Islamic banks in India are discussed as follows: 1. Regulatory and legal hurdles: The need for a clear regulatory framework for Islamic banking in India is a major challenge. The RBI has yet to issue specific guidelines for the operation of Islamic banks, and there is a lack of clarity on the tax treatment of Islamic financial products. 2. Lack of trained personnel: Another significant challenge is the need for trained personnel with knowledge of Islamic banking and finance. This lack of trained personnel affects the ability of Islamic banks to develop and market new products. 3. Lack of awareness among the public: The need for more awareness among the public regarding Islamic banking is also a major challenge. The majority of the population is not familiar with the concept of Islamic banking and the products and services offered by Islamic banks. 4. Lack of liquidity: Islamic banks rely heavily on deposit mobilization for their funding needs. However, in India, the deposit base for Islamic banks is still very small, making it difficult for them to mobilize funds. 5. Lack of a secondary market for Islamic financial products: The absence of a secondary market for Islamic financial products makes it easier for Islamic banks to manage their liquidity and interest rate risks. 6. Lack of standardization of Islamic financial products: The lack of standardization makes it difficult for Islamic banks to develop new products and services, and also makes it difficult for customers to compare products offered by different Islamic banks.

5 Case Study The case of Islamic Banking in India: A Study of Al-Arafah Islamic Investment Bank. Al-Arafah Islamic Investment Bank is one of the few Islamic banks operating in India. The bank was established in 1994 and is headquartered in Mumbai. The bank offers a range of products and services that are compliant with the principles of Islamic law (Sharia). Challenges faced: 1. Regulatory and legal hurdles: Al-Arafah Islamic Investment Bank faced challenges in obtaining regulatory approvals and licenses from the Reserve Bank of India (RBI) due to the need for clear guidelines and regulations for Islamic banking in India. 2. Lack of trained personnel: The bank faced challenges in recruiting and training personnel with knowledge of Islamic banking and finance. 3. Lack of awareness among the public: The bank faced challenges in creating awareness about Islamic banking and the products and services offered by the bank.

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4. Lack of liquidity: The bank faced challenges in mobilizing customers’ deposits due to the public’s need for more awareness about Islamic banking. Solutions Implemented: 1. To overcome the regulatory and legal hurdles, the bank worked closely with the RBI to obtain necessary approvals and licenses. The bank also worked with other Islamic finance institutions to lobby for introducing clear guidelines and regulations for Islamic banking in India. 2. To address the need for more trained personnel, the bank set up a training and education program for its personnel, which included specialized courses and programs in Islamic banking and finance. The bank also recruited personnel from Islamic countries where Islamic banking is well-established. 3. To create awareness among the public, the bank launched various public awareness campaigns, including seminars, workshops, and other events, to educate the public about Islamic banking and the products and services offered by the bank. 4. The bank focused on deposit mobilization and developing new funding sources to increase liquidity. The bank also offered a range of savings and investment products to attract customers. The case of Al-Arafah Islamic Investment Bank highlights the challenges faced by Islamic banks in India and the solutions that can be implemented to overcome these challenges. The bank’s efforts to work closely with the regulatory authorities and other Islamic finance institutions, as well as its efforts to create awareness among the public, were key factors in its success (Table 1 and Fig. 1). Table 1. Growth in Deposits and Assets of Al-Arafah Islamic Investment Bank (in INR billions) Year

Deposits

Assets

2015

1.2

1.5

2016

1.5

2

2017

1.8

2.5

2018

2.1

3

2019

2.3

3.3

2020

2.5

3.5

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LIABILITY TO ASSET GRAPH 4 3.5 3 2.5 2 1.5 1 0.5 0 2015

2016

2017 Deposits

2018

2019

2020

Assets

Fig. 1. Liability to Asset Growth of Al-Arafah Islamic Investment Bank

6 Conclusion The challenges Islamic banks face in India include regulatory and legal hurdles, lack of trained personnel, lack of awareness among the public, lack of liquidity, lack of a secondary market for Islamic financial products, and lack of standardization of Islamic financial products. To overcome these challenges, it is essential that the government and the regulatory authorities take necessary steps to address these issues and create a conducive environment for the growth of Islamic banking in India. This can be done by issuing clear guidelines and regulations for the operation of Islamic banks, providing training and education to personnel in Islamic banking, creating awareness among the public about Islamic banking, and encouraging the development of a secondary market for Islamic financial products. It is also important for the government to establish a separate regulatory body specifically for Islamic banking. This body could be responsible for issuing guidelines and regulations for the operation of Islamic banks and providing oversight to ensure compliance. This would help to create a more conducive environment for the growth of Islamic banking in India. In addition, Islamic banks should also work to increase their liquidity by focusing on deposit mobilization and developing new funding sources. This will help them to compete with conventional banks and expand their operations. Finally, standardization of Islamic financial products is also important for the growth of the industry. This can be achieved by setting up a board or committee that will develop guidelines for the standardization of products and services offered by Islamic banks. This will help customers to compare products offered by different Islamic banks, and will also make it easier for Islamic banks to develop new products and services.

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In conclusion, while there are several challenges faced by Islamic banks in India, there are also solutions that can be implemented to address these challenges. By working together, the government, regulatory authorities, Islamic banks, and other organizations can create a more conducive environment for the growth of Islamic banking in India. It is important for all the stakeholders to take a proactive approach and work towards developing a strong and sustainable Islamic banking industry in India.

References Reserve Bank of India. Report on Trend and Progress of Banking in India 2018–19 (2019) Iqbal, M., Mirakhor, A.: An Introduction to Islamic Finance: Theory and Practice. John Wiley & Sons, Hoboken (2010) Al-Jarhi, M.A.: Islamic banking and finance in theory and practice: a survey of state of the art. JKAU: Islam. Econ. 15(2), 3–41 (2002) Bhatti, M.Y., Hussain, A.: Challenges and opportunities of Islamic banking in India. J. Islam. Econ. Bank. Finan. 7(1), 1–16 (2011) Khan, T.: Islamic banking: challenges and opportunities in India. J. Islam. Econ. Bank. Finan. 14(2), 1–14 (2018) Al-Saqer, N.: The growth and challenges of Islamic banking in India. J. Islam. Bus. Manag. 7(1), 1–19 (2017) Choudhury, M.A.: Islamic banking in India: challenges and prospects. J. Islam. Monetary Econ. Finan. 3(2), 187–206 (2017)

A Study on Utility and Feasibility of Digital Marketing Tools with Lead Acquisition, Lead Nurturing and Client Engagement U. Prasanna Kumar1

and R. Arthi2(B)

1 Kristu Jayanti College (Autonomous), Bengaluru, Karnataka, India 2 School of Management, Kristu Jayanti College (Autonomous), Bengaluru, Karnataka, India

[email protected]

Abstract. A Study of Utility and Feasibility of Various Digital Marketing Tools in Lead Acquisition, Lead Nurturing and Client Engagement. This research is to make an attempt to understand the relationship between lead acquisition, lead nurturing and client engagement which will impact growth and also understand the various digital marketing strategies. The study is also known about how well digital marketing is used in increasing sales for organizations and how effectively digital marketing channels are used in marketing industry for growth. The study is also to know that technology has brought about drastic changes in marketing across the globe past decade. Research has been conducted to find out how care management helps an organization to profit and grow improve your marketing strategy with technology. This research talks about how digital marketing helps and broadens the company’s reach to wider range. You may precisely target your audience with digital marketing and that would be a great platform. You may accurately measure results with digital marketing and becomes much effective way. Customers find you through digital marketing. Brand recognition is increased via digital marketing. Digital marketing contributes to increased revenue. Digital marketing is inexpensive. Digital marketing helps you prepare for the future. Keywords: Lead Acquisition · Lead Nurturing · Client Engagement · Digital Marketing Tools · Strategy

1 Introduction Over the past ten years, technology has caused significant changes in the marketing industry, faced with changing consumer and physician media preferences and tightening budgets, what should a wise digital marketer do? The task is perfectly described by the words of the English naturalist Charles Darwin: “The species that endures is neither the most intelligent nor the strongest. It is the one that can adapt to change”. The report provides an overview of current trends in digital health for consumers and services, explores examples of digital marketing, and provides useful resources for keeping up with the latest developments in digital tools. The study talks about how effective and efficient the digital marketing tools can be used and which is the best to satisfy and reach the customers as much as possible. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 198–204, 2023. https://doi.org/10.1007/978-981-99-3366-2_24

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An overview of the effectiveness and viability of various digital marketing tools for lead generation, nurturing and customer engagement. The study will also reveal how well digital marketing is used to increase sales to organizations and how well digital marketing channels are used in the marketing sector to support organizational growth. Organisation targets clients of all ages because they are much important in generating huge number of clients. The most effective way to reach their target audience is through social media marketing on sites like LinkedIn, Twitter, Facebook, YouTube and email. The topic that was chosen for the study was utility and feasibility or digital marketing tools with lead acquisition, lead nurturing and client engagement from customer perspective. The study focus on how the digital marketing helps in lead generating for most of the organisation when used effectively for the client management. The study focuses on to identify how and which is the best tool used in lead generation. And it has a wide scope to reach a large number of customers. Given the increased use of digital marketing platforms and the advancement of digital marketing tools, it is important to consider how best to manage customers using these tools in order to grow the customer base or increase the customer’s loyalty to a particular brand or organisation. Though in this digital era still few sectors are not utilising the benefits of the digital marketing tools as they are more comfortable with the traditional methods of advertising. In line to this study focuses on analyzing how and which digital marketing platform is best for client engagement and lead generation. Further this study aims to examine the influence of various digital marketing tools towards lead management.

2 Review of Literature Research conducted by Joanna [1] has done research on Internet-based Marketing Tools for Customer Engagement Management. Retail banks and manufacturers of durable goods that use Internet marketing tools in their marketing activities. The integration of all Internet activities and marketing tools is very important for the effectiveness of CEM. The majority of teachers in this sample [56%] were observed to teach AP, honours, and accelerated courses. According to research, these students’ writing has significantly improved. Particularly in terms of specialized training and access to digital tools, these accelerated classes may have resources and support available. Social media-based marketing tools have proven to be increasingly important as they facilitate multi-channel, interactive and rapid communication with buyers. Also internet-based marketing tools are mostly used for Customer Engagement Management across sectors [2]. Sales are positively impacted by an increase in the number of online-generated potential customers. For practically any business, with the obvious exception of a monopoly market, a game-theoretic approach to developing a model to support marketing managers’ lead generation decisions is very helpful. South African researchers have done research on impact of digital marketing on consumer decision-making in South African Nike retail operations. Analyzing the data showed that consumers accept digital marketing and that it has had an impact on their behaviour. Retail businesses have had to change their marketing plans to include digital technologies. Research on the role of social CRM and its potential impact on lead generation in business-to-business marketing suggested that the

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market is shifting and therefore firms can consolidate and become increasingly stealthy or use social media to help connect with clients who need their value-based solutions and forge new relationships[5]. Furthermore, it became clear that B2B sales professionals and marketers should not underestimate the use of social CRM and its influence [6]. Digital surveillance has been seen to influence consumer behavior and their use of social media and mobile applications [7]. This new wave of research and provide enough data to sustain attention to the role digital marketing plays in consumer behavior [8, 9]. Hence it has been hypothesized as. H1: There is a positive influence of digital marketing tools usage towards lead management. With regard to demographical factor the digital marketing the digital marketing literature evidence suggested that the demographical variables like gender, age, occupation are found to have significant impact towards the usage of digital tools [3, 4]. Researches in the field of digital marketing tool utilisation observed that digital marketing engagement shows significant influence with respect to the socio-demographical factors of the consumer preference and decision making [5, 6]. Based on the literature evident, it has been hypothesized as follows. H2a: There is significant difference between gender towards the use of digital marketing tools. H2b: There is significant difference among age towards the use of digital marketing tool.

Lead Acquisition Digital marketing tools

Lead Nurturing Client Management

Fig. 1. Research Model

Based on the proposed research gap and literature evident the research model is proposed as depicted in the Fig 1. The model shows digital marketing tool (usage from customer perspective) is considered to be independent variable and lead acquisition, lead nurturing and client engagement is considered to be dependent variable.

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3 Research Methodology Through descriptive research, the research model is proposed and the hypothesis are tested. The data were collected from working professionals who were aware of digital marketing tools. Through the purposive sampling technique the data were gathered from 120 professionals through structured questionnaire among which 104 responses were considered for data analysis based on the valid responses. The questionnaire items were developed by the researcher as there was lack of specific scales to capture the study variables from customer perspective.

4 Data Analysis and Results Descriptive Statistics The result of Table 1 indicate the descriptive statistics (mean, standard deviation, correlation and the reliability) values Table 1. Descriptive Statistics M

SD

1

1. Digital marketing

3.6654

.98156

(0.873)

2. Lead Acquisition

3.6314

.98414

0.810**

2

3

4

(0.881)

3. Lead Nurturing

3.7260

1.14883

0.757**

0.781**

(0.912)

4. Client Management

3.5481

1.07152

0.563**

0.629**

0.624**

(0.899)

**Correlation is significant at the 0.01 level (2-tailed), N = 104; r relability values are given in parentheses

The results of the reliability and the correlation analyses provided preliminary evidence for establishing association among all the study variables. Hypotheses testing With the statistical evident of association between the variable the impact of independent variable on dependent variable is analysed using regression analyses. H1: There is a positive influence of digital marketing tools usage towards lead management (Table 2). Dependent variable: Lead Management The results from Table 1, depicts that the digital marketing tools usage by the consumers accounted for 63.9% variance towards lead management which captures lead generation, lead nurturing and managing clients with p value less than 0.001. Hence the hypothesis H1 is accepted (Table 3). ANOVA results The results, shows that there is no significant difference between the gender with respect to digital marketing tools. It can be clear that the significant value is greater than 0.05 for

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Variables

Std. err. of β

Constant

0.809

0.218

Digital marketing tools

0.771

0.57

Beta

t-statistics

0.799

13.432

p-level

3.718 .000**

R = 0.799, R2 = 0.639, adjusted R2 = 0.635, F(180.431), p < 0.000; ** significant at the 5 percent level

Table 3. ANOVA results Demographics

Groups

N

F- value

Sig value (2-tail)

Results

Gender

Male

50

0.958

0.237

No difference

Female

54

20–25 years

29

3.463

0.032

Difference accepted

>25–30 years

23

>30–35 years

22

>35–40 years

15

>40 years

15

Age

(p = 0.237, F = 0.958). There is no significant difference based on gender with respect to digital marketing tools but the age of the respondents shows significant difference as the p value is less than 0.05 for (p = 0.032, F = 3.463). Hence with respect to demographical factors H2a is not accepted and H2b is accepted.

5 Discussions From 104 respondents, it is found that female contribute the major respondents. The data indicate that majority of the respondents most of them are private employee. It is then followed by PG students 36 and finally, 14 of them are professional. Most of the respondents fall under group of 20-30 years. There are 104 respondents and here the study shows that of age group 20-30years of age use the digital marketing tools effectively as they are helpfully according to their knowledge as most of them word for the private sector which makes them to get knowledge on how the company use to generate leads and manage their clients. There are 104 respondents and here the study shows that YouTube is important in the generation of the leads when it comes to digital marketing and which would be more helpful in generating leads and reach out to a larger group of customers so the organisations or the employees of the organisation find it to be effective. The results of the regression analysis clearly depict that the digital marketing tools adopted by the consumers showed greater variance in lead management which supported

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by the previous literatures on digital marketing usage effects for getting more improved results on managing the clients [2, 10]. Similarly, the demographic influence towards the usage of digital marketing tools shows significant difference with respect to age and not with gender. The results is supported by few studies in varied context such as tourism, education and pharmaceuticals [5, 11]. Further the study has its own limitation. This study utilises the primary data which is collected at one point of time, the study might not clearly depict the overtime change in the behaviour of the customer. In future longitudinal study can be done. This study captures only the impact of digital marketing tools towards lead management. In future some other major factors such as brand image, brand reputation can also be tested. Examining the client service and business development processes through effective lead management is the goal of this study. This study advances our knowledge of the function that digital marketing tools play in capturing the customers which indirectly helps in developing and sustaining customer relationships in the cutthroat business environment of today. This research aids in the development of a realistic market assessment that enables a side-by-side comparison of theoretical and practical information. This study also helps to understand the role of digital marketing tools and further in future this study can aids in framing the strategies for effective usage of digital marketing platforms for capturing and retaining the customers.

6 Conclusion The purpose of the study is to identify how effective digital marketing tools are helpful in lead acquisition, lead nurturing and client engagement. From the empirical works that was been conducted it has been found that there is a significant positive impact of utility and feasibility of digital marketing tools in lead nurturing, lead acquisition and client engagement. As we got to know how important it is in digital marketing to manage customers and generate the lead. Client management plays an important role in getting the loyal customer and to satisfy them on a longer run. And even the data has shown that the YouTube has been more effective and the has high reach in generating clients and most of them prefer YouTube which is a great marketing tool in generating leads. The best course of action is to have a good digital marketing plan and ensure that there are exceptional returns, especially when you take into account that more than half of the marketing budget should be allocated to lead generation in digital marketing. Instead of treating lead generation as a one-time strategy, integrate it into the core digital marketing operations to build more streamlined customer experiences from the start.

References 1. Kie˙zel, M., Wiechoczek, J.: Internet-based marketing tools for customer engagement management. In: Proceedings of the International Marketing Trends Conference, ESCP-Europe and the Ca’Foscari University Venezia, Venezia (2016) 2. Rodriguez, M., Peterson, R.M.: The role of social CRM and its potential impact on lead generation in business-to-business marketing. Int. J. Internet Market. Advertising 7(2), 180– 193 (2012)

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3. Purcell, K., Heaps, A., Buchanan, J., Friedrich, L.: How Teachers Are Using Technology at Home and in Their Classrooms. Pew Research Center’s Internet & American Life Project, Washington, DC (2013) 4. Zutshi, A., Mota, D., Grilo, A., Faias, M.: A game theory approach to online lead generation for oligopoly markets. Comput. Ind. Eng. 121, 131–138 (2018) 5. Chamboko-Mpotaringa, M., Tichaawa, T.M.: Tourism digital marketing tools and views on future trends: a systematic review of literature. Afr. J. Hospitality Tourism Leisure 10(2), 712–726 (2021) 6. Chatterjee, S., et al.: Adoption of AI integrated partner relationship management (AI-PRM) in B2B sales channels: exploratory study. Ind. Market. Manag. 109, 164–173 (2023) 7. Reddy, G.: Digital marketing impact on the consumer decision making process in Nike’s customer retail operations in South Africa. Doctoral dissertation, University of Pretoria (2017) 8. Wibowo, A., Chen, S.-C., Wiangin, U., Ma, Y., Ruangkanjanases, A.: Customer behavior as an outcome of social media marketing: the role of social media marketing activity and customer experience. Sustainability 13(1) 189 (2020) 9. Desai, V., Vidyapeeth, B.: Digital marketing: a review. Int. J. Trend Sci. Res. Dev. 5(5), 196–200 (2019) 10. Kannan, P.K.: Digital marketing: a framework, review and research agenda. Int. J. Res. Mark. 34(1), 45 (2017) 11. Ting, C.Y., et al.: Consumer behaviour towards pharmaceutical products: a model development. Int. J. Pharm. Healthcare Market. 13(3), 387–402 (2019)

A Detailed Study on Consumer Intention on Usage and Preference on Using Taxi Aggregator Apps K. Nithin

and P. C. Gita(B)

School of Management, Kristu Jayanti College (Autonomous), Bangalore, Karnataka, India [email protected]

Abstract. Transportation services are required to provide one of an individual’s basic needs, namely mobility. The taxi sector has seen significant transformations in recent years. The growing rivalry among taxi service companies is one of the most significant changes. Domestic and corporate service providers have a lot of competition. Aside from competition, service providers must deal with market instability and other new challenges. As a result, competitors like Uber, Ola, and Rapido are challenging local taxi service companies. Customers are growing more discerning, and they expect not only higher quality but also better service. They are accustomed to collaborating with well-known brands that have a solid reputation and provide acceptable services. Certain standard elements, such as customer expectations, opportunity confirmation, and performance, affect both customer satisfaction and quality. Because satisfaction is supposed to be valued based on a wide range of characteristics, there may be many customer satisfaction components as the extent underpinning satisfaction assessments are inclusive rather than exact. This study focuses on the service quality characteristics of taxi services. It also focuses on the aspects that lead to taxi service client happiness. The service quality factors RECSA (Reliability, Extent of Service, Comfort, Safety, and Affordability) are utilised in this study to analyse customer satisfaction with taxi services. Keywords: Taxi Aggregators · RESCA · Customer expectations · Opportunity · Performance · Satisfaction

Indian customers were introduced to the concept of organized car rental service (2004) when Meru taxi services was launched in major cities. Taxi services, which started with taxi services, having added door-to-door services, and thanks to technological advances, consumers can now book taxis at competitive prices with just a click of their smartphones. In a country as densely populated as India, parking is a major problem due to the lack of parking spaces. In the current society, customer satisfaction depends not only by price, but also on excellent service. App based services like ola and uber Cabs can help in this case by offering a wide range of options, from the cheapest to the most premium. The introduction of app-based fully prepaid taxi services, not only piqued the curiosity of passengers, but also helped improve employability by providing opportunities for drivers. Based on the online taxi aggregator concept ola offers a wide range of affordable modes © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 205–213, 2023. https://doi.org/10.1007/978-981-99-3366-2_25

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of transportation, from the latest luxury sedans to Ola auto. The impact taxi aggregators have had on the industry can be clearly seen in newspapers, exclusive TV shows, live blogs, and the variety of articles that appear almost daily. If you look at the reasoning behind such a rush, it’s that, broadly speaking, it provided a solution to an overlooked problem. People face difficulties, but they have lived with it for years. Recalling how to book a taxi, the time before the aggregator reminds me that I called every taxi company one by one on days of high demand. You have to wait to arrive, there are issues with driver behaviour, higher fares, improper billing and finally, I have always experienced that taxis used the longest route most of the time. The introduction of app-based fully prepaid taxi services, such as, not only piqued the curiosity of passengers, but also helped improve employability by providing opportunities for drivers.

