Module I- Advertising in the Indian Economy

Factors that led to liberalization- a brief overview

In 1947, after Independence, India had the
classic profile of being the underdeveloped
country, comprising of small elites, large number
of peasants, and a predominantly rural
population, high poverty levels, high mortality
rates and low life expectancy, poor nutrition and
an economy dominated by agriculture and
exports of primary products.
Indian leaders embarked on a program based on
Fabian socialism- a program of socialism from
within- which tried to raise the living standards
and development without western aid.

India played a leading role in the non-aligned
movement but looked to Russia for aid and
markets. Their policies included protection of local
industry with tariffs on imported goods and the
establishing of import substitution industries. The
aim was to establish a mixed economy of private
enterprise and government planning. Priority was
given to heavy industrial production rather than
consumer goods.
The World Bank flooded India with loans in the
1950s in an attempt to change Indias policy from
import substitution and government intervention in
the economy, and to bring it into the orbit of the
west. It formed a group which promised more
increases in aid if India would move towards more
free market export oriented policies.




The World Bank pressured the leadership to
devalue the currency by 50% in 1966. At this
time Indias major markets were the Eastern
Bloc countries, especially the Soviet Union.
Before 1965 growth had reached GNP of 4.2%
but for the next decade war, droughts and
external factors reduced this growth and the
economy stagnated.

India maintained this policy of isolationism and
economic protectionism behind trade barriers
for over 2 decades and did not play a major
role in the internationalization of the world
economy that took place before the 1980s.
Global trade was avoided and the entry of
foreign companies was not encouraged.
In 1973 Indira Gandhi placed restrictions on
foreign investment, and in 1976 the Foreign
Exchange Regulation Act (FERA) reduced
participation of foreign enterprises in Indian
subsidiaries to 40% and taxes were raised on the
rich and luxury goods. The consumer price index
went up 400% from 1960-1980 and two thirds of
household income was being spent on food. Some
multinationals like Coca Cola (1950-1978) and IBM
(1951-1979) left India because of policies that
restricted their activities.
India suffered balance of payments problems due
to the increase in oil prices after the late 1970s and
borrowed from the IMF and other sources such as
the World Bank & foreign governments.


After 1985, in order to revive the stagnant
economy, some measures towards liberalization
were introduced & there was a marginal growth
in the economy.
The Green Revolution created a food surplus
though this did not always reach the poor. At this
time, exports to the U.S. and the European
community grew.
In the early 1990s the Gulf War caused rising oil
prices and had a major impact on the Indian
economy, and reduced workers remittances from
the Gulf which had played an important economic
role. The collapse of the Russian economy in
1991 also meant the loss of markets for Indian
goods and of subsidized imports, the most
notable being energy. Other Eastern bloc markets
also contracted at this time.

In the 1990s the liberalization of the economy continued,
some of this externally imposed. In 1991 there was a
balance of payments crisis and the IMF restructuring
package enforced a stabilization program which devalued
the rupee by 20%, endeavored to control inflation through
fiscal austerity and opened up the economy to the market.
Taxes were lowered, loans were more available and foreign
investment was encouraged. Changes did not address
rural poverty or the bureaucracy. Investment expanded
from 1994-1995 but it was often undisciplined. Industry
expanded as well though there were also many casualties.
Manufactured goods became cheaper relative to farm
goods and previously scarce consumer goods were more
readily available. GNP growth per capita increased slightly
in the 1990s from 5.8% 1980-1990, to 6% 1990-2000,
and then declined to 5.2% in 2,000 (World Bank, 2002).
Growth averaged 5.5% from1995-2002 (World Bank,
2004). Growth in 2,000 reached 6% according to the CIA
(2002).
Advances were in the service sector more than in the
industrial sector of the economy.

