FROM THE DESK OF THE EDITOR 1stJuly 2017, adds on to yet another remarkable day in the history of India after 9th November 2016. This day embarks the implication of Goods and Services Tax (GST) uniformly throughout India Against the prevailing current system where tax is levied at each stage separately by the Union government and the States at varying rates, on the full value of the goods. The Goods and Services Tax (GST) a historic tax reform is meant to be a unified indirect tax across the country on products and services under which, single tax will be levied only. It is a single tax (collected at multiple points) with a full set-off for taxes paid earlier in the value chain. The GST was introduced with the idea of reducing red-tape, check leakages and paving the way for a transparent indirect tax regime. Broadly, services are expected to become costlier under the GST regime, as the expected GST rate would be higher than the existing service tax rate of 15%. Clearly, the GST is expected to bring down prices of indigenously manufactured goods on account of current effective indirect taxes (central excise @ 12.5%, State VAT @ 5%-15% etc.) being higher as compared to recommended lower GST rate @ 5% and standard GST rates @ 12% and 18%. Thus, price of certain category of goods may come down depending on the effective rate of indirect taxes being paid at present and the tax brackets under which goods are classified under the GST Whether the GST will be beneficial to the salaried class, common men, poor, only time will decide in future. Prices of essential commodities, vegetables and fruits are likely to change slightly under the GST regime and services such as eating at restaurants will get more expensive. What will likely get cheaper are items such as clothes, as cascading taxes at various stages of manufacturing would no longer apply to them. Collection of larger tax base through GST should boost up the confidence of the government for allocating funds for social and poverty alleviation,Infrastructural development programmes. Though GST implication may strike high inflation but in all will contribute to gradual increasing the overall GDP. The biggest tax reform since independence - GST - will pave the way for realization of the goal of One Nation - One Tax - One Market. GST will benefit all the stakeholders namely industry, government and consumer. It will lower the cost of goods and services, give a boost to the economy and make the products and services globally competitive, giving a major boost to ‘Make in India’ initiative. The present issue of SAARANSH is more towards the new models and theories of modern Indian economy & socio culture. We hope it will enlighten the management practitioners to better understand the modern India & utilize their current assets effectively. Moreover, I am thankful to all the research scholars & other management practitioners to share their valuable suggestion & guideline to improve the impact of SAARANSH. I extend my heartiest gratitude for valuable support/ suggestions and expecting your patronage in future. –Dr Arvind Singh EXPERT’S-COMMENTS for “SAARANSH” RKG Journal of Management Prof. Jagdish Prakash, Ex Vice Chancellor, University of Allahabad SAARANSH is a very standard journal in the area of management which includes empirical articles bynational and international authors’ Prof. R. C. Saraswat, Vice Chancellor, Dr. Ram ManoharLohiyaAvadh University, Faizabad ‘I am pretty sure that the professionals and faculty of various colleges will contribute in the forthcoming issue of the journal.’ Prof. Vinay Kumar Pathak, Vice Chancellor, Dr APJ Abdul Kalam University, Lucknow “The efforts of the editorial the board are appreciable keeping in view the keen interest being taken in the journal both by academician and executives throughout the country.” Prof. R. L. Tamboli, Professor & Head, Deptt of ABST,ML Sukhadia University, Udaipur ‘The journal will be getting commanding heights in India, and thereafter abroad, positively.’ Dr. A. K. Bajpai, Professor, Mechanical Engineering Dept, M.M.M. Engineering College, Gorakhpur The outcome of this Journal from your Institution helps in development better academic environment in your College. The Engineering & Management community; Business and Industry and Society all are going to be benefited by your efforts.’ Prof. Prithul Chakraborti, Head, CMS, JIS College of Engineering, Kalyan, Nadia ‘I appreciate the quality of the contents of the journal.’ Prof. V. Vijay Durga Prasad, Professor and Head, MBA, PS College of Engineering & Technology, Vijayawada ‘The significant point which I liked is the feedback form about the articles published in the issue.’ Prof. (Dr). G. K. Upadhyay, Director, Sri Sri Institute of Technology & Management, Kasganj ‘It proves to be a result of great hard work & creativity’ Dr R. K. Singh, Faculty, MONIRBA, University of Allahabad, Allahabad ‘The journal is overall an excellent attempt’ CONTENTS ● EXCHANGE RATE DETERMINANTS IN INDIA: AN ANALYSIS 1 Dr. Amit Kumar Singh, Ms. Annu Aggarwal ● MICROFINANCE IN INDIA – GROWTH AND PRESENT STATUS 8 Ms. Chetna Singh, Prof. Raj Kumar ● TEACHER-STUDENT RELATIONSHIP QUALITY IN HIGHER EDUCATION: ROLE OF FORMAL MENTORING 21 Dr. Jeevan Jyoti, Ms. Poonam Sharma ● FACTORS INFLUENCING SOCIALLY RESPONSIBLE CONSUMPTION BEHAVIOUR IN DELHI & NCR 28 Dr. Shallu Singh, Dr Anjali Sharma ● ORGANIZATIONAL CITIZENSHIP BEHAVIOUR OF ACADEMIC AND NON-ACADEMIC WORK FORCE IN INSTITUTIONS OF HIGHER EDUCATION: AN EMPIRICAL STUDY 36 Dr. Tulika Singh, Mr. Vivek Mishra ● A STUDY ON IMPACT OF SPIRITUAL INTELLIGENCE ON JOB PERFORMANCE OF FACULTIES IN BSACET, MATHURA 48 Ms. Akanksha Sharma, Ms. Shivani Shrivastava, Mr. Gaurav Agrawal ● AVAILABILITY OF FINANCIAL INCLUSION IN INDIA: AN INTERSTATE ANALYSIS 58 Mr. Kajole Nanda ● FINANCIAL INCLUSION THROUGH PMJDY 68 Dr. Vinay K. Srivastava, Dr. Bhagirath Singh ● WOMEN ENTREPRENEURSHIP AND INNOVATION IN TODAY’S SCENARIO 74 Dr. Ranchay Bhateja, Dr. Amit Tyagi, Dr. Mani Tyagi ● INDIRECT TAXATION SYSTEM IN INDIA – WHAT NEXT? WITH REFERENCE TO GST 79 Mr. Nitin Saxena Exchange Rate Determinants in India: An Analysis Dr. Amit Kumar Singh * Ms. Annu Aggarwal** ABSTRACT Foreign Exchange rate is one of the most important means through which a country’s relative level of economic health is determined. In this paper we try to analysis provide evidence on the determinants of nominal exchange rate. Since we have considered only four macro-economic variables namely GDP, Interest rate, Money supply and Inflation. There could be other factors like government controls, expectation of future exchange rate, movement in current account etc. influencing the exchange rate. We found significant empirical evidence of the antecedents of exchange rate. The purchasing power parity theory as well as macroeconomic theory holds good. Also there is statistically significant correlation between the nominal exchange rate and all the macro economic variables. Keywords: Exchange Rate,Fixed Exchange Rate System, nominal exchange rate, Multivariate Regression Analysis. 1.0 INTRODUCTION decreases and the interest rate decreases. Foreign Exchange rate is one of the most Thus increasing money supply decreases important means through which a country’s exchange rates. relative level of economic health is determined. ● Inflation Rates- Changes in market inflation The exchange rate is defined as “the rate at which cause changes in currency exchange rates. A one country’s currency may be converted into country with a lower inflation rate than another’s another.” It may fluctuate daily with the changing will see an appreciation in the value of its market forces of supply and demand of currencies currency. from one country to another. ● Government Policies- Some of the Determinants of Exchange Rate government policies are specifically intended Determination– The demand for a country’s to affect exchange rate. The government role currency depends upon the following factors:- differs depending upon the exchange rate ● GDP- Country’s economic growth and financial system. Like- stability impact its exchange rates. If the Fixed Exchange Rate System- Here, the country has a strong, growing economy, then exchange rates are either held constant or investors will buy its goods and services, and allowed to fluctuate only within narrow need more of its currency to do so. boundaries. Thus, Central bank intervention ● Interest Rate- Changes in interest rate affect is required to maintain a currency’s value currency value and dollar exchange rate. within narrow boundaries. The central bank Interest rate paid by a country’s central bank will devalue or revalue (downward or upward is a big factor. The higher interest rate makes adjustment) its currency against other that currency more valuable. Investors will currencies. It is different from depreciation exchange their currency for the higher-paying (or appreciation) wherein currency’s value one. They then save it in that country’s bank to is allowed to fluctuate in response to market receive the higher interest rate. conditions. ● Money Supply- By macro-economic theory, Free Floating Exchange Rate System- we can say that as money supply in the Here, exchange rates are determined by economy increases, the value of currency market forces with no government * Associate Professor, Department of Commerce, Delhi School of Economics, University of Delhi, e-mail: [email protected] ** Ph. D Research Scholar, Department of Commerce, Delhi School of Economics, University of