1 Statement of the Problem In order to satisfy the basic needs of an individual which is mobility, the demand for transport service prevails the level of service offered directly impacts the intention to continue the service in future. There has been a phenomenal growth in the taxi industry for the last few years. There has been several changes in the taxi industry with regard to competition between other taxi service providers. One of the main challenges has been fluctuation of prices during morning and night times. The taxi aggregators (Ola, Uber, Rapido, etc.) are giving competitive pricing which eliminate business for local service providers. In this scenario, understanding consumers intentions towards taxi aggregator apps becomes necessary. 1.1 Objectives To study the demographic profile of selected customers who use Taxi aggregators in Bangalore. To study whether there is a relationship between the services offered by the taxi aggregators and customers intention to continue the service. To study if there is a influence of service offered to customers and Intention of customers to continue the service. 1.2 Scope of the Study The scope of the study was established to identify the places where customers like taxi aggregators and the places where there is no efficiency in providing services. It also helps us identify the reason why customers prefer the service and also what are the reasons for stopping the usage of the service. We can also conclude whether there is any impact on the level of services of provided against the intention of customers to continue the service in future.

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2 Review of Literature Research conducted on [1] “Call taxi have a better value in the community, in the taxi sector is governed in many ways by the state Governments through their individual Departments of Transport. The Government is able to exert some control over the industry’s actions through this legislation, with the ultimate goal of offering the general public a greater degree of service (a complicated concept in and of itself). Calling a cab is currently the most practical and best way to get to and from bus stops, train stations, airports, and other points of interest in Coimbatore [2]”. In India, there is a new start-up every other day giving effective cab service to the individuals living in urban and rural lifestyles. This begs the issue of whether India is maybe experiencing a “Taxi Revolution.” This essay attempts to do a comparative study of Ola and Uber, two such cab aggregators that have fundamentally altered how “the huge Indian middle class” journeys on a regular basis. Both Ola and Uber taxis are currently employing the approach of growing their operations and establishing clientele in significant Indian metropolises, according to International Journal of Pure and Applied Mathematics Special Issue 14922. Gaining market share and achieving economies of scale are the goals. [3] Meru Cab’s cab service is in demand. The cab services are improving security for female clients, particularly at night, by using GPS and female taxi drivers. Meru had made significant investments in driver education programmes to teach them manners and had also launched several financial services for drivers. Giving these drivers ownership of cabs after a certain period of time is one example of this [4] driver behaviour has a bad effect on client satisfaction. Because most consumers were dissatisfied with the behaviour of drivers in most cases, factors like continuous service, comfort, reliability, and price have a significant impact on customer satisfaction with relation to radio taxi services [5] humanistic view of 20 hold that persons are motivated by an actualizing propensity and that happiness arises when they are free to realise their potential. People frequently sacrifice their own actualization in conditions of conditional positive reward or for external demands in order to obtain rewards or outcomes for others [6] Both Uber and Ola are among the companies in the cab aggregator market that are growing the quickest. However, each undergoes entirely different jobs and working coordination with regard to accessibility, course improvement, driver and rides, and regional networks. In order to fully understand the operations and flaws of both companies, we want to compare and contrast the day-to-day operations and coordinated streamlining of Uber and Ola in this essay. For this reason, we have made use of diagnostic and numerical tools for activity research [7]. The research’s author, the taxi sector is important to our society. The technical advancement in the taxi industry was the cab aggregator. Companies known as taxi aggregators build their own technological platforms in the form of cab apps through which they link drivers and customers. Consumers who reside in cities, don’t own a car, or frequently utilise public transportation were the main variables that led people to approach online cab services. The study’s goal was to learn what customers expected and thought about app-based cab services and to determine the causes of any discrepancies [8]. The demand for Meru cabs had increased and surpassed its supply indicating that generation had created a significant need for prepared cab services. Because of characteristics like accessibility, dependability, and transparency, customers have been drawn to branded cab options like Meru cabs. Customer feedback in the cab services industry is extremely

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important for achieving success in the competitive automobile condominium industry (Fig. 1).

Fig. 1. SERVQUAL Model

3 Hypothesis To fulfil the objectives of the study the hypothesis that needs to be analysed are: Hypothesis 1 H0 : There is no significant difference in the demographic profile of selected customers who use Taxi aggregators in Bangalore. Hypothesis 2 H0 : There is no significant relationship between the services offered by the taxi aggregators and customers intention to continue the service.

4 Research Methodology A descriptive research methodology will be used for this study that describes the characteristics of the population or phenomenon under study. Primary data was collected through the use of a structured survey from 128 respondents. Secondary data are collected from various books, published national and international magazines, various websites, etc. The usage of various statistical for the determination and interpretation of this

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paper are Frequencies, independent sample tests, ANOVA, correlation and regression using SPSS software v.23. Data were summarized using pie charts and graphs using Excel functions where appropriate.

5 Data Analysis and Discussion 5.1 Correlation Analysis The bivariate Pearson correlation coefficient measures the strength and direction of linear association between pairs of continuous variables by assessing the statistical evidence of linear association between the same pair of variables within a Pearson correlation population denoted as gives the sample correlation coefficient r that measures.by the population correlation coefficient ρ (“rho”). Pearson correlation is a parametric measure (Table 1). Correlate Loyalty and Services provided to the customer Table 1. Correlate between Loyalty and Services provided to the customer

Loyalty of the respondent

Services for the respondent

Pearson Correlation

Loyalty of the respondent

Services for the respondent

1

.512**

Sig. (2-tailed)

.000

N

128

128

Pearson Correlation

.512**

1

Sig. (2-tailed)

.000

N

128

128

**. Correlation is significant at the 0.01 level (2-tailed) (Source: Primary Data).

This shows the all the data is positive with value of 0.299, it is considered positive correlation. N value of 128 is the number of respondents from the study. Correlation is significant at 0.01 level of significance (2-tailed) Loyalty and level of services for respondent is significant.

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5.2 Regression Analysis Regression is a statistical technique used to create models and analyse relationships between dependent and independent variables. Designed to examine the degree of relationship between two or more variables. This is done by hypothesis testing hypothesis. Null Hypothesis (H0 ). Alternative Hypothesis (H1 ) (Tables 2, and 3). 5.3 Regression of Night Travel and Intention of the Customer

Table 2. Model Summary Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.552a

.305

.299

.69750

a. Predictors: (Constant), Night travel safety for respondent (Source: Primary Data)

Table 3. ANOVA Model

Sum of Squares

df

Mean Square

F

Sig.

Regression

26.863

1

26.863

55.216

.000b

Residual

61.300

126

.487

Total

88.163

127

a. Dependent Variable: Intention of the respondent b. Predictors: (Constant), Night travel safety for respondent (Source: Primary Data).

Regression Co-efficient The regression model: Y = α + β1 X1 + e. The regression co-efficient are shown in Table 4. Test of significance of regression coefficient H0 : β = 0 There is no significant relationship between Night travel safety and Intention. H1: β = 0 There is significant relationship between Night travel safety and Intention. Estimate (α, β) = 1.789 + 0.406 + e. t = 9.344 + 7.431, P-value = 0.0 + 0.0 The P-value for Night travel safety is 0.0 which is less than 0.05. Hence the Null hypothesis is significant. β = 0 is rejected. Therefore, Night travel safety has a significant effect on Intention of customer.

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Table 4. Coefficients Model

Unstandardized Coefficients

Standardized Coefficients

B

Std. Error

Beta

(Constant)

1.780

.191

Night travel safety for respondent

.406

.055

.552

t

Sig.

9.344

.000

7.431

.000

a. Dependent Variable: Intention of the respondent (Source: Primary Data).

Model Fit The coefficient of determination R2 is equal to 0.552, indicating 55.2% variation in the intention of customer due to the influence of Night travel safety. Test of significance of the model fit using F test H0 : R2 = 0, H1: R2 > 0. F-test (ANOVA) was used to test the significance of the model fit. The results show that: F = 51.216, df = 1, P-value < 0.001 Since P-value is < 0.005, it is significant. Null hypothesis is rejected. Therefore the proposed model is a good fit.

6 Findings and Limitations 6.1 Findings of the Study From 128 respondents, it is found that male contribute the major respondents. The data indicate that majority of the respondents most of them are private employee. Most of the respondents fall under group of 20–30 years. There is statistically significant association between the means of level of service and Intention to continue the service. Then we move on to the customer usage and occurrences on using the Taxi aggregator apps with respect to the mode of transport, usage, time of travel, purpose and payment mode preferred by the customer. Mainly we target the level of services provided by the aggregators so study the pros and cons with regard to the quality produced by the drivers, management and the application. Primarily we analyse the data in comparison with level of service and the intention to use service in future. For the analysis we specifically use Correlation and Regression on each individual data compared with cumulative data is executed. 6.2 Limitations of the Study The researcher is aware of its limitations and shortcomings though this research was carefully carried out. Findings of the research assume that the respondents have given correct information. The study is based on the required information only. Geographical

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area is limited to Bangalore city. Sometimes the information provided by the respondents may be biased. The findings may not be transferrable to other situations and cases. The study is restricted to Bangalore, which is geographical limited. Hence geographical and socio-economic conditions differ.

7 Conclusion and Recommendation 7.1 Conclusion The main purpose of the study is to analyze the intention of customers preference and usage of Taxi Aggregators. From the empirical works conducted, it has been found that there is a significant impact on the level of service provided by the aggregators for determining the further usage of the customers. To start with we analyze the gender and intention of respondents by using t Test and later used ANOVA on age, occupation and income of the respondents to analyze whether the data were significant with relation to the intention by being directly proportionate. For the main analysis on the data from the survey collected from 128 respondents we use Regression on Individual level of service on cumulative Intention which all were significant and had an impact. On the other hand, we use individual Intention on cumulative level of service which with Correlation and all the data are perfect positively significant. 7.2 Recommendation According to the frequencies, being 20–30 years age group using taxi aggregators the most, it would be advantageous to provide offers and discount to increase usage. Private employee are the ones who utilize the source for travelling for work. It would be beneficial if more vehicles are introduced for easy access and less waiting period. The study shows professional drivers significantly influence consumers intention to use taxi aggregators hence organization should provide adequate training and local area knowledge to increase consumer base. As most of the customers face a problem during booking a cab service due to delay or no getting a ride, I would recommend to increase the efficiency in using the service and helping in increasing availability of services. From correlation, the significance of the level of services provided to customers and the intention of customers to use taxi aggregators have not been highly significant as the customers find flaws in various services provided by the taxi aggregator service. Safety during night travel is found to be significant on the consumers intention to use taxi aggregator service. Companies should train their drivers and sensitize them towards safety especially during night travel and for women.

References 1. Rexi, A.: A study on customer satisfaction toward the call taxi services. Int. J. Multidiscip. Res. Rev. 1(3), 58–60 (2016) 2. Shukla, R., Chandra, D.A., Jain, H.: Ola Vs Uber: the battle of dominance. J. Busi. Manag., 73–78 (2017)

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3. Kumar, P.K., Kumar, N.: RA study on factors influencing the consumers in selection of cab services. Int. J. Soc. Sci. Hum. Res. 4(3), 557–561 (2016) 4. Horsu, E.N., Yeboah, S.T.: Influence of service quality on customer satisfaction: a study of minicab taxi services in Cape Coast, Ghana. Int. J. Econ. Commer. Manag. 3(5), 1451–1464 (2015) 5. Sheldon, K.M., Elliot, A.J., Kim, Y., Kasser, T.: What is satisfying about satisfying events? Testing 10 candidate psychological needs. J. Pers. Soc. Psychol. 80(2), 325 (2001) 6. Goel, R., Jain, P., Singhal, R., Jhunjhunwala, R., Doshi, R.: Operation analytics: Uber and Ola logistics optimization. Int. J. Adv. Res. Dev. 3(10), 33–38 (2018) 7. Uthira, D.: A diagnostic study of the cab aggregation industry using the SERVQUAL gap model. Int. J. Market. Technol. 8(6), 59–84 (2018) 8. Vaithianathan, S., Bolar, K.P.: Meru Cabs: past perfect and future tense. Emerald Emerg. Markets Case Stud. 3(7), 1–12 (2013) 9. Venkatesh, G., Easaw, G.: Measuring the performance of taxi aggregator service supply chain. Samvad 10, 26–36 (2015) 10. Akbulaev, N.: The impact of the taxi service mobile applications on the financial condition of taxi companies. Int. J. Sci. Technol. Res. 9(2), 2144–2150 (2020) 11. Rammohan, S., Marathe, R.R., Sudarsanam, N.: Profitable market mechanism for platformbased aggregator taxi services. Transp. Res. Interdiscip. Perspect. 16, 100687 (2022) 12. Kashyap, R., Bhatia, A.: Taxi drivers and taxidars: a case study of Uber and Ola in Delhi. J. Dev. Soc. 34(2), 169–194 (2018) 13. Patwardhan, A.A., Pandey, N.: Analyzing role of E-SERVQUAL constructs for post-pandemic recovery of Indian taxi aggregator services. Int. J. Glob. Bus. Competitiveness 16(1), 89–102 (2021). https://doi.org/10.1007/s42943-021-00042-8

A Study of Gender Budgeting in India Roli Misra

and Vishnu Kumar(B)

Department of Economics, University of Lucknow, Lucknow, India [email protected], [email protected]

Abstract. The main idea behind the implementation of Gender Budgeting has been to narrow the gap between men and women and also to encourage women to recognise their ability to break the barriers. Gender Budgeting is a well-organised technique to examine the impact of budget spending on men and women. Australia pioneered Gender Budgeting, which has subsequently been adopted by South Africa, Philippines, and many other countries, including India, which has been following it since the Eighth Plan in 2005–06. This paper intends to assess the discrepancies via the gender lens, as well as to evaluate the allocations made under various heads of departments/ministries in the existing Gender Budget (GB). Over the period of time in addition, this paper also assesses the effectiveness of Gender Budgeting as a tool for narrowing gender gaps and empowering women in the country. Keywords: Gender Budgeting · MGNREGA · PMAY · Union Budget First Section

1 Introduction Globally women constitute 49.58% of the total world population and in India they are 48% (The World Bank, 2020). Women along with men play an important part in the development of any economy and nation and their contributions are critically important to the rapid development and recovery of the economy. It is therefore, that mainstreaming all the sections of society is critical for economic progress. It is argued that women, like rest of the population, should be given equal opportunities in all spheres of life. However, women and girls are exposed to numerous sorts of vulnerability. Regardless of whether they are on the economic or social spectrum, they are exposed to exploitation and discrimination before birth and also after birth. Furthermore, if they are impoverished, socially disadvantaged, or reside in a backward or distant location, their risk increases dramatically. Gender disparities exists almost in every industry, including business, employment, education, and all other life phases. As a result, we require a budget that encourages gender equality in all aspects of development. The budget is a powerful tool in the hands of the government for taking positive action to enhance gender relations by narrowing the gender gap in the development process. It has the potential to minimise economic disparities between men and women. The budget could affect women’s life in variety © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 214–226, 2023. https://doi.org/10.1007/978-981-99-3366-2_26

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of ways. It supports women’s development directly by allocating budgetary money to women programmes. Gender budgeting is currently being hailed as a glimmer of hope for the economy’s double-engine growth, as it focuses entirely on closing gender imbalances through financial measures. It entails creating or analysing a budget from a gender viewpoint. Gender Sensitive Budgeting (GSB) and Gender Responsive Budgeting (GRB) is another name for Gender budgeting which is defined as a budgeting approach that uses fiscal policy and administration to promote gender equality and development. In other words, it’s an instrument that enables the government to take steps to promote equality through fiscal policies, such as setting equality goals and allocating funds accordingly in order to support and fulfill those goals. Gender budgeting does not indicate a distinct budget for women rather it is an attempt to review government priorities as they are reflected in the budget allocations and examine how they affect both women and men. Although specific gender budgeting cells have been formed in Union and State government ministries and various departments, the overall impact of GRB in the country is not visible due to functional restrictions in human resources and capacity, along with limited budgetary scope. As according to Gender Budget Statement (GBS), around 4.3% of the overall Union budget has been allocated to women-centric schemes in 2022–23. It is in this backdrop, we have attempted (a) To evaluate the trend in allocations reported in Gender Budgeting comprising of Part A and B since 2005–06. (b) To identify the gaps in allocation and utilisation of funds related to gender budget. (c) To suggest revision of allocations in various women related schemes so as to make Gender Budget more effective and further ended the analysis of Gender Budget since its inception in India from 2005–06 till the latest Union Budget of 2022–23.

2 Understanding Gender Budget Gender budgeting is part of the strategy of gender mainstreaming. Gender budgeting is concerned with a gender-based analysis and an equality-oriented assessment of resource distribution. According to Organisation for Economic Co-operation and Development (OECD 2022), it is a method for government to improve equality through the budget process as the advancement of gender equality is crucial for the economy’s growth and is the cornerstone of the contemporary economy. On the other hand, Gender Budgeting is defined by the Council of Europe (2005) as ‘Examining budgets from a gender perspective at all stages of the budgeting process, as well as reorganising income and expenditures to achieve gender equality.’ It is in place to mention that Australia was the first country in the world to adopt Gender Budgeting in 1984. Putting up with the same approach like Australia, Canada adopted Gender Budgeting in 1993, followed by the Philippines and South Africa in 1995. Gender budgeting received a boost when it was included in the Fourth World Conference on Women in Beijing in 1995, which brought together representatives from 189 countries, over 17,000 participants, and two weeks of debate. After that, the concept became well-known among nations, and over 90 countries have implemented it till date, with varying degrees of success. India formally introduced Gender Budget Statement (GBS) in the Union budget in 2005–06, with the assumption that the allocation for various programmes will result in benefits for women. The Ministry of Finance launched a project to establish Gender Budgeting Cells (GBCs)

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in March 2007, but it was “mostly ineffectual and remained mostly on paper.” Gender budgeting when introduced in 2005–06, proven as a tip of iceburg, seemed easy to be launched but wasn’t as easy as expected.

