Tag: India

NATIONAL mean a person owing allegiance to and entitled to the protection of a sovereign state. CITIZEN is preferred for one owing allegiance to a state in which sovereign power is retained by the people and sharing in the political rights of those people.  the rights of a free citizen SUBJECT implies allegiance to a personal sovereign such as a monarch.  the king’s subjects NATIONAL designates one who may claim the protection of a state and applies especially to one living or traveling outside that state.

Environmental Law Principles adopted by India

 

The Indian courts have successfully adopted specific environmental law principles from international environmental law jurisprudence and have combined a liberal view towards ensuring social justice and the protection of human rights. These principles have been incorporated in the Indian environmental jurisprudence and play a key role in decisions of judges even when not explicitly mentioned in the concerned statute. The principles of Indian environmental law are resident in the judicial interpretation of laws and the Constitution, and encompass several internationally recognized principles, thereby providing some semblance of consistency between domestic and global environmental standards.

 

1. Precautionary Principle:

 

A new principle for guiding human activities, to prevent harm to the environment and to human health, has been emerging during the past 10 years. It is called the “principle of  precautionary action” or the “precautionary principle” in short. This principle is controversial and its definition varies in terms of viewpoint. Environmentalists and consumer advocacy organizations that demand bans and restrictions on industrial practices or products would want policy-makers to take no action unless they would do no harm. States and advocates of economic development argue that the lack of full certainty is not a justification for preventing an action that might be harmful.

 

In India, for the first time in Vellore Citizens Welfare Forum v. Union of India , the Supreme Court explicitly recognized the precautionary principle. as a principle of Indian environmental law. In S. Jagannath v Union of India (Shrimp Culture Case), the Supreme Court Bench headed by Justice Kuldip Singh required the authority to deal with the situation created by the shrimp industry and issued remedial directions consistent with the precautionary and polluter pays principles. In A.P. Pollution Control Board v Prof M.V. Nayudu, the Court drew out the development of the precautionary principle in clear terms.

 

In the Narmada Bachao Andolan v Union of India, the Court explained that:

When there is a state of uncertainty due to the lack of data or material about the extent of damage or pollution likely to be caused, then, in order to maintain the ecology balance, the burden of proof that the said balance will be maintained must necessarily be on the industry or the unit which is likely to cause pollution.. Refusing to apply the “precautionary principle” used in cases dealing with inherently polluting activities such as heavy industries, the Court accepted the contention of the respondents that the project would have a positive impact by arresting the ecological degradation presently taking place in the drought-prone areas of Gujarat and Rajasthan, leading to sustainable agriculture and spread of green cover. The generation of hydropower would avoid the air pollution that would otherwise take place by thermal generation.

 

The movement towards adopting the precautionary principle has definitely widened the scope of corporate accountability, but the interpretation taken by the court mitigates the relevance and incorporation of this principle in Indian Jurisprudence.

 

2. The .Polluter Pays. Principle:

 

The Supreme Court with the introduction of the principle of absolute liability in M.C Mehta v Union of India calculates environmental damages not on the basis of a claim put forward by either party, but through an examination of the situation by the Court, keeping in mind factors such as the deterrent nature of the award. . This rule has been endorsed in Indian Council for Enviro-Legal action v Union of India and Vellore Citizens welfare Forum v Union of India. However, the Supreme Court held recently that the power under Article 32 to award damages, or even exemplary damages to compensate environmental harm, would not extend to the levy of a pollution fine.

 

3. Sustainable Development and Inter-generational Equity:

 

In Narmada Bachao Andolan v. Union of India43 it was observed that: Sustainable

development means what type or extent of development can take place, which can be sustained by nature/ecology with or without mitigation.. Earlier in the Vellore Citizens Welfare forum v Union of India , the traditional concept that development and ecology were opposed to each other was rejected and sustainable development was adopted. In the Taj Trapezium case this principle was accepted and again it was said that development of industry is essential for the economy of the country but at the same time the environment and ecosystem has to be protected.

 

In State of Himachal Pradesh v. Ganesh Wood Products, the Supreme Court invalidated forest-based industry, recognizing the principle of inter-generational equity as being central to the conservation of forest resources and sustainable development. In the CRZNotification case 46 the courts carried forward the concern for sustainable development by expressing its concern at the adverse ecological effects, which will have to be borne by future generations.

4. Public Trust Doctrine:

 

The  Public  Trust  Doctrine,  evolved in M.C. Mehta  v.  Kamal Nath,  states  that  certain common  properties  such  as  rivers,  forests,  seashores  and  the  air  were  held  by  Government  in  Trusteeship  for  the  free  and  unimpeded  use  of  the  general public. Granting lease to a motel located at the bank of the River Beas  would interfere with the natural flow of the water and that the State Government had  breached  the  public  trust  doctrine. The Supreme Court enunciated Professor

Joseph Saxs doctrine of public trust in this case to further justify and perhaps extract state initiative to conserve natural resources, held that the state, as a trustee of all natural resources, was under a legal duty to protect them; and that the resources were meant for public use and could not be transferred to private ownership. This doctrine was further reiterated in M.I Builders Pvt Ltd v Radhey Shyam Sahu.

Doctrine of Notional Extension under the Workmen Compensation Act, 1923

 

There is no problem in detecting that the accident occurred in the course of employment when a workman is injured in the working place and in the working hour and doing his duty. The problem arises when these elements do not coincide together. But a workmen if injured just near the work premises or just before joining the work or in the way to work problem arises. To address this kind of problem and giving some kind of relief to the workmen the theory of notional extension evolved.

“As a rule, the employment of a workman does not commence until he has reached the place of employment and does not continue when he has left the place of employment, the journey to and from the place of employment being excluded. It is now well-settled, however, that this is subject to the theory of notional extension of the employer’s premises so as to include an area which the workman passes and repasses in going to and in leaving the actual place of work. There may be some reasonable extension in both time and place and a workman may be regarded as in the course of his employment even though he had not reached or had left his employer’s premises. The facts and circumstances of each case will have to be examined very carefully in order to determine whether the accident arose out of and in the course of the employment of a workman, keeping in view at all times this theory of notional extension.” 

Wider interpretation of duty:

Court has given a wider and popular meaning of “duty” to expand the scope of this section. The court also talks about the service contract to determine which can be come under the preview of this section. Justice Cozens-Hardy M. R. said “……… it was an implied term of the contract of service that these trains should be provided by the employers, and that the colliers should have the right, if not the obligation, to travel to and from without charge.” In the next case the court has interpreted the term “duty” in stricter sense.

In Weaver v. Tredegar Iron Coal Co.  House of Lords after examining a large number of authorities given a wider meaning of “duty” but did not negated the duty test.In this case lord Atkin said that there can be no doubt that the course of employment cannot be limited to the time or place of the specific work which the workman is employed to do. It does not necessarily end when the “‘down tools” signal is given, or when the actual workshop where he is working is left. In other words, the employment may run on its course by its own momentum beyond the actual stopping place. There may be some reasonable extension in both time and space.” Lord Porter further said that if an accident occurs while coming to the workplace or leaving the place can be out of and in the course of employment if he is bound by the way he proceed under the terms of the contract of service express or implied. Here duty test was confirmed.

