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Special Centennial Issue

No. 401

October 2020

Vol. CI

ISSN: 0019-5170



Structural Change and Emerging Forms of Informal Employment in Indian Banking Sector

Nitu Jaiswal*


One of the recent evolutions of informal employment has been of the rise of informal employment within the formal sector. The present study traces the traits of such informality in a highly formal and organized industry employment, i.e., the banking sector employment in India. The study assesses the structural changes and growing informal (non-standard forms of) employment in the Indian banking industry. It reflects how the growing flexibility in labour market gradually alters the basic structure of employment in a fundamental way by shifting its composition, nature along with regressing from standard full time employment into non-standard irregular employment. The growing informality in employment is closely associated with poor quality of jobs and hence lacks the decent work dimensions fixed by ILO. Thus, the policy challenge is to lay down a new set of labour regulation that reduces the adverse effects of being informally employed by extending the working (labour) rights to all types of working arrangement.

Keywords: Formal sector, Informal Employment, Non-Standard forms of Employment, Informalisation, Informality, Quality of jobs, Decent Work.

  1. * Research Associate, Research & Analytical Div., Ministry of Corporate Affairs, New Delhi. This work is the part of PhD thesis submitted to Jawaharlal Nehru University, New Delhi-110067. E-mail:

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Factors Influencing Consumers Attitude Towards e-Banking or Online Banking

Supriya Jha1


Online Banking is the process of doing transaction or fund transfer through bank portal. Customers can visit website from the comfort of their homes and bank as they sit in front of the computer. The main purpose of this study is to determine the factors influencing consumers attitude towards e-banking. The study also investigate how socio-demographic (age, income and occupation), pattern of online banking (types of transactions, e-commerce experience and hours use on internet) and purchase perception (customers service and consumers risk) affect consumers attitude towards online banking. Convenience sampling method was conducted in this study and the sample comparison of 200 respondents in Delhi and Noida. Data were collected via self-administered questionnaire which contains 14 questions in Part A (respondents background and their pattern of using internet and online banking), 35 questions in Part B (attitude towards online banking) and 35 questions in Part C ( perception towards online banking). One-way ANOVA were used to assess the differences between independent variable such as age, income, occupation and pattern of online banking and dependant variable such as attitude towards online banking. The findings revealed that there is no significant difference in attitude towards online banking among age group (F = 1.021, p < 0.05) but there is a significant difference in attitude towards online banking among income group (F = 0.456, p > 0.05). The research finding also showed that there is no significant difference in attitude towards online banking among occupation group (F = 1.506, p < 0.05) and types of online services provided by the bank (F = 1.232, p < 0.05). Pearsons correlation were used to assess the relationship between independent variable such as banking experience, hours spent on internet, customers service and consumers risk and dependant variable such as attitude towards online banking. The findings revealed that there is a significant relationship between e-banking experience and attitude towards online banking among the respondents (r = -0.211, p < 0.05). However, there is no significant relationship between hours spent on internet and attitude towards online banking among the respondents (r = 0.102, p > 0.05). This study also indicated that there is a significant relationship between perception of the services and attitude towards online banking among the respondents (r = 0.443, p < 0.01) and there is also a significant relationship between customers service and attitude towards online banking among the respondents (r = 0.461, p < 0.01). Lastly, this result showed that there is no significant relationship between consumers risk and attitude towards online banking among the respondents (r = 0.145, p > 0.05). Further, study should explore other factors that influencing consumers attitude towards e-banking through online banking with a broader range of population and high representative sampling method.

Key Words: perspective, attitude, customer, online banking, e- banking.