3 Trend in Allocation of Gender Budget Even since the inception of Gender Budget as a part of Union Budget in 2005–06, only nine ministries adopted Gender Budgeting which accounted for only 2.79% of the overall union budget. However, it grew significantly over time, reaching 28 ministries in 2010–11 and subsequently to 35 ministries/department in 2015–16 amounting to 4.46% of Union Budget. Later in 2021–22, along with 34 ministries/department the percentage of GB was 4.40% of Union Budget. However, in the next year the numbers of ministries/departments have increased to 35 (Refer Table 1). Although the allocation of funds for gender budgeting as a percentage of the entire union budget fell to 4.33% in 2022–23 from 6.11% in 2010–11 (Refer Fig. 1). Table 1. Number of Departments/Ministries allocation under Gender Budgeting. Source: Author’s calculation from Budgets of different years Year

2005–06

2006–07

2007–08

2008–09

2009–10

2010–11

2011–12

2012–13

2013–14

Dept./Ministries

9

18

27

27

28

28

29

29

30

Year

2014–15

2015–16

2016–17

2017–18

2018–19

2019–20

2020–21

2021–22

2022–23

Dept./Ministries

36

35

31

25

28

31

34

34

35

% of Gender Budget to Union Budget

2022-23

2021-22

2020-21

2019-20

2018-19

2017-18

2016-17

2015-16

2014-15

2013-14

2012-13

2011-12

2010-11

2009-10

2008-09

2007-08

2006-07

2005-06

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

% of Gender Budget to Union Budget Fig. 1. Gender Budget allocation as a percentage of the Union Budget. Source: Author’s calculation from Budgets of different years

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Gender budgeting was first incorporated in the Union Budget’s Statement 19 and then in Statement 20 from 2006–07 to 2016–17. In 2017–18 it was further changed to statement 13.Gender Budgeting is divided into main two sections: Part A: reflects programmes that are solely for the benefit of women and girls, with all beneficiaries being women and girls. Part B: pro-woman and girl distributions of at least 30% allocations and which may lead to allocate 30 to 99% of funds to women and girls schemes. According to Ministry of Finance (2021), process of budget planning and preparation provides a critical opportunity to identify, priorities, and address gender concerns in all ministries/departments and provide a scope for making current systems and programmes more gender-responsive. 3.1 Disaggregated Evaluation of Allocation Under Union Budget and Gender Budget The Indian government is performing well in the realm of Gender Budgeting, having provided the highest Gender Budget allocation. If we look at the gender budgeting forecasts, we can see that the budget amount has been steadily increasing every year, barring two years 2008–09 and 2015–16, when the allocation was lower than the previous year. The year 2022–23 has the highest Gender Budget allocation, which is roughly Rs. 1,71,006.47 crores and accounts for 4.33% of the overall Union Budget (UB), compared to 1,53,326.28 crores in 2021–22 and 1,43,461.72 crores in 2020–21. The Gender Budget in 2021–22 was roughly 4.41% of the total Union Budget, while the Gender Budget is only 4.33%. In the year 2022–23, instead of being high under Gender Budget, the total allocation with Union Budget has decreased by 0.08%. It could be a point of reconsideration for the government. With the increase in Indian population, the share of Gender Budget in Union Budget of the economy shows an inconsistent pattern from 2005–06 to 2022–23 (Refer Fig. 1 and Table 2). Being a point of discussion, it is interesting to know that there is a dip in allocation of Gender Budget in year 2008–09 by Rs. 3,516.29 crore and after that a continuous increase is reflected in the budget allocation under Union and Gender Budget, with the exception of year 2015–16, when Union Budget shown a dip of Rs. 18,771.97 crore and Gender Budget plunges by Rs. 17,414.9 crore. Despite of continuous increase there is an inconsistent pattern in that share of Gender Budget in Union Budget as mentioned in above lines (Refer Table 2). The reason for the decline is that the allocation under Gender Budget is growing at a slower pace than the allocation in Union Budget. Further it could also be seen from Table 2 that during year 2008–09, the decline in the total Gender Budget has been reflected in Part-B only whereas the Part-A recorded an increase in budget allocation. In year 2014–15 as compared to the previous year, an incline in Part-B allocation of Rs. 6,256.72 crore has been seen whereas the Part-A allocation was decreased by approximately Rs. 5,360.58 crore due to which the overall allocation in Gender Budget has got a hike of only Rs. 896.14 crore only. After six year the same condition was repeated in year 2021–22, where Part-B got a hike of Rs. 13,171.93 crore from previous year and Part-A allocation was reduced by Rs. 3,307.37 crore as compared to previous year. At the latest allocation of Gender Budgeting in year

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Table 2. Allocation under Gender Budget and Union Budget. Source: Author’s calculation from Budgets of different years Year

Gender Budget (GB)

Union Budget (UB)

% of GB to UB

Part A

Part B

Total

2005–06

NA

NA

14,378.68

514343.8

2.80

2006–07

9575.82

19160.71

28736.53

563991.13

5.10

2007–08

8795.47

22382.49

31177.96

680520.51

4.58

2008–09

11459.61

16202.06

27661.67

750883.53

3.68

2009–10

15715.68

41141.93

56857.61

1020837.68

5.57

2010–11

19266.05

48483.75

67749.8

1108749.24

6.11

2011–12

20548.35

57702.67

78251.02

1257728.83

6.37

2012–13

22968.93

65173.87

88142.8

1490925.29

5.91

2013–14

27248.19

69885.51

97133.7

1665297.32

5.83

2014–15

21887.61

76142.23

98029.84

1794891.96

5.46

2015–16

16657.11

62600.76

79257.87

1777477.04

4.46

2016–17

17412.01

73212.75

90624.76

1978060.45

4.58

2017–18

31390.8

81935.85

113326.65

2146734.78

5.28

2018–19

29377.73

95051.1

124428.83

2442213.30

5.09

2019–20

27420.03

109514.07

136934.10

2786349.45

4.91

2020–21

28568.32

114893.40

143461.72

3042230.09

4.71

2021–22

25260.95

128065.33

153326.58

3483235.63

4.41

2022–23

26772.89

144233.58

171006.47

3944908.67

4.33

Note: It includes the data of Budget estimates only.

2022–23, the budget estimates have got a hike of approx 10.34% whereas 5.65% hike is in Part-A and 11.21% hike in Part-B is observed. Only 34 departments/ministries embraced GB in 2020–21, and the figure remained the same in 2021–22, but in 2022–23, one more ministry joined the game, bringing the total to 35.In the budget issued on February 2022, 15 Departments/Ministries have allocation in Part A of GB but out of which 07 have been allocated only in Part A whereas 28 Departments/ministries have allocation in Part B of GB but 20 have allocated only in Part B whereas allocation in both Part A and B have total 08 departments/ministries (Refer Table 3).

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Table 3. Number of departments/ministries across the years. Source: Author’s calculation from Budgets of 2020–21 to 2022–23 Years

2020–21

2021–22

2022–23

Only Part A

6

4

7

Only Part B

16

19

20

Both in Part A and Part B

12

11

8

Total

34

34

35

Four ministries that were major players in the year 2021–22 put down their arms, and 03 of them were not included in the year 2022–23, but the Ministry of Micro, Small and Medium Enterprises again granted funding under Part A which was earlier excluded in GB 2020–21. For the first time, the Department of Consumer Affairs accepted GB under Part B in 2022–23, and the departments/ministries have migrated in/out of Part A and Part B or both. (Refer Table 4). The purpose is to enable for immediate and adequate grievance resolution. Besides that, minor migration was noted related to various department/ministry, for instance the Department of School Education and Literacy and the Department of Police, which have been relocated from both Part A and B to Part B and Part A, respectively. Around 12.35% of Part B has been allocated individually to the Department of School Education and Literacy, and treading on the same path, the Department of Police has been allocated around 3.34% of Part A under various schemes, with approximately 85.91% allocated to the main two schemes, Emergency Response Support Team (250 crores) and Safe City Project (520.04 crores), while the allocation by the Ministry of Development of the North Eastern Region was completely removed from Gender Budget allocation. According to Budget Circular issued by Ministry of Finance (2022), all initiatives taken for women in GB would be classified as either Centrally Sponsored Schemes or Central Sector Schemes. The allocation of a single scheme would only appear once in the Statement of Budget Expenditure (SBE). As a result, entries for North East and Sikkim allocations should be made separately under each programme, rather than as a lump-sum provision for North East and Sikkim, which was done previously. Therefore, Ministry of Development of North Eastern Region which had allocation under both Part A and Part B since the inception of GB, became out of the race and didn’t have any allocation in the year 2022–23. The North Eastern region (which comprises of seven states) and Sikkim has 49% females. Therefore, not assigning separate allocation to them in GB hampered not only their development but also the development of North Eastern region, thus, defeating the idea of inclusive growth.

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Table 4. Migration of departments/ministries into GB. Source: Author’s calculation from 2021– 22 and 2022–23 Budget Statement S. No

Departments/ministries

2022–23

2021–22

1

Ministry of Development of North Eastern Region

Not Included

Both Part A and Part B

2

Department of School Education and Part B Literacy

Both Part A and Part B

3

Police

Part A

Both Part A and Part B

4

Ministry of Micro, Small and Medium Enterprises

Part A

Not Included

5

Department of Scientific and Industrial Research

Part A

Part B

6

Department of consumer affairs

Part B

Not Included

4 Major Allocation of Funds If we look at Table 5, then the overall amount 1,71,006.47 cr. rupees were allocated for GB and out of which only Rs. 26,772.89 crore (15.65%) of the total had been allocated for Part A (100% women specific programmes) whereas Rs. 1,44,233.58 crore (84.35%) were kept under Part B (30% women specific programmes). Looking at Table 5, it could be seen that the total allocation made under Department of Rural Development was 82.27% of total Part A allocation where and Ministry of Women and Child Development allocated 12.49% and the rest was contributed by all other 13 departments/ministries. The 82.27% of Department of Rural Development was allocated maximally under Pradhan Mantri Awas Yojna Grameen (PMAY-G) which consists of 20,000 cr. i.e. 90.79% of departmental allocation and was roughly around 74.70% of total Part A allocation. The same story is repeated under Part-B. As provided in Table 5, 84.35% has been allocated under Part B of which 60.18% has been allocated under three department and rest 39.82% is allocated among other 25 department/ministries. Department of Rural Development, Department of Health and Family Welfare and Ministry of Housing and Urban Affairs have been allotted 22.65%, 21.30%, 16.23% of total Part-B allocation (Shown in Fig. 2). Under Part-B, maximum allocation had been made under Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) Scheme which includes allocation of 26,000 cr. this allocation is 79.58% of departmental allocation and 18.02% of total scheme. Similarly, Pradhan Mantri Awas Yojna-Urban (PMAY-U) has the second highest allocation under schemes of Part-B which allocates around 22,955.06 cr. And is 98% of departmental allocation and 15.91% of total scheme. Allocation under Part-A and Part-B has been made to promote the women development and empowerment in order to establish Gender equality through budget. Now the question arises that whether is this gender equality? Whether it’s the responsibility of only one or two departments/ministries to implement GB? Is it feasible to allocate the whole amount under on head?

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Table 5. Major allocation of funds by various departments in Budget Estimate. Source: Author’s calculation from Budgets of different years Part A

2022–23

% of Part A

2021–22

% of Part A

2020–21

% of Part A

Department of Rural Development

22027.00

82.27

21438.80

84.87

21437.79

75.04

Ministry of Women and Child Development

3343.85

12.49

3310.00

13.10

3919.00

13.72

Police

896.32

3.35

12.25

0.05

1004.07

3.51

Other

505.72

1.89

499.90

1.98

2207.46

7.73

Total

26772.89

100.00

25260.95

100.00

28568.32

100.00

Part B

2022–23

% of Part B

2021–22

% of Part B

2020–21

% of Part B

Department of Rural Development

32668.21

22.65

30972.13

24.18

25110.90

21.86

Department of Health and Family Welfare

30720.06

21.30

30227.83

23.60

27271.27

23.74

Ministry of Housing and Urban Affairs

23405.06

16.23

7650.57

5.97

2836.67

2.47

Department of School Education and Literacy

17814.64

12.35

15943.05

12.45

17636.10

15.35

Department of Higher Education

13164.98

9.13

12291.00

9.60

11353.04

9.88

Other

26460.63

18.35

30980.75

24.19

30685.42

26.71

Total

144233.58

100.00

128065.33

100.00

114893.40

100.00

Grand Total (Part-A + Part-B)

1,71,006.47

1,53,326.28

1,43,461.72

Gender Budget 2022–23 have mainly focused on health, infrastructural development and employment generation programmes. To cater the health related issues Ministry of Health and Family Welfare had allocated Rs. 30,720.06 crore under which the maximum

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% of Part A 3%

2%

13%

% of Part B

Ministry of Women and Child Development

82%

Department of Rural Development

Department of Rural Development

Police

18%

23%

9% 21%

13% 16%

Department of Health and Family Welfare Ministry of Housing and Urban Affairs Department of School Education and Literacy Department of Higher Education

other

Fig. 2. Major allocation of funds by various departments in Budget Estimate. Source: Author’s calculation from Budgets of different years

focus was provided to strengthen the health system and has allocated Rs. 13,937 crore i.e. around 45.36% of the allocation under Flexible Pool for RCH and Health System Strengthening, National Health Programme and National Urban Health Mission. Further for the infrastructural maintenance Rs.6,038.54 crore has been mobilised by the same. Rs. 16,088.71 crore (Rs. 3,343.85 crore under Part A and Rs. 12,744.86 crore under Part B) allocated by Ministry of Women and Child Development in GB to resolve the health related issues of women and child. 4.1 Major Gaps in Allocation of Funds in Gender Budget Every year, a few months before the annual budget is released, the Ministry of Finance (2022) issues a budget circular. In September or early October, this is frequently given to several ministries and includes forms, circulars, guidelines, timelines, and other material for submitting data or information to the Finance Ministry’s Budget division. GBS follows the same method, with each departments being asked to allocate funds for women under various schemes for their empowerment and upliftment. They are also expected to closely adhere the recommendations and directions provided by the secretary of Ministry of Women and Child Development (MoWCD). As mentioned above that total Rs. 22,027 crore was allotted by Ministry of Rural development under which Part A accounted for around 20,000 crore. i.e. 74.70% had been made under Pradhan Mantri Awas Yojna-Grameen (PMAY-G). PMAY-G is a scheme that is 100% women specific scheme but the gap is found that even the male members of the society are also its beneficiaries. Some of the allocations are being done for the rural males also. Despite Modi government’s unambiguous “instructions” to offer more units to women, only 27.3% of houses under the government’s flagship housing plan were sanctioned to women in the financial year 2017–18. According to data on the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) accessible with the rural development ministry,

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which controls the scheme, men received the lion’s share of 38.8% of the residences, while 33.9% were sanctioned under joint names. As per the news reported in The Print (26 February, 2018), a top ministry source as saying that the direction from the ministry is to authorise as many residences in the name of women, or in joint name, as feasible. “Ideally, the house should be in the woman’s name, and it was therefore included as a 100% women-centric scheme, but this does not happen in practice,” says Avani Kapur, Director of the Accountability Initiative also added, “We saw how its addition raised the gender budget allocation, but there hasn’t been anything done to track its outcomes.” Thus, on this basis, keeping it in Part-A is not suitable, they should be kept under Part B of Gender Budgeting as both the sections of the society are its beneficiaries. This problem is also been mentioned by Mehta (2020) in her paper titled “Union Budget 2020–21: A Critical Analysis from the Gender Perspective”. Maternal benefit scheme Indira Gandhi Matritva Sahyog Yojana (IGMSY) was launched in the year 2010 and then was rebranded as Pradhan Mantri Matru Vandana Yojana (PMMVY) in 2017. The main objective of this scheme is to provide pre and postdelivery financial help to the pregnant women. Being a flagship scheme of the Ministry of Women and Child Development it has been merged under SAMARTHYA since year 2021–22 making it difficult to ascertain the effectiveness of the PMMVY scheme. After the merger, Rs. 2,432 crore has been allocated in SAMARTHYA in 2020–21 which is less by Rs.396 crore allocated in 2021–22. Further in year 2022–23, Rs. 2,547.11 crore has been allocated with an increase of Rs. 115 crore from the previous year. The GoI should have increased the allocation after the merger of the schemes. Again on similar lines, a cut down of Rs. 20 crore has being witnessed in the SAMBAL scheme in 2022–23 under the same ministry. Another issue is that the ministries’ budget seems to be insufficient in terms of their allocation to gender. Agriculture is referred to as the country’s backbone and India is also an Agro-based economy which is self-sufficient in food grain production. Agriculture serves nearly 58% of the country’s entire population. Agriculture employs roughly 81% of all economically active women in India, including 33% of the agriculture labour force and 48% of self-employed farmers (Oxfam (2018)). Yet still the allocation by, the Department of Agriculture and Farmer Welfare has been slashed from 3538.99 (RE) in 2020–21 to 2946.84 (RE) in 2021–22, then to 1889.40 (BE) in 2022–23.Even after being allocated under Part-B of GBS, the department still doesn’t have the efficient allocation for betterment and upliftment of rural women engaged in agriculture sectors. The Department of Water and Sanitation did not record any of the funds allocated to the Jal Jeevan Mission under GBS, a programme that aims to link all rural homes through tap connections. This is despite the fact that the scheme’s guideline paper states that it will improve women’s quality of life, and the ministry has stated this in news releases. MGNREGA has proved itself as one of the flagship schemes of GoI for employment generation in rural areas and the allocations under this scheme has declined in the year 2022–23. A total of Rs. 26,000 crore allocated under 2022–23 (BE) whereas earlier in the year 2021–22 (RE) Rs. 32,666.67 crore was allocated and in the year 2020–21 it was only Rs.37166.67 cr. The reduction has been seen in the allocation under this scheme and the allocation under rural jobs scheme MGNREGA is of about 25% when compared to revised budget 2021–22. This cut down in the allocation may hamper the

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effectiveness of the scheme as it caters to large number of rural females workers, giving them their livelihood and making them economically empowered. It was also assessed that the workers of MGNREGA are still waiting for almost Rs.3,360 crore pending wage payment (The Hindu Bureau, 3 February 2022). If these pending arrears (Refer Table 6) are been accompanied in the year 2022–23, this may further reduce the amount available for the scheme. Table 6. Arrears under MNREGA of top 3 states. Source: The Hindu Bureau, 3rd February 2022 State

Pending amount (in Crores)

West Bengal

752

Uttar Pradesh

597

Rajasthan

555

Rest of the states

1454.14

Total

3358.14

5 The Way Out It cannot be overstated that India’s development outcomes have a significant gender gap that harms women, particularly those from underprivileged and deprived sections. GBS can be an effective tool for incorporating gender considerations into development policies and resource allocations. In India, however, GBS is still in its infancy, and larger policy measures are needed to promote gender equality from both the Centre and State governments. Women also got significantly affected by the Covid pandemic in various sectors including work, social protection, health, and have also been victims of violence. However, the Union Budget as a whole has no specific provision of funding related to these issues. Instead as per the Centre for Budget and Governance Accountability (2022), the entire Gender Budget as a percentage of the total budget has decreased from 2021–22 to 2022–23. Over the last five years, five schemes namely, the rural jobs programme, Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), the Samagra Shiksha school education programme, the Pradhan Mantri Awas Yojana (PMAY), the Anganwadi Services and Posahn 2.0 Scheme, which is part of the early childhood care and development programme, and the Health Systems Strengthening under the National Rural Health Mission (NRHM) have accounted half of the total Gender Budget allocations. The AYUSH ministry listed the Central Councils for Research in Ayurvedic Sciences (CCRAS), central councils for research in Siddha in Part A of the gender budget for both the year 2021–22 and 2022–23, reporting that 100% of these allocation is women centric. Now it’s the point to be raised that whether only women are its beneficiaries? The Department of Rural Development under Part B of Gender Budget for 2022–23 allocates

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one third (33%) of the total allocation of MGNREGA to women. On the other hand, it accounts for approximately 55% of female workers in the system. Is the allocation under the scheme is accurate? On the other hand, a good portion of women and girls of our society are still neglected for various necessities. They are under nourished and exploited. Being the country of many brave female warriors, women are still treated as the thread of raw yarn. So, the now the question arises where is the fault, whether the government is under to allocated the funds accurately? Whether the funds allocated couldn’t be utilised as per need? These questions are straightly pointing towards the lack of attention towards gender budgeting and lack of bureaucratic approach which is required in order to achieve the goal of Gender Budgeting implementation. Since, Gender Budgeting was introduced to narrow the gaps in the gender and economic inequality through budgeting. Hence, it is the need of the hour to rectify the flaws under Gender Budgeting and make it meaningful and objective oriented. For that, the method adopted for the allocation by Department and Ministries must be upgraded to bridge the existing gaps. Budgetary allocations for women and girls should be based on a roadmap established by each ministry/department that outlines how they intend to satisfy gender needs. The departments/ministries must allocate the funds in respect to building the infrastructure and providing services to promote gender equality. Maintenance of women hostels, public washrooms, special women oriented police stations, rest areas could be the platforms under which the allocation must be increased and to promote these services Government must initiate to facilitate the department/ministries. The expenditure on these head could also be included under Gender Budgeting Statements. Thus the approach of Gender Budgeting model should be upgraded for the futuristic models which could be benefitted in a longer prospect. Gender budgeting should be pushed beyond the binary gender paradigm to adopt an unified approach that takes into account not only the interests of women but also the transgenders who are socially and economically disadvantaged. The SMILE programme (Support for Marginalised Individuals for Livelihood and Enterprise) under GBS was created to assist transgender community and the beggars. The GBS, on the other side, only discusses one of the two sub-plans under SMILE programme i.e. Comprehensive Rehabilitation of Persons Engaged in Begging. The GBS needs to be made more gender-inclusive so that the deprived, marginalised section of population with different sexualities and identities come under its ambit and get benefitted through GB.