Expanding the preview of Service Contract:

In St. Helens Colliery Co Ltd v. Hewlston  the court said that the injury did not occur in the course of employment because the employee was not bound or obliged to travel by that special train and he could have taken other transport. If he were bound by the service contract to travel by that train then it would have been in the course of employment (Lord Buckmaster). It was also added that if the place of work is like that there is no alternative means of transport other than the transport given by the employer then it can be concluded that there is an implied term in the service contract to use that transport (Lord Atkinson). The same view was taken in Mackenzie v. I.M. Issak says that a workman in a colliery is not in course of his employment while using the transport of the employer if he is not bound by the terms of the contract to travel by that transport.

There was a particular situation where employee has to take bus service to reach his workplace from home and vise versa. It was necessary for doing his duty efficiently and punctually which was a condition under his service  . So, travelling in that bus was an implied condition to his duty. It was also said that this doctrine was developed to cover the factory, workshops and harbors but it can be applied in this kind of situation also. Compensation was granted holding that the accident arising in the course of employment. Though the court said what would be the indicator that when the work starts and ceases that depends on case to case basis.

In Union of India v. Mrs . Noor Jahan  a railway gangman was ordered by his employer to go to another place for cleaning and in the way from one place to another accident happened. Justice Sukla observed that the accident has occurred in the duty hour and when he was going to do his duty on behalf of his employer and he concluded that the accident has occurred in the course of his employment.

Public Place and this Doctrine:

There are some situations where this doctrine does not apply. When a workman is on the public road or public place and not there for fulfilling the obligation and his work does not make necessary to be there. The proximity of the work premises and spot of accident become immaterial. The notional extension of the place of work cease when workman come to a public road. There were some clarification made in the next case in this matter.

In Saurashtra Salt Manufacturing Co. v. Valu Raja  Justice Jafer Imam said that,

“It is well settled that when a workman is on a public road or a public place or on a public transport he is there as any other member of the public and is not there in the course of his employment unless the very nature of his employment makes it necessary for him to be there. A workman is not in the course of his employment from the moment he leaves his home and is on his way to his work. He certainly is in the course of his employment if he reaches the place of work or a point or an area which comes within the theory of notional extension, outside of which the employer is not liable to pay compensation for any accident happening to him.”

Kisan Rail

The First Kisan Rail introduced by the Ministry of  Railways will start  from Devlali in Maharastra Nashik at 11 am  to Danapur  in Bihar’s  capital , patna ,on August 7 , 2020. 

Narendra singh Tomar , Union Agriculture Minister will launch the country’s first kisan special parcel Train via video conference which was announced in budget 2020.
The train will make stoppage at different stations carrying fruits , vegetables ,etc and it will be not carrying regular passengers . It will have coaches 10 +1.
This train will  be going on weekly basis  and will reach Danapur at 6.45 pm the next day , after completing the distance of 1519 km in over 31 hours .
The stoppages of this train – Manmad, Naski Road ,Bhusaval ,Jalgaon ,Burhanpur ,Itarsi , khandwa  , katni , Jabalpur , Satna , Manikpur ,pt. Deendayal upadhyay Nagar , Prayagraj clhheoki , Buxar.
As per the railway ministry , Nasik and the surrounding region provides a high quality of fruits and vegetables , onions , flowers , other perishables mainly also  transported to the region around Allahabad , patna , satna and Katni.
There shall be refrigerated coaches in freight trains and express as well. A cold supply chain to be build for meat , milk and fish for transportation of perishable traffic.

Ram mandir Bhumi pujan caremony

The Ram mandir Bhumi Pujan ceremony took place on August 5 ,2020 in presence of PM Narendra Modi and other several personalities. The invite list of Ram Mandir Bhumi Pujan mentioned PM Modi and three more names.  In the list of widespread  pandemic , the list has been vastly trimmed by the trust .The invitation card with safforn theme also has an image of the idol of Ram lalla or infant Lord Ram.

During the ceremony , Prime Minister  Narendra Modi  has been joined on stage by chief  of Rashtriya Swayamsevak singh (RSS) Mohan Bhagwat , UP chief Minister Yogi Adityanath  and UP  Governor Anandiben Patel and Nritya Gopal  Das. Even Uma Bharti who was not planning to attend the ceremony due to this pandemic situation also arrived. Even Baba Ramdev even marked his presence and appreciated the presence of Government efforts. While addressing the ceremony of  Ram Mandir , uttar Pradesh Chief Minister Yogi Adityanath acknowleged one of the eminent personalities missing the ceremony called BJP veteran LK Advani and Murli Manohar Joshi and the state Government assured that in future events they will also become part of this Historical Events. 
Not only Our Hindu Religious Leaders , several other heads of  Different  communities were also attending the ceremony and accepted the Ram Mandir In Ayodhya.
As Champat Rai , General Secretary of Ram Mandir Trust , invites has been sent to around 175 people for elaborate Bhumi pujan ceremony ambid  the  nation’s  COVID -19 fight. Every invitation has security code and if they leave the venue , they cannot reentry. The invitation was only for Ayodhya Resident and not any other , the first invitation went to  Iqbal Ansari , one of the muslim litigants of the  Ram mandir case. 175 members also contained sages and saints from across the country .Mohammad Sharif  , Padma shri recipient  has also been invited. Organisation also made personal phone calls and apologized  to many people to keep up social distancing.
Jathedar and Sikh priests ,Chairman of  the sunni wakf Board from Lucknow and several other religious leaders also invited for this event.
Amit Shah , Home Minister was not able to attend the ceremony due to  being  caught by corona on August 2 ,2020.
Narendra Modi established a 40kg  silver brick  paving way the part of symbolic start of the construction of the temple. He also planted Parijat tree in the premises and the inscription of the temple  has been inaugrated.
The UP government released a Postal stamp which will be based on the temple design.

World Bank and India

The World Bank is a lending institution that funds essential infrastructural requirement, globally. Headquartered in Washington D.C., this fiscal institution is banked upon heavily by the governments of the world for timely dispensing of funds to support the development of major facilities and services. World Bank comprises the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). It is also responsible for the working of the International Finance Corporation, Multilateral Investment Guarantee Agency and the International Center for Settlement of Investment Disputes. The primary role is the unbiased distribution of funds for economic upliftment of the international community. It bears the responsibility of ensuring aid to settle investment disputes and facilitate fiscal and infrastructural reconstruction.   

India has been borrowing from World Bank through IBRD and IDA for various development projects in the country particularly related to infrastructure development, poverty alleviation, rural development etc. In 1958, World Bank played an important role in establishing India Aid Club for providing economic assistance to India.   Later in was renamed as India Development Forum. So far India has borrowed around $68billion from the World Bank. IDA funds are one of the most concessional loans given by the Bank and in India, they largely used for social sector projects that contribute towards attaining the Millennium Development Goals (MDG).  

