Socio Economic

Development

&

International Trade

V Leeladhar

MBF

Economic Development

Companies Act, 2013 Changes

Meaning Socio – Eco Development

Foreign Investments and Socio – Eco Growth

CSR in India

CSR by International Financial Market

Agenda

Economic Development

Companies Act

Economic Growth Indicators

0

20

40

60

80

100

Rural Urban Rural Urban

Drinking Water Source Sanitation Facility

Pe

rcent

Proportion of Population Using an Improved Drinking Water Source and Sanitation Facility, 2012

0

10

20

30

40

50

60

70

80

Rural Urban Rural Urban

National Poverty, 2012 $2-a-day at 2005 PPP$,2010

Pe

rcent

Proportion of Population Living Below the National Poverty Line and $2-a-day at 2005 PPP$, Latest Years

Economic Growth 1990 or Nearest Year 2012 or Latest Year

Annualized growth rate of GDP per capita at PPP (constant 2011 PPP$) 4.1 (92–97) 5.9 (07–12)

GDP per person engaged at constant 1990 PPP$ 3,531 9,200

School life expectancy (primary to tertiary) years 8.5 (2000) 11.7 (2011)

Pupil–teacher ratio (primary) 35 (1999) 35 (2011)

Proportion of population using an improved sanitation facility percent 18 36

Socio – Economical development - improvement of people’s education, incomes, skills development and employment. Process of economic and social transformation based on cultural & environmental factors.

Companies Act – 2013 - CSR

Sec. 135 of Companies Act

• President Assent on 29.08.13

• Applies from FY 14-15

2% Profits

• Avg. of last 3 years profits

• Profit –(PBT)

• Foreign branches excluded

Process

• List of activities –Schedule VII

• Excludes

• Outside India

• Marathons/TV programmes excluded

Commitment by Business to- Behave ethically- Contribute economic development- Improving Quality of Life

CSR areas:

Board Role

To Create CSR Committee

Approve CSR Policy

Ensure CSR Implementation

CSR Committee

3 or More Directors with 1 Ind. Director

Formulate, Recommend & Monitor CSR Policy

Recommend activities & exp. to incur

Net Worth > Rs. 500 Crores

Turnover > Rs. 1000 Crores

Net Profit > Rs. 5 Crores

Responsibilities casted by Companies ACT

Responsibilities casted by Companies ACT

CSR – Global Level

CSR – Gross Responsibility Initiative

When funds flow across national boundaries and the transfer is between partiesresiding in different countries, there comes into existence the Internationalfinancial markets

0

2

4

6

8

10

12

14

16

1817.5

10.06

7.05

5.785.37

4.774.28 3.97

3.5 3.23

SECTOR-WISE FDI - EquityApr 2000 - Dec, 2014

0

5

10

15

20

25

30

35

40

35.38

12.47

9.137.42

5.79 5.62

3.32 3.051.87 1.23

COUNTRY-WISE FDI EQUITYApr 2000 - Dec, 2014

Effects of Foreign Investment & Socio Economic growth

Drawbacks

Decline of local Manufacture

Pollution heavens

Impact on Economic integrity

Impact of sovereignty

+ Aspects

Employment, P Power, GDP

Industry Growth

Open Market

Infrastructure Development

CSR – DIVERGENCY

CSR – DIVERGENCY