  1. Asstt. Professor, M.M. Mahila College, Veer Kunwar Singh University, Ara. E-mail:

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Government Expenditure, Revenues and Economic Growth in Jammu and Kashmir (India)

M. K. Agarwal1
Mohd. Yousuf Malik2

The present paper is an attempt to derive the relationship between the fiscal policy variables, like government revenues and government expenditures with the economic growth. The selected time frame of the paper is long enough for measuring the association between the variables in long run as well as short run. Over the selected period of study, we found from data analysis that the finances of J&K have altered from revenue account deficit to surplus and from high fiscal deficit to very low fiscal deficit. The growth rate of the revenues has been greater than that of government expenditures. In the short run, we have found that the government has a comparative advantage in making expenditures which Granger Cause the revenue generation. In the second section of this paper, the test statistics have supported the expansionary fiscal policy, which signifies that increasing the public expenditure is cause the budget deficit to increase in the short run. However, this will help in the long run as the increasing government spending is proving to be the speed boosters for the economic growth in Jammu and Kashmir in the long run which is in line with Keynes idea of expenditure led growth. This further strengthens the case of more focus on expenditure oriented growth of Jammu and Kashmir.

  1. Professor, Department of Economics, University of Lucknow, Lucknow-226007. E-mail:
  2. Research Scholar, Department of Economics, University of Lucknow-226007; India. E-mail:

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Nudging as Behavioural Economic Foundation to Public Policy: Evidence from India

Bhushan Kankal1
Aneri Patel2
Rasananda Panda3

In the Theory of Moral Sentiment, Adam Smith states that choice is driven and limited by an individuals mental resources. Behavioural economics also emphasises on the importance of choice architecture in influencing peoples decision making. Over the years, Behavioural economics principles were used in public policymaking and public management. Nudge theory in particular, although established by Richard Thaler (2008), has recently gained prominence due to its newfound applicability in the area of public policy. In the public policy spectrum, nudge policies lie between Laissez-faire and incentivizing, and leverage insights from human psychology to steer people toward desirable behaviour while preserving their liberty to choose (Government of India, 2019). Such policies have been implemented in various countries across the world, from Madagascar to Africa to Philippines. In the Economic Survey (2018-19), the Government of India devoted an entire chapter on the application of nudge in policymaking and laid out an agenda for social change. It focused on four prominent policies- Beti Bachao Beti Padhao (Save the girl child, educate the girl child), Swachh Bharat Abhiyan (Clean India Mission), Give it up for LPG subsidy and Tax evasion which could benefit most from nudge policies. The present paper first establishes a theoretical foundation drawing from literature related to public policy and behavioural economic principles. It then analyses the nudge theory and identifies different interpretations of nudging by people on which its targeted. The paper also attempts to analyse the effectiveness of nudging in various public policies in India.

Key Words: Behavioural economics, public policy, policy management, nudge.

  1. FPM Scholar, Mudra Institute of Communication Ahmedabad (MICA). E-mail:
  2. University of California, Los Angeles. E-mail:
  3. Professor, Mudra Institute of Communication Ahmedabad (MICA). E-mail:

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COVID-19 and Informal Gig-Economy Workers: Livelihoods and EmploymentChallenges

Minaketan Behera1 & Shipra2

The size of the gig-economy in India has grown massively in the recent past. In India, a large section of its urban population is currently engaged with platforms in one way or the other. The gig-economy in India is now estimated to have 15 million workers. COVID19 has impacted the world economy tremendously. This paper is an attempt to highlight the impact that the pandemic and subsequent lockdown had on the Informal Gig-Economy Workers. It addresses the problems faced by geographically tethered on-demand gig workers. The picture that emerges is one where workers in the gig-economy are heavily exploited and lead precarious livelihoods. Low incomes, increasing expenses, long working hours, a lack of social security and mental health issues like stress and anxiety are some significant problems faced by gig-workers in India. Many of these problems are a direct result of platform companies not recognizing gig-workers working with them as their employees and the extremely skewed power relation between the worker and company. Therefore, it is crucial that the government steps in and regulates the gig-economy to ensure decent work and minimal social security of those in the gig economy.

Keywords- Informal Sector, Gig economy, Platform economy, COVID19, Entrepreneurship, loss of livelihood, Safety measures.