The World Bank’s Country Strategy (CAS) for India for 2009-2012 focuses on helping the country to fast-track the development of much-needed infrastructure and to support the seven poorest states achieve higher standards of living for their people. The strategy envisages a total proposed lending program of US$14 billion, in three years, of which US$9.6 billion is from the International Bank for Reconstruction and Development (IBRD) and US$4.4 billion (SDR 2.982 billion equivalent at the current exchange rate) from the International Development Association (IDA).   

The cooperation between the World Bank and India goes back to the foundation of the International Bank of Reconstruction and Development in 1944. As one of 44 countries, India prepared the agenda for the Bretton Woods Conference in June 1944. The Indian delegation was led by Jeremy Raisman, who was a finance member of the Indian government and proposed the name “International Bank for Reconstruction and Development”. India received its first bank loan of US$34million from the International Bank of Reconstruction and Development in November 1948 for railway rehabilitation. Since then, India has become the country with the largest country program and its lending portfolio of the World Bank group inheres of 104 operations with a total volume of $27.1 billion.

The strategy is closely aligned with the Government of India’s own development priorities expressed in the Eleventh Five Year Plan. It was arrived at after a series of consultations with a broad range of stakeholders including the government and civil society. Under the strategy, the Bank used lending, dialogue, analytical work, engagement with the private sector, and capacity building to help India achieve its goals.  

In March 2012, World Bank announced $ 4.3 billion financial aid to India through a new innovative and flexible financing arrangement to help the country fight poverty. This arrangement, while facilitating a $ 4.3 billion increase in support to India, is designed to maintain International Bank for Reconstruction and Development’s (IBRD) – which is its lending arm – net exposure within the limit of $ 17.5 billion established by it. Bank statement said that this will enable India to continue accessing long-term, low-interest IBRD finance for development projects aimed at improving the lives of its people, one third of whom are yet to make their way out of poverty.   

On 5 November 2012, World Bank signed an agreement with the central and Assam governments to provide $320 million, around Rs 1,760 crore, for improving secondary road network in the north-eastern state. The project will support improvement of priority sections of secondary roads, implementation of Assam’s ‘Road Sector Modernization Programme’ and development of a multi-sector road safety strategy, a statement said. As per the agreement, the project will be implemented over a period of six years.  

This is the second big financial allocation, though from an external agency, for Assam after the road transport and highways ministry gave around Rs 6,000 crore to improve the national highways across the state. Assam has the maximum share of a special road development programme designed for the north-eastern states. The objective of the World Bank project is to enhance road connectivity in Assam by assisting the public works department to improve and effectively manage its road network.   

The World Bank will continue to assist the central government by providing comprehensive analytical work to underpin policy and institutional reform and to improve the implementation of central government projects on the ground. Under the Sarva Siksha Abhiyan (SSA) for example, while schools are now more accessible and gender parity has been reached, the focus will now be on improving the quality of education provided. In the power sector, the Bank will continue to support Powergrid, India’s national electricity transmission agency, which it has helped to grow into a world-class institution.  

Though World Bank had dedicated ample funds for the economic development of the developing countries, still it is criticized for its organizational structure where developed countries had maximum say while the developing countries has little or no say. There is no doubt about its contribution in making the lives in developing countries better, now there is a need for it to make its organisation more democratic, and representative. 

Laws that a layman should know about

 

Indian Constitution has provided several rights to the people to protect their fundamental rights, but unfortunately, most people are not aware of their rights. Below are some laws and the rights which not only protect people’s interests but also ease their daily life.

1. If your cylinder explodes you are entitled to Rs. 40 lakh cover!

Many of us are unaware that domestic LPG consumers are entitled to a cover of Rs. 40 lakh in case of loss of life or damage to property due to cylinder explosions.

2. Penalised for receiving gifts? Yes, they can be bribes.

It has become a tradition for companies to send gifts! As these gifts can be carefully veiled bribes, the law is a smart move by the government to avoid situations of bribery.

3. Only female officers can escort women to the police station

Not only do male officers have no right to escort a woman but she can refuse to go to the police station between 6 pm to 6 am. In case of a serious crime, a written permit from the magistrate is required for male officers to escort her.

4. The tax recovery officer can arrest and release you

In case of tax violations, the TRO has the right to arrest you, though a summon has to be sent. The tax commissioner only decides how long can you be in custody, but your release will be decided by the TRO. This has been mentioned in the Income-tax Act, 1961 .

5. No traffic violation laws for non-motorised vehicles

Though it has been clarified that a golf cart is not allowed on the road but there aren’t any penalties against non motor vehicles like a cycles or rickshaws, since they don’t fall under the Motor Vehicles Act.

6. Women can lodge complaints through emails

Guidelines issued by the Delhi Police entitle women to the privilege of registering a complaint via email or even through post if she can’t go to the police station.

7. Live-in relationships are not illegal

Though it is frowned upon in our country, but as long as both the adults are ready to stay together, live-in relationships are not illegal. Moreover, live-in relationships are considered to be ‘equal to marriage’ if certain conditions are met few of which are pooling of financial and domestic arrangements, entrusting the responsibility, sexual relationship, bearing children, socialization in public and intention, conduct of the parties, etc. This is done to protect women under the Domestic Violence Act. Also, children born out of live-in relationships have the right to inherit their parent’s property.

8. Political parties can solicit your vehicle during elections

During the time of elections, a political party can solicit your car or bike for campaigning purposes after deciding a settlement with you. Also, parties cannot offer free rides to and fro from poll booths.

9. If you have been fined once in the day you maybe excused after that

Riding around without a helmet can land you into trouble, but once you are fined for it, the chalaan slip can get you out of being fined for the same till midnight. Yes, but this is not an encouragement to do so. Be safe while driving.

10. You don’t have to pay the MRP, you can buy for less

MRP is the Maximum Retail Price. As consumers, you have the right to bargain for a price below that. However, a seller can not go beyond the MRP.

11. If you aren’t paid, file a complaint immediately

The Limitation Act states that if you aren’t paid by someone who is contracted to pay you, you need to file a complaint within 3 years. After that time period your suit most likely will be dismissed, so being lazy about this is not an option.

12. 3 months in jail for PDA! (Public Display of Affection)

PDA within its limits is allowed but any obscene activity is punishable by law for upto 3 months. Since the word obscene has not been defined, couples are often harassed by policemen.

13. Head constables have limited prosecution power

No head constable can fine you for any offence which has penalty more than 100.

14. A police officer is always on duty, literally

The 1861 Police Act clearly states that a police officers is always on duty. If he or she witnesses an act of crime or if an incident is brought to their knowledge they can’t say “I am not on duty” even if they aren’t in uniform. Of course, they are entitled to some rest because of the the hard work that they put in to their work.

15. The no sex divorce

As funny as it sounds, if a husband or a wife refuse sex post marriage, it can be deemed as ‘mental cruelty’ and is a viable reason for divorce.

Concept of Delegated legislation

 

Definition:Black’s Law Dictionary defines ‘Delegation’ as ‘the act of entrusting another with authority or empowering another to act as an agent or representative’. E.g. Delegation of Contractual Duties.

‘Subordinate Legislation’ has been defined as:

“Legislation that derives from any authority other than the Sovereign Power in a state and that depends for its continued existence and validity on some superior or supreme authority.”