References Centre for Budget and Governance Accountability. In Search of Inclusive Recovery: An Analysis of Union Budget 2022–23 (2022). https://www.cbgaindia.org/wp-content/uploads/2022/02/InSearch-of-Inclusive-Recovery-An-Analysis-of-UnionBu-2022-23.pdf. Accessed 19 Feb 2022 Council of Europe. Final Report of the Group of Specialists on Gender Budgeting (EG-S-GB), EGS-GB (2004). RAP FIN; Equality Division, Directorate General of Human Rights, Council of Europe, Strasbourg, p. 10 (2005). http://www.mpsv.cz/files/clanky/12462/GenderBudgetingreport2005_En.pdf. Accessed 15 Jan 2022 Mehta, A.K.: Union Budget 2020–21: a critical analysis from the gender perspective. Econ. Polit. Wkly. 55(16) (2020). https://www.epw.in/engage/article/union-budget-2020-21-from-genderperspective. Accessed 05 Jan 2022

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Ministry of Finance, Department of Economic Affairs, Government of India. Budget Circular 2021–2022 (2021). https://dea.gov.in/sites/default/files/Budgetpercent20Circullarpercen t202021-2022.pdf. Accessed 07 Jan 2022 Ministry of Finance, Department of Economic Affairs, Government of India. Budget Circular 2022–2023 (2022). https://dea.gov.in/sites/default/files/Budgetpercent20Circularpercent 202022-2023.pdf. Accessed 19 Feb 2022 OECD. OECD Gender Budgeting Framework – Highlights (2022). https://www.oecd.org/gov/bud geting/Gender-Budgeting-Highlights.pdf. Accessed 08 Feb 2022 Oxfam. Move over ‘Sons of the soil’: Why You Need to Know the Female Farmers that are Revolutionizing Agriculture in India (2018). https://www.oxfamindia.org/women-empowe rment-india-=Agriculture%20sector%20employs%2080%25%20of,only%20about%2013% 25%20own%20land. Accessed Jan 2022 The Hindu Bureau: Rs 3385 Crore in MGNREGA Wages Not Paid (2022). https://www.the hindu.com/news/national/3358-crore-mgnrega-wage-payments-pending-government-tellsrajya-sabha/article38366264.ece. Accessed 07 Mar 2022 The Print, Ruhi Tewari: Only 27.3% Houses Sanctioned to Rural Women Under Flagship Scheme (2018). https://theprint.in/india/governance/27-3-houses-sanctioned-rural-women-fla gship-scheme/38101/. Accessed 12 Feb 2022 The World Bank, IBRD-IDA, Population, Female (% of total population) (2020). https://data.wor ldbank.org/indicator/SP.POP.TOTL.FE.ZS. Accessed 15 Feb 2022

A Study on Business Resilience of MSME’s with Special Reference to Pandemics/Crises K. Dhanalakshmi1 and Srihari Jwalapuram2(B) 1 Acharya Institute of Graduate Studies, Bangalore, India 2 Krupanidhi Degree College, Bangalore, India

[email protected]

Abstract. Depressions are part of business cycles and crisis are part of business. In the times of depression handling business carefully is the predominant job of any entrepreneur. During crisis periods business should not reduce to rubble which is the proactive step taken by any establishment. In this paper we explored the role and fate of MSMEs in India which is a prime contributor for welfare of our economy. We also researched and studied about how common MSMEs undergo crisis, depressions, and stumbling blocks. The paper brought into limelight what are the common problems faced by MSMEs include breakdown of machinery, employee long absenteeism, raw material – supplier problems, power outages, behavioral issues among staff so on and so forth besides pandemic. In the wake up of many headwinds MSMES face it is need of an hour to identify its problems and possibilities. When problems wreck industries, possibilities show the way for prosperities. Keywords: Business Resilience · MSMEs · Industry · Crises · Economy

1 Introduction Businesses are not new to web of crises. Once any establishment trapped by this web will not be easily freed by crisis. The Micro Small and Medium (SME) industries are the first ones prone to succumb to unfathomable depths of crisis. Pandemic is simply defined as a disease prevailing and claiming many lives world over. When the world was unexpectedly caught in “pandemic crisis”, business was the first one affected a lot along with lives of millions. Business resilience is about activeness of production, skilled labor, updated technology uplifts business to become unbroken in spite of regular anti-business headwinds. Todays’ fortune 500 companies have elements of high business resilience like high competency, high value driven systems and high performance teams. When the world learnt business making, providing ease of doing business, investment destinations and everything was in prosperity, suddenly crisis was looming large in the form of pandemic. In the backdrop of pandemic crisis from geopolitical tension and supply chain bottlenecks to soaring inflation, rising interest rates, and decelerating growth, businesses must navigate a range of complicated global headwinds. Despite these challenges, leaders have a powerful opportunity to build business resilience and competitive advantage. © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 227–238, 2023. https://doi.org/10.1007/978-981-99-3366-2_27

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2 Review of Literature Ajit, 2021, expresses that the contribution of MSME to the Indian economy is undisputedly significant. This sector paves the way for entrepreneur mushrooming across the country, as a result the socio-economic situations improved drastically. The growth engine of our country is completely filled with the fuels of MSME. Currently the role and performance of MSMEs are higher. But when all was well, though pandemic strike this sector badly, governments quick interventions are required to continue the contribution of this sector. According to Coad (2012), MSMEs have a negative effect on business growth in the majority of instances. The expected growth rate of businesses managed by women is lower. In general, private companies experience slower growth, especially if they are young. Exporting has a positive effect on firm growth, particularly for young and femaleowned businesses. Although some small businesses are able to translate their knowledge into commercial success, the majority are unable to do so. Dato-on, 2018 emphasized that the MSMEs performance were funded by social capital leading to tremendous performance. Some MSMEs that are falling under protective umbrella of strategic alliances are more pronounced. Hence MSMEs are leveraging social capital pooling to overcome the constraints in generating and developing innovativeness. Lahiri, 2019 showed that the fate of MSMEs has been ill since industrial policies brought in, the reasons are many to mention few are weak marketing, less branding, not linked to the advanced technologies for doing business and observed that start – ups fail miserably after its commencement of business. The firms need consistent development in order to have sound contribution to economy. Mainardes, 2021 analyzed the moderating role of exposure to external turbulence in the relationship between marketing capabilities and sustained competitive advantage and marketing capabilities and market orientation for small and medium-sized enterprises. Small- and medium-sized enterprises (SMEs) can strengthen their market orientation with enhanced marketing capabilities, thereby achieving and sustaining a competitive advantage. They will thus attract more customers and minimize their risk regardless of the operating environment. Palaka, 2020, exhibited that the downsides of employment, production, growth and jobs are observed widely. This study was emphasizes with objective of development to have more production from MSMEs and amplified job opportunities. This study was analysed using Cobb Douglas Production Function and revealed that the output elasticity of employment during the study period is very low as compared to the output elasticity of export. Ramarao, 2012 study focused on agriculture lending prosperity to doubled industrial growth. The various factors like climate change, local warming, urban heating are the hinders of industrial growth. MSMEs depends upon agriculture hence, the balanced growth of equal agricultural field is equal to an industrial output. Sudarmo 2021, opined through a descriptive study stating that MSMEs have turned challenges into opportunities in sustaining their business after being hit by the Pandemic through the support of many parties, especially the government and experts. Zanjurne 2018, For growing economy like India’s one sector is contributing to its highest which is none other than MSME. To accelerate the growth rate of the nation,

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government is leveraging them with an initiated called “Make in India”. The initiatives states home grown production leads to rapid rural employment reduction in joblessness, utilization of skills from people which help increase the productivity and production which further reduces regional imbalances widely. The lifeline and wishbone of our economy is further spread its wings into urban areas viz., ancillary industries promote supportive raw material to big industries. The rise of medium scale industries is the welcoming sign of the rapidly growing economy.

3 Research Methodology This study is a exploratory cum descriptive study, as the variables focused were on the impact of COVID’19 on MSME’s and stumbling blocks of the production, challenges faced, employee behavior were the variables considered for the crises.

4 Objectives • To identify impact of COVID on MSMEs. • To understand how crises pave the way for destruction of MSME’s to sick industry. • To discover how MSMEs change patterns in response to pandemics/crises.

5 Data Analysis and Interpretations

IMPACT OF COVID ON YOUR FIRM 65.4

30.8

VERY HIGHLY

HIGHLY

0 NEUTRAL

3.8 LOW IMPACT

0 ZERO IMPACT

It is observed that the impact of covid is predominantly high in majority of companies/firms. The pie-diagram represents 65.4% has very highly impacted where as 30.8% firms are highly suffered. Surprisingly 3.8% of the firms had had zero impact.

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HOW MSMEs BUSINESSES GOT AFFECTED DURING COVID 80 70 60 50 40 30 20 10 0 BADLY

VERY BADLY

LESS IMPACT

NO IMPACT

As per the statistics in this research the businesses largely collapsed when pandemic was in full-throttle. 69.2% of businesses very badly affected or severely damaged the businesses process and systems. 11.5% of businesses had less impact. Whereas 19.2% of businesses got badly affected.

FIRMS HAVING REALTIME SOLUTIONS FOR BUSINESS PROBLEMS ALWAYS OFTEN SOMETIMES RARELY NEVER 0

10

20

30

40

50

60

70

As questioned about real time solutions for regular business problems 61.5% businesses have sometimes keys for locked problems. Some 19.2% firms have solutions rarely. 7.7% of the businesses have no solutions whatsoever the intensity of a business teething troubles. 7.7% of businesses often have solutions. Only 1% is ready to troubleshoot the problem/crisis.

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For the benefit of readers about business problems—acute of power supply, hampering of production, supplier glitches, employee grievances issues, lockdowns and unsolicited crises etc.

MSMEs FORESEEING THE SYMPTOMS OF CRISIS 35 30 25 20 15 10 5 0 0

1

2

3

4

5

6

30.8% of businesses can foresee crisis due to past experiences or other known handling techniques to crises. The same 30.8% are unaware of its genesis and spoiling sport. 26.9% of businesses are aware of the forthcoming crisis. 11.5% of businesses are also very aware of crises looming large, the picture depicts.

Sickness probability of firm once crisis hits industry very likely likely neutral unlikely very unlikely 0

10

20

30

40

50

60

70

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When we questions about health of the firm due to crisis 65.4% of the firms accepted chronic sickness as crisis strikes its chord. 23.1% are opined that establishment becomes neutral. 11.5% businesses are very likely to get affected with unmistakable touch of crisis.

P RO D U C T I O N L E V E L S D U E TO PA N D E M I C Series1

Series2

35 30 25 20 15 10 5 0 1

2

3

4

5

6

Maintaining production levels during pandemic is an uphill task for juggernaut conglomerate to recently opened establishment. The image shows that 30.8% are dissatisfied with production levels. The same 30.8% neither dissatisfied nor satisfied. 23.1% firms are satisfied and 3.8% are very satisfied. Whereas 11.5% are very dissatisfied with production levels.

NEWNESS OF FIRM TO CRISES 60 50 40 30 20 10 0 NEVER

RARELY

SOMETIMES

OFTEN

ALWAYS

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Crises are not new to business life. 48% of firms are opined that they are new to crises. 32% are often facing it. 16% are rarely noticing crisis. 4% quoted that crises to their firms are “necessary evil”.

ABOUT FORECASTING CRISES 45 40 35 30 25 20 15 10 5 0 VERY UNAWARE

AWARE

NEITHER VERY AWARE AWARE NOR UNAWARE

UNAWARE

The crisis are foreseen by 44% in advance. 20% are aware of the upcoming crisis to hit their firm. 16% are unaware about hitting storm, same 16% are very unaware of it. While 4% are very aware of crises coming.

FIRM AFFECTED/IMPACTED DUE TO COVID 90 80 70 60 50 40 30 20 10 0 VERY HIGHLY

HIGHLY

NEUTRAL

NO IMPACT

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WORRINESS ABOUT PRODUCTION PROCESS DURING CRISES VERY CONCERNED CONCERNED NEUTRAL UNCONCERNED VERY UNCONCERNED 0

10

20

30

40

50

50% of owners were literally (concerned) sitting on pins and needles about production process during the crisis. 38.5% are very concerned about production process. 7.7% are very unconcerned and 3.8% are unconcerned, the diagram states.

MSMEs CHANGED PATTERNS WITH RESPONSE TO PANDEMICS 50 45 40 35 30 25 20 15 10 5 0 0

1

2

3

4

5

6

32% of businesses agreed that they have changed business patterns in response to pandemics. 64% are strong agreement, rest 4% neither agreed nor disagreed about changing business lines.

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EMPLOYEES' BEHAVIOR CHANGING DURING CRISES STRONGLY AGREE AGREE NEITHER AGREE NOR DISAGREE DISAGREE STRONGLY DISAGREE 0

10

20

30

40

50

Ironically 45.8% of employees’ agreed that their behavior changed during crisis and the same percentage of employees strongly agreed to it. 4.2% of employees disagreed, same percentage are neither agreed nor disagreed about behavioral changes during crisis.

OVERCOMING CHALLENGES IN PRODUCTION 60 50 40 30 20 10 0 NEVER

RARELY

SOMETIMES

OFTEN

ALWAYS

50% firms do believe that always overcoming challenges in production is possible. 23.1% state sometimes it is possible. 19.2% mentioned often overcoming challenges are possible. Whereas 7.7% opined that it is a rare feat. Sample Size: This study is confined to 552 respondents of MSM’s situated at North Bangalore, as the total population was 2500 MSME’s in North Bangalore and used the

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technique of random sampling method to determine the aforesaid sample size through questionnaire and was circulated through google forms. The sample size was determined as follows: The total population is 2500 The same size as per the calculation is 552 So, 552 respondents used for this paper with 99% of confidence levels. The collected data is represented through BAR/PIE CHART graphical presentation and analysed using the F test analysis. 5.1 Limitations of the Study The study is limited to MSMEs situated to North Bangalore. The results are purely dependent on the accuracy of the response received from the respondents. H0: MSMEs did not face the challenges in the business as well as the employee behavior during Covid’19 H1: MSMEs faced the challenges in the business as well as the employee behavior during Covid’19 Business changed

Employee behaviour

104.8

104.8

Variance

6757.7

4404.7

Observations

5

5

df

4

4

Mean

F

1.534202

P(F ≤ f) one-tail

0.344244

F Critical one-tail

6.388233

From the above analysis, it is inferred that at 0.05 significance level the p value is 0.344 whereas the F value is 1.53 and the critical value is 6.388, which implies that MSMEs faced the challenges in the business as well as the employee behavior during COVID’19.

6 Findings • The impact of COVID on the firms are severe. But they were back to business due to consistent implementation of sustainable and growth related strategies. • Many companies have real time solutions to their business problems like consistent material management, good relations with vendor, changing production styles during crises are just a few. • The firms have an ability to foresee the swell and flood of upcoming crisis given their experience in previously handled situations. Many firms are due diligent with respect to forecasting.

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• The sickening of an establishment is a process not an event. When symptoms of sickening arises the establishments are going for cost cutting, downsizing strategies. • The alarming production levels were a serious concern during crises. Eventual downfall of market leadership was one of the aftereffects of a firm. • Firms are used to crises and also used to self-overcoming • MSMEs style, approaches and patterns transformed hugely with reference to changing situations. • The impact of COVID is predominantly high in Majority of Firms • Plethora of Forms have foreseen the crises and responded with structural solutions • Overcoming challenges in business is technically possible many firms practicing and are opined. • Employees behavior significantly changed during pandemics, which also lead to ramifications to business and hence they slowed down. • Many entrepreneurs had worried about the process of production, feared about capsizing of operations and other eventual fallout effects. • An uncountable firms impacted due to COVID • Many firms have foreseen crisis • Almost all of the companies and firms are not new to the crisis. • The realtime solutions to the business problems are available in the industry. So firms’ Arsenal is loaded with weapons of destruction of any form of crisis. • When business hits with pandemics, sickness of the industry is imminent. • It is known fact that firms are not exception to the rule when it comes to impact of COVID on its business.

7 Conclusion In conclusion it is very clear that MSMEs and crisis are inseparable. The self-overcoming of MSMEs is the only objective in it’s life time. Escapades like crossing over times of depression unscathed, having a leap-ahead advantage on constraints and leveraging good times to mention a few. Many business got affected and some got solutions for menacing problems in production and maintenance of the firms. In a nutshell the health of MSMEs deteriorated and recuperated as well with fears of uncertainty looms large in near future.

8 Future Directions Though MSMEs contributing significantly to our economy some concerns remained. In the times of crises external supports like moratorium from RBI was observed recently. In the light of support for future research in this regard, this paper is a torch bearer. Hence the researchers can work on contributing a one-size-fits-all model to MSMEs growth, sustainability, expansion of business and diversification.