Liberalization, was the opening up of markets in
the Indian economy- from a closed or
protected economy to an open economy.
India encouraged free trade by opening its
doors both inside & outside the country.
In 1991, the Government of India liberalized the
Indian economy on account of political and
economic compulsion.
Liberalization comprised of a series of policy
measures and allied measures.
The industrial policies took a major shift from a
protected economy to an open economy.
It also involved a revision of industrial Licensing
Policy through which the economy did away with
License Raj.



Thus since 1991, licenses were required only for
certain strategic and defence items which were
exclusively reserved for the government.
This resulted in the creation of more companies,
goods & services. And. In turn gave a boost to
advertising.

FERA- Foreign Exchange Regulation Act
Maximum restriction of foreign money coming into
the country and Indian money that goes out.
Regulation & policies are laid down by FERA.
FEMA- Foreign Exchange Management Act (1993).
FERA changed to FEMA in 1993 & looked into
management facilitating act.
FEMAs impact on Advertising- Due to FEMA, there
were tie-ups, joint ventures, clubbing of
companies.

The FEMA, facilitated joint ventures and
collaboration in the advertising industry. At
present, every agency has a tie-up with a foreign
counter part. This increases their global reach and
provides them with greater revenue.
MRTP- Monopolies & Restrictive Trade Practices Act
of 1969.
Section 36 of the MRTP Act has special relevance to
the advertising industry. It deals with deceptive
advertising, misleading advertising which exploit
the customers.
The entrepreneurial freedom provided by
liberalization released the blocked up growth
impulse of Indian industry and business.
Till now, entrepreneurs were spending more
of their energies in securing industrial
licenses.
Now, with the licensing hurdle pushed out of
their way, they could readily enter the
industries of their choice and concentrate on
managing the same.
Allied Measures
1) Opening for foreign goods & services.
2) EXIM- Export & Import

The Govt. of India supports exports &
imports to facilitate liberalization. The
exporters are given financial subsidies to
market their products. Similarly, import
subsidies are also provided for export
oriented industries.
3) Privatization of Public Sector- Since
liberalization, many public sectors units
have diverted their share holdings to
include private participation (e.g. all banks
privatized).
More commercialization/ Competition = Advantage

4) Foreign direct investment Is being encouraged in
the corporate sector. Such an investment increases
the scale of operations and advertising potential.
5) Foreign institutional investment Refers to the
practice of foreign mutual funds, insurance funds
pension funds, investing money in India. Such an
investment expands the financial strength of the
economy and thus increases the scope for
advertising. Hence it can be concluded that
liberalisation has given a lot of strength and
potential to the field of advertising. It has widened
the advertising frontiers and elevated it to the
global level. Liberalisation has in fact acted as a
CATALYST to promote.
(Catalyst = anything that speeds up the reaction)

Developments as a result of the new
entrepreneurial freedom :
The Sea change in the Industrial, Business &
Marketing Environment
Entrepreneurial freedom vitalises the
industrial scene:
i) Rush of entrepreneurs.
ii) Spate of mergers/acquisitions/takeovers
- corporate enhance size & synergy.
iii) The diversification rush.
FDI goes up & influences investment pattern
in industries.

Ascendancy of multinationals in the Indian Markets:
i) MNCs acquire majority equity in their Indian
enterprises & Joint Ventures.
ii) Many MNCs enter India anew.
iii) MNCs become big players even in core
industries.
Banking sector comes under competitive
Environment:
i) Competitive existence foisted by deregulation.
ii) Onslaught from new private sector banks with
superior technology and aggressive marketing
strategies.
iii) Capital markets, Financial Institutions, Mutual
Funds & NBFCs compete with banks.
iv) Public sector banks came under severe pressure &
are forced to operate as viable, commercial
institutions.
Insurance sector too experiences competition, with
new private players
Capital markets undergo radical change:
i) FIIs enter Indian capital markets in a big way.
ii) Foreign brokers closely follow the FIIs.
iii) NBFCs register growth & form alliances with
global finance companies.
iv) Growth of private mutual funds.
v) Indian firms raise capital globally & form
alliances with global financial firms.
vi) Indian capital markets get integrated with
global capital markets.