Salmonddefines – “Subordinate legislation is that which proceeds from any authority other than the sovereign power, and is therefore dependent for its continued existence and validity on some superior or supreme authority.”

Delegated legislation is, at times, referred to as “Ancillary”, “Subordinate”, Administrative Legislation or as Quasi-Legislation”. Delegated legislation is a technique to relieve pressure on legislature’s time so that it can concentrate on principles and formulation of policies.

 

Essential characteristics of Delegated Legislation:

· The rules should contain short titles, explanatory notes, reference to earlier amendments, etc. for clear understanding.

·     No extra-ordinary delay shall occur in making the subordinate legislation.

·   The administrative authority should not travel beyond the powers given in Parent Act.

·      Essential legislative functions cannot be delegated.

·      Sub-delegation (Delegatus non potest delegare) is not encouraged.

·    General rules should not be framed with retrospective operation, unless and until the parent Act instructs to do so.

·       Discriminatory and arbitrary rules should not be framed.

·       Wide and sufficient publicity shall be given so that general public can know it.

·   In appropriate cases, consultation also shall be made for more effectiveness and efficiency.

·   The Sub-ordinate authorities should not use rigid, crux and technical language while preparing the rules, which may cause difficulty to understand by general public.

·      The final authority of interpretation of the subordinate rules is vested to Parliament and Courts. But the administrative authorities are not empowered and authorised to interpret the statutes.

·        A tax or financial levy should not be imposed by rules.

·        Wherever it is necessary, the explanatory notes shall be given.

·        Public interest must be kept in view while delegating the powers, etc.

 

History of Delegated Leislation in India:

a. Pre – constitutional Position:

The history of delegation of powers can be traced from the charter stage of 1833 when the East India Company was regaining political influence in India. The of 1833 vested the legislative powers exclusively in Governor – General – in council, which was an executive body. He was empowered to make laws and regulations for repealing, amending or altering any laws or regulations, which were in force for all persons irrespective of their nationality. In 1935 the Government of India Ac, 1935 was passed which contained an intensive scheme of delegation. The report of the committee on ministers’ powers was submitted and approved which fully established the case for delegation of powers and delegation of legislation was regarded as inevitable in India.

b. Present Position:

Though, our constitution was based on the principal of separation of powers, a complete separation of powers was not possible hence it maintained the sanctity of the doctrine in the modern sense. The Indian Constitution does not prohibit the delegation of powers. On the other hand there are several provisions where the executive has been granted the legislative powers. For example the legislative powers of the president under the Indian Constitution are conspicuous. Under Article 123 the president has the power to promulgate the ordinances and unrestricted power to frame regulations for peace progress and good government of the union territory under Article 240. The Supreme Court of India has also upheld the delegation of legislative powers by the legislative to the legislative to the executive in the case of Raj Narayan Singh v. Chairman Patna Administration Committee

 

Growth of Delegation of Power and it’s Reason:

Many factors are responsible for the rapid growth of delegated legislation in every modern democratic state. The traditional theory of ‘laissez faire’ has been given up by every state and the old ‘police state’ has now become a ‘welfare state’. Because of this radical change in the philosophy as to role to be played by the state, their functions have increase. Consequently, delegated legislation has become essential and inevitable.

 

Some of the reasons of the growth of the Delegation of Powers are as follows:

1. Pressure upon Parliamentary Time:

As a result of the expanding horizons of the state activity, the bulk of legislation is so great that it is not possible for the legislation to devote sufficient time to discuss all the matters in detail. Hence there is need for a delegation of power.

2. Technicality:

Sometimes, the subject – matter on which legislation is required is so technical in nature that the legislator, being himself a common man, cannot be expected to appreciate and legislate on the same, and the assistance of experts may be required. Hence,  this lead to the growth of delegation of power.

3. Flexibility:

At the time of passing any legislative enactment, it is impossible to foresee all the contingencies, and some provision is required to be made for these unforeseen situations demanding exigent action. Hence there is a need for flexibility which leads to the growth of delegation of power.

4. Experiment:

The practice of delegated legislation enables the executive to experiment. The method permits rapid utilization of experience and implementation of necessary changes.

5. Emergency:

In the time of emergency, quick action is required to be taken. The legislative process is not equipped to provide for urgent solution to meet the situation. Hence there is need for delegation of power.

 

Delegation Legislation : Position under Constitution of India

The Legislature is quite competent to delegate to other authorities. To frame the rules to carry out the law made by it. In D. S. Gerewal v. The State of Punjab, K.N. Wanchoo, the then justice of the Hon’ble Supreme Court dealt in detail the powers of delegated legislation under the Article 312 of Indian Constitution. He observed: “There is nothing in the words of Article 312 which takes away the usual power of delegation, which ordinarily resides in the legislature. The words “Parliament may by law provide” in Article 312 should not be read to mean that there is no scope for delegation in law made under Article312….” In the England, the parliament being supreme can delegated any amount of powers because there is no restriction. On the other hand in America, like India, the Congress does not possess uncontrolled and unlimited powers of delegation.

In Panama Refining Co. v. Rayans, the supreme court of the United States had held that the Congress can delegate legislative powers to the Executive subject to the condition that it lays down the policies and establishes standards while leaving to the administrative authorities the making of subordinate rules within the prescribed limits. 4 Art. 13 (3) Defines law and it Includes ordinance, order, byelaw, rule, regulation & notification having the force of law.

In Sikkim v. Surendra Sharma– it is held that ‘All Laws in force’ in sub clause (k) of Art. 371 F includes subordinate legislation. Salmond defines law as that which proceeds from any authority other than the Sovereign power & is therefore, dependent for its continued existence & validity on some superior or supreme authority.

Risks setting up international clothing brands in India

India is known to be the second largest populated country where “the old and the new, the traditional and the modern, and the local and the international coexist—sometimes comfortably sometimes not “. Here is a list of risks that companies will have to face while setting up a clothing brand in India.


Tough competition from local brands:
International brands will be put in a situation to face a competition from both the local brands in India and the global brands in India. The local brand such as TATA opens outlets through their zudio stores where the products fit the modern trends that equals the global brands and with none of the products costing more that 15 dollars( INR 1300 approx). The report from the World Economic forum in January, 2019 says that India will become the third largest consumer market and quadrupled household spending by 2030. The TATA group have also started shifted their focus on the trend conscious globalised population are building models with value proposition with is much stronger than international brands. Therefore international brands might have to face the risk heavy competition and a lag in the market with local brands which follows similar strategies as primark.


Currency fluctuation :
India is a country that continues to experience a fluctuation in its currency value with decline in the rupee. India is facing this fluctuation in currency which has an impact on its economy due to Wider current account deficits(CAD), low foreign exchange reserve, high fiscal deficit and higher inflation. This is a risk for clothing brands since the companies will have to face a decline in their income due to this fluctuation and primark will also be put in a situation to pay more for the imported goods reducing their profit margin.