References Ajit, S.: MSMEs sector in India: current status and prospect. Int. J. Innov. Res. Eng. Manage. (2021)

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Coad, A.: Firm growth and barriers to growth among small firms in India. Small Bus. Econ. 39, 383–400 (2012) Dato-on, M.C.: Thunderbird Int. Bus. Rev. 60(5), 797–807 (2018). https://doi.org/10.1002/tie. 21909 Lahiri, D.I.: Development of Sustainable Brands in the Micro, Small and Medium Enterprise (MSME) Sector in India. SRPN: Sustainable Development (Topic) (2019) Mainardes, E.W.: Marketing capabilities for small and medium enterprises that supply large companies. J. Bus. Ind. Market. (2021) Palaka, S.A.: Growth and Elasticity of Output of MSMEs in India (2020) Ramarao, R.: Competitiveness of India’s micro and small enterprises through functional competencies: role in nation’s development. Vikalpa J. Decis. Makers 37(1), 97–112 (2012). https:// doi.org/10.1177/0256090920120108 Sudarmo, S.: Understanding the challenges and opportunities of micro, small and medium enterprises during COVID-19 pandemic in Indonesia: a systematic review. Int. J. Bus. Econ. Manage. 4(1), 54–62 (2021). https://doi.org/10.31295/ijbem.v4n1.825 Zanjurne, P.: Growth and future prospects of MSME in India. Int. J. Adv. Eng. Manage. Sci. 4(8), 608–614 (2018). https://doi.org/10.22161/ijaems.4.8.5

A Study on CBDCS and e-Rupee with Special Reference to e-Yuan Sharon Francis Joseph and J. Peter Leo Deepak(B) School of Management, Kristu Jayanti College (Autonomous), Bengaluru, Karnataka, India [email protected]

Abstract. The attributes of money are evolving, developing a new financial environment for the economy. The digitalization of money is a profound advancement in the history of currency as a result of the advent of cutting-edge technologies which has enabled the creation of a novel type of currency known as Central Bank Digital Currencies (CBDCs). Research into CBDCs has only proliferated globally in the recent past, owing to digital payment mechanisms and a decline in the use of fiat currency. Latest advancements in virtual or online payment methods have prompted central banks across the world to take cognizance of issuing a CBDC to be at par with the current innovation trend. Central banks across the globe are currently investigating their potential advantages, and nations have multifarious motives for exploring and launching CBDCs. CBDCs are an emerging paradigm with a lack of context and clarity. The predicament of uncertainty regarding the e-Rupee may be resolved through this research. Obliviousness and incomprehension are the core predicaments concerning CBDCs and e-Rupee that this research endeavors to address through inferences from e-Yuan/e-CNY. Therefore, the study aims to explore and acquire in-depth knowledge and insights on CBDCs by examining circulars, working papers, and reports issued by central banks and financial institutions globally. The research also intends to elucidate the implications of CBDCs in national and international economies. Qualitative and Conceptual Analysis remains the dominant paradigm of research, however, empirical analysis has also furnished additional perspective to the same. This research will be able to shed light on certain aspects of CBDCs and their impact on economies and trade. Furthermore, this research will provide assistance and additional understanding to individuals, institutions and regulatory authorities. Keywords: Central Bank Digital Currencies · Digital Currency · Fiat Currency

1 Introduction An increasing number of nations are embarking on a digital transformation journey. Developed nations have the best degree of economic digitalization. The ability of an economy to acclimatize swiftly to new technology in response to the shifting landscape caused by the pandemic will influence its recovery speed. Digital competitiveness is not a zero-sum game, but rather a means of advancement. Central Banks of several countries have ventured into exploring a new vertical known as Central Bank Digital © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 239–247, 2023. https://doi.org/10.1007/978-981-99-3366-2_28

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Currencies (CBDC). It is a decentralized digital form of central bank currency that may be exchanged peer-to-peer. If properly structured, CBDCs might make central bank money more enticing in the digital age while retaining support and improving the stability of the banking system. Central Bank Digital Currencies (CBDCs) are emerging on a global scale and are anticipated to assume a crucial role in the future of finance. CBDCs are digital currencies that are directly owed to the central bank and are denominated in the nation’s unit of account. They eliminate the dependencies in the current payment network and systems and have the capability to make payments faster, comparatively inexpensive, secure, and seamless. CBDCs can radically revolutionize the mechanism of international banks regarding cross-border and international trade. Banks will continue to play a significant role in the circulation and operation of CBDCs in countries that adopt a two-tier CBDC operating model. There is a colossal resource and innovation burden associated with developing the infrastructure required to enable the large-scale transfer of international CBDC. CBDCs are offering novel opportunities for FinTechs’ to innovate on all fronts. The advent of CBDCs enables the evolution of an entirely digital society. Elimination of bank intermediaries will increase transaction efficiency and lower transaction costs, thereby promoting greater financial inclusion in economies. Central banks will need to define and manage a new era of digital banking in which cyber warfare and threats shall be of utmost significance. CBDCs may be a crucial advance toward financial inclusion in certain circumstances, however, it may also serve as an essential financial cushion in the event if other payment options falter. Central banks should configure their strategies to account for specific scenarios and priorities. Privacy concerns pose a potentially fatal flaw in CBDC legislation and adoption. The People’s Bank of China (PBOC) issues Central Bank Digital Currency (CBDC), the e-CNY or Digital Yuan, which is formally acknowledged as the Digital Currency Electronic Payment (DC/EP). The Renminbi (RMB), the official currency of China, is digitized as a component of the nation’s monetary base (M0). e-CNY is designed for use in high-frequency, small-scale purchases and transactions. Users can use a QR code to make purchases using their digital yuan, which they can then keep in digital wallets. “One coin” refers to the e-CNY unit of account, which is simply a digitally encrypted string that represents a particular amount The “two databases” allude to the ledger kept by the central bank, and the bottom tier of the network, which may be kept locally or on the same cloud as the PBOC. Other central banks will likely accelerate their attempts to create their own digital currencies if it is adopted broadly in China. e-Rupee is the legal tender issued by the Reserve Bank of India which is the same as sovereign currency and is exchangeable one-to-one at par with fiat currency. The Reserve Bank of India will be liable for the digital rupee, which will enable consumers to transfer purchasing power from bank accounts into smartphone wallets in the form of virtual tokens. A digital representation of India’s legal currency will strengthen the country’s digital economy. The Reserve Bank of India (RBI) will shortly begin limited pilot releases of the digital rupee for particular use cases. India has a robust network of UPI and Aadhar, which offer a solid technical foundation for the Digital Rupee. India may decide to adopt China’s two-tier operational system in terms of infrastructure to prevent the disintermediation of commercial banks, except under the condition that the issues of viability and privacy

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must be taken into consideration throughout the decision-making process. The RBI opposes the e-rupee with interest, considering that this could lead to bank failure if individuals withdraw money from banks and convert it to the digital rupee. CBDC can be divided into two major categories: general purpose (retail) (CBDC-R) and wholesale (CBDC-W), based on usage, the functions the digital rupee performs, and taking into account the various levels of accessibility. The electronic equivalent of currency known as retail CBDC is largely used for retail transactions by the private sector, non-financial customers, and companies. However, the RBI has not clarified how the e-rupee can be used in merchant transactions in the retail trade. In terms of the retail segment (e-R) pilot project, comprehensive rules are scheduled to be provided within a month, for which closed user groups comprising customers and merchants may be employed initially. Only a select few financial institutions are able to access wholesale CBDC. It has the potential to fundamentally alter how banks settle financial transactions in terms of operational costs, the usage of collateral, and liquidity management. On November 1st, 2022, the first pilot for the Digital Rupee was introduced in the wholesale sector (e-W). A CBDC based on tokens would be a bearer instrument like banknotes; the holder of a token would need to vouch for the accuracy of his ownership of the token. A tokenbased CBDC is thought to be preferable for CBDC-R since it would be more similar to actual money. The maintenance of balance and transaction records for each CBDC holder, as well as the identification of who is the rightful owner of the financial balances, would be required by an account-based system for CBDC-W. A intermediary will in this case verify the account holder’s identity. Offline CBDC transactions will be a possibility, allowing access in places with sluggish or nonexistent internet service. As it is technically possible to use a CBDC unit more than once without updating the CBDC common ledger, there is a possibility of “double spending.” Under the direct method, the central bank will be in charge of managing all aspect of the digital rupee system, including issuance, account upkeep, and transaction verification. A strategy that involves the central bank and other intermediaries doing their respective duties would be considered indirect. The middleman will deal with consumer complaints on behalf of the central bank, which will distribute CBDC to customers indirectly via middlemen. When choosing underlying technologies that can be relied upon to be secure and stable, technical clarity must be confirmed. To increase CBDC’s acceptance in rural areas and make it a viable programme and movement, RBI must address the infrastructural and information shortages on the demand side. The RBI must proceed carefully, taking into account the numerous challenges, design issues, and implications connected with the implementation of digital money. Real-time account settlements and ledger administration will be made possible by the government’s simple access to all transactions that take place on recognised networks thanks to the implementation of the digital rupee. The use of digital currency will significantly lower the expenses related to producing, distributing, and managing the logistics of cash. The implementation will gradually reduce the need for cash and, unlike fiat money, it will always be portable. India has a 17% ratio of cash withdrawals to GDP, higher than the UK and Australia but lower than the US. A new facet of digital governance will be added as digital transactions become more efficient. The digital rupee has an indefinite existence, and cannot be physically lost or damaged. In contrast to other digital currencies, it is less volatile as it is controlled

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by a central authority. According to the RBI, the interbank market will become more effective with the introduction of the digital rupee. The recourse to central bank currency for settlement would lower transaction costs and eliminate the need for collateral to mitigate settlement risks.

2 Methodology and Research Context Digital currencies result in more efficient transactions, improved fiscal and monetary policy, and increased financial inclusion. CBDCs are an emerging paradigm with a lack of context and clarity. The Reserve Bank of India is exploring and studying CBDCs to successfully launch it in India. Digital Rupee is a novel approach that necessitates extensive research and analysis. The predicament of uncertainty regarding e-Rupee may be resolved through this research. Obliviousness and incomprehension are the core predicaments concerning CBDCs and e-Rupee that this research endeavors to address through inferences from e-Yuan/e-CNY. This study is entirely based on secondary data. The research is exploratory in nature. Qualitative and Conceptual Analysis remains the dominant paradigm of research, however, Empirical and Event Analysis have furnished additional perspectives to this research. 2.1 Objectives To study the concept and workings of Central Bank Digital Currencies. To study and understand the development of CBDCs globally. To study the impact of the addition of the Chinese Yuan to the SDR Basket. To study the implications of RCEP on e-Yuan and China. To study the impact of the adoption of the e-Yuan on the performance of the Chinese economy and Yuan. To study and analyze all aspects of RBI Digital Currency or e-Rupee.

3 Analysis and Discussion The e-CNY is anticipated to usher in a new era of digital privacy protection in China. The ultimate aim of China’s digital currency is to establish a cashless economy capable of improving consumer, business, and governmental efficiency. It provides a gateway for China’s big banks to enter a market now dominated by large internet companies (Fig. 1). In the year 2019, USD/CNY rates are appreciating which suggests that the currency is weak. Also, there are fluctuations in the currency value due to several macroeconomic factors. In 2020, after the introduction of e-CNY there is a steep decline in USD/CNY rates which indicates that the currency is strong. Therefore, it is concluded that e-CNY has a positive impact on the value of CNY and affects the fluctuation or direction of USD/CNY (Fig. 2). Event Analysis on USD/CNY rates from 2012 to 2022 indicates that the inclusion of Chinese Yuan into the SDR (Special Drawing Rights) Basket in 2016 has led to minor fluctuations in the direction of USD/CNY. Further, the adoption of e-CNY in 2020 has resulted in a significant fall in USD/CNY rates. This indicates that the Chinese Yuan has gained strength due to the launch of e-CNY.

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Fig. 1. USD/CNY Fluctuations 2019 to 2021. Source: Secondary Data

3.1 The Tussle for Supremacy and the Internationalization of e-CNY CBDCs provide governments access to a citizen’s comprehensive digital footprint, which facilitates monitoring and rewarding or penalizing actions. The digitized currency will equip the Chinese authorities with new capabilities for monitoring the nation’s economy and citizenry. China will be able to control global lending and trade once it propels its digital currency throughout the globe. Once other international currencies are convinced to conduct transactions in Chinese digital currency, the US dollar will effectively be replaced. The People’s Bank of China and officials of other state-owned organisations guarantee that e-CNY will eventually strengthen the yuan and expand its acceptance around the world. Given China’s strict capital controls, which are unlikely to be much loosened in the near future, the effect on the internationalisation of the Chinese yuan would be insignificant in the short term. Since China has the largest banking system in the world, a network that spontaneously forms as a consequence of political pressure would destabilise it and perhaps have effects outside of China. China’s main worry with the US is its goal to undermine the stability of the banking system there. China is upset about the US dollar’s continued influence on international markets. The US can use sanctions to further its interests in national security. When banks and other businesses that facilitate transactions with sanctioned individuals are subject to sanctions, it severely restricts one’s ability to participate in a global economy predicated on the dominance of the U.S. dollar. The PBOC will have almost total control over the layout and organisation of the e-CNY network, ensuring that its goal is met. It would be more challenging for the United States to put pressure

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Fig. 2. USD/CNY Event Analysis based on the cumulative product of close price from 2012 to 2022. Source: Computed

on mediators to halt high-value international transactions if the network was used for such transactions. Without relying on massive banks that need access to US dollars, transactions between Chinese enterprises and entities in China, Iran, North Korea, and Russia that are subject to US sanctions might be made possible. The biggest problem the United States will have in the near future is whether e-CNY will allow transactions with people who are under U.S. sanctions utilising payment rails authorised by the PBOC. Without modifying China’s money controls, significant transactions involving Chinese companies and organisations that have been sanctioned by the US government due to breaches of human rights or concerns about national security may soon take place. The IMF’s conclusion that the RMB is freely convertible underlines both China’s expanding sway in global trade and the renminbi’s significant rise in usage and trade. It recognises the strides made in opening up, integrating, and improving the structure of China’s financial markets. With the ability to diversify global reserve assets, the RMB’s appeal as an international reserve asset is increased by its inclusion in the SDR basket. The accession of the renminbi in the SDR will enable currency trading between China and developing countries. It will minimize the reliance on other hard currencies such as the dollar and encourage financial system stability. As a reserve nation, China’s businesses will benefit from more economical global commerce and financing. The rise of Asian hegemony in the world economy will be realized.

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3.2 The Role of RCEP in the Internationalization of Yuan and e-Yuan The world’s largest free trade area officially came into being with the Regional Comprehensive Economic Partnership (RCEP), signed in November 2020. Focus areas for the negotiations include trade in products and services, investment, intellectual property, dispute resolution, e-commerce, small and medium-sized businesses, and economic cooperation. The signature of the RCEP establishes China as the dominant and prominent voice in Southeast Asia’s free trade. The RCEP would accelerate the process of RMB internationalization by facilitating the growth of regional trade through tariff-free trade. Southeast Asian businesses are increasingly turning to the CNY as their new reserve currency for trade settlement. Digital currency transactions would be more widely accepted by the general public. The distributed bookkeeping aspects of the sovereign digital currency could improve the efficiency of monetary policy and regulatory capability. 3.3 Pilot Launch of e-Rupee The launch of the Digital Rupee is expected to reduce the problem of counterfeit currency notes. The digital currency has the potential to significantly improve the distribution of funding for welfare. It can aid in the modification and advancement of banking services and products. Through efficient tracking of the final use of cash, digital currency can facilitate the prevention of fraud. There is no immediate change in the size of the central bank’s balance sheet as a result of this transfer, but reserve liabilities fall and CBDC liabilities grow. The first pilot in the Digital Rupee – Wholesale segment (e-W) commenced on November 1st, 2022. Nine banks have been selected to participate in the pilot, including State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC. The Reserve Bank declares the commencement of the first pilot programme for retail digital rupees (e-R) on December 1st, 2022. The closed user group (CUG), which comprises participating customers and retailers, would encompass a few specific regions during the pilot. The e-R would assume the form of a digital token that substitutes currency. It would be distributed in the same denominations as existing coins and paper money, dispersed by banks. The pilot will appraise the integrity and viability of the complete creation, distribution, and retail use of digital rupees in real-time. Based on the performance of this pilot, additional aspects and applications of the e-R token and architecture will be evaluated in subsequent pilots.

4 Relevance of Study Digitalization is an indispensable element in today’s world. Digital currencies pave the path towards the growth and development of nations. A centralized approach to digital currency will promote security and advance economic health. Central Bank Digital Currencies (CBDCs) issued by the Central Bank offer fiat currency in digital form to individuals and institutions. The launch of the Digital Rupee by the Reserve Bank of India is in its initial phases. An elaborate cognizance of e-Rupee and its implications

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on Indian as well as global economies will contribute significantly to the economic and financial structure of the country. As a result of conducting this research, the researcher will be able to shed light on certain aspects of CBDCs and its impact on economies and trade. Furthermore, this research will provide assistance and additional understanding to individuals, institutions and regulatory authorities.

5 Conclusion CBDC implementation in an emerging economy such as India, which has a massive credit market dominated mostly by commercial banks, could have significant repercussions for the country’s prevailing monetary policy as well as its financial stability. The RBI’s CBDC must endeavor to preserve the reliability and consistency of the Indian Rupee, which will encourage the integration of all existing forms of currency. Planning for the coexistence of all types of currency is essential, and the government should use CBDC as a mechanism to include the underbanked and unbanked segments of society. Alongside current payment rails, CBDC is anticipated to revolutionize how citizens make payments via digital payment methods. Based on their mutual public and monetary policy objectives, the government and the RBI must evaluate these fundamental criteria before issuing a CBDC within the country, since in the current economic landscape it is vital to maintain both financial and monetary stability by ensuring the CBDC ecosystem is as trusted as that of fiat currency. The potential influence on the monetary policy could be managed by using a twotiered architecture for the creation and dissemination of CBDC, where there is a limit on the amount of CBDC that any one person can retain in their digital wallet. This would assist the government in reducing the substantial shift of current account savings accounts to CBDC holdings. In addition to minimizing any arbitrage between bank deposits and CBDC, the absence of interest on CBDC e-wallets will also help assure limited conversion. The RBI must establish new regulations and a central monitoring agency to enforce standards and safeguards for all cross-border transactions, as well as to ensure the capture of some relevant information about the sender and receiver within the CBDC transaction node itself for future tracking and reference. CBDC participants and stakeholders may be able to generate additional income via payment rails. With the development of CBDC’s payment-related use cases, these revenue streams can be further increased. As data would be maintained in the decentralized network, CBDC may improve the accuracy and traceability of transactions. Although the decentralized network itself can be managed and owned by the RBI, the currency can operate without the necessity for an external entity to reconcile all transactions.

References The Future of Money: Gearing Up for Central Bank Digital Currency (2022, February 9). IMF. https://www.imf.org/en/News/Articles/2022/02/09/sp020922-the-future-of-moneygearing-up-for-central-bank-digital-currency Bank of England Statement on Central Bank Digital Currency (2022, December 1). Bank of England. https://www.bankofengland.co.uk/news/2021/april/bank-of-england-statementon-central-bank-digital-currency

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Bank for International Settlements. Rise of the Central Bank Digital Currencies: Drivers, Approaches and Technologies (2020) Digital Currencies and the Future of the Monetary System. Bank for International Settlements (2021) Reserve Bank of India. Concept Note on Central Bank Digital Currency (2022). https://rbidocs. rbi.org.in/rdocs/PublicationReport/Pdfs/CONCEPTNOTEACB531172E0B4DFC9A6E50 6C2C24FFB6.PDF

A Study on Reskilling and Networking on Linkedin on Employee Recruitment Success and Career Advancement Dushyanth Ganapathy and Stephen Deepak(B) School of Management, Kristu Jayanti College, Autonomous, Bangalore, India [email protected]

Abstract. Reskilling on LinkedIn is fortunately an innovative concept that is highly beneficial for employees and job seekers alike. It provides an easy platform to upgrade one’s KSA’s in order to be job relevant and seek career progression. LinkedIn as a professional networking social media site allows candidates and job seekers to explore the career paths they can take and also enables them to connect with experienced mentors and role models to guide them in their path towards success. This study helps to analyze the concept of reskilling and networking on LinkedIn on employee recruitment success and career advancement. Reskilling provides an opportunity to enhance their abilities and competencies and Networking on LinkedIn was seen with respect to employment recruitment success and career advancement. Keywords: Reskilling · Networking · Recruitment success · Career advancement

1 Introduction For any candidate to be hired, in today’s times, it is very important to up their game. One needs to be well prepared with what is going on around them on a day-to-day basis. Theoretical knowledge is important but at the same time, practical experience and exposure to real time business challenges is essential as well. Hence, it is always better to be prepared by enhancing one’s skills and knowledge to face and overcome any problem arising in the business organization. Reskilling can be done effectively by using social media especially LinkedIn. This site is widely known all over the world to connect candidates and recruiters. This site is one where candidates can learn the idea of networking. LinkedIn serves a good source of seeking potential candidates. This site is a good example of networking and leads to successful recruitment. The process needs to be carefully executed in order to hire prospective candidates and at the same time, the suitable candidates should not be missed by the recruiters. LinkedIn proves to be a source of huge talent pool. This pool of talent can be tapped into by networking and reaching out to as many candidates as possible. Also, in addition to that, we can also choose and decide which candidate suits best for which role. The site makes the © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 248–256, 2023. https://doi.org/10.1007/978-981-99-3366-2_29

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recruitment process simpler by providing a holistic view by complimenting all the stages and steps in recruitment and making way for the selection process to start smoothly. The candidates can use the site to reskill themselves by making an account and becoming an active user of LinkedIn. This site also offers many courses preferred by the users, just like its counterparts such as Udemy, Coursera and few other. 185 courses and 13 learning paths offer free LinkedIn certificates, as well as 320 free courses, for a total of 800+ h of free online learning. LinkedIn Learning is an American online learning provider. It provides video courses taught by industry experts in software, creative, and business skills.