Financial services emerge as a major business:
i) Emergence of many new financial services and
financial service companies.
ii) Business firms spot financial services as a
business & float finance service companies of their
own.
Private sector dominates the economy:
i) Even in core/infrastructure areas, every sector
opened up to private enterprises such as Oil,
Energy, Mining, Telecom, Road construction, Civil
aviation, Defence production, ports.
ii) Import trading becomes a fresh business
opportunity for the private sector.


A spate of corporate mergers/acquisitions/
takeovers & amalgamations expressed the new
entrepreneurial freedom:
1. Merger of Doom Dooma, Tea Estates, KGF &
Kissan into Brooke Bond.
2. Merger of QIL with Ponds: Quest International
India Ltd.(oil)
3. Merger of Ponds with HLL.
4. Cement Consolidation by Lafarge, Ambuja &
Grasim.
5. Telecom Essar & Hutchinson merge.
6. HDFC absorbs Times Bank.

7. ICICI Bank takes over Bank of Madura.
8. Tata Tea acquires Tetley.
9. Ranbaxy acquires Bayers.
10. Hindalco buys over Indal.
11. Indian Rayon acquires Madura Garments.
12. Tatas & Birlas merge.
Ascendancy of Multinationals in the Indian markets:
The removal of FERA restrictions & the liberalization
of FDI enabled MNCs, who were already operating
in India to raise their equity in their Indian
enterprises to 51%. While the MNCs who were
already in India have been consolidating their
position. Other MNCs entered India anew & many
of them were in alliance with an Indian partner.

Banking Sector comes into a Competitive
Environment: Enormous changes in the banking
sector. Public sector banks are under severe
pressure.
Competitive existence foisted by deregulation.
Competition in deposits because of interest rates
being deregulated by RBI-
- loosens the control on interest rates on deposits.
- permits banks to make differentiated offers on
deposits.
- reduces multiplicity of rates.
- totally deregulates interest rates on deposits of
over 2 years.
- Deregulates interest rates on NBFC deposits.
Banks suffer loss of business due to dis-
intermediation.
Public sector banks lose their re-eminence in
merchant banking since the line is now opened to
the private sector.
The onslaught from NPSBs
- RBI issues licenses to start NPSBs to
ICICI,UTI,HDFC,IDBI, the Times Group, the IndusInd
Group.
- NPSBs create differentiation & the distinctive
advantages and make the task difficult for the
public sector banks and the old generation private
sector banks.
- NPSBs bring in new technology, new products,
greater sophistication in banking, better customer
orientation, cater to diverse needs of the clients,
usher in an era of automation, adopts aggressive
business role like the foreign banks.


Insurance Sector Too Experiences Competition:
Insurance too has been thrown open to the private
sector and the Insurance Regulation &
Development Authority (IRDA) has been set up for
regulating the business.
This development has led to the re-entry of private
insurance companies in India after 44 years. HDFC
Standard Life Insurance became the first private
sector life insurer and ICICI- Prudential, the
second. Birla Sun Life Insurance, Max New York Life
Insurance and SBI Life Insurance closely followed.


The world of today is changing fast. India is no
exception. Especially after the opening up of the
economy, the pace of change that India and its
people are experiencing in their socio-cultural
milieu is mind boggling.
India, with its wide diversity, offers a fascinating
scope to study the host of changes which
developmental activities have brought about in its
social & economical framework. The fact remains
that the profile of the Indian market is vastly
different from what it was earlier.