Water scarcity and environmental risk :
The World Business Council for Sustainable Development states that water does not just provide a sustainable and peaceful environment but it is very much essential for any kind of business to operate. All apparel industries are the users of the maximum amount of water for business and they will be under threat as water scarcity in India is seeing a depletion in its groundwater putting it’s primary businesses at stake. The textile and fashion industry requires large amount of water to convert from fibre production to finished products. Hence it is a great risk for clothing industry to invest in India as it is facing a big water scarcity. India is among the 17 countries has extreme levels of water scarcity with the northern part which has a plenty of business hubs facing severe ground water depletion.

The environmental scenario of India also pose risk to international clothing brands as India is facing a dramatic change in climate for past decade which has resulted in floods, storms, cyclones and other natural disasters. India is deemed vulnerable to climate change impacts, adding it to the countries in the global climate risk index.


Understanding Indian Consumer:
India is a very diverse country with a vast mixture in the consumer pool. The Indian market varies from region to region in terms of usage, preferences, brands, tastes etc. And this serves as a risk because it is impossible to cover the expectations of each region being a foreign brand and also unlike in UK and other countries where the sizes are numbered from 6,8,10-12, the sizes in India ranges from from small(s) below to XL(Extra large) and beyond. Therefore customization in clothing to fit Indian consumers also becomes a risk. This is important to be considered as a risk because as Mr. Biyani, the CEO, Future Group and Managing Director of Pantaloon Retail, India puts it “Indian Consumers, unlike people elsewhere, demand ideas and solutions that are uniquely Indian.”


Bureaucratic barriers and taxes:
International brands will have to face the challenges of rampant bureaucracy at all levels since Foreign investors generally face challenges while dealing with of dealing bureaucracy at federal, state and local government. Due to India’s poor infrastructure intricate tax payment systems ,complicated tax and slow legal system therefore there is a delay and a sharp learning curve. For example, in the year 2015 the government introduced a new service tax with only a notice of two weeks notice which left the company dangling to cope with the accounting software which was not updated for the change. Though India has opened its borders for international trade for the exporting and importing of goods there are several layers of bureaucracy which makes it inefficient and challenging to move goods. Though the government creates special economic zones like streamlined exporting, setting up market in India is a risk considering the fact that “the ground reality is still an uphill task”. Businesses which operate in India pay up-to 33 tax payments a year . And apart from this headline corporation tax companies also will have to pay sales tax, dividend tax, property tax, fuel tax, vehicle tax, VAT and excise duty. The world bank stated that India’s tax system is so complex that it accounted about 214 on average in the preparation and payment of taxes with the GST( Goods and services tax) being the most complex of them all as the second highest tax rate in the world among 115 countries.


Infrastructure risks :
Business functions and operations are built on the core service of infrastructure. In a country like India which has underdeveloped and insufficient infrastructure which includes poor warehousing facilitates, uneven distribution of electricity, no safety standards etc. There is a potential risk which can have an impact on businesses due to poor amenities, ignorance and corruption.
Economic and political risks :
Foreign investors generally do not have control over the external events in India which affects their investments and plans in the country. The major political and economic risks include quick and unpredictable changes with regard to foreign investment, import and ownership but slow government decisions due to unstable political scenario. International brands will have to face various issues which include :
1)cultural problems, delays or legal disputes due to local partners and suppliers
2)labour unrest and industrial action
3)disruption of normal business due to social and political unrest
4)corruption and bureaucratic inefficiency
5)unexpected delays and cost-overruns due to overlapping governmental jurisdiction
6)fluctuation in interest, inflation and currency rates.

The risks might seem like a big barrier for international clothing brands to begin their businesses in India but these are risks can be overcome with various strategies.

Child Labor in India

Child labor refers to the exploitation of the children by employing them to work and interfering with their ability to attend regular schools, and any work that is harmful for them mentally, socially, physically or morally. It has been a major issue all around the world, especially in the developing countries, and it destroys the future of the child employed in child labor. In Child Labor (Prohibition and Regulation) Act 1986, a child has been defined as a person who has not completed the age of 14 years. For a layman, the definition of child labor is the practice of engaging the children in economic activity as a part-time or a full time job.

Child labor has existed throughout the history. During the 19th and the early 20thcenturies children between the ages of 5-14 from poor families worked in western nations and their colonies. The children worked mainly for factories, mines, home-based operations, or agriculture. In the early 20th century, thousands of young boys were employed in glass making industries, factories and mines. The conditions of working were extremely difficult as there was extreme heat, or no advanced technologies. The children suffered eye troubles, lung problems, cuts, heat exhaustion, etc. 

CAUSES OF CHILD LABOR

  1. POVERTY – it is one of the main causes of child labor in India. It is one of the major drawbacks and the children are considered to be helping hands for the family in terms of financial support.
  2. DEBTS – due to the poor economic conditions of people, they are forced to borrow money from moneylenders who charge them high rate of interests, because of which they find it difficult to repay the debt due to which the money lenders employ the debtors, including their children, to work for them.
  3. PROFESSIONAL NEEDS – there are some industries that require delicate hands and little fingers to do the minute work, such as in bangle making factories. Bangle making industry is known for employing children.

                                    RIGHTS OF CHILDREN IN INDIA

In India, the government has taken various effective measures to eliminate child labor. The Indian constitution has incorporated provisions to secure the rights of children, such as compulsory elementary education as well as the labor protection for children. Some other provisions are:

  1. No child below the age of 14 shall be employed in any factory or mines or engaged in any other form of hazardous work.
  2. States in particular shall direct its policy towards securing the health of the workers, men and women and the tender age f children are not abused and that the citizens are not forced by economic necessity to for their children to work.
  3. The state shall provide free and compulsory education to all children between the ages of 6-14 as such a manner as the state may determine by law. 

REALITY OF CHILD LABOR IN INDIA

Even though strict laws and policies are being formed for the protection of children against child labor, the reality stands totally opposite. The laws formed are hard to enforce, especially in the rural areas where it is most prevalent and the villages are barely connected to state infrastructure. For many families in India, giving up child labor means letting go of an entire income which could push them deeper into poverty. For most of the factory owners, using child labor is the only way to produce local products at a cheap rate and be able to make them compete in the international market. The states have the responsibility to enforce laws for the protection of children, however due to the lack of funds and proper administration; they are unable to do so. Also the judicial system of India, is not competent enough to stop the violators of child labor easily. Many a times the violators can very easily slip through the cracks because of the lack of proper administration, and even though they are found guilty, the fine for the same is not enough for a practical deterrent. 

Deodorant market in India

When we think about personal care products, the image of a woman comes into our minds immediately. However, in the deodorant segment in India, men have overtaken the women with a significant lead. In fact, of the Rs 1,400-crore deodorant market, the male segment contributes Rs 1,000 crores, pegging the male to female ratio at 70:30. Greater usage of deodorants among Indians can be attributed to greater awareness of hygienic practices and affluence. Deodorants are used by both men and women in the middle and upper classes and with greater disposable income in these families, more and more people are able to afford personal care products that are not considered a necessity.

Hindustan Unilever is the market leader in deodorants, with 31.5% market share. Its flagship product, Axe, is highly sought after by both middle and upper classes. Other brands under Hindustan Unilever are Rexona and Dove, whose deodorants are popular in the Indian market too. After Hindustan Lever, Marico Co Ltd. and McNroe Chemicals are the biggest industry players in the deodorant segment. Hindustan Unilever’s Axe is the leading product in this segment, garnering 25% of the market value, followed by Marico’s  Set Wet, with 10% market value, and McNroe Chemicals’ Wild Stone garnering 9% market value.    