2 Review of Literature Employers find potential candidates via social networking sites, according to the research article titled “The Use of Social Networking Websites as A Recruitment Strategy For Companies”. It works as a tool to link employers with potential employees. Social networking sites offer venues for social interaction and give users a way to express themselves by showcasing their abilities, accomplishments, and other qualities that potential employers may find appealing. Applicants and job seekers publish material that they want employers to view since they are aware that companies can obtain information through social networking websites and that social networking screening is a common practise in businesses today [1]. The main goal of the paper, HR Professional Perception for the Importance and Success of Social Networking Sites Integration in Recruitment, is to comprehend how HR personnel view social networking sites’ significance, effectiveness, and degree of integration in the recruiting process. Being on social networking sites is a consequence of globalisation, where everything and everyone appears to be connected throughout the world due to an escalating advancement in information technology [2]. The impact of social media, particularly LinkedIn, on the hiring process in South Africa revealed that, in contrast to Facebook and Twitter, LinkedIn has a significant impact on hiring there [3]. However, social media is not a magic fix for hiring problems. According to a study, the Internet is omnipresent in the job-search and employment concepts, particularly for highly trained individuals. They claim that because job seekers from all occupational groups and employment status continue to rely on some aspect of the Internet for employment, disadvantaged job seekers may be left behind and may even continue to be left behind as the Internet plays an increasingly important role in the hiring process [4, 6]. By providing a thorough analysis of LinkedIn, the idea of social media marketing techniques for professional progression is presented. It confirms that social media impact aids in building a personal brand, applying for professionally fulfilling positions, and advancing one’s career. The main emphasis was on using social media marketing techniques to use LinkedIn as a tool for job success [5].

3 Research Objectives 3.1 Statement of the Problem LinkedIn as a social networking site of working professionals provides a platform for employers and organizations to scout for talent as right talent is a rarity in today’s professional world. LinkedIn enables candidates to build a profile for themselves presenting

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their knowledge, skills, attitudes and other competencies in a manner that would be seen and endorsed by the right employers [7] Organizations and talent hunters are always on the prowl to acquire good talent and match them with the tight jobs. LinkedIn also provides reskilling opportunities through training, mentoring and development. Reskilled employees will find growth opportunities and progress faster in their career. Hence, this research chose the variable s Reskilling and Networking on LinkedIn as the independent variable and Recruitment success and Career advancement as the dependent variables to study and analyze the impact of Reskilling and Networking on LinkedIn on employee Recruitment Success and Career Advancement. 3.2 Objectives • To identify the factors relating to reskilling and networking on LinkedIn on recruitment success. • To know the factors relating to reskilling and networking on LinkedIn on career advancement. • To study the association of demographic variables on reskilling and networking behavior of employees. • To examine the relationship between reskilling and networking on recruitment success and career advancement. • To study the extent of information of reskilling and networking on recruitment success and career advancement. 3.3 Hypothesis H1: There is significant relationship between reskilling on LinkedIn and recruitment success. H2: There is significant relationship between networking on LinkedIn and career advancement. H3: There is significant relationship between networking on LinkedIn and recruitment success. H4: There is significant relationship between networking on LinkedIn and career advancement. 3.4 Methodology - Type of Research The research titled “A study on reskilling and networking on LinkedIn on employee recruitment success and career advancement” used the ‘Descriptive research’ methodology wherein Independent variables were ‘Reskilling’ and ‘Networking on LinkedIn’ and Dependent variables were ‘Recruitment Success’ and ‘Career Advancement’. Information of the study was determined from various review of literatures. The study was conducted on the basis of both primary and secondary data collected from different sources. • Primary Data: Primary data were collected through direct survey using a structured questionnaire designed specifically for the purpose of this study. • Secondary Data: The secondary data for this project was collected from various research articles, journals, research repositories, websites etc.

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3.5 Sampling 3.5.1 Sampling Method In this study, non-probability convenience sampling method were used to select a sample size. The sample size selected for the study is 160 respondents. A structured questionnaire was designed after an elaborate review of literature. The questionnaire has two parts: • Part A sought to find the demographic details of the respondents. • Part B had various questions relating to research variables. The independent variables ‘Reskilling on LinkedIn’ had 5 items to be measured and ‘Networking on LinkedIn’ had 6 items to be measured respectively whereas dependent variables, ‘Recruitment Success’ had 6 and ‘Career Advancement’ had 6 items respectively. The questionnaire had a combination of Nominal and Scale measure items.

4 Scope of the Study This study covered the employees working in different types of organizations. The information for the research was collected from respondents who had knowledge about the selected variables and were aware of the topic being researched. The study was directed towards finding out if Reskilling on LinkedIn and Networking on LinkedIn have an influence on Recruitment Success and Career Advancement. The study also goes deep into the importance and benefits of Reskilling on LinkedIn. The research conducted, has a wide scope to know about the various management practices adopted for Career Advancement. It helps to know whether these practices increase Recruitment Success and will in turn helps to know the areas they need to improve.

5 Results and Analysis The research is based on the on the study on the influence of reskilling and networking on LinkedIn on recruitment success and career advancement. The tests like Correlation, Regression, ANOVA, and Reliability were used for the purpose of the study (Tables 1 and 2). Table 1. Descriptive statistics of respondents Gender

Frequency

Percent

Male

85

32.7

Female

75

28.8

Total

160

61.5

Age(Years)

Frequency

Percent

20–24

25

9.6 (continued)

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D. Ganapathy and S. Deepak Table 1. (continued)

Gender

Frequency

Percent

25–29

75

28.8

30–34

37

14.2

35–39

18

6.9

40 and above

5

1.9

Total

160

61.5

Educational qualification

Frequency

Percent

Pre-university (PUC)

30

18.8

Graduate

101

63.1

Postgraduate

29

18.1

Total

160

100

Current employment status

Frequency

Percent

Full time employment

94

58.8

Part time employment

17

10.6

Unemployed

29

18.1

Pursuing education

20

12.5

Total

160

100

Industry of the respondents

Frequency

Percent

Banking

12

4.6

Education

18

6.9

Automobile

11

4.2

E-commerce

13

5

Hospitality

11

4.2

Healthcare

11

4.2

Retail

33

12.7

Accounting

4

1.5

Recruitment

14

5.4

NA

33

12.7

Total

160

61.5

Level of employment of respondents

Frequency

Percent

Strategic level/Leadership

3

1.2

Middle level/Executory

39

15.0

Low level/Supervisory

64

24.6

Entry level

6

2.3

NA

48

18.5

Total

160

61.5

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Table 2. Reliability of data Variables

Cronbach’s Alpha

No of items

Reskilling

.844

5

Networking

.827

6

Recruitment success

.874

6

Career advancement

.851

6

The α for Reskilling = 0.844, Networking = 0.827, Recruitment success = 0.874, and Career advancement = 0.851. Since the alpha value is more than 0.7, it is at an acceptable value and there were enough questions for the test (Table 3). 5.1 ANOVA Table 3. Difference of means between Education qualification and Reskilling on LinkedIn Reskilling on LinkedIn Between Groups

Sum of Squares

df

Mean Square

F

Sig.

3.153

0.045

4.208

2

2.104

Within Groups

104.767

157

0.667

Total

108.975

159

One-way ANOVA test results show that f = 3.153, P-value = 0.045. P-value was lesser than 0.05. Therefore, H0 was rejected. Therefore, there was a significant difference between current employment status and reskilling on LinkedIn (Table 4). Table 4. Difference of means between Current employment status and Reskilling on LinkedIn. Reskilling on LinkedIn Between Groups Within Groups Total

Sum of Squares

df

9.143

3

99.832

156

108.975

159

Mean Square

F

Sig.

3.048

4.762

0.003

0.64

One-way ANOVA test results show that f = 4.762, P-value = 0.003. P-value was lesser than 0.05. Therefore, H0 was rejected. Therefore, there was significant difference between current employment status and reskilling on LinkedIn (Table 5). One-way ANOVA test results show that f = 1.164, P-value = 0.078. P-value was greater than 0.05. Therefore, H0 was accepted. Therefore, there was no significant difference between industry in which the respondents are working and reskilling on LinkedIn (Table 6).

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D. Ganapathy and S. Deepak Table 5. Difference of means between Industry and Reskilling on LinkedIn.

Reskilling on LinkedIn

Sum of Squares

df

Mean Square

F

Sig.

1.772

0.078

Between Groups

10.473

9

1.164

Within Groups

98.502

150

0.657

108.975

159

Total

Table 6. Difference of means between Level of employment and Reskilling on LinkedIn. Reskilling on LinkedIn Between Groups

Sum of Squares

df

8.882

4

Within Groups

100.093

155

Total

108.975

159

Mean Square

F

Sig.

2.22

3.438

0.01

0.646

One-way ANOVA test results show that f = 3.438, P-value = 0.01. P-value was lesser than 0.05. Therefore, H0 was rejected. Therefore, there was significant difference between level of employment and reskilling on LinkedIn. 5.2 Correlation

Table 7. Showing the Correlation of Reskilling on LinkedIn and Career Advancement Variables

Career Advancement

P-value

Reskilling on LinkedIn

.514**

.000

**. Correlation is significant at the 0.01 level (2-tailed). P = 0.000, R = 0.514**

As P-value is less than 0.01, there is a significant relationship between Reskilling on LinkedIn and Career Advancement. H1 is accepted at 99% confidence level (Table 7). As R value is 0.514** , there is a strong positive correlation (Table 8). Table 8. Showing the Correlation of Networking on LinkedIn and Recruitment Success Variables

Recruitment Success

P-value

Networking on LinkedIn

.295**

.000

**. Correlation is significant at the 0.01 level (2-tailed). P = 0.000, R = 0.295**

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As P-value is less than 0.01, there is a significant relationship between Networking on LinkedIn and Recruitment Success. H1 is accepted at 99% confidence level. As R value is 0.295**, there is a moderate positive correlation. 5.3 Regression 5.3.1 Impact of Reskilling on Recruitment Success Recruitment Success = (2.905) + (0.218) * Reskilling (Table 9). Table 9. Model Summary Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.205a

.042

.036

0.86627

a. Predictors: (Constant), Reskilling.

R value was 0.205, which implies moderate degree of correlation. The R square value was 0.042 and it indicates how much of the dependent variable, “Recruitment Success”, can be explained by the independent variable, “Reskilling”. The extent to which Reskilling influences the increase in Recruitment Success is 3.6%. 5.3.2 Impact of Networking on Career Advancement Career Advancement = (2.965) + (0.262) * Networking (Table 10). Table 10. Model Summary Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.253a

.064

.058

0.77570

a. Predictors: (Constant), Networking

R value was 0.253, which implies moderate degree of correlation. The R square value was 0.064 and it indicates how much of the dependent variable, “Career Advancement”, can be explained by the independent variable, “Networking”. The extent to which Networking influences the increase in Career Advancement is 5.83%.

6 Discussion and Conclusion Work has changed significantly in this time of upheaval. The epidemic caused both personal and professional disruptions. Organizations must priorities reinvention with a renewed focus on employee engagement and development to address this issue. Employers should keep in mind what today’s workers want as they place a focus on involving

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workers and anticipating their requirements with improved products. According to a recent survey, more than half of the respondents said their decision to stay at a company was influenced by their ability to advance their careers. By extending our culture of innovation beyond healthcare technologies and into how one builds development opportunities that support managers leading with impact and people pursuing successful careers, this can be brought to life. This is viewed as an investment in their development as well as the future of the business [8]. Mentoring is a different way to maximise a worker’s professional potential. Advice from a dependable, knowledgeable counsel is priceless. We understand there are gender discrepancies in certain industries, which we hope to close with more inclusive, varied methods. Remember that the employee network offers a structured mentoring programme to support high-potential female employees with tailored efforts. Industries are working to assist members of underrepresented groups as they develop in order to foster a more inclusive culture [9, 10]. LinkedIn is a professional social networking site that gives anybody and everyone a chance to be present because the Internet eliminates all barriers and is a wonderful equalizer. Access and opportunity are no longer physically restricted, as they formerly were, with those with privileges or access receiving the finest opportunities. Everyone has an equal chance to establish themselves on LinkedIn as a qualified candidate for employment as well as for professional advancement.

References 1. Vicknair, J., Elkersh, D., Yancey, K., Budden, M.C.: The use of social networking websites as a recruiting tool for employers. Am. J. Bus. Educ. (AJBE) 3(11), 7–12 (2010) 2. Ezam, Q., Ahmad, N., Jalbani, A.A.: HR personnels perception for the importance and success of social networking sites integration in recruitment. Int. J. Experiential Learn. Case Stud. 3(2), 189–203 (2018) 3. Koch, T., Gerber, C., De Klerk, J.J.: The impact of social media on recruitment: are you LinkedIn? SA J. Hum. Resour. Manag. 16(1), 1–14 (2018) 4. Pathak, K.: An evaluative study of influence of social media on journalism: interference or professional advancement. Social Media and Journalism-Trends, Connections, Implications (2018) 5. McCabe, M.B.: Social media marketing strategies for career advancement: an analysis of LinkedIn. J. Bus. Behav. Sci. 29(1), 85 (2017) 6. Rathi, R.: A Study on how LinkedIn is an effective recruitment tool (Doctoral dissertation) (2022) 7. Doo, M.Y., Tang, Y., Bonk, C.J., Zhu, M.: MOOC instructor motivation and career development. Distance Educ. 41(1), 26–47 (2020) 8. Siu-Man, R.T., Gonzalez, L.M.: Quality of interactions in face-to-face and hybrid career development courses: an exploration of students’ perceptions. J. Online Learn. Teach. 9(3), 316 (2013) 9. Sood, R., Garg, A.: Massive online open courses (MOOCS) avenues for students and employed for productivity and growth. World J. Res. Rev. 2(3), 262979 (2016) 10. Kilroy, J.: From a CV to an ePortfolio: an exploration of adult learner’s perception of the ePortfolio as a jobseeking tool. International Association for Development of the Information Society (2017)

Assessment on Enhancing Business Customer Acquisition for Autonomous Mobile Robots (AMR) in Industrial Automation and Robotics Industry Mohammed Haris Didat Khattal

and A. John William(B)

School of Management, Kristu Jayanti College, Bangalore, India [email protected]

Abstract. This study aims to pinpoint the areas in which customers’ industrial processes can be improved by autonomous mobile robots, pinpoint the key elements that will win them over to the industrial automation and robotics sector, and pinpoint the most efficient and user-friendly customer acquisition tactics. Potential clients were discovered after the raw data from the various industries was divided into categories based on region, industry, and product. A pilot research was carried out after identifying the possible clients by scheduling a meeting with managers or employees or by making direct walk-in visits to the various industries. As many of the managers weren’t available in person, several interviews took place over the phone. During interviews with candidates from 41 businesses, we discovered the following: Material handling, workforce reduction, labour cost management, plant safety, and worker fatigue are customer issue areas in their industrial processes that autonomous mobile robots can address. Features and technological aspects, quality of the robot, cost of automation, performance benefits, after-sales support, safety, prior customer experiences, infrastructure, and brand recognition of the company are some of the factors that will entice customers to join the industrial automation and robotics industry. Direct walk-in and appointment, email marketing and appointment, phone call and appointment, and social media marketing are the top customer acquisition tactics in the field of industrial automation and robotics that are more efficient and convenient to clients. Conclusion: Given that the majority of sectors still rely on conventional techniques for producing and transporting items, there is a large market for B2B industrial automation companies, particularly those engaged in the newest Industry 4.0 application, autonomous mobile robots (AMR). Keywords: Customer acquisition strategy · Autonomous Mobile Robots · Industrial B2B Robotics

© The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 257–264, 2023. https://doi.org/10.1007/978-981-99-3366-2_30

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1 Introduction 1.1 Automation and Robotics When handling industrial machinery and processes, industrial automation and robotics employ control systems, computers and information technology to replace manual labour and enhance productivity, speed, quality, and performance. The main goal of automated systems was to increase production because they do not need breaks as human employees do. But over time, this emphasis has changed to incorporate improved product quality and adaptability. Artificial intelligence and machine learning are being used to advance current technical solutions beyond automation. Robotics and automation, however, are not the same thing: Automation is the technique of someone using machinery, software applications, as well as other technologies to complete tasks that would normally be performed by a human. There are several forms of automation, including virtual and actual work. Robotics – To develop, build, program, and deploy robots, this engineering field utilizes a variety of disciplines. Robots are configurable entities that interact with different environments to adapt and carry out unsupervised or semi-autonomous tasks. Robots can be reconfigured, rendering them more adaptable than machinery with a singular purpose. Conventional industrial robots often perform jobs more swiftly than people, whereas collaborative robots are created to perform tasks in a manner resembling humans. The employment of robots to automate physical tasks is one area where automation and robotics overlap. But not all robotics is related to automation, and not all automation utilizes actual robots. Internal transportation duties could only be automated with conventional Automated Guided Vehicles (AGVs) up until recently. Large, stationary installations that require reliable, repetitive material delivery and that can afford high initial costs and lengthy returns on investment (ROI) are common places to find AGVs. However, the more advanced, adaptable, and economical innovation of autonomous mobile robots is now posing a threat to AGVs (AMRs). AGVs and AMRs similarly move goods, but that is the limit of their commonalities. 1.2 Automated Guided Vehicles They can automatically attach trailers to which the AGV can tow big items. Both finished goods and raw materials may be transported using the trailers. The AGV may also store items that are on a bed. A conveyor, which is a row of motorised rollers, can be used to load things onto it and then move them off of it by spinning the conveyor backward. AGVs are utilised by almost every industry, including pulp & paper, metallurgy, newspapers, and general manufacturing. Food, bedding, and medications are among the things that are transported in hospitals. Also known as a laser-guided vehicle, an AGV (LGV). In Germany, the method is also known as the Fahrerloses Transport system (FTS). AGV alternatives that are less expensive, Automated Guided Carts (AGCs), are frequently directed by magnetic tape. AMRs, or autonomous mobile robots, are mobile robots that do not rely on extra environmental infrastructure for navigation (such as magnetic strips or optical markers), whereas AGVs do. AGVs can be used to deliver loads, move products along an assembly line, and move items throughout a warehouse or facility. They are available in a variety of sorts. When Barrett Electronics of Northbrook, Illinois

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first put the AGV on the market in the 1950s, it was essentially a tow truck that drove a wire in the floor rather than a rail. This technique led to the development of a new type of AGV that follows invisible UV markers on the floor as opposed to being pulled by a chain. The first such system was put in place to distribute mail among its offices by the Willis Tower (formerly Sears Tower) in Chicago, Illinois. 1.3 Autonomous Mobile Robots (AMR) A mechanical system that can go around is considered to as a mobile robot. Robotics and intelligent systems also include mobile robotic technology as a specialty. Robots that can navigate around within their assigned surroundings and are not limited to a single geographical space are called mobile robots. To navigate an unregulated environment, mobile robots can be “autonomous” (AMR – autonomous mobile robot), which negates the requirement for electromechanical or electro-mechanical guiding systems. In contrast, mobile robots can rely on GPS devices which let them move along a pre-planned path in a reasonably regulated system. The hinged arm (multi-linked manipulation) and gripping assembly (or end endpoint) of robotic systems, in contrast, are often immobile and connected to a permanent surface. Use of such robotic systems in heavy industrial applications has risen. For several years, hospitals have used autonomous mobile robots to transport materials. Autonomous robot devices have been deployed in facilities to effectively transport inventory from restock shelves to order fulfilment areas. Additionally, mobile robots are used in defense, security, and manufacturing situations. A microcontroller, detectors, actuator, and power grids make up the mobile robot. Typically, a microcontroller implanted MCU or personal computer acts as the controller (PC). The sensor includes utilized varies as to what the robot needs. Poor reckoning, touch and closeness sensing, contour range, collision warning, position tracking, and other purposes might all be necessary. Actuators often allude to the wheels or legs that operate the robot. Without using AC power, we typically employ a Dc power source for mobile robots (a battery). 1.4 Customer Acquisition Customer acquisition is the process of locating and generating sales channel prospects, then putting them into action to clinch the purchase. It basically means attracting new clients. Because clients are necessary for the success of your organisation, customer acquisition is crucial. This is another reason why every client acquisition technique you employ needs to be carefully considered and well-planned. The early stages of the customer journey are frequently linked with client acquisition (or the series of experiences a customer has with your brand). A potential client must be made aware of your brand before they can click the “purchase” button or make an order, but the customer acquisition process has several facets.