  1. Chairperson and Associate Professor of Economics, Centre for Informal Sector and Labour Studies (CIS&LS), School of Social Sciences, Jawaharlal Nehru University, New Delhi-110 067.
  2. Ph.D. Research Scholar, Centre for Informal Sector and Labour Studies (CIS&LS), School of Social Sciences, Jawaharlal Nehru University, New Delhi-110 067.

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Migration, Economic Growth and Convergence of Per Capita Income across the Asia and the Pacific Economies

Soumi Bhattacharya1
Samrat Roy2
Kumarjit Mandal3

The paper attempts to explore the issue of net migration in the Asia and the Pacific regions during the time period 1991-2015. For the last twenty years the highest percentage of international migrants stock came from the Asia and Pacific regions. Therefore, net migration may have impact on the growth rates of such economies and accordingly on the impact of speed of income convergence across these regions. Here, we seek to analyze whether net migration has a significant impact on the growth performance of one of the growing Asian country like India. ARDL estimation has been carried out and estimation result shows that in long run net migration does not have any significant impact on Indias growth rate. The result of migration and convergence showed that after correcting the problem of autocorrelation migration does not influence significantly the growth of Asia and Pacific countries and the inclusion of net migration reduces the speed of convergence across these regions.

Keywords: net migration, Asia and Pacific, growth rate, convergence.

  1. Assistant Professor, Department of Economics, St. Xaviers College, Kolkata. E-mail:
  2. Assistant Professor, Department of Economics, St. Xaviers College, Kolkata. E-mail:
  3. Associate Professor, Department of Economics, University of Calcutta. E-mail:

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Issues and Challenges of Entrepreneurs in Marginalised Sections: Evidences from MSME Sector of Andhra Pradesh

Bathula Srinivasu1

All the economies in the present development models focus on inclusive growth. Indian economy in its Twelfth Five Year Plan focused on inclusive growth strategy and laid more emphasis on growth and development. While addressing on inclusive growth strategy, Indian economy has given more priority to encourage and support Micro, Small and Medium Enterprises (MSME) sector. The inclusive nature of the sector can be examined with the share and participation of marginalise sections (SC/ST) entrepreneurs in MSME sector as the sector is more labour intensive. While examining the inclusiveness of the MSME sector, the share of SC/ST entrepreneurs is very minuscule and they are under re-presented. The success of SC/ST entrepreneurs depends not only on the credit and marketing facilities, but also on some of the influential factors, socio-cultural and entrepreneurial issues for the development of SC/ST entrepreneurship. Hence, the paper makes an attempt to examine how the sector is inclusive and analyses the problems and challenges of SC/ST entrepreneurs in detailed analysis. For this, two districts in Andhra Pradesh have been selected based on developed and backward areas criterion for the primary analysis. A sample of 200 entrepreneurs contacted for the purpose of analysis. Principal Component Analysis (PCA) has been done to identify the important factors. It concludes that the credit and marketing facilities are the biggest problems. Apart from that, other influential factors such as self confidence, inspiration from others and social recognition influence the success of SC/ST entrepreneurs. Also Socio cultural issues such as source offinance, collateral and networking play pivotal role in success.

Keywords: MSME (Micro, Small and Medium Enterprises), SC Scheduled Caste, ST- Scheduled Tribe, General-Other Castes, OBC Other Backward Classes, Inclusiveness, Entrepreneurship, Social Capital.

  1. Associate Professor, Department of Economics, Jamia Millia Islamia, New Delhi. E-mail:,

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Residential Demand for Water in Urban Areas of Burdwan District in West Bengal