Deodorants come in various forms, including roll-ons, sticks, and sprays. There are a number of deodorants for males but there are very few deodorants for females. This is because deodorants and antiperspirants have recently been introduced to the Indian market. For decades, the Indian market has been relying on perfumes to enhance the scent of the body. And as such, females in the country continue to use perfumes instead of deodorants and antiperspirants. Also, deodorants are used by those who are constantly outdoors, and this is dominated by males. It is only in the last few decades that there has been an increase in the number of Indian women spending ample amount of time outdoors, which is why the deodorant market for females is still in the infant stage. Some of the deodorant brands that cater to the females are Nike, Fa, Dove, and Nivea. Experts predict that the deodorant industry will grow in the next few years. In fact, the deodorant market is projected to grow at 25% CAGR (compound annual growth rate) over the next five years. As net household income increases and with more disposable income, there is ample scope for the growth of the deodorant market in India.  

An increase in the usage of deodorants can also be attributed to the Indian climate, which is hot humid, especially between the months of March and September, forcing consumers to purchase antiperspirants and deodorants to keep their bodies fresh and cool. Deodorants were introduced to the market to help people eliminate body odour. However, some of these products contain toxic chemicals, many of which are carcinogenic in nature, which can be harmful to one’s body. Not many consumers are aware of the dangers of prolonged usage of deodorants; however, manufacturers are constantly experimenting with the ingredients in deodorants to ensure minimal risk to consumers. 

India perfumes and deodorants market stood at over $ 970 million in 2019 and is projected to grow at a CAGR of over 13%, to surpass $ 2 billion by 2025 on the back of rapid urbanization and emergence of online retail channel. Moreover, perfumes and deodorants manufacturers are offering a wide variety of innovative products such pocket perfumes, herbal perfumes, etc., which is further stimulating market demand across India.

Additionally, manufacturers are focusing on innovative branding and marketing of products, which is further anticipated to aid the growth of India perfumes and deodorants market in the coming years. Some of the leading players in India perfumes and deodorants market are Vini Cosmetics Private Limited, ITC Limited, Nivea India Private Limited, Hindustan Unilever Limited, Emami Limited, J.K Helene Curtis Limited, McNroe Consumer Products Private Limited, Godrej Consumer Products Limited, Wipro Consumer Care & Lighting and Marico Limited.

Pocket-sized deodorants launched by brands such as Engage, Axe, Set Wet and Yardley continued to gain traction in 2019 leading to the entry of more industry players seeking to benefit from the popularity of these products. These included Marico’s Set Wet and Wipro’s Santoor brands. The Fogg brand by Vini Cosmetics led the overall category in 2019 and benefited from the strongest brand recall. The company continued to see success with this brand due to its strong value proposition.

Sales of deodorants are now expected to grow by 3% in 2020 in 2019 constant value terms in light of the impact of COVID-19. This compares to an expected 5% rise forecast for 2020 during research conducted at the end of 2019 before the spread of COVID-19. In light of the economic uncertainty caused by the global pandemic, consumers are set to reduce their spending on deodorants in 2020, with many opting for lower-priced products. Deodorant pumps, deodorant roll-ons and deodorant sprays are set to suffer from lower physical activity during lockdown while replacement demand could normalise by the end of the year.

Demand for deodorants is likely to normalise to some extent by the end of 2020 although the category will continue to be impacted by ongoing economic uncertainty and fears over a second wave of COVID-19. Price sensitivity will make consumers more cautious in their spending, with sales of deodorants likely to be limited to replacement purchases rather than products for stock at home.

Residential Status (Section 6) of the Income Tax Act, 1961

 The basis of charging income tax is the taxable income of every person. To determine taxable income, it is essential to find out residential status of the person and scope of total income. There are two types of taxpayers from residential point of view – Resident in India and Non-resident in India. Indian income is taxable in India whether the person earning income is resident or non resident. Conversely, foreign income of a person is taxable in India only if such person is resident in India. Foreign income of a non-resident is not taxable in India. Therefore, the tax liability of a person is dependent upon the residential status of a person.

 

RESIDENTIAL STATUS AND TAX LIABILITY (SECTION 6)

According to the residential status, the assessee can either be;

 Resident in India, or

 Non-resident in India

However, a resident individual and a resident HUF can further be classified as:

 Resident and Ordinarily resident in India (ROR) or

 Resident but not Ordinarily resident in India (RNOR).

 

It must be noted that only an individual or a HUF can be resident, not ordinarily resident or non resident in India. All other assesses can be either resident or non-resident in India but cannot be not ordinarily resident in the matter of their residential status for all purposes of income tax. Section 6 of the Income-tax Act prescribes the conditions to be fulfilled by various taxpayers to determine their residential status.

 

RESIDENTIAL STATUS OF AN INDIVIDUAL:

An individual first needs to satisfy basics condition in order to become resident in India. If a resident individual satisfies additional conditions, he becomes resident and ordinarily resident (ROR), otherwise he is resident but not ordinarily resident (RNOR).

BASIC CONDITIONS FOR AN INDIVIDUAL TO BE RESIDENT

Under Section 6(1) of the Income-tax Act, an individual is said to be resident in India in any previous year if he:

1. he has been in India for at least 182 days during the previous year; or,

2. he has been in India for at least sixty days (60 days) during the previous year and for at least three hundred and sixty-five days (365 days) during the four years immediately preceding the previous year.

Exceptions to above conditions

In the following two cases, second condition is not applicable, i.e., if condition (1) is satisfied then an individual is resident otherwise he will be non-resident:

i. the individual is a citizen of India, who leaves India in any previous year as a member of the crew of an Indian ship, or for the purpose of employment outside India, or

ii. the individual is a citizen of India or person of Indian origin engaged outside India (whether for rendering service outside or not) and who comes on a visit to India in the any previous year.

Therefore, in the above two exceptional cases, only the basic condition 1 needs to be checked. If it is satisfied, then the individual is treated as a resident, otherwise he will be treated as non resident.

NON-RESIDENT

If an individual does not satisfy any of the above two basic conditions then, he will be treated as non-resident.

It must be noted that the fulfilment of any one of the above conditions 1 or 2 will make an individual resident in India since both these conditions are alternative and not cumulative in their application

ADDITIONAL CONDITIONS FOR AN INDIVIDUAL TO BE RESIDENT AND ORDINARY RESIDENT (ROR)

An individual may become a resident and ordinarily resident in India if he satisfies both the following conditions given u/s 6(1) besides satisfying any one of the above mentioned conditions:

1. he is a resident in atleast any two out of the ten previous years immediately preceding the relevant previous year, and

2. he has been in India for 730 days or more during the seven previous years immediately preceding the relevant previous year.

 

RESIDENT AND NOT ORDINARY RESIDENT (RNOR)

If a resident individual is not able to satisfy both the additional conditions, then he will be resident but not ordinary resident (RNOR).