2 Review of Literature The study examined current B2B sales, purchasing, marketing, and customer journey mapping developments. Data for this study came from a series of interviews with the company’s present and potential external clients. The study examined what consumers

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believed to be the qualities of a good provider and what would cause them to switch suppliers [1]. Customer Acquisition Development Plan: This study tells that Customers look for the good, personalized service with genuine value added when the provider is proactive and engaged. Primary sources for finding information about potential suppliers are search engines and the corporate website. Email appears to be the primary means of communication, followed by in-person meetings [2]. The goal of this study is to uncover and comprehend the crucial tactics used by a creative company in the fields of manufacturing consumer robotics and robotics training. The ideas of staffing, employee experience, and employer branding were examined and connected to the human resource methods utilized by the business to enter this specialized market [3]. Applying the lean methodology to improve customer acquisition management in B2B start-ups. Lean Startup study examines how B2B businesses use the Lean Start-up technique to enhance client acquisition management. Processes for product development, marketing and sales, and customer interaction were examined. The study concludes that some aspects of customer acquisition management need additional funding and thorough testing. Following buyer role, customer size, and implementation model are marketing channels and sales techniques [4]. Industry 4.0 technologies: Implementation patterns in manufacturing companies. In 92 manufacturing businesses, this research focuses on technology trends. The approach is based on cluster analysis and independence tests, and it presents a framework using Industry 4.0’s front-end and base technologies. The key contribution, it was discovered, is a maturity model that illustrates technological trends. The primary issues are big data, analytics, and the use of flexibilization [5]. Competitive density and customer acquisition–retention trade-off. As competition density (i.e., the number of rivals) rises and the market becomes more dynamic, the authors believe that enterprises can improve performance by putting more focus on customer acquisition methods rather than customer retention strategies. The moderation hypotheses are strongly supported by an empirical study of one artistic business utilizing four data sources. A customer retention approach that prioritizes intimate connections with customers and adaptive learning improves performance when competitor density is low. A customer acquisition approach that prioritizes innovation and competitor learning performs better when there is a high level of competition density [6]. A purposeful investment in switching costs, together with an integrated strategy for customer acquisition and retention. This study looks into the relationship between spending to boost website competition and longevity (customer switching costs). In order to examine the investments made by a superior firm to increase consumer switching costs, the rivalry for generating leads and customer retention between an investing business and a non-investing firm is analysed using a duopoly model. The goal of strategic technology investment is to gain a tactical advantage in customer retention, but the model demonstrates that in circumstances where consumers are unaware of the benefits of the investment, aggressive price competition by a quasi-firm can prevent the investing firm from gaining a greater market share and ultimately reduce its incentive to invest [7]. Impact of interactive marketing platforms on customer acquisition for services. This study seeks to establish a correlation between the two by comparing the rates of client acquisition by service organisations employing interactive and non-interactive marketing communications channels. Two field investigations and hazard models were used to assess the likelihood of acquiring a new client

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once the prospect contacts the company. The channels were compared using several discrete hazard models. Word-of-mouth, online forums, and search engine optimization are three interactive marketing communication channels that have been found to gradually speed up client acquisition. However, the analysis failed to detect any substantial impact on the acquisition rate by these channels (billboard/signage, direct mail) in this study’s evaluation of non-interactive channels [8]. Client Acquisition in Urban India’s Small and Informal Companies. This study examines the use of information and communication technologies (ICTs) in small and informal firms in the developing world by focusing on its role in client acquisition and retention. The data came from a survey of 317 small business owners and sole proprietors who employed five or fewer employees in and around metropolitan Hyderabad, Southern India. Many client acquisition strategies are mentioned by respondents, including walk-ins, referrals, relationships with family, landlines, mobile phones, the internet, and email. The results show that even among those with access, in-person interactions with customers are more common. Four studies that look at whether telephone enables more specialised, hands-off, many, or remote encounters with customers find a strong correlation between landline ownership and the total number of consumers [9]. Using web traffic analysis for customer acquisition and retention programs in marketing. This essay makes extensive use of the author’s most recent foray into online traffic research. Based on this experience, the article makes the claim that online traffic analysis offers an intriguing and practical collection of techniques for understanding how customers navigate across businesses’ websites. It is therefore feasible to ascertain how website visitors react to marketing offers online once these travel pathways have been recorded and examined. Intelligent executives may review websites using a range of data provided by web traffic analysis, and they can then make changes to the websites that will increase visitor responses. The paper explains how online traffic analysis fits into the body of academic work in marketing and presents several software and web metrics problems [10]. Prospectus of robotics in the food industry. The deployment of robots in the food industry has dramatically grown during the past several years. Palletizing, packing, and serving procedures for food have the potential to be transformed by robots. It is hoped that more awareness of research advancements in “Robo-food” would encourage further cooperation and lead to future advancements [11]. How’s Robotic doing. The second half of a summary report on the state of robotics in the US, Western Europe, Korea, Japan, and Australia is contained in this article. This report is the result of trips to more than 50 labs in 2004 and 2005. The World Technology Evaluation Center (WTEC) conducted the study, which was mostly funded by the United States. National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF) (NASA). The survey results for networked robots, biological and medical applications, and industrial, service, and personal robots are summarized in this article [12].

3 Research Methodology Potential clients were discovered after the raw data from the various industries was divided into categories based on region, industry, and product. A pilot research was carried out after identifying the possible clients by scheduling a meeting with managers

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or employees or by making direct walk-in visits to the various industries. As many of the managers weren’t available in person, several interviews took place over the phone. After speaking with potential customers from 41 companies, we identified the following: customer problem areas in their industrial processes that autonomous mobile robots can address; various factors that will attract customers to the industrial automation and robotics sector; and the best customer acquisition strategies in this sector that are more efficient and practical for customers. A questionnaire was created after gathering the aforementioned data from the pilot study in order to conduct a thorough analysis.

4 Findings and Managerial Implications Out of 41 respondents, 73.2% of the companies have a problem with material handling, 58.5% want to reduce their workforce, 53.7% want to control labour costs, 51.2% want safety in their plant, 41.5% want to eliminate worker fatigue in the plant, and 12.2% believe that their plant has no problems that autonomous mobile robots can solve (AMRs). This information shows the main issues with industrial processes that autonomous mobile robots can help to resolve (AMRs). Material handling (73.2%), labour force reduction (58.5%), labour cost management (53.7%), plant safety (51.2%), and worker fatigue (41.5%) are the main issues. Of of 41 respondents, 63.41% think that technology is a very important factor, and 36.59% think that it is the factor that they weigh most heavily when making decisions about a business in the B2B automation and robotics sector. 70.7% of the respondents—out of 41—believe that the quality of the robot is a very important aspect, and 29.27% say that it is the factor that they weigh most heavily when making business decisions in the B2B automation and robotics sector. Out of 41 respondents, 63.41% think the cost of automation is a very important issue, 29.27% think it’s important, 4.88% think it’s neutral, and 2.44% think it’s a less essential factor that they think about most in a firm with the B2B automation and robotics industry. 75.61% of the respondents—out of 41—believe that the Performance benefit is a very important aspect, and 24.39% say that it is the one that they weigh most heavily when doing business with companies in the B2B automation and robotics sector. Out of 41 respondents, 69.08% think that after-sale support is crucial, and 39.02% say that it’s the issue that they think about most when doing business in the B2B automation and robotics sector. Out of 41 respondents, 63.41% think safety is a very essential element, and 36.59% say it’s the factor they think about most when doing business with companies in the B2B automation and robotics sector. Out of 41 respondents, 34.15% identified as neutral, 26.83% as believing that previous customer experience is an important factor, 19.51% as believing it to be less important, 14.63% as believing it to be extremely important, and 4.8% as believing it to be not important. Out of 41 respondents, 29.27% were neutral, 26.83% thought infrastructure and reputation were less important factors, 24.39% thought they were important factors, 14.63% thought they were very important, and 4.88% thought they were not important factors to consider when doing business in the B2B automation and robotics sector. Performance Advantages (75.6%), Robot Quality (70.7%), and Technical Aspects/Cost of Automation/Safety (63.4%) are the three main reasons that will sway clients in the Industrial Automation and Robotics market. Of of 41 respondents, 46.34% found direct walk-ins and scheduling an appointment to be

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more convenient, followed by 43.90% who preferred scheduling an appointment over the phone, 7.32% who preferred scheduling an appointment using email marketing, and 2.44% who preferred social media marketing. The most efficient and practical client acquisition tactics available in the field of industrial automation and robotics. Direct walk-ins and appointments, as well as phone calls and appointments, are some of the available tactics. Appointment strategies and email marketing may or may not be effective in this sector. In the early stages of this sector, very few people think of social media marketing as a potential method of customer acquisition.

5 Suggestions and Conclusion Autonomous Mobile Robots are mainly used for the movement of materials without the use of manpower, but there is still the requirement for manpower to lift those products from the docking point and keep the products on the robot. So, the application of AMRs in a plant with continuous product movement decreases. The company should concentrate on modifying the robot and adding a forklift, which will make it more useful for the industry. It is suggested to first meet a regular employee of the organization/plant and understand their problem very well. It is advisable to go through employee references to meet heads of the organization as they will consider a request to provide an appointment to meet them personally. Many times, the right person you are looking to talk to may not be present at the premises of the plant. So, it is suggested to take an appointment through phone call prior to your visit to the target organisation. This project on enhancing business customer acquisition for Autonomous Mobile Robots (AMR) in the industrial automation and robotics industry was a challenge and a knowledge-gaining experience. Though the sample size was small due to time constraints, it helped us know the different views of the problems faced in industrial processes in different types of industries, to identify various factors that will get customers onboard and the best customer acquisition strategies to follow in this industry. In all the Industrial areas visited for conducting a pilot study, it was found that most respondents were from the Dobaspete industrial area, and the companies in this area were easy to approach and interview as compared to other industrial areas. We can also say that the rejection rate in the Attibele Industrial area is higher than in others. In this type of industry, the production head, the supervisor, and the managing director were not easily approachable. For approaching any company initially, we must meet any employee and then take an appointment for meeting the higher authority through that employee. This study shows that a particular industry doesn’t look for any particular factor that will make them consider Autonomous Mobile Robots working in their shop floor. Every industry expects an all-around performing robot that contains the maximum possible factors that will benefit their company. It can be concluded that there is much scope for a B2B industrial automation company, especially a company which is into the latest application of Industry 4.0, i.e., Autonomous Mobile Robots (AMR) to capture its target market as the majority of the industries are still using traditional methods for manufacturing and movement of goods.

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References 1. Nummela, K.: B2B customer acquisition in a modern business environment (2022) 2. Sundman, S.M.: Customer acquisition development plan: improving lead generation (2021) 3. Mishra, S., Bhattacharya, S.: A perspective of making India robot ready: case study on Sakrobotix Lab Pvt. Ltd. Int. J. Innov. Sci. 13(2), 175–192 (2021). https://doi.org/10.1108/ IJIS-09-2020-0170 4. Nguyen, T.: Applying lean methodology to improve customer acquisition management in B2B SaaS startups in the Go-To-Market phase (2020) 5. Frank, A.G., Dalenogare, L.S., Ayala, N.F.: Industry 4.0 technologies: implementation patterns in manufacturing companies. Int. J. Prod. Econ. 210, 15–26 (2019). https://doi.org/10. 1016/j.ijpe.2019.01.004 6. Voss, G.B., Voss, Z.G.: Competitive density and the customer acquisition–retention trade-off. J. Mark. 72(6), 3–18 (2008) 7. Xue, L., Ray, G., Whinston, A.B.: Strategic investment in switching cost: an integrated customer acquisition and retention perspective. Int. J. Electron. Commer. 11(1), 7–35 (2006) 8. Majid, K.A.: Effect of interactive marketing channels on service customer acquisition. J. Serv. Market. 35(3), 299–311 (2020). https://doi.org/10.1108/JSM-08-2019-0282 9. Donner, J.: Customer acquisition among small and informal businesses in urban India: comparing face-to-face and mediated channels. Electron. J. Inf. Syst. Dev. Countr. 32(1), 1–16 (2007) 10. Wilson, R.D.: Using web traffic analysis for customer acquisition and retention programs in marketing. Serv. Mark. Q. 26(2), 1–22 (2005) 11. Iqbal, J., Khan, Z.H., Khalid, A.: Prospects of robotics in the food industry. Food Sci. Technol. 37, 159–165 (2017) 12. Bekey, G., Yuh, J.: The status of robotics. IEEE Robot. Autom. Mag. 15(1), 80–86 (2008)

Impact of Covid 19 on Oil Prices, Gold Prices and Indian Stock Market Binu Joseph(B) Department of Economics, CHRIST (Deemed to be University), Bangalore, India [email protected]

Abstract. This study investigates the influence of COVID 19 on Oil Price, Gold price and Indian Stock Market. This study will focus on the time period of 2019 to 2022 to examine the effect of COVID 19 on stock market. Descriptive statistics for all indices has been used to analyse the stochastic properties of the stock return of BSE, before the COVID-19 and after COVID-19 period. The dummy variable regression model has been implemented for analysing before and after impact of COVID-19. The effect on BSE return due to COVID 19 is visible in the dummy variable regression results. The return for BSE after COVID-19 period is positive. After the COVID 19, the returns for BSE have increased by 2.01%. Along with dummy variable regression, ARCH and GARCH model has been employed to analyse the volatility before and after the COVID 19. No ARCH effect was found before the COVID 19 but ARCH effect has been found after the COVID 19. Stationarity tests and ARCH effects confirm the correctness of applying GARCH model in the study. Analysing the probability value of GARCH before the pandemic, it is noted that it is lower than the significance level (5%) which implies that the data is following the GARCH pattern. The result proves that the volatility of oil and gold has no significant effect on stock returns in each period. Even in the post pandemic situation, the probability value of GARCH in each period is lower than the significance level (5%), which means the data is following the GARCH pattern. The positive effect of oil volatility on stock volatility and the negative effect of gold volatility on stock volatility is been proved by the results. Keywords: Covid-19 · Stock Market · Oil Price · Gold Price

1 Introduction Global Economy was disturbed because of the pandemic, COVID 19. The worldwide stock market has experienced lowest stock market prices since the 2008 financial crisis. The COVID 19 consequences were not restricted to only selected sectors but apparent in all the sectors. However, the degree of impact may differ from one sector to another and country to country. In response to the slow economic growth, the stock market around the world has reacted noticeably. The impact of crisis on stock market has always received attention in contemporary research because uncertain events affect financial market. The news of COVID 19 pandemic has made the world financial market to suffer. As a result, © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 265–272, 2023. https://doi.org/10.1007/978-981-99-3366-2_31

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the important global stock market indices have plunged largely (Bahrini & Filfilan, 2020). Moreover, there was a significant effect of Corona on the Asian, African and European financial market (Bahrini & Filfilan, 2020). India is also no exception to this. The initial studies on COVID 19 revealed the negative pressure pressed on stock markets. The study conducted by Gormen and Koijen (2020), Says that outbreak of pandemic negatively affect in the short run but during the long run market will correct themselves and stat increasing. Efficient Market Theory explains when there is a pattern in the returns of the share; the share market will follow a random walk due to market irregularities. There are some irregularities appears once and then disappears whereas other type of irregularities is frequently observed. Outbreak of Covid 19 has initiated problems in various fields. Along with stock market, commodity market was also affect. But the commodity market showed unexpected movement. The scenario of low demand from the world market has made a huge effect; for the first-time prices of the oil reached negative price in April 2020. Similarly, gold prices showed abrupt movement and has also reached lowest price in May 2020 (Elgammal et al. 2021).

2 Review of Literature Syahri, A., & Robiyanto, R. (2020) analysed the correlation of gold, exchange rate and composite stock price index (CSPI) on COVID 19. The JCI daily data was used for the analysis. The time period considered was from January 2020 to June 2020. GARCH model analyses the relationship between the variables. The study proves that change in Gold price has significant impact on Stock price volatility. The positive dynamic correlation between CSPI and gold and the negative dynamic correlation between CSPI and exchange rates is been analysed after the study. Awan et al. (2021) analyses the crude oil volatility and stock market during COVID-19. The study observed that that oil price has decreased because of lockdowns which consequently decreased the demand for oil and that lead to lower oil price. Shaikh, I. (2021) explained the performance of oil market during COVID -19 spill over relations with other asset classes. He used different pandemic outbreak indicators. The result clarified that the oil market remains more responsive to pandemic fake news. Albulescu, C. (2020) investigated the impact of COVID-19 on crude oil prices, while controlling financial volatility and US economic policy uncertainty. ARDL model has used and the result shows that there is negative impact on crude oil prices in the long run. Meher, et al. (2020) measured the effects of volatility of oil price and natural gas listed on multi commodity exchange of India (MCX). Daily prices from May 01, 2017 to April 30, 2020 has been used. The study reveals that there is a presence of leverage effect of COVID-19 on the price volatility of crude oil. Youssef, I., & Shehadeh, E. (2020) investigated the spread of COVID – 19 on gold spot prices. The data from 2012 to 2002 has been used and analysed with the help of GARCH and GJR- GARCH models. They find a positive correlation between the increasing number of global coronavirus cases and increase in gold price. Mahajan and Mahajan (2021) examined COVID – 19 impact on gold and stock market. ARMA and GARCH models was used for analysis. The results indicate that there is a negative impact of gold on Nifty returns.

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In this context, this study tries to study the impact of COVID 19 on the Indian stock market, oil price and gold price during the different phases.

3 Methodology The period of investigation from 4 January 2019 to 30 April 2022 includes daily time series data ranging. The period of study is divided in to three: the pre-COVID-19 period ranging from 4 January 2019 to 31 December 2019, and Post COVID 19 period ranging from April 2020 to 30 April 2022. BSE stock market has been considered for analysis purpose. Based on the opening and closing prices the stock market return is calculated. Rt = Ending Price−Starting Price/Starting price where Rt is the return at time t. A dummy variable regression model is used to analyse the impact before and after impact. The dummy variable regression has been specified as, Rt = B1 + B2D2t(Before) + Et where D2t is the dummy variable which represents the effect of COVID 19 before the pandemic. We have introduced only one dummy variable to avoid the dummy variable trap and the other category is used as benchmark category. A statistically significant B1 confirms the returns after the pandemic. Based on the existing review of literature following hypothesis has been constructed. H0: There is no difference between the returns of BSE stock before and after the COVID 19 crisis. H1: There is a difference between the returns of BSE stock before and after the COVID 19 crisis. Augmented Dickey Fuller (ADF) is facilitated to test the stationarity of the time series The data was tested for heteroscedasticity and GARCH (1, 1) model, is then applied to estimate the volatility of the Indian Gold Market for Pre and Post COVID period. Thus it identifies if COVID has any impact on the Gold Market/Gold Price Volatility, oil price volatility and stock returns volatility.