With the opening up of the Indian economy,
marketers today are facing a barrage of new
challenges and opportunities; the Indian market is
emerging as a dynamic and competitive area where
the only thing that is permanent is change.
The Indian market is going through a period of
upheavals. The winds of liberalization or the
opening up of the market have brought about
changes that would have been unimaginable a
decade ago.
As barriers come down, new players both from
India as well as abroad are entering in different
products. Presently there are many national as well
as international manufacturers in consumer
durable products. They are fighting an intense
battle to get a foothold, while the existing players
are putting in all their counter strategies in this
battle for survival. The battle is on across all the
products- be it consumer nondurable, consumer
durable or the service industry though the degree
or nature of battle may vary individually.
Market Changes in Force
A careful analysis of the Indian market reveals the
dramatic changes that occurred since 1990s
resulting in manifold increase in the purchase of
consumer durable products. The various changes
that transformed the Indian market for consumer
goods are as follows:
- A shift from sellers market to buyers market-
characterized by intense competition, variety, and

consumer insistence for value for money leading to
the redefinition of necessities and luxuries;
-Sheltered market to competitive market the entry
of Multinational Corporations (MNCs) with global
network, acknowledged superior technology,
product quality and money power to backup their
marketing efforts offered a severe jolt to the Indian
companies;
- Changing consumption pattern Indian markets
have transformed both in terms of sophistication
and variety, resulting in a substantial change in the
disposition of the customers towards quality, price,
delivery and service leading to new processes;



- Expanding service sector which at present
accounts for about 52 per cent of gross domestic
product. They are production, business,
government and other service sectors like
education, healthcare, hotels, insurance, banking,
consulting company, travel and tourism, emerged
as important areas where significant action is
taking place;
- Emergence of distinct market segments urban,
rural, youth, children, working women etc;
- Changes in the media scene - from single channel
to cable network with multiple channels, larger
coverage, multimedia mix, greater spending and
emphasis on market research and media planning,
have become the order of the day;

-Changes in the distribution channels Innovative
distribution channels like convenience shops,
departmental stores, discount stores, super
markets, mail-order retailing, video shopping,
internet shopping and multilevel marketing, have
begun to change the face of distribution format;
- E -Business and Commerce in addition to e-mail,
e-entertainment and e-database, a wider range of
services using networking- e-shopping, e-
commerce, web-enabled operations and data
ware-housing are now available and quite
interestingly are gaining acceptance.

As a result of all these changes, the role and
functions of marketing have undergone a
metamorphic change in recent years. Many new
concepts and patterns of thought have emerged.
That apart, changes have also taken place in the
consumer buying habits and spending behavior.
Consumers have become more knowledgeable,
more adventurous and more demanding,
compelling, in a way, redefinition of marketing
strategies and orientations of companies.
Since present day consumers are more concerned
for value, brand image and performance than ever
before, consumer satisfaction is viewed as an
integral part of total quality package in terms of
form utility, place utility, time utility and
possession utility.

Of late, product differentiation, customization,
pre-sale and after sales service, quality, delivery
schedules and other factors also play an important
role besides price. Effective marketing not only
creates new and bigger markets, but also enables
the firms to reduce cost, to enhance the demand
and eventually to achieve economies of scale.
The scenario of the emerging Market:
Liberalization, privatization, globalization in India
i.e. geographic shrinking and urbanization.
Quality is important in marketing.
Technology- ATM centers, vending machines.
After sales service( ASS): Example: Whirlpool
educates the masses




Customer relationship management: Customer is
to be kept in the core of the business. Example:
Feedback form, Reward programs
Buying pattern: Example: Malls, family experience
(outings). Because of this buying pattern changes.
Example: Crossword, Planet M, Barista, CCD etc.
Affluence
Information/ Education
Leisure, Nuclear family
Health, lifestyle, Convenience, Speed and time
Hotel, Insurance
Clothes, Fashion, Food
Pubs, Coffee
Fitness, Stress, Spa
Puja Online



The following changes came in post-
liberalization:
Standard of living
Preference & brand buying
Lifestyle
Retail culture
Mall Culture
Global goods and services
Plastic money
Credit culture
Adventure buying
E-commerce
Designer wear
Peer Group