Important Points to be considered while determining Residential Status:

The residential status of the assessee should be determined for each year separately. This is because a person resident in one year may become non-resident or not ordinarily resident in another year and vice versa.

1. The residential status of an individual for tax purposes does not depend upon his citizenship, nationality and place of birth or domicile. This is because for tax purposes, an individual may be resident in more than one country in respect of the same year.

2. The period of stay required in each of the conditions need not necessarily be continuous nor is the purpose of stay is insignificant in determining the residential status.

3. It is not required that the stay should be at the usual place of residence, business or employment of the individual. The stay may be anywhere in India and for any length of time at each place.

4. India means territory of India, its territorial waters, continental shelf, Exclusive Economic Zone (upto 200 nautical miles) and airspace above its territory and territorial waters.

5. Where the exact arrival and departure time is not available then the day he comes to India and the day he leaves India is counted as stay in India.

India’s federal system of States and the Union.

India’s recent growth story is now much analyzed, and quite well understood. Despite some temporary controversy over the relative impacts of economic reforms in the 1980s and 1990s – hesitant and piecemeal in the first of those decades, deeper and more systematic in the subsequent period – the new consensus is not very different from the old, namely, that an overall shift in economic policy toward greater reliance on the market for resource allocation, including greater openness to the global economy, has been an important factor in increasing India’s average growth rate from its previous low levels. This recognition of the role of market competition does not diminish the Indian government’s past importance in building physical infrastructure and human capital, and in providing stability and safety nets. Nevertheless, the reform of India’s governance is one of two major strands of current policy debates, the other being areas where further “liberalization” of the economy is needed (e.g., small scale industry reservations, privatization, and matters pertaining to openness to foreign capital). Debates about India’s governance include old concerns about corruption, affirmative action (e.g., the latest controversy over quotas in higher education) and social safety nets (e.g., the new Employment Guarantee Scheme), as well as newer worries about growing regional inequality. Managing the public finances appropriately has been an obvious part of the reform story, since fiscal deficits have been a continuing problem for well over a decade. Within the broader context of governance, issues of federalism and decentralization have been addressed in a somewhat piecemeal fashion. Thus, the need for fiscal consolidation has focused considerable attention on the states’ situations in this regard, and the central government, central bank, and central Finance Commission have all made efforts to ameliorate aspects of the states’ fiscal crisis. At the same time, the decentralization to local governments, put in motion by the 73rd and 74th amendments to the Constitution, has been proceeding unevenly, and with mixed success. States have made various kinds of efforts to attract investment, done various deals with multilateral agencies, and wrestled with potentially major tax reforms, all the while struggling with fulfilling their constitutional responsibilities to constituencies such as the rural poor.

Underlying all the developments in economic policymaking, and concerns about governance, therefore, is the working of India’s federal system. It is important to understand what this system is, what it does, and how it has been changing in response to the forces put in motion by India’s renewed struggle to fulfill its “tryst with destiny” by substantially improving the well-being of all its citizens in a tangible manner. In particular, many of India’s fiscal federal institutions evolved in the context of a planned economy, with the state playing a dominant role and that of the private sector and markets heavily circumscribed, and largely closed to the outside world. Economic liberalization with state control receding and markets coming into their own, and globalization together require a comprehensive reassessment of these institutions.

In today’s time we have seen multiple examples where this federal system of India had been challenged. We’ve seen example of west-bengal and telangana states of India who denied to no-permit entry of Central Bureau of Investigation (CBI), where CBI holds power of independent investigation from the Indian constitution and as per that CBI officials need not seek any kind of permit to enter into any of Indian states. CBI when required can be into any Indian state because it comes under its investigation needs. Another recent example is the on-going dispute between Maharashtra’s and Bihar’s police, where two different FIRs had been launched for the same case of Indian Bollywood actor Sushant singh’s death. Here, Mumbai police’s investigation has been repeatedly alleged to delay the investigation process. Things were stretched into far ends when Bihar police’s investigation team was forcibly taken off from their scheduled press meeting. Another example was set when Bihar police’s IPS officer who came Mumbai in regards to FIR filled in Patna was held and sent into 14 days quarantine. Now this is seen as a fight between two Indian state police and their prestige, such activities seriously damage India’s federal integrity of state and the union.

Meaning of Company and its Classification

 

A company is a voluntary association of individuals formed to carry on business to earn profits or for non profit purposes. These persons contribute towards the capital by buying its shares in which it is divided. A company is an association of individuals incorporated as a company possessing a common capital i.e. share capital contributed by the members comprising it for the purpose of employing it in some business to earn profit.

“As per Companies Act 1956, a company is formed and registered under the Companies Act or an existing company registered under any other Act”.

Types of Companies:

Companies can be classified under the following heads:

1. On the basis of formation.

2. On the basis of liability.

3. On the basis of ownership.

 

1. On the basis of formation: On the basis of formation companies can be categorised as:

(a) Statutory Company: A company formed by a Special Act of parliament or state legislature is called a Statutory Company. Reserve Bank of India, Industrial Financial Corporation of India, Life Insurance Corporation of India, Delhi State Finance Corporation are some of its examples.

(b) Registered Company: A company formed and registered under the Companies Act, 1956 or earlier Companies Acts is called a Registered Company. The working of such companies is regulated by the provisions of the Companies Act.

 

2. On the basis of liability: On the basis of liabilty, companies can be catagorised as:

(a) Company limited by shares: The liability of the member of such company is limited to the face value of its shares.

(b) Company limited by guarantee: The liabilty of each member of such company is limited to the extent of guarantee undertaken by the member. It may arise in the event of its being wound up.

(c) Unlimited Company: The company not having any limit on the liability of its members, is called an unlimited company. Liability in such a case extends to the personal property of its shareholders. Such companies do not use the word ‘limited’ at the end of their name.

(d) Company under section 25: A company created under section-25 is to promote art, culture and societal aims. Such companies need not use the term limited at the end of their name. Punjab, Haryana, Delhi chambers of commerce, etc. are the examples of such companies.

 

3. On the basis of ownership: On the basis of ownership, companies can be catagorised as :

(a) Private Company: A private company is one which by its Articles of Association :

(i) restricts the right of members to transfer its shares;

(ii) limits the number of its members to fifty (excluding its past and present employees);

(iii) prohibits any invitation to the public to subscribe to its shares, debentures.

(iv) The minimum paid up value of the company is one lakh rupees (Rs 100000). The minimum number of shareholders in such a company is two and the company is to add the words ‘private limited’ at the end of its name. Private companies do not involve participation of public in general.

(b) Public Copmpany: A company which is not a private company is a public company. Its Articles of association does not contain the above mentioned restrictions. Main features of a public company are : (i) The minimum number of members is seven.

(ii) There is no restriction on the maximum number of members.

(iii) It can invite public for subscription to its shares.

(iv) Its shares are freely tansferable.

(v) It has to add the word ‘Limited’ at the end of its name.

(vi) Its minimum paid up capital is five lakhs rupees (Rs 500,000).

(c) Government Company: A Government company is one in which not less than 51% of its paid up capital is held by (1) Central Government or (2) State Government, or (3) partly by Central Government and partly by State Governemt. Example of a Government company is Hindustan Machine Tools Limited, (HMT) State Trading Corporation (STC). Minerals as metals training corporation (MMTC).