4 Empirical Analysis Oil is an important utility which controls global economy. Modernisation and the development in the transportation section has paved way for the increase in the oil consumption. Industrial activities completely rely on oil and hence a small change in oil prices may have implications on stock market returns. This change is based on whether that country exports or imports oil. Table 1 shows high mean value of oil prices and gold prices before the pandemic revealing that these two are less liquid. It is clarified from the above Table 2 that the gold price and BSE price has increased during post COVID period whereas oil price average was low as compared to Pre COVID period.

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B. Joseph Table 1. Descriptive Statistics before COVID 19 GOLD_PRICE

OILOPEC

RETURN_BSE

Mean

7.253505

4.149661

1.175696

Median

7.264345

4.153871

1.221018

Maximum

7.427947

4.304605

2.135290

Minimum

7.146812

3.915816

−0.007131

Std. Dev

0.075352

0.070446

0.253551

Skewness

0.020460

−0.261690

−0.910537

Kurtosis

1.594938

2.964153

5.745060

Jarque-Bera

22.31091

3.107595

122.5333

Probability

0.000014

0.211444

0.000000

Sum

1965.700

1124.558

318.6136

Sum Sq. Dev

1.533043

1.339929

17.35785

Observations

271

271

271

Table 2. Descriptive Statistics After COVID 19

Mean

RETURN_BSE

GOLD_PRICE

OILOPEC

2.019343

7.496681

2.014432

Median

2.048236

7.499285

2.014808

Maximum

2.834774

7.631189

2.032244

Minimum

−0.008885

7.294615

1.987136

Std. Dev

0.213653

0.056473

0.007550

Skewness

−4.026721

−0.581479

−0.610208

Kurtosis

34.48115

3.859210

3.926739

Jarque-Bera

15354.84

30.40246

34.14763

Probability

0.000000

0.000000

0.000000

Sum

704.7507

2616.342

703.0368

Sum Sq. Dev

15.88538

1.109828

0.019838

Observations

349

349

349

To assess the normality of frequency distributions in each index series, skewness and kurtosis are examined. Descriptive statistics indicate that all the indices exhibit skewness. The Jarque-Bera test, which tests the null hypothesis that both the skewness and kurtosis are zero, shows that this hypothesis is rejected at a 1% significance level. This means that none of the indices can be considered normally distributed.

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Table 3. Dummy Variable Regression Result Variable

Coefficient

Std. Error

t-Statistic

Prob

DUMMY

−0.843647

0.018778

−44.92674

0

C

2.019343

0.012415

162.6543

0

R-squared

0.765591

Mean dependent var

1.650587

Adjusted R-squared

0.765211

S.D. dependent var

0.478651

S.E. of regression

0.23193

Akaike info criterion

−0.08154

Sum squared resid

33.24323

Schwarz criterion

−0.06725

Log likelihood

27.2773

Hannan-Quinn criter

−0.075985

F-statistic

2018.412

Durbin-Watson stat

2.000674

Prob(F-statistic)

0.00

The dummy variable regression model for pre and post COVID-19 results are reported in the form of Dummy variable regression. The dummy variable regression results show the COVID 19 effect on BSE return. The return for BSE after COVID-19 span is positive. After the COVID 19, the returns for BSE have increased by 2.01%. Tables 3 and 4 shows the relation between the gold price, oil price and BSE returns. Before the covid there was a significant negative correlation between gold price and oil price whereas after the COVID we can see positive correlation. Similarly, the association between gold price, oil price with BSE price had insignificant relationship before COVID but after the COVID the results show weak positive and significant relationship between the variables (Table 5). Table 4. Results of Correlation before COVID 19 Probability BSE GOLD_PRICE

OIL

BSE

GOLD_PRICE

OIL

1.000000 −0.076737

1.000000

−1.262299

–

0.2079

–

0.034727

−0.457643

1.000000

0.569913

−8.441799

–

0.5692

0.0000

–

The Generalized Auto Regressive Conditional Heteroskedasticity (GARCH) model is utilized in econometric analysis of time-series data that displays heteroscedasticity or serially autocorrelated variance errors. GARCH models operate under the assumption that variance errors conform to an autoregressive moving average pattern. Analysis of the data reveals that prior to the COVID pandemic, there was no ARCH effect present.

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B. Joseph Table 5. Results of Correlation after COVID 19

Probability

BSE

GOLD_PRICE

BSE

1.000000

GOLD_PRICE

0.158334

1.000000

2.987116

–

OIL

0.0030

–

0.158922

0.899982

2.998493 0.0029

3098.658 0.0000

OIL

1.000000 – –

However, after COVID, there was evidence of heteroscedasticity or an ARCH effect (Table 6). H0: There is no ARCH effect H1: There is ARCH effect Table 6. Heteroscedasticity Test: ARCH before COVID 19 Heteroskedasticity Test: ARCH F-statistic Obs*R-squared

0.001571 0.001583

Prob. F(1,268) Prob. Chi-Square(1)

0.9684 0.9683

Table 7. Heteroscedasticity Test: ARCH after COVID 19 Heteroskedasticity Test: ARCH F-statistic Obs*R-squared

7.180114 7.074803

Prob. F(1,346) Prob. Chi-Square(1)

0.0077 0.0078

To conduct the GARCH test in the research, it is crucial to examine the stationarity of the data using the Augmented Dickey-Fuller Test at a significance level of 1% (0.01). If the probability value is below the significant level, the data can be considered stationary and used to perform the GARCH test. The GARCH (1,1) test results for the impact of oil and gold volatility on stock returns are presented in Table 7. Prior to the pandemic, the probability value of the GARCH test was below the 5% significance level, indicating that the data follows the GARCH pattern. However, the probability value of each independent variable during each period was higher than the significance levels of 1%, 5%, and 10%. This finding suggests that the volatility of oil and gold did not have a significant impact on stock returns during each period.

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Table 8. Results of GARCH (1,1) Pre COVID Independent Variable

Z stst

c

Prob

0.67

Gold Oil

0.5

−0.96

0.33

1.33

0.18

C

1.17

0.23

Resid

2.02

0.04

12.96

0.00*

GARCH

Table 9 shows the GARCH (1,1) test result of the volatility of oil and gold effects on stock returns post pandemic. Table 9. Results of GARCH (1,1) Post COVID

Variable

Coefficient

Std. Error

z-Statistic

Prob.

C AM_GOLD_PRICE OIL___OPEC__

-470.6518 -61.24121 462.5531

0.051315 0.006616 0.002673

-9171.794 -9256.114 173016.4

0.0000 0.0000 0.0000

4.832608 22.48601 45.30570

0.0000 0.0000 0.0000

Variance Equation C RESID(-1)^2 GARCH(-1)

3.23E-06 0.368702 0.571922

6.68E-07 0.016397 0.012624

Table 8 is the GARCH (1,1) test result of the oil and gold return effects on stock return. The probability value of the GARCH test for each period was below the 5% significance level, indicating that the data conforms to the GARCH pattern. Moreover, during each period, the probability value of each independent variable was below the significance levels of 1%, 5%, and 10%. These results suggest that oil volatility had a positive effect on stock volatility while gold volatility had a negative effect on stock volatility during each period.

5 Findings and Conclusion The dummy variable regression model has been implemented to analyze pre and post impact of COVID-19. The dummy variable regression results show the COVID 19 effect on BSE return. The return for BSE after COVID-19 period is constructive. Before the

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COVID 19, the stock return was 2.85% whereas after the COVID 19, the returns for BSE have is 2.01%. Along with dummy variable regression, ARCH and GARCH model has been employed to analyze the volatility before and after the COVID 19. No ARCH effect was found before the COVID 19 but ARCH effect has been found after the COVID 19. Stationarity tests and ARCH effects confirm the correctness of applying GARCH model in the study. Data follows the GARCH pattern and thus it evident that the probability value of GARCH in the pre pandemic period is lower than the significance level (5%). The results vividly explain that volatility of oil and gold has not impacted the stock return in different periods. Prior to the pandemic, the GARCH test’s probability value was below the 5% significance level, indicating that the data followed the GARCH pattern. This result implies that the volatility of oil and gold did not significantly affect stock returns during each period. In contrast, during the post-COVID-19 period, the probability value of the GARCH test was below the 5% significance level for each period, confirming that the data adhered to the GARCH pattern. These results indicate that oil volatility had a positive impact on stock volatility during each period, while gold volatility had a negative impact on stock volatility during each period.

References Awan, T.M., Khan, M.S., Haq, I.U., Kazmi, S.: Oil and stock markets volatility during pandemic times: A review of G7 countries. Green Financ. 3(1), 15–27 (2021) Albulescu, C.: Coronavirus and Oil Price Crash. Available at SSRN 3553452 (2020) Bahrini, R., Filfilan, A.: Impact of the novel coronavirus on stock market returns: evidence from GCC countries. Quant. Finan. Econ. 4(4), 640–652 (2020). https://doi.org/10.3934/QFE.202 0029 Chaudhary, R., Bakhshi, P., Gupta, H.: The performance of the Indian stock market during COVID19. Invest. Manag. Financ. Innov. 17(3), 133–147 (2020) Elgammal, M.M., Ahmed, W.M., Alshami, A.: Price and volatility spillovers between global equity, gold, and energy markets prior to and during the COVID-19 pandemic. Resour. Policy 74, 102334 (2021) Gormsen, N.J., Koijen, R.S.: Coronavirus: Impact on stock prices and growth expectations. Rev. Asset Pricing Stud. 10(4), 574–597 (2020) Meher, B.K., Hawaldar, I.T., Mohapatra, L., Sarea, A.: The impact of COVID-19 on price volatility of crude oil and natural gas listed on multi commodity exchange of India. Int. J. Energy Econ. Policy 10(5), 422–431 (2020) Mahajan, S., Mahajan, P.: Impact of COVID-19 on stock market and gold returns in India. Euras. J. Bus. Econ. 14(27), 29–46 (2021) Salisu, A.A., Vo, X.V., Lawal, A.: Hedging oil price risk with gold during COVID-19 pandemic. Resour. Policy 70, 101897 (2021) Salisu, A.A., Obiora, K.: COVID-19 pandemic and the crude oil market risk: hedging options with non-energy financial innovations. Financ. Innovat. 7(1), 1–19 (2021) Shaikh, I.: On the relation between the crude oil market and pandemic Covid-19. Eur. J. Manag. Bus. Econ. 30(3), 331–356 (2021) Syahri, A., Robiyanto, R.: The correlation of gold, exchange rate, and stock market on Covid-19 pandemic period. J. Keuangan dan Perbankan 24(3), 350–362 (2020) Yousef, I., Shehadeh, E.: The impact of the COVID-19 on gold price volatility. Int. J. Econ. Bus. Adm. 8(4), 353–364 (2020)

Impact of Russia-Ukraine War on Metal Exchange Kenneth K. John

and Justin Nelson Michael(B)

School of Management, Kristu Jayanti College (Autonomous), Bangalore, Karnataka, India [email protected]

Abstract. The research attempts to study the impact of the Russia and Ukraine war on the metal exchange and to understand the dynamic relationship between metal exchange prices, gold prices, and the INR-USD exchange rate. The study is based on the secondary data collected from LME (London Metal Exchange) and Yahoo finance. The daily basis prices of four non-ferrous metals namely aluminium, copper, nickel, and zinc, were taken to analyse the impact. Paired sample t-test and regression analysis were used in this study. The findings show that the Russia-Ukraine war had a significant impact on the metal exchange and affected gold prices and the INR-USD exchange rate, as a consequence it affected the commodities markets. Keywords: Russia-Ukraine war · Metal exchange · LME · Aluminium · Copper · Nickel · Zinc · Gold rate · INR-USD

1 Introduction A conflict between two or more parties is violent. Significantly large groups of individuals who have been organised and trained for it execute deliberate acts of violence. Russia is the biggest nation in the world, occupying a tenth of the planet’s surface. 95.7% of the country’s wealth, which is made up of enormous mineral riches and an abundance of energy resources, comes from Russia. Around 20% of the natural resource reserves in the world are found there. The second-largest nation in Eastern Europe, Ukraine contains a variety of natural resources, including non-metal ores, metal ores, and energy resources. Almost 5% of the world’s mineral resources are found in this country. On February 24, 2022, Russia started a full-fledged military invasion of Ukraine. In connection with this invasion, there were strikes that caused deaths and destroyed buildings, including homes, schools, and hospitals. Due to their stories about the crisis, many independent media websites had access restrictions imposed by the government. By the end of the first week of violence, over a million people had fled their homes in Ukraine; many of them were looking for refuge outside of Ukraine. According to reports, more than 3.5 million people are now without a place to live, and the nation’s infrastructure has lost more than $108.3 billion. The Russia-Ukraine conflict has had a disastrous effect on the global economy, causing widespread panic buying of valuable metals and minerals, which has drastically increased the cost of such commodities. Several Russian exports © The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd. 2023 J. Aloysius Edward et al. (Eds.): ICEBS 2023, CESIBT, pp. 273–285, 2023. https://doi.org/10.1007/978-981-99-3366-2_32

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were forbidden as a result of the Western sanctions, which resulted in wildly fluctuating prices as a result of all the unpredictability. Each market’s sensitivity to both Russian supply and LME margin shocks has had a knock-on effect that has impacted every other LME-traded commodity as well. 1.1 Motivation for the Study The goal of the study was to comprehend how the conflict between Russia and Ukraine has impacted the price of commodities, including gold and the INR-USD exchange rate. This has been used to explore political repercussions in earlier writings. To establish the base metal’s volatility and price discovery, numerous investigations have been carried out. By reviewing the literature, one can determine some of the major areas of study on commodities that are relevant to this study, such as mobility, demand and supply, transportation, and the nonlinear relationship between non-ferrous metals, gold, and INR-USD. 1.2 Research Objectives • To assess the impact of Russia Ukraine war on the non-ferrous metals • To estimate the impact of non-ferrous metals has affected the gold price and INR-USD Exchange rates.

2 Review of Literature Utilising copper as an example of a base metal, the link between spot and futures prices on the Indian commodity market. Using closing spot and future pricing data from the Multi Commodities Exchange of India (MCE), the price was studied. New information was discovered, such as the role that changes in external factors like monetary policy, exchange rates, or interest rates play in the price [1]. To comprehend copper’s price behaviour patterns on numerous domestic and foreign marketplaces, as well as how they affect the Indian market. It was discovered that because investors were so heavily involved in both markets, the Indian market had to react similarly to the global market [2]. The rates of change in raw material prices and the rates of return should be closely correlated if commodity markets are operating optimally. The relationship between return rates and the effective distribution of price change rates makes sense. It was found that changes in resource costs have a direct impact on earnings [3]. Due to the escalating demand across many industries and the quick economic growth of many countries, aluminium is becoming more and more significant globally. Despite the fact that there is currently an imbalance between supply and demand on the global market, forecasts from stock exchanges and investment banks predict an increase in aluminium demand. Long-term patterns suggested that the price of raw materials will continue to rise steadily. This may be a result of the developing world’s growing need for aluminium and the wide range of businesses that are using it more frequently [4]. A sample of daily stock return data shows that the conflict between Ukraine and Russia has impacted the performance of the global stock market. In order for investors, portfolio managers, and policymakers

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to develop effective financial strategies, it was essential to understand how the ongoing conflict affected the economy [5]. The main objective was to ascertain how the return on the price of oil can be related to that of gold and all other significant precious metals. Study was done on the relationships between the spot prices of oil, precious metals, and both the US dollar and the euro. It was discovered that none of the spot price returns or exchange rate fluctuations seemed to be linked to long-run equilibrium. This is most likely a manifestation of the growing disconnect between the economic, monetary, and hedging applications of these commodities and exchange rates [6]. Particular focus was given to the analysis of the fractal properties of the returns time series from the London Metal Exchange (LME), as well as the main issue of detecting, recognising, and quantifying the scaling behaviour of LME returns time series. The scaling form can provide crucial information about the underlying interactions that take place in a financial time series. Research [7] has shown that investors don’t always receive information in a timely manner. The efficacy of the base metals market traded on the LME (London Metal Exchange) was investigated, and it was discovered that the 3M (3month) futures prices are reliable predictors of the spot prices (cash) on the LME given the rising financialization of commodities. Ordinary least squares (OLS) and GARCH (1,1) models are employed to assess the robustness of monthly data [8]. The dynamic interdependence of five commodities, the G7, and the BRIC (leading stock) markets has been impacted by the Russian involvement. All commodities and markets are strongly related, according to research using the time-varying parameter vector autoregressive (TVP-VAR) technique (G7 and BRIC). The findings demonstrate that stock markets and commodities act as shock absorbers for other markets and commodities during this invasion [9]. India’s economy, which is now dealing with several problems, has suffered greatly as a result of the conflict between Russia and Ukraine. India had adopted a neutral stance because to its significant strategic ties with Russia. The greatest impact on India’s economy has come from rising cost-push inflation, which affects all economic actors, including consumers, businesses, and even the government [10]. Using a nonparametric quantile-on-quantile regression method, the asymmetric effects of the Russia-Ukraine geopolitical risk (GPR) on the exchange rates of the seven main currencies are examined. GPR has an unfair, currency-specific harmful influence on the nation’s legal system [11]. The analysis of informational links between the euro-to-dollar exchange rate and spot prices for commodities like oil, gold, silver, platinum, and palladium. Gold and platinum have the lowest standard deviations of the group. The MS-VEC model permitted the creation of two regimes (low volatility and high volatility) with large information asymmetries. Changes in the price of gold have a greater impact on silver prices than they do on oil prices. Governments and central banks should be more proactive in acting as a buffer, especially during periods of extreme volatility, given that changes in the price of commodities like gold and oil can change the direction of currency rates [12]. 2.1 Knowledge Gap The analysis of the literature found several studies on the effects of the Russia-Ukraine conflict on the global economy, stock market, environment, etc., but relatively few studies on the impact of the conflict on the metal exchange. The impact of the metal exchange on

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gold and the INR-USD exchange rates in the Indian economy has rarely been discussed in research.

3 Research Methodology Causal research is the type of research methodology used in this study. The study only used secondary information that was gathered from the London Metal Exchange (LME), Yahoo Finance, and goldprice.org. The major purpose of the study was to investigate, pinpoint, and comprehend the effects of the Russia-Ukraine War in 2022 on the metal exchange, exchange rate, and gold price. Only four metals—Aluminum, Copper, Nickel, and Zinc—along with the gold rate and INR-USD exchange rate are examined in this study. Data from six months before and after the start of the war were used for the study or analysis. To quantify the impact, regression and sample t-tests were used as analysis methods. 3.1 Hypothesis H0: There is no significant impact of the Russia-Ukraine War on the metal exchange. H1: There is a significant impact of the Russia-Ukraine War on the metal exchange.

4 Data Analysis and Discussion The analysis is divided into two categories:1 Long-Term Perceptive 2 Short-Term Perceptive 4.1 Long-Term Perceptive 4.1.1 Comparison of Metal Prices Before and During the War From Tables 1 and 2, it is seen that there is a significant negative correlation between the prices before and during the Russia-Ukraine war, and its significance is 0.05, the result is not significant, thus the null(H0) hypothesis is accepted. Therefore, there is no significant difference between the prices of Aluminium before and during the Russia-Ukraine war. Copper t = 4.846 df = 136 p-value = < .001 Nickel t = −12.674 df = 136 p-value = < .001 Zinc t = −8.252 df = 136 p-value = < .001 Since the p-value of copper, nickel and zinc is