Effects of Advertising:
Maslows hierarchy of needs
Advertising impacts attitudes, behavior and
perception, needs, lifestyles, societal norms,
learning etc.
Needs- Needs and wants always keeps on
increasing
Learning- Some knowledge and information is what
the person wants and can be used for making a
decision. Information may be positive or negative.
Reduces risk factor by gathering information.
CUE- hint, free demonstration is on.
Response- information is received.
Reinforcement- satisfied by the information
Classical condition- we want only one thing
(involve ourselves in that category), things get
acclimatized and we get habituated.
Habit- what we adopt. Example: Surf, Colgate

Instrumental Condition- coming back to the person
again and again. Example : Jeans- we you are
happy with the product you reward by buying it
again.
Cognitive behavior- learn- brand ambassador,
gather information and based on that information
you take the decision.
Stimulus Discrimination- Example: Vicks, Huggies
etc. Product synonymous with that product
category.
Perception- the manner in which you perceive. 1.
Placement 2. Positioning 3. Differentiation
Societal Norms and Lifestyles: Jain

Advertising has been defined as any paid form for
non-personal presentation and promotion of ideas,
goods or services by an identified sponsor and more
narrowly as any human communication intended to
persuade or influence buyers in their purchase
decisions so as to modify the attitudes &/or behavior
of the receiver of the message.
Advertising lies at the juncture where culture and the
economy interact: its primary purpose is to sell
products and services by stimulating purchasing
behaviour and it does this by using strategies that
rework culture, creating aspirations and new desires
for products. The major environmental factors that
impact advertising are: the economy, demography,
culture, social class, the political and legal system,
technology & the environment
Advertising is itself a cultural product which
increasingly affects social attitudes, defines social
roles, and influences cultural values. Influenced by
these factors advertising evolved and developed a
particular profile in Indian society as a means of
stimulating the consumption of products generated
by new and expanding industries. In recent
decades advertisers from the industrialized nations
have increasingly targeted international markets,
expanding the consumption of foreign products
and bringing about widespread cultural change.
Advertising in the Indian context ushered in several
changes and new strategies used to target the
Indian market. It also marked the entry of foreign
businesses and advertising agencies into India.
Benefits of Advertising: Advertising benefits several
groups of people in society such as:
Manufacturers
Retailers
Consumers
Sales force
Society & Economy
Benefit to Manufacturers:
1. Stimulates Demand stimulates demand by pre-
selling the product/service.
2. Stabilizing Demand - through special discount
package offers during off season & offering other
uses of the product during off season.
3. Increases the width of the market helps reach
national