Maniklal Adhikary1
Samrat Chowdhury2

The aim of this paper is to bring out the determinants of residential water use in Urban areas of Burdwan district in West Bengal. The study is based on a cross sectional data of 759 households. In the study, we have found that households, even if connected to piped water municipal supply, do incur a substantial coping cost which may involve one or more of following activities like storing, carrying and pumping water for final use. The study finds that demand for water is income inelastic which is consistent with studies from both developed as well as developing countries. The study also finds price per ten liters of water which is the coping cost converted in Rupees per ten liters of water is negative but inelastic. Households having a larger family have higher demand for water in our study area. The study also uses Likert type scale and Principal Components to build an awareness score. However, awareness is not significant factor determing water usage by the household. This may be because of two opposite effects that awareness generates on water use. Awareness about health and hygiene should promote greater water usage while at the same time households awareness of water crisis should promote adoption of water saving techniques and checking wastage of water. These two effects occur in opposite direction neutralising the impact on total water use. The study further finds that household having overhead water tank have higher water use compared to other households. This may be because of easy availability of water continuously. Households having more than one bathroom and households who undertake gardening have higher demand for water compared to other households. Furthermore, households who employ domestic helps have higher demand for water use compared to other households possibly because of increased wastage of water.

Keywords: Demand for Water, Coping Cost, Awareness, Overhead Water Tank, Domestic Help, Gardening.

  1. Professor in Economics, University of Burdwan. E-mail:
  2. Assistant Professor in Economics, Taki Govt College. E-mail:

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Welfare and Trade Effects of India-China Free Trade Agreement: An Empirical Examination

Saba Ismail1
Shahid Ahmed2

India and China's trade relation has improved in last two decades, but still there is a lot of untapped potential to bring the welfare gains for both trading partners. This paper attempts to investigate the effect of tariff reduction on mutual imports. The results are evaluated in terms of welfare and trade flows between India and China using the GTAP-model. Overall, results show that partial tariff reduction by both countries or preferential tariff reduction by China may be welfare enhancing for both India and China. The study argues that welfare gains for China are larger in comparison to the welfare gains of India. The welfare decomposition result reveals that India's terms of trade deteriorate while improves for China while endowment effect is positive both for India and China. The SSA result indicates that the model results of various scenarios revealed to be robust to different degrees of trade elasticities. The study suggests that a well calculated and strategically negotiated tariff reduction to create a win-win situation for both partners. The study argues that China should offer a preferential market access to India for mutually beneficial and welfare enhancing engagements for both countries. Finally, the study concludes that there exists a little scope of gains in terms tariff. Both countries should explore comprehensive engagements to minimize non-tariff barriers for mutual welfare gain.

Keywords: India, China, Computable General Equilibrium Models, Economic Integration, GTAP Models.

  1. Associate Professor, Department of Economics, Jamia Millia Islamia, New Delhi. E-mail:
  2. Professor, Department of Economics, Jamia Millia Islamia, New Delhi. E-mail:

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Management of Fiscal Imbalance through Intergovernmental Transfers in India: An Empirical Study

Nitu Moni Bora1
Nissar A. Barua2

In the Indian fiscal federation, there is a lack of correspondence between the degree of decentralization of revenue sources and spending between different layers of governments leads to fiscal imbalances. In light of the significance of fiscal imbalance in India, the paper seeks to explore the prevalence of vertical and horizontal fiscal imbalance in India during the recommendation period of the recent Finance Commissions. The indicator of vertical fiscal imbalance (VFI) demonstrates absolutely no improvement in vertical fiscal imbalance of Indian States over the past 30 years. Though VFI in case of the Central Government is improving over time, coming down from 48 percent during 1990-91 to 34 percent during 2020-21, the VFI of the State government have constantly remained high. Despite the effort of the Finance Commissions to eliminate the fiscal imbalances among different States, the horizontal fiscal imbalance (HFI) has remained alarmingly high. States that have high HFI are the ones with unfavourable factors on both revenue and expenditure side, which combined with fiscal-inefficiency constrains their capacity to self-finance the assigned expenditures. As the Finance Commission is a constitutionally mandated body entrusted with the task of reducing the incidence of fiscal imbalance through fiscal transfers, the paper discusses the trend of inter-state tax sharing and the redistributive properties of these transfers.

Keywords: Fiscal Imbalance, VFI, HFI, Fiscal Transfers, Finance Commission, Redistribution.

  1. Assistant Professor, Department of Economics, K. C. Das Commerce College.
  2. Professor, Department of Economics, Gauhati University.

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