(d) Foreign company: A foreign company is one which is incorporated outside India but has a place of business in India, for example Philips, L.G, etc. standard materials.

(e) Holding company and Subsidiary company: A holding company is a company which controls another company (called subsidiary company) either by acquiring more than half of the equity shares of another company or by controlling the composition of Baord of Directors of another company or by controlling a holding company which controls another company.

(f) Listed company and unlisted company: A company is required to file an application with stock exchange for listing of its securities on a stock exchange. When it qualifies for the admission and continuance of the said securities upon the list of the stock exchange, it is known as listed company. A company whose securities do not appear on the list of the stock exchange is called unlisted company.

Sports shoe industry in India

Indians are becoming health conscious, and this is evident in the number of gymnasiums and sports centres that have mushroomed in the last one decade. The media is partly responsible for spreading the fever of health consciousness, and it has benefitted the Indian society. One sector that has benefitted the most from the growing health consciousness of Indians is the sports shoe industry. One cannot take part in sports related activities without proper footwear and this has pulled up the revenue of sports shoe companies greatly.   

The sportswear industry in India is valued at between Rs 3,500 crores and Rs 5,000 crores. And the unchallenged market leader in sports shoes is Reebok. In fact, Reebok holds a 46% market share in India and India is the only country in which Reebok’s brand value has surpassed that of both Nike and Adidas. In fact, Nike has a mere 11% market share.   The top four sporting brands in India are Reebok, Adidas, Nike, and Puma. There are other brands that manufacture sports shoes such as Bata, Liberty, Woodland, Fila, and Lotto, but their brand value is not as strong as the four leading brands mentioned earlier. India’s footwear segment in general caters to men, women and kids, and men’s footwear comprises 55% of the entire industry, followed by women’s footwear at 30% and kids’ footwear at 15%.   

Studies have shown that there is not much brand dilution in the sports shoe industry but there is brand confusion among consumers. The average consumer, who is not extremely knowledgeable about shoe technology, finds it difficult to distinguish between shoes produced by Nike, Adidas and Reebok. In fact, Puma is the only brand that has managed to carve out a space for itself as a fashion brand too. In fact, the design of Puma shoes is slightly different from the rest – Puma shoes are sleek. In India, people do not just wear sports shoes while taking part in sporting activities; they wear them with casual attire too, which is why Reebok has managed to garner a huge market share. Reebok shoes are designed in such a way that they can be worn with casual attire too – the designs and colors are not as flashy as other brands.     

Another reason why Reebok has made its way into so many Indian households is because Reebok shoes are relatively more affordable than the other reputed brands. Indians, especially those in the middle class, are conscious about the price. Given such market conditions, Reebok has an advantage over other brands because it has a wide price range for shoes, from Rs 1,200 to Rs 7,000. This way, consumers have more options while choosing Reebok shoes as opposed to Nike, Puma or Adidas shoes, whose prices start at a much higher level.  

The sports shoe industry in India is definitely going to grow, given people’s awareness and how conscious they are about their health. One of the selling propositions of sports shoe brands in most parts of the world is the technology behind the shoe. At present, the average Indian consumer is not as aware of these technologies as he should be, which is why brands such as Nike, which develops shoes with unique technologies, are not very popular in India. However, this will soon change with greater publicity and awareness.

The footwear industry is one of the most rapidly expanding industries globally. Increasing demand for new and innovative footwear and the emergence of various global as well as regional brands across segments in the category is primarily driving the market. Innovative and trendy footwear is being consistently manufactured by leading market players due to advancement in the footwear manufacturing process, technological innovations, and development of new material.

India is globally the second largest footwear producer after China. India’s footwear production accounts for approximately 9% of the global annual production of 22 billion pair as compared to China which produces over 60%. Key production centres in the country include Kanpur and Agra in Uttar Pradesh, Ranipet, Vaniyambadi and Ambur in Tamil Nadu. The sector is fragmented and close to 75% production comes from the unorganised sector including very small, small and medium enterprises

With the expanding market, the needs of the consumers are also fast changing. Rapid urbanization, higher disposable incomes and greater penetration of media have led to changing fashion needs of the consumers. The footwear industry in India is highly labour intensive and currently employs close to three million people. Out of this, almost 30% are women. Kanpur, Agra, Ranipet, Vaniyambadi, and Ambur are the top footwear production hubs in the country. Today, urbanisation, higher disposable incomes and media influence are changing the needs of consumers and dictating the types of footwear these hubs produce for brands.

Dominant players in the organised market include international brands Bata, Nike, Adidas, Nike, Puma, etc. But customers’ tastes are changing so rapidly that scores of Indian footwear brands, both old and new, are innovating their products and trying to capture the unorganised market.

Woodland, a highly sought-after brand for a lot of millennials, has Indian roots. Aero Group, the parent company of Woodland, was founded by Avatar Singh in Quebec, Canada, in the 1980s. At the time, the company manufactured winter boots for Canada and Russia. Aero Group’s business was at its peak until the 1990s when the Russian market went down with the disintegration of the Soviet Union. In 1992, Aero Group decided to enter India after seeing the developing market conditions and the opening up of exclusive retail outlets and mall culture. Woodland was thus launched under Aero Group.

The raw materials used for shoes, including soles, are manufactured in-house. Italian machinery is used for tanning and finishing the hand-picked Italian hides. German technology is used to manufacture tough rubber soles. Woodland has over 600 EBOs across the country along with shelf space in 5,500 multi-brand outlets (MBOs). The company now clocks a turnover of Rs 1,250 crore.

Khadi India

Khadi India launched a portal to sell various kinds of khadi products made by Indian artisans. Keeping in mind the pandemic COVID-19 this is a very good step to support our artisans and be “aatmanirbhar” or self-reliant.

When the portal was first launched it only had masks which have become a very essential commodity during this time. There were two types of masks, Khadi cotton masks and Khadi silk masks. The Khadi cotton mask comes in white colour whereas the Khadi silk mask is available in various colours. After this the portal also began selling Khadi fabrics, Khadi handkerchiefs, herbal soaps and Papad. You can buy Khadi fabrics like cotton muslin, dupion silk fabric, Khadi denim fabric and Khadi ikat. All these fabrics are available in various colours.

The Khadi handkerchiefs are all white in colour made up of 100% cotton fabric. They are handmade by the women artisans of Jammu and Kashmir. They are available in packs of 1 piece, 3 pieces and 5 pieces each. Similarly the herbal soaps are also handmade. Currently there are 10 different varieties of soaps to choose from on the portal and also a gift pack which has four different varieties of soaps. Likewise there are five varieties of Papad available. When there are Khadi kurtas for men, Khadi yoga dress set Khadi yoga dress set and also a limited edition collection by designer Ritu Beri. All these wearable pieces and the Khadi mass are available in different sizes. Make sure you choose the the correct size because the products are non returnable/ non-exchangeable. The shipping is free and the products can be ordered from anywhere in India. The dispatch schedule is given as “5 working days from the date of order”. And you can always track your order on “Track my Order” section given in the portal.