4. Economy advertising is the cheapest tool of
mass communication so as to reach a number of
consumers quickly. Advertising saves both time &
money
5. Large scale economies Enables to increase the
size of operations & thus benefiting
manufacturers by giving them benefit of large
scale economies.
6. Quick Sales turnover As the sales are quick,
warehousing & storage costs are reduced.
7. Innovation and Research & Development Since
advertising persuades the masses to try a
product/service; it gives manufacturers the
confidence to innovate & develop new products &
services since advertising is an effective mass
persuasion technique.
8. Builds Brand Loyalty & Brand Image
Advertisings greatest advantage is its value
addition that makes people loyal to the brand. By
building a Brand Personality, advertising creates a
brand image that cannot be developed by
competitors & distinguishes the brand from the
competition.
9. Builds Brand Equity A strong brand franchise is
one of the most priceless assets in a companys
balance sheet. Brand equity involves increasing
the value of the brand throughout its life. This
begins with positioning the brand and then
carefully repositioning it over the years.
Repositioning fine tunes a brand to the changing
times & reduces consumer fatigue & boredom.
10. Encourages Competition Advertising makes
room for more players to enter the market &
breaks any monopoly of long standing brands
and thus allows small manufacturers to enter the
market.
11. Builds Corporate Image Institutional advertising
promotes the image of the company as a
marketer, employer & sound financial investment.
12. Improves Dealer support: Manufacturers have to
pay lesser margins to middlemen for well
advertised support. It helps to pull in the
consumers to the retailers & hence retailers are
willing to stock products. Also the various
attractive trade offers benefit the retailers. Thus
selling in & selling out both work well.
13. Crisis management Many companies face a
crisis sometime or the other and if they have not
built a desirable image, they collapse. Advertising
helps companies to tide over the crisis, e.g.
Cadburys & Coca Cola.
14. Defends a companys position Advertising
continuously helps sustain your market share and
defends it from the competition.
Benefits to Retailers:
1. High Sales Turnover Retailers usually have
limited shelf space. They prefer goods & services
that are fast moving and do not occupy their shelf
space for long periods.
2. Fixed Prices Advertised products have fixed
prices and this improves the reputation & service
of retailers to customers.
3. Self-service The spate of departmental stores,
super markets that have come up have good
display of advertised products on their shelf
space which the customers recognize and
connect with the products advertisement. Thus
the retailers effort is minimized.
4. Builds reputation A retailer who stocks well-
known and popular brands is considered more
reputed than the one who does not do so. The
retailer is projecting his/her image as a
prestigious outlet.
5. POP & other display material Manufacturers give
retailers attractive POP & display materials which
improve the appearance of the store.
Benefits to Consumers
1. As a source of information- informs about new
products. Educates the consumers about the
products/services & its uses.
2. Entertainment
3. Consumer choice
4. Ensures fixed price & consistent quality
5. Lowers product prices
6. Increases consumer satisfaction
7. Planning household budgets- discount offers
information, trial through discount coupons
keyed in to the advertisement
8. Increases aspiration levels- makes consumers
desire new products

Benefits to Salespeople-
Advertising informs consumers about products &
services, making it easier for the sales force to get
consumers to listen to them. Thus advertising pre-
sells products & services.
Credibility is established.
Benefits to Society & Economy-
Stimulates the growth in economy- Advertising
stimulates demand, encourages research &
development, fosters a competitive environment.
All this leads to a vibrant economy.
Standard of Living- Advertising increases
aspiration levels which in turn improves the
standard of living. It also encourages production,
increases employment and therefore increases
wages & salaries.

Reflects societal values- Advertising communicates
about varied cultures, attitudes & values through
the advertised messages.
Provides employment- Advertising is a well
developed profession that provides an opportunity
to creative writers, artists, among others.
Supports media- Advertising provides sustenance
to media.
Public Service advertising- PSAs create awareness
in people regarding various social issues and
improves our social life.

Advertising has its effect on the consumer
demand, trade cycles, innovations, quality &
Merchandise variety & media prices:
Advertising & Consumer Demand: There are
several success stories that prove the
effectiveness of advertising in influencing
consumer demand- one of the famous stories
is of the success of the low-priced detergent
Nirma which became popular due to its
extensive advertising campaigns.
Advertising can stimulate demand, it cannot
create it. Advertising works if other socio-
psychological factors are supportive and if
there is a favorable trend for the generic
product.
Advertising & Trade Cycles: Trade cycles are
defined as regular oscillations in the level of
business activity over a period of years.
Recession, depression, recovery, peak/boom
are the stages in a typical business/trade
cycle.
The influence of advertising on the business
cycle has been very debatable. Some critics
argue that advertising is one of the reasons
of a downturn in the business cycle as the
money could be spent in more productive
activity. But others argue that advertising
influences consumers and increases their
confidence. And, in a highly competitive
market advertising helps to increase
consumer demand by influencing consumers.
Advertising & Innovations: Advertising pre-
sells the product. Through advertising
manufacturers reach a large segment of the
market, capture consumers loyalty and gain
returns. This encourages investment in
research and development. Innovation is the
key to success in todays competitive world.
With advertising, product innovations can be
commercially successful.
Advertising, Product Quality & Variety:
Advertising has an immense though indirect

impact on product quality and variety.
To stimulate demand, advertising must
communicate selling points of the product. It
has to convince consumers that the
advertised brand is better than others. The
process of giving a distinctive image to the
brand results in product improvement. Brand
& product proliferation increases variety and
range of products. And, it also offers
consumers a choice to select brands that best
meet their needs and offer greater
satisfaction.
Advertising also ensures consistency in the
quality of branded products.
Effect on the value of products.
Effect on prices.
Effect on competition.
Effect on consumer demand.
Effect on consumer choice.
Effect on the business cycle.

To identify products and their source and to
differentiate them from others.
To communicate information of the product, its
features and its location of sale.
To induce consumers to try new products and to
suggest reuse.
To stimulate the distribution of a product.
To increase product use.
To build value, brand preference and loyalty.
To lower the cost of sales.

Role of Advertising from the following points are
discussed below:
1) Consumers point of view
2) Marketers point of view
3) Medias point of view
4) Social point of view
Consumers perspective
a) Advertising as a Communication medium and helps create
awareness.
b) Advertising acts as a guidance to tell consumers how to use
the product.
c) Advertising persuades consumers to buy the product.

d) Advertising motivates a consumer with its benefits.
E.g. fairness, discounts etc.
e) Advertising addresses the welfare of the consumer
by talking of the overall prosperity.
Some ads have all of the above points e.g. ICICI,
Harpic, Vanish.
Marketers Perspective
a) Gain commercially by using free gift strategies etc.
b) Overcome competition by acquiring new
customers as well as retaining old customers.
c) Brand Building to create preference for the brand.
d) Institutional Building by indulging in corporate
social responsibility such as P&Gs Re.1 for
educating a child, Surf Excel scholarships etc.


Medias Perspective
a) Sustenance- without ads ,there is no media.
b) Creativity- enhances the creativity of each media.
c) Revenue- provides money to the media.
Social Perspective
a) Lifestyle changes helps build attitude.
b) Elevates the standard of living
c) Consumer welfare (state of mind)- when you crave
for something, yet cant buy it.
d) Consumer choice
e) Price reduction
f) Employer- through media jobs, allied services,
agencies.

Poverty: Poverty is both relative & absolute.
Huge in size. Because of advertising, there is
sale and because of sale there is production
and to produce you need to employ.
Illiteracy/Literacy: Ads motivate people to
study.
Employment: Jobs such as media jobs like
photography, production etc.
Child labor: A lot of countries support child
labor while some do not.
The other issues are earnings, savings,
investments.

Non-inclusive growth: Rural areas are not
growing. Agriculture growth rate is less than
4%. ICICI opened ATMs in rural areas.
The current economic crisis faced in our
country is one of non-inclusive growth. This
refers to the growth and income disparity
between urban and rural masses.
The urban areas enjoy high incomes due to the
boost in the service sector.
In the 90s we were known as an agriculture
economy country. Now India is known as
Service economy. At present the overall
economic growth is predicted at the rate of
9.5% and this likely to shoot up in the near
future but the growth in the agricultural sector is less
than 4%. Today service sector is known as the
emerging market.
Such in the economic growth process, a disparity
results in non inclusive growth, wherein, the rural
population is not included. The govt. has introduced
many schemes such as rural employment guarantee
schemes to ensure growth in rural India. Special effort
is being undertaken by NGOs and private sector
banks to promote awareness among the rural masses.
Such measures would contribute towards the
inclusion of the rural population in the economic
growth process.
BIMARU- Bihar, Madhya Pradesh, Rajasthan, Uttar
Pradesh- Robbery, theft, pilfer- land has been taken
away or stolen & people from those states move to
other states.



Advertising & Media Prices: The price of
media and its quality are largely influenced by
advertising. We note the number of
advertisers that dominate popular print,
broadcast and other media.